diff --git a/aqt/editor.py b/aqt/editor.py
index ca92e6694..408aa46e0 100644
--- a/aqt/editor.py
+++ b/aqt/editor.py
@@ -1075,14 +1075,19 @@ class EditorWebView(AnkiWebView):
 
     def _processImage(self, mime):
         im = QImage(mime.imageData())
-        name = namedtmp("paste-%d.png" % im.cacheKey())
+        name = namedtmp("paste-%d" % im.cacheKey())
         uname = unicode(name, sys.getfilesystemencoding())
-        if im.hasAlphaChannel():
-            im.save(uname)
+        if self.editor.mw.pm.profile.get("pastePNG", False):
+            ext = ".png"
+            im.save(uname+ext, None, 50)
         else:
-            im.save(uname, None, 95)
+            ext = ".jpg"
+            im.save(uname+ext, None, 80)
+        # invalid image?
+        if not os.path.exists(uname+ext):
+            return QMimeData()
         mime = QMimeData()
-        mime.setHtml(self.editor._addMedia(uname))
+        mime.setHtml(self.editor._addMedia(uname+ext))
         return mime
 
     def _retrieveURL(self, url):
diff --git a/aqt/preferences.py b/aqt/preferences.py
index 76a871c94..795bc3ffa 100644
--- a/aqt/preferences.py
+++ b/aqt/preferences.py
@@ -128,12 +128,14 @@ Not currently enabled; click the sync button in the main window to enable."""))
 
     def setupOptions(self):
         self.form.stripHTML.setChecked(self.prof['stripHTML'])
+        self.form.pastePNG.setChecked(self.prof.get("pastePNG", False))
         self.connect(
             self.form.profilePass, SIGNAL("clicked()"),
             self.onProfilePass)
 
     def updateOptions(self):
         self.prof['stripHTML'] = self.form.stripHTML.isChecked()
+        self.prof['pastePNG'] = self.form.pastePNG.isChecked()
 
     def onProfilePass(self):
         pw, ret = getText(_("""\
diff --git a/aqt/profiles.py b/aqt/profiles.py
index a0ad36b39..cdbd6eea7 100644
--- a/aqt/profiles.py
+++ b/aqt/profiles.py
@@ -42,6 +42,7 @@ profileConf = dict(
     editFontFamily=fontForPlatform(),
     editFontSize=12,
     editLineSize=20,
+    pastePNG=False,
     # not exposed in gui
     deleteMedia=False,
     preserveKeyboard=True,
diff --git a/designer/preferences.ui b/designer/preferences.ui
index 753bb25b9..0f1ead375 100644
--- a/designer/preferences.ui
+++ b/designer/preferences.ui
@@ -44,6 +44,13 @@
          </property>
         </widget>
        </item>
+       <item>
+        <widget class="QCheckBox" name="useCurrent">
+         <property name="text">
+          <string>Use the current deck as the default when adding notes</string>
+         </property>
+        </widget>
+       </item>
        <item>
         <widget class="QCheckBox" name="stripHTML">
          <property name="text">
@@ -52,9 +59,9 @@
         </widget>
        </item>
        <item>
-        <widget class="QCheckBox" name="useCurrent">
+        <widget class="QCheckBox" name="pastePNG">
          <property name="text">
-          <string>Use the current deck as the default when adding notes</string>
+          <string>Paste clipboard images as PNG</string>
          </property>
         </widget>
        </item>
@@ -464,8 +471,9 @@
  <tabstops>
   <tabstop>showEstimates</tabstop>
   <tabstop>showProgress</tabstop>
-  <tabstop>stripHTML</tabstop>
   <tabstop>useCurrent</tabstop>
+  <tabstop>stripHTML</tabstop>
+  <tabstop>pastePNG</tabstop>
   <tabstop>newSpread</tabstop>
   <tabstop>dayOffset</tabstop>
   <tabstop>lrnCutoff</tabstop>