PayPal Fees for Businesses and Consumers (2024)

Here are the latest PayPal fees for consumers and merchants, plus how to calculate fees for credit and debit card transactions, currency conversions, and more.

More than a quarter century after its founding in 1998, PayPal has become a household name, serving more than 425 million active users worldwide. While you might use PayPal to send money to friends or pay your landlord, it’s also a popular choice for ecommerce merchants accepting customer payments. Today, 35 million merchants use PayPal to collect payments from buyers.

PayPal doesn’t charge fees for most personal transactions between friends and family members, but it does charge fees for business transactions. These fees appear as a percentage of the transaction amount or as a flat fee, depending on how you send or receive money. Understanding these fees helps you price your products accurately and manage your costs effectively.

What are PayPal fees?

PayPal typically charges ecommerce merchants 2.29% and 3.49%, plus a fixed charge of 49¢ for each transaction. The amount of these fees varies based on several factors. 

Types of PayPal merchant fees

• Online checkout fees
• Credit and debit card transaction fees
• POS fees
• PayPal transfer fees
• Invoicing fees
• QR code payment fees
• International fees
• Dispute fees
• Donation fees

You can integrate PayPal into your ecommerce store in several ways, with different fees for each option. Here are the most common PayPal fees you’ll see as an ecommerce merchant. Note that PayPal doesn’t pass these fees to your customers—you’ll need to account for them in your pricing strategy. 

Online checkout fees

When you use PayPal Express Checkout (which works with Shopify Payments), your customers save time at checkout. Instead of entering their billing information, they pay through a secure PayPal window with their payment details already filled in. 

Your customers can pay using:

• Their linked bank account

• PayPal account

• Venmo account

PayPal charges:

• 3.49% plus 49¢ for standard PayPal payments

• 2.59% plus 49¢ for Alternative Payment Methods (like Apple Pay or Google Pay)

For digital goods for low prices—like a $4.99 knitting pattern—where the 49¢ fee would take a large percentage of your profits, you can apply for PayPal’s micropayments plan to reduce the fixed fee.

Credit and debit card transaction fees

You can use PayPal as both a payment gateway and payment processor for card transactions. This means PayPal will collect your customer’s card details and transfer the sale amount from your customer’s bank to yours. For these transactions, PayPal charges 2.99%, plus 49¢ per transaction.

You can also use PayPal as just a payment gateway, letting it collect card details before sending them to a third-party processor. PayPal has two payment gateway options:

1. Payflow Pro: Lets you customize the checkout experience fully ($25/month plus 10¢ per transaction).

2. Payflow Link: Uses a PayPal-hosted template (10¢ per transaction).

Optional services include recurring billing, fraud protection, and buyer authentication.

POS fees

If you run a physical store, you can use PayPal’s point-of-sale (POS) system Zettle for in-person transactions. PayPal charges 2.29% plus 9¢ for each sale.

PayPal transfer fees

When you receive money directly from another PayPal account as a merchant, PayPal takes 2.99% of the transaction.

Invoicing fees

For payments through invoicing or pay links, PayPal charges 2.99% plus 49¢.

QR code payment fees

PayPal QR codes let you accept payments anywhere. For example, if you run an ecommerce olive oil company and set up at a local food co-op, customers can scan your QR code to pay through the PayPal app. These transactions cost 2.29% plus 9¢. 

International fees

If you’re selling internationally and receive payments from outside the US, PayPal adds:

• An additional 1.5% transaction fee

• A currency-specific fixed fee (instead of the standard 49¢)

Examples of fixed fees by currency:

• Euros: €0.39

• Canadian dollars: 59¢

Dispute fees

If a customer files a dispute, you’ll pay:

• $20 for credit or debit card disputes

• $15 for PayPal payment disputes

• $30 per transaction for businesses with high dispute volumes

PayPal may charge up to 5% per card transaction for businesses they consider high-risk due to complaints or chargebacks.

Donation fees

You can collect donations through a PayPal Donate button. PayPal charges:

• 2.89% plus 49¢ per donation

• Additional 1.5% for international donations, plus the currency-specific fixed fee

Types of PayPal consumer fees

• Sending money via credit card
• International transactions and currency conversion
• Buying, selling, and transferring cryptocurrencies

Most domestic purchases and friend-to-friend transfers from Paypal balances or bank accounts are free. However, PayPal charges consumer fees for these specific transactions:

Sending money via credit card

When you use a credit card instead of your PayPal balance or bank account, PayPal charges 2.9% of the transaction value, plus a 30¢ fixed fee.

International transactions and currency conversion

For international transfers, you’ll pay:

• 5% transaction fee (minimum 99¢, maximum $4.99)

• 4% conversion fee for transactions in different currencies

Buying, selling, and transferring cryptocurrencies

PayPal’s cryptocurrency fees vary by transaction value:

• $1 to $4.99: 49¢ flat fee

• $5 to $10,000: Percentage-based fee

• Over $10,000: 1.45% fee

These fees don’t apply to PYUSD (PayPal’s cryptocurrency). There’s no fee to hold or transfer cryptocurrency in your account.

PayPal fee calculators

Save time calculating your fees with these free tools:

• NerdWallet PayPal fee calculator: A simple tool for calculating standard domestic transactions. You can calculate fees for three types of transactions: digital checkout, in-person Zettle POS, or standard debit and credit card payments. 

• The Fee Calculator: Focuses solely on digital checkout transactions, like those made through PayPal Express Checkout. Its standout feature shows you how much to charge to receive your target amount after fees. 

• SaleCalc.com: Works well for specialized transactions like QR code payments or international donations. Its dropdown menu lets you select from a wide range of payment types to calculate the exact fees you’ll pay.

• Wise PayPal fees calculator: Handles credit and debit card transactions. While limited to card payments, it includes a useful feature that lets you select your buyer’s country to show accurate fixed rates for international sales.

How PayPal fees work with Shopify Payments

When you use Shopify Payments with PayPal Express Checkout, you’ll only pay transaction fees for the payment method your customer uses—no double billing. When you start your ecommerce store on Shopify, you’ll get a PayPal Express Checkout account automatically. This makes it easy to integrate PayPal Express and start accepting PayPal payments right away. 

PayPal Express boasts a few key benefits for Shopify merchants:

• Detailed order summaries

• Automated refund processing

• Quick checkout with autofill options

How do PayPal fees compare to fees for other payment gateways?

• PayPal vs. Shopify
• PayPal vs. Stripe
• PayPal vs. Square
• PayPal vs. Venmo

Many customers trust PayPal, and its quick checkout can boost your ecommerce conversion rate. Here’s how PayPal’s fees compare to other popular payment options:

PayPal vs. Shopify 

Shopify Payments, the built-in payment system for Shopify stores, lets you accept all major payment methods from day one. Shopify charges between 2% and 3% of every domestic transaction, plus a 30¢ fee. Your rate varies based on your Shopify plan, the type of credit card your customer uses, and whether the purchase happens online or in person.

You won’t pay third-party fees when orders process through Shopify Payments, Shop Pay, Shop Pay Installments, and PayPal Express on Shopify. This also applies to cash payments and bank transfers.

PayPal vs. Stripe 

Stripe’s standard card fee is 2.9%, plus 30¢. Like PayPal, Stripe charges additional fees for other payment options.

PayPal vs. Square 

Square matches Stripe’s online checkout fee at 2.9% plus 30¢. For in-person sales, Square charges 2.6%, plus 10¢.

PayPal vs. Venmo 

When you receive a Venmo payment as a merchant, you’ll pay 1.9%, plus 10.¢ For payments through Venmo’s contactless Tap to Pay on iPhone or Android, the fee is 2.29%, plus 10¢.

Disclaimer: The fees mentioned in this article are accurate as of the publication date, but may be subject to change.

PayPal fees FAQ

What are PayPal transaction fees?

PayPal has two main transaction fees:

• Credit and debit card transactions: 2.99%, plus 49¢ per transaction

• Online checkout transactions on merchant stores: 3.49%, plus 49¢ per transaction

How do you avoid PayPal fees?

Small businesses can’t avoid PayPal fees without violating PayPal’s user agreement.

Why does PayPal charge a fee?

As a for-profit company, PayPal charges merchants transaction fees to cover operating costs and generate revenue. Most consumer-to-consumer money transfers remain free.

What are the fees for PayPal accounts?

Opening a PayPal business account is free, but you’ll pay fees on commercial transactions. These include:

• Credit and debit card fees

• Currency conversion fees

• Commercial transfer fees

You can view your specific fees in the Activity section of your PayPal account.