PayPal Fee Table

Overview of PayPal Fees

This PayPal Fee Table helps you understand the costs of online transactions in the United States. PayPal is one of the world’s most popular online payment platforms, but its fees for personal and business transactions aren’t always obvious. Below, we provide a detailed look at the various PayPal fees in the US, how PayPal buyer protection works, and the specific charges for goods and services.

Fee Table: A Quick Reference

When you sell goods or services through PayPal and receive money from customers, certain fees apply. The amount of these fees depends on the type of transaction, whether it’s domestic or international, and which payment method is used.

Note: For friends and family payments funded by PayPal balance or a linked bank account, there is typically no fee. However, if a credit card is used, additional charges (around 2.9% + $0.30) may apply.

Types of PayPal Fees

• Paying for goods or services: When a customer buys a product or service from you, PayPal charges a percentage of the sale price. In most domestic cases, this rate is 2.99%, or 2.99% + $0.30 if using a credit/debit card.
• Sending money to friends and family: Within the US, transferring money to friends and family is usually free if funded by PayPal balance or bank account. If a credit card is used, additional fees may apply.
• Collecting donations: If you use a PayPal donation button on your site, domestic donations are typically subject to 2.89% + $0.49, though certain charity rates may apply if you’re an approved nonprofit.
• Micropayments: For smaller amounts, PayPal offers micropayment pricing: 4.99% + $0.09 for domestic transactions.
• Merchant rates & volume discounts: Larger businesses may qualify for special rates when their monthly sales volume is high, or if they use specific PayPal services (like PayPal Checkout or PayPal Pay Later).
• Currency conversion: PayPal charges an additional fee if a transaction involves converting from one currency to another, typically including a currency conversion spread.

For even more details on specific transaction types—like alternative payment methods, invoicing, or QR code integrations—refer to PayPal’s official fee schedule.

PayPal Fees for Personal Use

1. Receiving money: In general, receiving money within the US from friends or family is free. If a currency conversion is required, PayPal may charge an additional fee.
2. Currency conversion: When sending or receiving money in a different currency, PayPal applies a conversion rate above the base exchange rate.
3. Withdrawals: Withdrawing funds to a linked bank account is typically free. Withdrawals to a debit or credit card may incur additional fees.

PayPal Fees for Businesses & Sellers

1. Transaction fees: Sellers pay a percentage fee on each transaction plus, in many cases, a fixed fee component. This rate depends on factors like payment type (credit card, QR code, etc.) and whether the buyer is located in the US or abroad.
2. Withdrawal fees: Similar to personal accounts, there might be fees for withdrawing funds to a credit card. Bank account withdrawals are often free.
3. Extra services: Additional services (like recurring payments, advanced checkout integrations, or invoicing) may come with their own fee structures.

PayPal Fees for Goods & Services

1. Percentage-based fee: PayPal charges a certain percentage of the transaction amount for goods or services.
2. Fixed fee: Many types of transactions also include a fixed fee (e.g., $0.30 or $0.49) per transaction, depending on the payment method.
3. Chargebacks or disputes: If a buyer opens a dispute or a chargeback, additional fees or withheld funds may apply during the resolution process.

PayPal Buyer Protection and Fees

1. Buyer Protection: PayPal’s Buyer Protection helps customers claim refunds if items are not received or significantly differ from the description. This protection is built into commercial transaction fees; there’s no separate “buyer protection fee.”
2. Impact on Sellers: While the protection itself is free to the buyer, qualifying transactions remain subject to standard PayPal fees. If a dispute is escalated, sellers may face additional costs (like chargeback fees).

Tips to Reduce PayPal Fees

1. Optimize your transactions: Whenever possible, avoid unnecessary currency conversions by dealing in US dollars for domestic sales.
2. Consider a Business Account: Business accounts may offer more favorable rates, especially for higher monthly transaction volumes.
3. Automate payments: Using recurring billing or subscription tools can help lower overhead and simplify fee management.
4. Plan your withdrawals: Grouping withdrawals strategically can help you avoid multiple smaller withdrawal fees.
5. Watch for promotions: PayPal sometimes offers special deals or discounted rates for particular services or transaction types.

Conclusion

Understanding these various PayPal fees is essential for making informed decisions about how best to use the platform, whether you’re a casual user or running a business. By staying aware of these costs—especially if you’re dealing with international buyers or credit card payments—you can strategically lower your expenses. Check out our main PayPal Fee Calculator to estimate PayPal fees quickly and find the best approach for your transactions.