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PayPal Fees Structure


PayPal is a popular online payment service that lets people send and receive money with ease. While there are many advantages to using PayPal, the company does charge fees for the use of its services. For those who want to know more about what these fees are, here is an article that will cover all you need to know about PayPal’s fee structure.

History of PayPal

Work from home and access customers globally without any challenge as PayPal makes it possible for you to get your funds fast, safe and easy. This payment platform has been around since 1998 and is well-known for sending and receiving money online. PayPal was created to help people efficiently manage their transactions. PayPal is a third-party provider that you authorize to use your bank account. It works as a protector of details, so it never sees any actual financial information from the credit card or bank account used to charge the user.

You can receive money either directly to your account or PayPal; all you have to do is sign up for a free account. The email address you use to sign in to PayPal is an account identifier. Once you receive your payment, it will be visible in your PayPal account dashboard.

It may take a few days before the funds show up and become available to use. This is due to the three-day withdrawal process that banks need to adhere to before releasing money for payment processing.

PayPal, without a doubt, is an integral part of a freelancer and individual entrepreneur̵

7;s business. The service offers peace of mind with its ability to grow your money when cash flow surges, minimizing the risk of defaulting on monthly fees or penalties imposed by credit cards.


Does PayPal Charge Fee?

Some PayPal services are free, but others have monthly fees associated with them.

Setting up your personal or business PayPal account is free. However, PayPal charges fees for various services, including when transferring money. PayPal charges merchants a fee for every transaction, typically about 2.9% of the order total (plus 30 cents) per sale made through their platform. Merchants have the option of upgrading to a business account and accessing services such as invoicing, online payments, more frequent pay-outs, etc. If you ever want to cancel your PayPal account, there is a 30-day grace period.

What Fees PayPal Charge

If you’re an ordinary user with a standard account, PayPal charges minimal fees.

Buying: There are no additional costs when buying from the US.

Selling: For US-based sellers, PayPal fees for each sale are 2.9% + $0.30 per sale. The PayPal fee structure is different for charitable organizations or those doing business overseas.

Transferring Balance: You are typically not charged when transferring money out of your PayPal account, except for instant transfer requests.

Sending: The people you usually send money to, family and friends in the US, don’t need to pay any fees unless the money comes from a debit card or a credit account. Use a Paypal fee calculator to calculate charges so that if you’re charging your buyers via PayPal while selling through its system, you have the same fee structure as if you were using a credit card. To send money internationally is what it costs.

A 5% transaction fee, with the merest payment of $0.99 and the highest payment of $4.99

A funding fee applies if you’re funding the transaction with one of your cards or PayPal Credit.

PayPal Credit Card Fees

PayPal’s card processing fees are paid on a flat-rate fee schedule, which will save money compared with other card processors. If you have a standard PayPal account, you do not need to worry about any additional fees. The exact rate you’ll be charged will depend on the type of transaction. For example, if the sale occurred outside the US or in other currencies, some percentages and fees differ.

PayPal charges different fees for merchants based on the type of transaction they complete.

If you choose to use your PayPal account balance as a form of funding, there are no fees.

2.7% per swipe or tap transaction

3.1% + $0.30 per keyed transaction

PayPal offers different pricing for certain types of transactions:

PayPal charges 2.9% plus $0.30 per online transaction

In addition to credit card payments, PayPal also offers alternative payment plans. Fees that PayPal charges vary for each type of account. Merchants with a small average transaction size can opt for the Micropayments Plan.

The Micropayments fee plan is PayPal’s flagship subscription service with a flat rate of 5% + $0.05 per transaction you process up to the monthly payment threshold ($20).

PayPal’s non-profit discount is available online only and costs 2.2% + $0.30 per transaction.

Monthly Fees

One advantage of PayPal is that it includes several services with no additional charge. However, there are a few software-related services for which you incur monthly charges.

If you have your domain and hosting, you can set up PayPal’s buy button for no cost. You can use free invoices in digital format and only pay the transaction cost when the invoice is paid. To use PayPal’s POS app, PayPal Here, physical stores must have a Wi-Fi connection of at least $0.01 MB/s.

However, it is necessary to recognize if you use PayPal inside of a store, POS system, or another platform that the cost of this software can vary. When you integrate PayPal into your site, it doesn’t charge anything.

PayPal does offer several payment features that come with an additional expense.

PayPal Payments Pro: For any business with a merchant account with PayPal, their Pro plan provides distinct advantages. One feature of PayPal is its virtual terminal that can accept card payments over the phone by keying in a card from your computer. Second, it allows merchants to keep the checkout process on their site rather than redirecting to PayPal. One of the drawbacks to PayPal is that you are not automatically PCI compliant and must take additional steps to handle your compliance. Additionally, $30/month for a virtual terminal is pretty pricey, considering you’ll still have to pay high swipe, dipped, and tapped rates. There are a few different PayPal fees to consider when deciding to use the service for your business.

3.1% + $0.30 Virtual Terminal Fee: Any transaction processed through PayPal’s virtual terminal is subject to a 3.1% fee for the transaction to be processed, and if you are using PayPal’s credit card processing option, 1.5% of the total will be charged for cross-border transactions as well.

Recurring Billing: 

You can use Express Checkout without incurring additional charges for recurring payments, but if you have Payments Pro and want advanced features, it will cost $10 per month on top of your previous monthly fees. This does not apply to “donate” buttons that allow donors to donate one-time or regularly.

Advanced Fraud Protection Services: This service costs $10/month. There is a fee assessed of up to $0.05 for each transaction depending on which PayPal checkout you decide to use, with the exception being Express Checkout transactions that incur no fee until January 2020 per their updated terms and conditions.


PayPal is a convenient and easy way to send money for personal use or business. However, it can be expensive if you are not careful with your spending habits. In addition, fees vary depending on how much you spend in one month, so make sure to keep track of what the fees will cost you before signing up for a new account. With that said, there are some ways to lower your costs, like using their credit card, which has no international transaction fee when used at home stores and restaurants within the US.