Whenever I pay with paypal overseas I usually use my Citibank card which has 0 conversion fees. I would normally checkout with the option 'card issuer's exchange rate', this week the option doesn't get saved when you click it for me. Meaning you would check the box only to see after that you have been billed with Paypal's terrible conversion instead deceptivly
I found a thread of people complaining about the same issue,
Seems like an easy way to make bank for shady Paypal
PayPal's always been like this.