I live very close to the border and PayPal's Canuck gouging was mild compared to what some businesses were doing. When we were close to a buck ten they were still only giving Canadians eighty cents on the dollar. That's just wrong. The yo yo dollars were bad for anyone trying to do business on both sides of the border. My company gave up trying to make an up to date price book because it was out of date before the printer ever got it.

Great question. You're right, it doesn't seem right or fair at all. Is there something in Paypal's fine print that could explain?
As far as the exchange rate, go Canada! I was born in Nova Scotia and I remember how terrible the Canadian dollar used to be in the US. Now I live in western NY and we get all the Canadians coming over here to spend their money.

I completely agree, seems they balanced it a bit better after the USD gained some ground or CAN Dollar lost some ground. Either way, I think I'm jumping into this topic way after the fact.

I don't mind the cut they take because it isn't by much and I always use US currency anyways since that is the currency most people use.

And also, I don't mind much about the money they take because they have to pay their hosting, and features somehow.