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 States (U.S.) 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 1.90% to 3.49%) 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 Credit gives its customers special financing purchases of over $99.
PayPal periodically updates its fee schedules for consumers and merchants.
To quickly determine PayPal fees, try using a PayPal fee calculator.
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 may also apply to U.S. 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 same market. The sender and receiver are residents of different markets for international PayPal transaction fees.
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
PayPal’s consumer fees for transactions originating in the United States are shown in U.S. dollars (USD) in the following tables.
| 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: Donate button, Generosity Network, or PayPal Checkout for Donations:2.89% International: Add 1.50% to the domestic rate of 2.89% for a total of 4.39% | 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) Cards:2.90% 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 | PayPal Balance or bank account, Cards, or Amex Send™ Account: An additional international fee of 5.00% (subject to minimum and maximum fees) plus the domestic fee applies. PayPal collects the fee from the balance of the currency in which the fee is listed. | The minimum international fee is $0.99, and the maximum international fee is $4.99 when applying the extra 5.00% international PayPal fee) for payments via a PalPal balance or bank account, Card, or Amex Send™ Account. |
| Withdrawing money out of PayPal with an eligible linked bank account, eligible linked debit card, or paper check | Local bank account: Free when there is no currency conversion Instant bank account transfer: 1.50% of the amount, subject to minimum and maximum fees and a withdrawal limit of $25,000.00 per transaction. The minimum fee for an instant bank account transfer is $0.25, and the maximum fee is $15.00. Instant transfer for cards: 1.50% of the amount, subject to minimum and maximum fees and withdrawal limits of $5,000.00 per transaction, per day, and per week; $15,000.00 per month. The minimum fee for an instant card transfer is $0.25, and the maximum fee is $15.00. Paper check mailed to you: See fixed fee. | Paper check mailed to you:$1.50 |
| Other PayPal Consumer Fees besides | Bank return on withdrawal/ transfer out of PayPal (failed transaction due to incorrect bank account information or delivery information): Free – no fee. Credit card and debit card link and confirmation fee: Refunded by PayPal after completing the verification process. This process may result in increasing your sending limit. PayPal Cash Mastercard or PayPal Business Debit Mastercard: Read the customer agreement for the card to determine any applicable percentage or fixed fees. | Bank return on withdrawal/ transfer out of PayPal (failed transaction due to incorrect bank account information or delivery information): Free – no fee. Credit card and debit card link and confirmation fee: Refunded by PayPal after completing the verification process. This process may result in increasing your sending limit. In U.S. currency, the fixed fee amount for the credit card and debit card link and confirmation fee is $1.95. The amount varies by the country’s currency. PayPal Cash Mastercard or PayPal Business Debit Mastercard: Read the customer agreement for the card to determine any applicable percentage or fixed fees. |
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 (USD) | Fixed Fee (USD) | Percentage of Amount Fee |
|---|---|---|
| $5.00 to $24.99 | 99 cents | None |
| $25.00 to $74.00 | $1.99 | 2.30% |
| $75.00 to $200.00 | $2.49 | 2.00% |
| $200.01 to $1,000.00 | None | 1.80% |
| $1,000.01+ | 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 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. Add 1.50% to the domestic percentage of merchant fees for all commercial international transactions excluding American Express transactions through PayPal.
The fixed fee for U.S. dollars currency received transactions is $0.49 and can be much higher for international currencies.
*Add the 1.50% international fee for all commercial transactions except American Express commercial transactions through PayPal
| Merchants – Type | Domestic Percentage of Amount Fee – * | Fixed Fee |
|---|---|---|
| Invoicing | 3.49% | The amount of the fixed fee varies by the country’s currency received. |
| PayPal Checkout | 3.49% | The amount of the fixed fee varies by the country’s currency received. |
| PayPal Guest Checkout | 3.49% | The amount of the fixed fee varies by the country’s currency received. |
| PayPal Guest Checkout – American Express Payments | 3.50% | No fixed fee |
| QR code Transactions – $10.01 USD and above | 1.90% | The amount of the fixed fee varies by the country’s currency received. |
| QR code Transactions – $10.00 USD and below | 2.40% | The amount of the fixed fee varies by the country’s currency received. |
| QR code Transactions through third-party integrator | 2.29% | Plus a fixed fee of .09 USD. |
| Pay with Venmo | 3.49% | The amount of the fixed fee varies by the country’s currency received. |
| Send/Receive Money for Goods and Services | 2.89% | The amount of the fixed fee varies by the country’s currency received. |
| Standard Credit and Debit Card Payments | 2.99% | The amount of the fixed fee varies by the country’s currency received. |
| All Other Commercial Transactions | 3.49% | The amount of the fixed fee varies by the country’s currency received. |
| All Other Commercial Transactions – American Express Payments | 3.49% | No fixed fee |
The table below shows other types of PayPal merchant fees:
| Merchants – Type | Percentage of Amount Fee | Fixed Fee |
|---|---|---|
| Receiving donations (same for consumers and merchants) | Domestic: Donate button, Generosity Network, or PayPal Checkout for Donations:2.89% International: Add 1.50% to the domestic rate of 2.89% for a total of 4.39% | The fixed fee varies based on the country’s currency received. |
| Receiving domestic charity transactions | The rate of 1.99% is subject to an application and pre-approval through PayPal. | The fixed fee varies based on the country’s currency received. |
| Receiving domestic charity transactions | Add 1.50% to the domestic rate of 1.99% for a total of 3.49% | The fixed fee varies based on the country’s currency received. |
| Alternative Payment Method (APM) at Customer Checkout | 2.59% | The fixed fee varies based on the country’s currency received. For U.S. currency received, the fixed fee is $0.49. |
| PayPal Balance Account | See the linked PayPal Balance Agreement for the United States. | |
| PayPal Here transactions | PayPal Here requires application and approval for merchants. Rates for receiving PayPal Here, domestic transactions are shown by payment type. Add 1.50% for international transactions. Card Present Transactions: 2.70% Domestic Keyed Transactions:3.50% Domestic PayPal Transactions (In-Store): 2.70% Domestic QR code Transactions: 2.70% Domestic | Card Present Transactions: No fixed fee Keyed Transactions: The fixed fee varies based on the country’s currency received. The U.S. dollar rate is $0.15. PayPal Transactions (In-Store): No fixed free QR code Transactions: No fixed fee |
| Receiving domestic transactions with PayPal Online Card Payment Services – other types of fees apply for PayPal Online Card Payment. | Advanced Credit and Debit Card Payments: 2.59% Advanced Credit and Debit Card Payments – AmericanExpress Payments, Payments Pro – American Express Payments, and Virtual Terminal – American Express Payments: 3.50% Payments Advanced and Payments Pro: 2.89% Virtual Terminal: 3.09% | Advanced Credit and Debit Card Payments: USD fixed fee is $0.49. The fixed fee varies by currency received. Advanced Credit and Debit Card Payments – AmericanExpress Payments, Payments Pro – American Express Payments, and Virtual Terminal – American Express Payments: No fixed fee Payments Advanced and Payments Pro: USD fixed fee is $0.49. The fixed fee varies by currency received. Virtual Terminal: USD fixed fee is $0.49. The fixed fee varies by currency received. |
| Payflow Pro (Payment Gateway) | See the table below | |
| Sending payments with PayPal Payouts (formerly Mass Pay) | US Transaction Fee not using Payouts API: 2% – not to exceed the maximum fee for a specific currency. The maximum fee cap for US dollars is $1.00. International Transaction Fee not using Payouts API: 2% – not to exceed the maximum fee for a specific currency. The maximum fee cap for US dollars is $20.00. | US Transaction Fee using Payouts API: The flat fee depends on the currency used for payment. For US dollar payments, the fee is $0.25. |
| Micropayments | Domestic micropayments: 4.99% Note that an additional 1.50% fee applies to international micropayments. | Domestic micropayments: A fixed fee is based on the currency. The US dollar fixed fee per transaction is $0.09. |
| Receiving E-check funded payments | NA | Pay the fixed fee you agreed to pay to receive the E-check up to a maximum cap specified for each currency received. The maximum fee cap for US dollar E-check currency received is $300.00. |
| Withdrawing/transferring out of PayPal to a linked bank account (merchant account) or eligible card | Merchant’s fees are the same as for Consumers except for maximum withdrawal limits for Instant Transfer for Cards are: Per transaction: $50,000.00 Per day: $100,000 Per week: $250,000 Per month: $500,000 |
| Merchants – Payflow Pro (Payment Gateway) – Type | Percentage of Amount Fee | Fixed Fee (USD) |
|---|---|---|
| Receiving Payflow Pro Transaction | NA | $0.10 |
| Receiving Payflow Link Transaction | NA | $0.10 |
| Other Payflow Pro fees: | ||
| Payflow Pro | NA | Monthly fees: $25.00 PayPal Recurring Billing Service (Monthly): $10.00 |
| Payflow Link | None | Monthly fees: None PayPal Recurring Billing Service (Monthly): $10.00 |
| PayPal Fraud Protection Services(Monthly) | Basic Package: No fee Advanced Package: $10.00 Buyer Authentification+: $10.00 | |
| PayPal Fraud Protection Services(Monthly Excess Transaction Fee) | Basic Package: No fee Advanced Package: $0.05 Buyer Authentification+: $0.10 Recurring Billing Service: No fee |
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 there’s a method that works best in our ebook: Comparing the Top Global Payment Methods.
