When I recently withdrew some sum to my bank account from my PayPal account, I observed a covert tactic used by these people. Their exchange rate was over Rs. 2 less than what was actually prevailing. It may look small though but if you are withdrawing huge sums, it'll burn a significant hole in your pocket. When I contacted them regarding this, they had no answer. I'm sure many ignore this aspect and PayPal is quietly ripping us off. I have stopped using PayPal now.