The exact amount you spend when receiving or sending money on PayPal depends on a number of different factors. There are certain PayPal payout fees to consider when you’re withdrawing money to a bank account. You may also need to pay extra fees when completing transactions in different currencies. These account for the cost of PayPal managing the transfer.
While there are no fees in place to actually have a PayPal account for most people, it’s worth making sure you’re familiar with all the fees you might encounter.
The Fees to Use PayPal for Domestic Payments
The payment fee PayPal charges for each transaction will depend on a number of factors, including whether the transaction is international or domestic. To receive a domestic payment, a business will usually pay 1.2% plus a fixed fee for a card-funded transaction.
QR code transactions have either a 1.5% charge and a fixed fee, or a 2% charge or a fixed fee depending on how much money is sent. All other commercial transactions are charged at an average rate of 2.9% plus a fixed fee.
For domestic personal transactions (with no link to a business), there is no fee. You can remove the PayPal G&S fee by choosing “friends and family” in the payment options.
PayPal International Transfer Fees
The PayPal International fee also differs depending on if you’re sending or receiving money to a personal or business account. For personal transactions, the cost is 5% of the transaction amount for sending money, with a minimum fee of $0.99 and a maximum fee of $2.99. However, there is no fee to receive personal transactions in the correct currency.
PayPal selling fees for businesses are slightly different. An international transaction is charged at a rate of 1.29% for EEA countries, and 1.99% for all other markets. There’s also a fixed fee for all commercial transactions based on the currency received.
International donation fees are charged at an average of 1.99% for all international markets, or 1.29% for EEA customers sending money to an EEA or UK account.
PayPal Business Account Costs
The standard PayPal for Business fees vary depending on where your account is located, and what kind of currencies you’re receiving. The basic PayPal payment processing fee for purchase within the US is 2.9% plus 30 cents for each transaction. However, if the sale occurs in the physical location of a store, the fee reduces to 2.7% plus 30 cents.
For a US-based account to receive an international payment, the charge increases to 4.4% plus 30 cents online, or 4.2% plus 30 cents for an in-person transaction.
There are also other PayPal transaction fees for a business to consider if they’re selling to international customers. For instance, if you need to convert a currency into your preferred currency, PayPal will charge 2.5% on top of your transaction fees.
If you receive donations as a registered charity on PayPal, there’s a fixed fee of 2.2% plus 30 cents for every transaction. PayPal can offer lower monthly fees for registered charities in some cases.
If you’re using a PayPal card reader for your business, the PayPal credit card processing fee is:
2.7% for a US card swipe
3.5% plus 15 cents for a manual transaction
2.9% plus 30 cents for an invoice
1.5% for cross-border transfers
Other Factors Contributing to the Cost of a PayPal Transactions
There are a number of other factors which can contribute to the Payment fees PayPal charges. For instance, if PayPal determines your account is likely to receive a large number of claims, or chargebacks, they may increase your fee to up to 5% per transaction.
Each account verification request also has a fee of 20 cents, and there are certain monthly fees included for using Website Payments Pro and Virtual Terminal.
In the UK, these fees start at £20 per month.
PayPal purchase fees are also influenced by how much money you try to send at once. For instance, for large-scale bulk payments, Domestic and International charges start at 2% of the total amount.
Understanding PayPal Fees for 2024
PayPal business costs and charges for personal transactions can vary depending on a number of factors, including what kind of payment method you’re using, and where you’re located. Fortunately, PayPal does offer a calculator for merchants and users to help them understand how much they’re likely to pay on each purchase.
