As your company grows, you may need to rely on more than PayPal for partner transfers. Are you ready?
PayPal charges a wide range of processing fees for consumers and merchants for online payments and receiving money. A summary of PayPal fees by type for the European market is presented in this article. PayPal fees include per-transaction rates and fixed fees.
Why Does PayPal Charge a Fee?
PayPal is a publicly traded for-profit business that generates income by charging fees. PayPal uses the cash generated from fees to maintain a high level of services, pay its employees, and introduce innovative payment methods. When fee revenues increase from quarter to quarter, PayPal’s shareholders are generally rewarded through a higher stock price.
How Much are PayPal Fees?
PayPal’s fees vary by domestic vs. international, payment type, currency received, payment method, and consumer vs. merchant fees. Domestic transactions occur when both the sender and receiver are registered with or identified by PayPal as residents of the European Economic Area (EEA).
An international transaction occurs when the sender and receiver are registered with or identified by PayPal as residents of different markets. Certain markets are grouped together when calculating international transaction rates. This could include a variety of currencies, from AUD to CZK, DKK, HUF, JPY, NZD, SEK, TWD, MYR, NOK, PLN, and much more.
PayPal is free for online and in-store consumer transactions without currency conversion. For merchant commercial transactions, PayPal charges a percentage of the amount (ranging from 1.29% to 2.9%) plus a fixed fee per transaction.
The fixed fee per transaction depends on the price schedule of the country’s currency received. We don’t include a discussion of any currency conversion fees for international transactions that may be international payments or international currency receipts.
Payment options selected will result in different PayPal fees. PayPal offers branded debit cards and prepaid cards.
PayPal periodically updates its fee schedules for consumers and merchants.
How Do You Avoid PayPal Fees?
You can use strategies to avoid PayPal fees, but in some cases, you’ll be required to pay them. See some suggestions on how to avoid international PayPal fees that also apply to European domestic PayPal transactions.
How Does PayPal Classify Domestic and International PayPal Fees?
Domestic PayPal fees apply when the sender and receiver are registered with or identified by PayPal as residents of the European Economic Area (EEA). When the sender and receiver are residents of different markets, it’s considered an international transaction.
Quickly Calculate Fees with PayPal Fee Calculator
Is saving time and reducing human error your top priority? Try our PayPal fee calculator to instantly see the fees associated with your business transactions.
Calculate the total amount of money you’ll receive after fees, or the fees themselves, for any domestic or international transactions with our calculator.
PayPal Consumer Fees
The following tables show PayPal’s consumer fees for transactions originating in Europe in Euros (EUR).
| Consumer – Type | Percentage of Amount Fee | Fixed Fee |
|---|---|---|
| Buying with PayPal online or in-store without a conversion fee | Free | Free |
| Selling with PayPal | See PayPal Merchant Fees in a separate table | |
| Buying or selling cryptocurrencies | See the table below for fees that vary by cryptocurrency amount purchased or sold. | |
| Receiving donations | Domestic rate: 3.4% International: 3.4% + additional percentage-based fee of 1.29% – 1.99% | The fixed fee varies based on the country’s currency received |
| Sending or receiving domestic personal transactions (Using the Friends and Family tab of Send Money or money from friends & family into your PayPal Account) | PayPal Balance or a bank account: Free (fee waived) Amex Send™ Account: Free (fee waived) | PayPal Balance or a bank account: Free (fee waived) Cards: The fixed fee varies based on the country’s currency received Amex Send™ Account: Free (fee waived) |
| Sending or receiving international personal transactions (Using the Friends and Family tab of Send Money or money from friends & family into your PayPal Balance | No percentages – only fixed fees | €1.99 in Canada, Europe I, Europe II, Northern Europe, & US. €3.99 in all other markets |
| Withdrawing money out of PayPal with an eligible linked bank account, eligible linked debit card, or paper cheque | Local bank account: Free when there is no currency conversion US Bank account (varies by region): CZ, EE, GR, LT, LV, MT, SI, SK, and SM are 3% BG, CY, LI, & RO are no fee | There are minimum and maximum fees based on the region |
| Other PayPal Consumer Fees besides | Bank Return on Withdrawal/Transfer out of PayPal: Charged when a user attempts a withdrawal/transfer out of PayPal and fails because incorrect bank account information or delivery information is provided. Credit Card and Debit Card Confirmation(s): In order to increase their sending limit or, as PayPal may determine, some users may be charged a credit card and debit card link and confirmation fee. This amount will be refunded after completing the credit or debit card verification process. | Inactive PayPal Account: An inactivity fee will be the lesser of the cost listed below or the remaining balance in your account. Records Request: This cost applies to requests for information about why PayPal had reasonable justification to refuse your payment order. |
PayPal Consumer Fees for Buying or Selling Cryptocurrencies
An exchange rate, including a marked-up spread, applies to cryptocurrency purchases or sales made through PayPal. This exchange rate spread (margin) provides additional profits to PayPal by pricing crypto transactions higher than the actual exchange rate PayPal receives.
PayPal occasionally offers limited-time fee discounts or rebates on cryptocurrency purchases meeting its specific offer criteria.
| Consumer – Crypto Transaction Amount EUR) | Fixed Fee (EUR) | Percentage of Amount Fee |
|---|---|---|
| 1.00 EUR – 4.99 EUR | 0.49 EUR | None |
| 5.00 EUR – 24.99 EUR | 0.99 EUR | None |
| 25.00 EUR – 74.99 EUR | 1.99 EUR | None |
| 75.00 EUR – 200.00 EUR | 2.49 EUR | None |
| 200.01 EUR – 1,000.00 EUR | None | 1.80% |
| 1,000.01 EUR + | None | 1.50% |
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PayPal Merchant Fees
PayPal charges merchant fees, called commercial transaction fees, for payments received from customers in a business transaction. Merchants using PayPal range from small businesses to large enterprise companies.
Additional payment processing fees charged by merchant services companies acting as payment processors may apply. PayPal also has several other fees, including a chargeback fee.PayPal merchants use a business account with a linked bank account called a merchant account and eligible linked debit cards or credit cards to withdraw and transfer funds received out of PayPal.
PayPal’s Goods and Services Fee
PayPal merchant fees for commercial transactions vary based on the payment method, which PayPal calls the Alternative Payment Method (APM). Commercial transactions include selling goods or services but may include other types of commercial transactions.
PayPal Payouts applies to PayPal payments to freelancers, independent contractors, affiliate programmes, and mass payments to vendors.
Merchants apply to PayPal to use Micropayments pricing for lower amounts of goods and services transactions.
The PayPal domestic merchant fees for receiving commercial transaction payments by Alternative Payment Method are shown in the table below.
The standard European rate for receiving domestic transactions from an APM is 1.9% + a fixed fee determined by region and currency. The additional percentage-based fee for receiving international transactions does not apply when you receive APM payments. It doesn’t matter is you’re dealing with EUR or SGD, BRL, HKD, MXN, etc. It’s all the same.
Here are some additional goods and services fees to keep an eye on:
| Merchants – Type | Domestic Percentage of Amount Fee – * | Fixed Fee |
|---|---|---|
| Domestic PayPal Payouts | 2% | Not to exceed maximum fee cap based on region. |
| International PayPal Payouts | 2% | Not to exceed maximum fee cap based on region. |
| Card-funded payment from a user | 1.9% | Additional fixed fee based on currency received. |
| Receiving Domestic Donations | 3.4% | Additional fixed fee based on currency received. |
| QR code Transactions – for CY, CZ, EE, GR, LV, MT, SI, and SK 10.01 EUR and above | .9% | The amount of the fixed fee varies by the country’s currency received. |
| QR code Transactions – for CY, CZ, EE, GR, LV, MT, SI, and SK 10.00 EUR and Below | 1.4% | The amount of the fixed fee varies by the country’s currency received. |
| Domestic Micropayments | 5% | Fixed fee based on payment currency. |
| International Micropayments | 6% | Fixed fee based on payment currency. |
| Chargebacks | Based on currency | Popular fees include 16 EUR, 20 CAD, 20 USD, 14 GBP. |
| Disputes | Applied in the currency of the original transaction. | Popular fees include 14 EUR, 20 CAD, 15 USD, 12 GBP. |
| Currency Conversion | 3% | Above the base exchange rate. |
| eCheque | Up to 3.4% | Commercial transaction rates apply. |
| Withdrawing from a PayPal account | CZ, EE, GR, LT, LV, MT, SI, SK, and SM – 3% | When no currency conversion is involved |
| BG, CY, LI, & RO – No fee | ||
| Withdrawing from a Card | BG, RO, and SI – 1% of transferred amount CY, EE, LI, LT, LV, MT, SK, and SM – Fixed fee | Fixed fees based on card withdrawal currency |
PayPal Online Payment Services
These rates apply to any commercial payment received using PayPal Online Payment Services.
| Payment Type | Rate |
|---|---|
| Advanced Credit and Debit Card Payments – Blended Pricing Fee Structure: Visa and MasterCard card types | 1.9% + fixed fee |
| Advanced Credit and Debit Card Payments – Interchange Plus Fee Structure: Visa and MasterCard card types | Interchange Fee + 1.90% + fixed fee |
| Advanced Credit and Debit Card PaymentsAmerican Express card type | 3.5% |
| SEPA Direct Debit | 0.35 EUR/ transaction (Standard Settlement) 0.40 EUR/ transaction (Instant Settlement) |
| Other payments | Commercial transaction rates apply |
PayPal fees can be overwhelming, especially if you’re running a business that’s growing fast and taking on international clients. Things get complicated. It may be time to branch out and consider a flexible payment solution that can grow with you. Find out if there’s a method that works best in our ebook: Comparing the Most Efficient Payment Methods.
