I used a Xapo EUR card for two purchases via PayPal. One was nominated in USD, the other was nominated in EUR.

To my surprise both payments were subtracted from the card in Gibraltar pound, so the conversion routes were USD -> GIP -> EUR and EUR -> GIP -> EUR in the second purchase, which introduced seemingly unnecessary fees.

It's unclear to me why this happened and if there is anything I can do to avoid it in the future. Right now my suspicion is that the Xapo debit card somehow indicates GIP is the target currency, which is then picked up by PayPal, but this is just a guess based on the fact that my credit card, which was issued where I live, works just fine with EUR via PP without odd conversions.