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Are the prices in American $ or are they converted to local currency (Australian)based on location?
American dollars. When you go to pay, PayPal will convert to au
US$, when you go to pay; I'd avoid using paypal as their exchange rate is terrible; at least for me (in NZ) I get a lot better rate from my bank's debit card. I setup an extra one for internet transactions that doesn't have a large amount of cash in it - just to be on the safe side... YMMV