PayPal is free to sign up for and use if you’re just buying stuff. However, you may be charged fees if you use PayPal to send or request money, or to accept payments as a merchant. How high these fees are depends largely on the types of transaction values that you deal with, and where in the world they take place.
How does PayPal make money?
PayPal makes the bulk of its money through charging payment processing fees. These fees are applied when someone sends money to (or requests money from) someone else through PayPal. They are also applied when a merchant makes a sale (either online or in a physical store) and the buyer pays through PayPal.
PayPal fees and pricing explained
PayPal money transfer fees
When you send money to someone over PayPal, or request that someone send you money through PayPal (and they accept that request), you will be charged service fees. How high these fees are is based on how you fund the transaction, and where in the world it takes place.
Inside the U.S. and/or Canada
Funded with PayPal or bank account: FREE!
Funded with credit or debit card: 30₵ + 2.9% of transaction value
Outside the U.S. and/or Canada
Funded with PayPal or bank account: up to 2% of transaction value
Funded with credit or debit card: variable fixed fee* + 2.9%-5.99% of transaction value
*The amount of this fixed fee is based on recipient’s currency.
PayPal merchant fees
If you run a store (either the brick-and-mortar or online variety) and you register to use PayPal as an accepted payment method, you will be charged fees whenever a customer completes a payment using PayPal. How high these fees are varies depending on the types of transaction values you handle, where in the world they take place, and what PayPal payment processing solution you select.
PayPal Payments Standard & Express Checkout / PayPal Online Invoicing
U.S. domestic transactions: 30₵ + 2.9% of transaction value
International transactions: variable fixed fee* + 3.9% of transaction value
Microtransaction discount rate: 5₵ + 5% of transaction value
*The amount of this fixed fee is based on the payment recipient’s currency.
PayPal Payments Pro
Monthly fee: $30
U.S. domestic transactions: 30₵ + 2.9% of transaction value
International transactions: variable fixed fee* + 3.9% of transaction value
Microtransaction discount rate: 5₵ + 5% of transaction value
Mass transaction volume discounts: contact PayPal customer service for rates
*The amount of this fixed fee is based on the payment recipient’s currency.
PayPal Virtual Terminal
Monthly fee: $30
U.S. domestic transactions: 30₵ + 3.1% of transaction value
International transactions: 30₵ + 4.1% of transaction value
Mass transaction volume discounts: contact PayPal customer service for rates
PayPal Here (brick-and-mortar)
U.S. domestic card-swipe or check-in transactions: 2.7% of transaction value
U.S. domestic scanning or keyed-in transactions: 15₵ + 3.5% of transaction value
International transactions: 2.7% of transaction value + 1% international fee AND/OR 2.5% currency conversion fee
PayPal nonprofit discounts
Donations under $100,000: 30₵ + 2.2% of transaction value
Donations of $100,000 or more: contact PayPal customer service for rates
Other PayPal merchant fees
Certain other fees may apply to accepting payments through PayPal, such as processing payments from American Express credit cards, issuing refunds, or verifying a buyer’s credit or debit cards. For a full list of merchant fees that may apply to payments received through PayPal, click here.
That’s all the information that we can give you on the fees that you might rack up when using PayPal!
