Was doing some research on the net and most of them told me not to use paypal exchange rate as it is higher so I decided to go with bank exchange rate instead. Upon paying for the goods from ebay, I realized bank exchange rate was significantly higher and I was shocked. Anyway, anyone has experience to share whether to use paypal or bank exchange rate? Mine is CIMB debit card btw.

Correct, but there is only one downside. In case of refund, you may lose some money because bank's exchange rate is not fixed, as opposed to PayPal.

Example, you paid USD100. Say the transaction was cancelled, and seller refund USD100. If u used PayPal's rate at the first place you will get the exact amount u paid. But if chose bank's rate, you might receive less as it follow the bank's rate of the day.

Happened to me once, quite a lot of difference due to weakeaned MYR.

Hmmm I am not sure how did they count. Bought an 18usd goods from ebay. Paypal charges me rm75. something after conversion. Using Public Bank however causes me an extra rm3 which was around rm
78.something. I always thought bank rates are better?

Hmm, that's strange. Do you mind sharing what bank you are using? Cards type do not influence it right? Still wondering where does the extra cost comes from.