Once upon a time they used to show the price in INR on the page which you were shown and asked to authorize the transaction.
They also showed the conversion rate that they were using.
It was shown as 1 INR = 0.xxxxxx USD
^^ Just made a purchase on ebay.com yesterday via credit card using Paypal gateway and it does show the conversion value at the end. In fact, my credit card was also billed in INR rather than $ as is the usual case for me with international transactions.
well, we often forget that currency exchange rates fluctuate a lot (even during a single day) !
And conversion rate is low when a Bank / PayPal converts US$ to Indian rupee (to credit a/c)
it is high when we pay for something - converting Rupees to US$