How Paypal Fees Work with Shopify Payments

paypal fees

Paypal is one of the largest online payment systems with 227 million active accounts around the globe. It’s also a popular option for accepting payments among online sellers.

But as with any payment system, there are fees associated with it that you’ll need to factor into your pricing and the cost of running your business. Luckily, Paypal works well with Shopify Payments for offering multiple ways for your customers to checkout without having to worry about stacking fees.

Paypal Business account fees

There are no setup fees for a Paypal business account. You can simply create an account for free and link your bank account or credit card to accept 25 currencies from 202 countries. Paypal Express is a supported payment gateway for Shopify merchants and is easy to integrate into your store.

Learn more: A seamless checkout process, Shop Pay checkouts convert at a 1.91x times higher than regular checkouts.

How to calculate Paypal seller fees

If you’re purchasing goods and services in the US, you don’t pay any fees for using Paypal.

If you’re selling goods or services you’re charged both a percentage of the transaction and a fixed fee.

If you’re selling in the US, you’re charged 2.9% of the transaction amount plus a $0.30 USD flat fee (this amount is based on the currency of the payment). For example, a payment of $50 USD will be charged $1.75 USD processing fee ($1.45 + $0.30). This means in the end, your payout will include $48.25 of the transaction.

When receiving payments from outside of the US, you’re charged 4.4% of the transaction plus a fixed fee based on the currency.

Disclaimer: These numbers are accurate as of the published date, but may be subject to change.

Using Shopify Payments and Paypal Express

If you’re using Shopify Payments in your store to accept credit card payments, you will pay credit card fees for each transaction depending on your plan (2.4% to 2.9% + 30c).

A common question merchants have is whether you will be double-billed if you’re using Shopify Payments and Paypal Express together as your payment gateways. The good news is you only pay the fees for the payment gateway that your customer uses to checkout. You will not be double-billed.

For more on accepting Paypal payments in your Shopify store, you can check out our help docs or contact support.