Complete Guide To PayPal Fees And Charges

Table of Contents

• Does PayPal Charge Fees?
• What Are PayPal's Fees For Sending Money?
• What Are PayPal's Fees For Domestic Money Transfers?
• What Are PayPal's Fees For International Money Transfers?
• Is PayPal A Good Choice To Send Money Internationally? A Case Study
• What Are PayPal's Fees For Receiving Money?
• What Are PayPal's Fees For Withdrawing Money?
• What Are PayPal's Withdrawal Limits?
• What Are PayPal's Fees For Buying Or Selling Cryptocurrencies?
• What Are PayPal's Fees For Sending And Receiving Donations?
• What Are PayPal's Fees For Receiving Domestic Donations?
• What Are PayPal's Fees For Receiving International Donations?
• What Are PayPal's Fees For Sending Domestic Donations?
• What Are PayPal's Fees For Sending International Donations?
• PayPal Personal Account Fees And Charges Summary
• What Are Fees And Charges For PayPal Business Account?
• What Are PayPal's Fees For Receiving Domestic Business Payments?
• What Are PayPal's Fees For Receiving International Business Payments?
• What Are PayPal's Fees For Sending And Receiving Donations?
• What Are PayPal's Fees For Online Card Payment Services?
• What Are PayPal's Fees For Payflow Pro (Payment Gateway)?
• What Are PayPal's Fees For Receiving Micropayments?
• What Are PayPal's Fees For Chargebacks?
• What Are PayPal's Fees For Disputes?
• What Are PayPal's Fees For Withdrawals From Business Accounts?
• What Are PayPal's Withdrawal Limits For Business Accounts?
• PayPal Business Account Fees And Charges Summary
• How To Avoid PayPal Fees And Charges?
• Choose The Right Payment Method
• Send And Receive Payments In Local Currency
• Use PayPal Personal Account For Personal Transactions
• Negotiate Prices With Business Clients
• Compare Fees With Other Payment Services
• Encourage Customers To Pay With QR Code
• Conclusion: PayPal Is Convenient But Be Careful Of Fees

PayPal is a widely used digital payment platform that allows sending and receiving money online. You can use PayPal as an individual as well as a business owner.

While PayPal offers a convenient way to transfer funds electronically, there are fees and charges associated with certain transactions. Understanding the various fees and charges that PayPal imposes can help you make informed decisions when using the platform.

In this guide, we provide a comprehensive overview of the fees and charges associated with using PayPal for sending and receiving money, as well as for business transactions and currency conversion.

We will also provide tips for avoiding unnecessary fees and help you choose the right PayPal services and fees for your needs to minimize the impact of fees and charges.

Does PayPal Charge Fees?

Many PayPal services are free of cost while many others incur a fee¹.

For example, making purchases using PayPal online or in stores is free as long as you make domestic purchases that do not involve currency conversion. Similarly, sending money domestically using your PayPal balance or bank account does not incur any fees or charges.

On the other hand, sending money to others with PayPal using a credit card involves a fee of 2.90% plus a fixed fee. Similarly, if you send money internationally with PayPal, the fee is 5% plus a fixed fee that ranges between USD 0.99 to USD 4.99.

Many PayPal services are free while numerous others incur fees and charges. Awareness of PayPal fees will help you maximize your money by minimizing or altogether avoiding PayPal charges.

In the rest of this article, we will cover PayPal fees and charges for various services in detail so you know what you are up against when you used paid services. This is help you avoid fees where possible, or at least plan for the impact of fees when using PayPal.

If you do not have a PayPal account yet, it is quick and easy to create one.

What Are PayPal's Fees For Sending Money?

When you send money to someone using PayPal, you may have to pay a fee. Whether a fee is charged depends on the payment method you use for your transaction as well as if the recipient is domestic or international.

Below, we cover fees associated for sending money for both local and international PayPal transfers.

What Are PayPal's Fees For Domestic Money Transfers?

Here are the fees for sending money domestically using PayPal depending on how you fund your transfer:

• PayPal balance or a bank account: Free
• Credit Card: 2.90% plus a fixed fee that varies by country (for the United States, the fixed fee is USD 0.30)
• Amex SendAccount: Free
• Visa transaction to Venmo Visa enabled digital wallets: Free
• Visa transaction to non-Venmo Visa enabled digital wallets: 1.75% subject to minimum fee of USD 0.25 and maximum of USD 25

If you send money to someone using PayPal, choose your PayPal balance or a bank account to fund your transfer to avoid paying fees. Avoid using a credit card as the fees are pretty high.

What Are PayPal's Fees For International Money Transfers?

If you send money internationally using PayPal, you will have to pay the domestic transaction fee plus an international transaction percentage-based fee.

The international transaction fee also depends on the funding method and is as below:

• PayPal balance or a bank account: 5% subject to a minimum fee of USD 0.99 and a maximum fee of USD 4.99
• Credit Card: 5% subject to a minimum fee of USD 0.99 and a maximum fee of USD 4.99
• Amex Send Account: 5% subject to a minimum fee of USD 0.99 and a maximum fee of USD 4.99

PayPal international money transfers cost an additional 5% on top of the fees charged for domestic transactions.

Is PayPal A Good Choice To Send Money Internationally? A Case Study

The above sections help us see associated charges when it comes to send money overseas with PayPal. Let us embark on a small case study to understand the impact of fees you will have to pay if you make international money transfers with PayPal.

If you send USD 1000 to someone in the UK with PayPal, as an example, you will have to pay the below fees:

• For transfers done via your PayPal balance or bank account: USD 4.99 (USD - domestic fee + USD 4.99 international fee)
• For transfers done via your credit card: USD 34.29 (USD 2.9% + USD 0.30 domestic fee plus USD 4.99 international fee)

As you can see, there is a decent amount of your hard-earned money that will get spent on fees if you send money overseas with PayPal. The impact is much higher if you choose to fund your transfer with a credit card.

On top of this, PayPal will give you a much inferior exchange rate with up to 4% FX markup. This will make a big dent in the amount of money that your overseas recipient will get.

Sending money internationally with PayPal comes with high fees and low exchange rates. This makes PayPal an expensive way to send money overseas.

A better option is to rely on international money transfer companies that provide much better exchange rates and charge very low, often 0, fees.

To summarize, it is important to review the fees associated with PayPal money transfers and choose the payment method that best suits your needs. If possible, try to send money using your PayPal balance or bank account to avoid high credit card fees.

What Are PayPal's Fees For Receiving Money?

If you are receiving money from someone via PayPal, the good news is that there is no percentage-based fee for the amount you receive as long as there is no currency conversion involved. That said, you still need to pay a small fixed fee per transaction.

For example, the fixed fee is USD 0.30 for funds received in the US, GBP 0.20 for the UK, MXN 4 Mexico and so on.

Receiving money with PayPal is fairly inexpensive as you have to pay a small fixed fee per money transfer.

Note that if currency conversion is involved, the sender still has to pay 5% fee as discussed in the prior section as well as incur a 4% FX markup on currency exchange.

It is also important to note that the above applies if you are receiving payment from a friend or family member. However, if you are receiving payment for goods or services, additional transaction fees will apply.

To avoid unnecessary fees when receiving money with PayPal, try to receive payment in your default currency to avoid currency conversion fees.

What Are PayPal's Fees For Withdrawing Money?

You can withdraw money out of your PayPal account anytime using various delivery options. Withdrawing money from PayPal can attract fees depending on how you choose to get the funds out.

Below are PayPal's withdrawal fees depending on the payout mechanism you choose:

• Linked bank account: Standard transfers are free, whilst Instant transfers are charged at 1.75% of the withdrawal amount. Instant transfer fees vary between minimum USD 0.25 and maximum USD 25.
• Linked debit card: 0 fee for Standard withdrawals and 1.75% for Instant transfers (subject to minimum USD 0.25 and maximum USD 25).
• Paper check: USD 1.50 per check.

Standard PayPal withdrawals are free for linked bank accounts and debit cards while Instant transfers cost 1.75%.

Note that there are also limits to how much you can withdraw from PayPal; we discuss these below.

What Are PayPal's Withdrawal Limits?

There are limits to how much money you can withdraw from your PayPal account.

For withdrawals to linked bank accounts, you can pull out up to USD 25,000 per transaction from your PayPal account.

For withdrawals from PayPal to cards, the limits are as below:

• USD 5,000 per transaction
• USD 5,000 per day
• USD 5,000 per week
• USD 15,000 per month

What Are PayPal's Fees For Buying Or Selling Cryptocurrencies?

You can buy, sell and hold cryptocurrencies using your PayPal account.

Cryptocurrency purchases or sales done using PayPal incur fees as listed in the table below.

Note that PayPal does not charge any fee for holding cryptocurrency balances in your account.

PayPal charges fees for buying and selling cryptocurrency depending on the transaction amount. There is no fee for holding cryptocurrencies in your account.

What Are PayPal's Fees For Sending And Receiving Donations?

When you donate with PayPal, or receive a donation in your PayPal account, you may incur fees. Below, we discuss fees and charges related to donations sent and received via PayPal.

What Are PayPal's Fees For Receiving Domestic Donations?

Below are PayPal's fees for donations received domestically without the need for currency conversion:

• Donate Button: 2.89% + fixed fee
• PayPal Fundraisers (Listed Fundraisers): 2.99%
• PayPal Fundraisers (Unlisted Fundraisers): Free
• PayPal Checkout for Donations: 2.89% + fixed fee

The fixed fee varies by country. For the US, it is USD 0.49 while for the UK, it is GBP 0.39.

What Are PayPal's Fees For Receiving International Donations?

For international donations received into a PayPal account, there is an additional international percentage-based fee of 1.50% in addition to the domestic donation fees listed above.

What Are PayPal's Fees For Sending Domestic Donations?

When it comes to donating money from your PayPal account, the following fees will apply:

• PayPal Fundraisers (Unlisted Fundraisers): Same as sending money domestically
• All Other Donations: Free

What Are PayPal's Fees For Sending International Donations?

If you wish to make an international donation from your PayPal account, you will need to pay an additional fee of 1.50% in addition to the domestic donation fees listed above.

PayPal is an easy and convenient way to send and receive donations as long as you are aware of associated fees and charges.

PayPal Personal Account Fees And Charges Summary

We have presented detailed information about PayPal's fees and charges for personal accounts in the sections above.

Below, we provide a summary of PayPal's fees and charges in an easy to consume tabular format. You can utilize the below information as a handy guide for quickly checking various fees you may incur when using PayPal.

Note that the below table does not have comprehensive information and is supposed to be a quick reference only. For a complete and detailed overview of PayPal's fees¹ for personal accounts, check out their site or app.

What Are Fees And Charges For PayPal Business Account?

If you are using PayPal for business purposes, there are many types of fees and charges² that come into play. Let us deep dive into PayPal business fees in the sections below.

What Are PayPal's Fees For Receiving Domestic Business Payments?

If you receive payments for sale of goods or services into your PayPal business account, you will need to pay fees based on the payment method used by the buyer to pay for the transaction.

Below are PayPal's fees for receiving business transactions domestically:

• Alternative Payment Method (APM): 2.59% + fixed fee
• Alternative Payment Method (APM) through Invoicing: 2.99% + fixed fee
• PayPal Checkout: 3.49% + fixed fee
• PayPal Guest Checkout: 3.49% + fixed fee
• QR code Transactions: 2.29% + fixed fee
• QR code Transactions through third party integrator: 2.29% + 0.09 USD
• Pay with Venmo: 3.49% + fixed fee
• Send/Receive Money for Goods and Services: 2.99%
• Standard Credit and Debit Card Payments: 2.99% + fixed fee
• All Other Commercial Transactions: 3.49% + fixed fee

The fixed fee component mentioned above varies by country as well as transaction type.

For example, for QR Code transactions, the fixed fee is USD 0.09 for the United States while it is GBP 0.07 for the UK. For non-QR Code transactions, the amounts are USD 0.49 and GBP 0.39, respectively.

As you can see, how you get paid has a big impact on the fees you will pay to PayPal for receiving business payments.

PayPal business transaction fees depend on how the buyer pays you. In general, QR Code payments incur the lowest percentage-based fees as well as lowest fixed fees.

What Are PayPal's Fees For Receiving International Business Payments?

If you receive international payments in your PayPal business account, you will have to pay the domestic fees as listed in the prior section plus an international transaction fee.

The additional fee for international business transactions is 1.50%.

PayPal international business transactions are charged an additional 1.50% fee on top of the standard domestic business transaction fees.

What Are PayPal's Fees For Sending And Receiving Donations?

PayPal's fees for sending and receiving donations from and into a business account are identical to those for a personal PayPal account. Please see our prior sections that list out fees for sending and receiving donations for PayPal personal accounts.

What Are PayPal's Fees For Online Card Payment Services?

If your business receives payments via PayPal Online Card Payment Services, you will incur fees for various payment types that you receive as below:

• Domestic transactions
  • Advanced Credit and Debit Card Payments: 2.59% + fixed fee
  • Payments Advanced: 2.89% + fixed fee
  • Payments Pro: 2.89% + fixed fee
  • Virtual Terminal: 3.09% + fixed fee
• Charity receipts
  • Advanced Credit and Debit Card Payments: 1.99% + fixed fee
  • Advanced Credit and Debit Card Payments (Interchange Plus Plus): Interchange Plus Plus fees apply
  • Payments Pro: 1.99% + fixed fee
  • Virtual Terminal: 2.39% + fixed fee
• Interchange Plus Plus fees
  • Advanced Credit and Debit Card Payments (Interchange Plus Plus): Interchange Pass-through Costs + 0.49% + fixed fee
• International transaction receipts
  • Advanced Credit and Debit Card Payments (Interchange Plus Plus): No additional fee over domestic fees
  • All Other PayPal Online Card Payment Services Transactions: 1.50% plus domestic fees
• Other fees
  • Account Monitoring Service (optional): USD 29.95 set up fee and USD 19.95 monthly fee
  • Advanced Fraud Protection Services (optional): USD 10 per month, USD 0.05 per transaction
  • Additional Risk Factors: Up to 5.00% per transaction
  • Buyer Authentication Service (optional): USD 10 per month, USD 0.10 per transaction
  • Card Verification Transactions: USD 0.30 per verification
  • Chargeback Protection: 0.40% per transaction
  • Effortless Chargeback Protection: 0.60% per transaction
  • Failure to implement Express Checkout: 1.00% per transaction
  • Monthly Fees: Advanced Credit and Debit Card Payments - 0, Payments Advanced - USD 5.00, Payments Pro - USD 30, Payments Pro Payflow - USD 30, Virtual Terminal - USD 30
  • Recurring Billing (optional): USD 10 per month
  • Recurring Payment Tool (optional): USD 30 per month
  • Uncaptured Authorization Transactions: USD 0.30 per successful but uncaptured authorization transaction

What Are PayPal's Fees For Payflow Pro (Payment Gateway)?

Payflow Pro and Payflow Link are utilities from PayPal to facilitate easier checkout on websites. If you use these PayPal services, here are the associated fees:

• Payflow Pro: USD 0.10 per transaction
• Payflow Link: USD 0.10 per transaction

What Are PayPal's Fees For Receiving Micropayments?

Micropayments are defined as lower value payments within the PayPal financial ecosystem. Below are the fees that apply for micropayments:

• Receiving domestic micropayments: 4.99% + fixed fee that varies by country
• Receiving international micropayments: Domestic micropayment fee + 1.50%

What Are PayPal's Fees For Chargebacks?

If a chargeback happens on your PayPal business account (due to a buyer rejecting or reversing a charge), you will have to pay a fixed fee per chargeback transaction. This fee varies by country; for the US, it is USD 20.

What Are PayPal's Fees For Disputes?

If a buyer files a dispute, PayPal will charge a dispute fee to your account. The fee varies by country; it is USD 15 for United States PayPal business accounts.

What Are PayPal's Fees For Withdrawals From Business Accounts?

You can withdraw your PayPal business account balance at any time. Withdrawals may incur fees as listed below:

• For linked bank account withdrawals, standard transfers are free. Instant transfers cost 1.50% subject to a minimum fee of USD 0.50.
• For linked card withdrawals, standard transfers are also free. Instant transfers cost 1.50% subject to a minimum fee of USD 0.50.

If you wish to avoid withdrawal fees for pulling funds out of your PayPal business account balance, try to stick with standard transfers as they are free of cost.

Note that there are limits to how much money you can withdraw from your business account; we cover these below.

What Are PayPal's Withdrawal Limits For Business Accounts?

Below are the withdrawal limits for taking funds out of your PayPal balance:

• Instant bank transfers: USD 25,000 per transaction
• Standard and Instant card transfers: USD 50,000 per transaction, USD 100,000 per day, USD 250,000 per week, USD 500,000 per month

It is important to review various fees associated with PayPal business account and associated services. By understanding the fees and charges upfront, you can make informed decisions that help to minimize costs and maximize profits for your business.

PayPal Business Account Fees And Charges Summary

The prior sections are a lot of information, so we present PayPal business account fees in a table format below for easy consumption.

The below table should be used as a quick reference guide and does not provide full information. For a detailed overview of PayPal's fees² for business accounts, visit the PayPal website or mobile app.

How To Avoid PayPal Fees And Charges?

While PayPal fees and charges are unavoidable in many cases, there are some ways to minimize or avoid them. Here are some best practices to minimize or in some cases, avoid, fees.

Choose The Right Payment Method

When sending or receiving money, choosing the right payment method can greatly affect the fees you pay. For example, if you use your PayPal balance or a linked bank account to send money, you may be able to avoid fees altogether. On the other hand, using a credit card to fund your payment may result in higher fees.

Send And Receive Payments In Local Currency

When possible, it is best to send and receive payments in your local currency. This can help you avoid currency conversion fees and exchange rate markups which will put a major dent in your pocket.

Use PayPal Personal Account For Personal Transactions

If you are sending money to friends or family, use the "send to friends and family" option in PayPal. This option allows you to send money for free, as long as you use your PayPal balance or bank account to fund the payment.

Negotiate Prices With Business Clients

If you are using PayPal for business transactions, it may be possible to negotiate prices with your clients. Be upfront about your payment preferences and discuss the possibility of sharing fees or finding a payment method that works for both parties.

Compare Fees With Other Payment Services

Before using PayPal, compare fees and charges with other payment services to ensure you get the best deal.

For example, if you wish to send money to family and friends abroad, using PayPal will prove very expensive due to high fees and low exchange rates. Use international money transfer companies instead as they provide better rates and charge low fees.

Encourage Customers To Pay With QR Code

PayPal's fees for QR Code transactions are the lowest as compared to other payment methods. To take advantage of this, encourage your customers to pay you with QR Code vs other options.

It is important to remember that while some fees and charges may be unavoidable, there are ways to minimize or avoid them. By understanding PayPal's fees and charges and choosing the right payment methods, you can keep more of your money in your pocket.

Harness the power of PayPal by creating your new PayPal account in case you do not have one yet.

Conclusion: PayPal Is Convenient But Be Careful Of Fees

In conclusion, understanding PayPal's fees and charges is important for choosing the right payment services that work for you.

Whether you are sending or receiving money, using PayPal for personal or business transactions, or dealing with currency conversion, it is essential to know what fees and charges you may incur.

By comparing fees with other payment services and choosing the right payment methods, you can minimize or avoid fees and keep more money in your pocket.

Follow the above best practices to minimize, or sometimes avoid, the impact of PayPal fees and charges.

With this complete guide to PayPal fees and charges, you can make informed decisions about the payment services and fees that fit your needs.

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Find the cheapest rate to transfer your hard-earned money - visit our site or download the app on Google Play or Apple App Store now.

References:
1. List of PayPal fees and charges for personal accounts
2. List of PayPal business fees and charges