UK PayPal Fees: Detailed Breakdown for Users and Businesses

Brianna Blaney
By Brianna Blaney
Brianna Blaney

Brianna Blaney

Brianna Blaney began her career as a fintech writer in Boston for a major media corporation, later progressing to digital media marketing with platforms in San Francisco. She has worked as a financial writer for Tipalti for 7+years, keeping a close eye on shifting trends and reporting on the ever-evolving landscape of financial automation. She prides herself on reverse-engineering the logistics of successful content and implementing techniques centered around people (not campaigns). In her spare time, she loves to cook and take care of her pet squirrel, Marshmallow.

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Updated November 22, 2024
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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 United Kingdom (U.K.) market region 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 cash generated from fees to maintain a high level of services, pay its employees, and introduce innovative payment methods. PayPal’s shareholders are generally rewarded through a higher stock price when fee revenues increase from quarter to quarter.

How Much are PayPal Fees?

PayPal’s fees vary by domestic vs. international, payment type, currency received, payment method, and consumer vs. merchant fees. PayPal is free for online and in-store consumer transactions without currency conversion. For commercial transactions for merchants, PayPal charges fees that are a percentage of the amount (ranging from 1.20% to 2.9%) plus a fixed fee per transaction.

The fixed fee per transaction depends on a price schedule for 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 U.K. 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 UK. 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 see the fees associated with your business transactions instantly. 

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

Consumer – TypeFee
Buying with PayPalFree
Selling with PayPalSee PayPal Merchant Fees in a separate table.
CryptocurrencySee the table below for fees that vary by cryptocurrency amount purchased or sold.
Receiving DonationsDomestic: Donate button, Generosity Network, or PayPal Checkout for Donations: 2.9% + fixed fee.

International: domestic rate + percentage based fee.

The fixed fee varies based on the country’s currency received.
Sending Donations


PayPal Fundraisers (Unlisted Fundraisers): Standard Sending and Receivng Money Rates

All other donations: No fee.
Receiving Personal TransactionsNo fee (unless currency conversion involved)
Sending Personal TransactionsDomestic: No fee (as long as no currency conversion needed) 

International: 5% of the transaction amount.
Withdrawing from personal PayPal account
UK Bank Account: No fee (when no currency conversion)

Cards: No fee 

US Bank account: 3% (when no currency conversion)
Other PayPal Consumer FeesBank return on withdrawal/ transfer out of PayPal GBP .50

Credit card and debit card link and confirmation fee: varies by country 

Inactive account: 9.0 GBP

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 AmountFixed Fee
1.00 to 4.99 GBP0.49 GBP
5.00 to 24.99 GBP0.99 GBP
25.00 to 74.99 GBP1.99 GBP
75.00 to 200.00 GBP2.49 GBP
200.01 to 1,000.00 GBP1.8%
1,000.01+ GBP1.5%

Is PayPal the best method for you to pay your suppliers?

What if there was something out there that is cheaper and more efficient than your current solution? Explore your other options today.

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 fees for payment processing charged by merchant services companies acting as the payment processor 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 programs, 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.

Merchants – TypeFee
Receiving Domestic Transactions
Alternative Payment Methods (APM): Fixed fee based on currency.


Card funded: 1.2% + fixed fee.

QR Code (GBP 10.01 and above): 1.5% + fixed fee.

QR Code (GBP 10.00 and below): 2% + fixed fee.

All other commercial transactions: 2.9% + fixed fee.
Receiving International TransactionsThe applicable fee for receiving domestic commercial and QR Code transactions applies (1.2% – 2.9%) plus the additional percentage-based fee for international commercial transactions.

Additional percentage-based fee for international commercial transactions: 1.29% for EEA, 1.99% all other markets.

Additional service fee for recipients of EEA based international transactions: 1.29%.
Receiving Donations
Domestic Donations: 2.9% +fixed fee (based on currency received).

QR code transactions and listed PayPal Fundraisers: Commercial transaction rates apply.

Unlisted PayPal Fundraisers: No fee

International Donations: Domestic fee + 1.29% for EEA and 1.99% for all other markets.
Sending Donations
Domestic and International Donations: 

Unlisted PayPal Fundraisers: Personal Transaction Rates apply. (free for domestic, 5% for international)

All other donations have no fee.
Receiving Charity TransactionsDomestic Charity Transactions: 1.4% + fixed fee.
QR Codes: Commercial transaction rates apply (1.2%-2.9%).

International Charity Transactions: 1.4% + percentage-based fee on currency received.
Alternative Payment Method (APM)Receiving Domestic Transactions: 1.29% + fixed fee.

Receiving International Transactions: 1.29%
Receiving Transactions using PayPal Online Card Payments
Domestic Rates:
Advanced Credit and Debit Card Payments: Visa/Mastercard: 1.2% + fixed fee (blended pricing fee structure) and 1.2% + fixed fee + interchange fee (intrechange plus fee structure). AMEX: 3.5%.

Website Payments Pro: Express Checkout: 2.9% + fixed fee. Visa/Mastercard/Maestro: 3.4% + fixed fee (blended pricing) and 2.9% + fixed fee + interchange fee (interchange plus pricing).

Virtual Terminal: Express Checkout: 2.9% + fixed fee. Visa/Mastercard/Maestro: 1.2% + fixed fee (blended pricing) and 1.2% + fixed fee + interchange fee (interchange plus pricing).

Other Payments: Commercial transaction rates apply.

International Rates: 
Domestic rates apply, plus additional percentage-based fee calculated by the currency received. 
Additional Fees for Using PayPal Online Card Payments Services
Account is Determined High Risk: Up to 5% more each transaction.

Account Verification Request: .20 GBP

Chargeback Protection Tool: .59% per transaction.

Failure to Implement Express Checkout: .5% per transaction.

Monthly Fees: Website Payments Pro and Virtual Terminal Only is 20.00 GBP

Recurring Payment Tool: 20.00 GBP per month.

Uncaptured Authorization Transactions: .20 GBP.
PayPal PayoutsDomestic and International: 2% of total transaction amount (not to exceed maximum fee cap, which is based on currency).
MicropaymentsDomestic Micropayment Rate: 5% + fixed fee.

International Micropayment Rate: 6% + fixed fee.
ChargebacksBased on the currency received.
DisputesDispute fees are applied in the currency of the original transaction. (see user agreement for Standard and High Volume Dispute fees).
Currency Conversion3% above the base exchange rate.
eChequesCommercial Transaction rates with a maximum fee cap (based on currency received).
Withdrawals Out of PayPalUK Bank Account: No fee

US Bank Account: 3% (when no currency conversion)

Cards: No fee

The table below shows other types of PayPal merchant fees:

Merchants – TypeFixed Fee
UK Business Debit Card Withdrawal FeeUK Users: .50 GBP

Users in Eurozone: 3.0 EUR
Commercial Transaction RefundsNo fee (but fees you originally paid are not returned).
Credit Card and Debit Card ConfirmationCredit Card and Debit Card Link and Confirmation Fee: 1.00 GBP
Inactive PayPal Account9.00 GBP
PayPal Business Payments2.00 GBP per transaction
Records Request10.00 GBP
UK Business Debit Card Witthdrawal Fee1.00 GBP

PayPal fees can be overwhelming, especially if you’re running a business that’s growing fast and taking on international clients. Things can get complicated. It may be time to branch out and consider a flexible payment solution that can grow with you. Find out if your business has outgrown the features of PayPal by downloading our ebook, Signs You’ve Reached PayPal’s Tipping Point.

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