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FunAdvice uses United States Dollars when giving a payment for points. As far as I know, we do not offer any exchange. Since you're from the UK you'd be needing a PayPal to cash the points, so I'd have to say it depends on what their exchange rate is set at on their site.
That's correct - the cash goes into your PayPal account in US currency and PayPal does the conversion depending on the current rate.
We don't use any exchange rates here for points, you exchange points for cash gifts.