PayPal Fees: What PayPal Charges Per Transaction

Yes, PayPal charges fees. For most U.S. businesses, PayPal takes a percentage of every sale plus a fixed per-transaction fee — currently 3.49% + $0.49 when customers pay through PayPal Checkout and 2.99% + $0.49 for standard credit and debit card payments. This guide breaks down every fee PayPal charges to send money, receive money, invoice customers, and run a business account — plus proven ways to reduce them.

Does PayPal Charge a Fee? Quick Answer

Yes — PayPal charges a fee on virtually every commercial transaction. U.S. merchants pay 3.49% + $0.49 when a customer checks out with PayPal, 2.99% + $0.49 for standard credit and debit card payments, and 2.99%–3.49% + $0.49 per paid invoice depending on how the customer pays. Personal payments are only free when funded by a PayPal balance or linked bank account.

PayPal's current U.S. fees at a glance:

• PayPal Checkout (customer pays with PayPal): 3.49% + $0.49
• PayPal Pay Later: 4.99% + $0.49
• Standard credit and debit card payments (online): 2.99% + $0.49
• Goods and Services payments (seller pays): 2.99% + $0.49
• Invoicing: 3.49% + $0.49 when paid with PayPal or Venmo, 2.99% + $0.49 by card, 4.99% + $0.49 with Pay Later, or 1% (max $10) by bank transfer
• QR code transactions: 2.29% + $0.09
• Friends and Family from balance or bank: free
• Friends and Family funded by card: 2.9% + $0.30, paid by the sender
• Receiving international payments: additional 1.50%
• Instant transfer to bank or card: 1.50% for business accounts, 1.75% for personal
• Chargeback fee: $20 per chargeback; dispute fee: $15 ($30 for high-volume sellers)

All rates in this guide were verified against PayPal's published U.S. fee schedule at the time of publication. PayPal updates its fees periodically, so confirm current rates on _[_PayPal's official fee page](https://www.paypal.com/us/webapps/mpp/merchant-fees).

What Percentage Does PayPal Take Per Transaction?

PayPal takes 2.99% to 3.49% of each sale, plus a $0.49 fixed fee, on most U.S. online transactions — the exact percentage depends on how your customer pays.

Here's the math on a $100 sale paid through PayPal Checkout at 3.49% + $0.49:

• Percentage fee: $100 × 3.49% = $3.49
• Fixed fee: $0.49
• Total PayPal fee: $3.98
• Net deposit to you: $96.02

If the same $100 sale runs as a standard card payment (2.99% + $0.49), the fee is $3.48 and you keep $96.52. The fixed fee stings most on small tickets: a $5 sale carries a $0.64 total fee — nearly 13% of the transaction. Sellers with low average order values can apply for PayPal's micropayments plan at 4.99% + $0.09, which usually costs less on transactions under about $20.

How Much Is the PayPal Fee on $100, $1,000, and $5,000?

On a $1,000 sale, PayPal's fee is $35.39 through PayPal Checkout (3.49% + $0.49) or $30.39 for a standard card payment (2.99% + $0.49). A $5,000 transaction costs $174.99 or $149.99 respectively, and a $100 sale costs $3.98 or $3.48. The fixed fee applies once per transaction, so larger tickets carry a lower effective rate.

• $100 sale: $3.98 with PayPal Checkout; $3.48 with a standard card payment
• $1,000 sale: $35.39 with PayPal Checkout; $30.39 with a standard card payment
• $5,000 sale: $174.99 with PayPal Checkout; $149.99 with a standard card payment

Sending $100 to a friend is different: it is free from a balance or bank account, and $3.20 (2.9% + $0.30) when funded by a card. Moving $100 to your own bank by instant transfer costs $1.50 on a business account or $1.75 on a personal account.

PayPal Goods and Services Fee

When a buyer sends a Goods and Services payment, PayPal charges the seller 2.99% plus a fixed fee ($0.49 in USD). The buyer pays nothing extra, the transaction is covered by PayPal Purchase Protection, and eligible sellers get Seller Protection against fraudulent claims. On a $100 Goods and Services payment, the seller receives $96.52.

Friends and Family payments are different: they're free when funded by a PayPal balance or bank account, and the sender pays 2.9% + $0.30 when funding with a card. The recipient pays nothing — but neither side gets any protection.

Think twice before asking customers to pay via Friends and Family to dodge the fee:

• Buyers lose all Purchase Protection, so many will refuse — and card-funded buyers can still file chargebacks you cannot contest through PayPal.
• Accepting personal payments for commercial sales violates PayPal's User Agreement and is a common trigger for account limitations and frozen funds.

PayPal Fees for Receiving Money

PayPal charges 2.99% + $0.49 to receive a Goods and Services payment, 3.49% + $0.49 for PayPal Checkout payments, 2.99%–3.49% + $0.49 for paid invoices depending on how the customer pays, and 2.29% + $0.09 for QR code payments. Friends and Family payments funded by a balance or bank account are free to receive. Payments from another country add 1.50% on top of the domestic rate.

If a fee came out of an incoming payment, the sender marked it as Goods and Services (or paid an invoice), and PayPal deducted its processing fee before the money reached your balance — even on a personal account.

Receiving money on a personal account:

• Friends and Family from balance or bank: free
• Friends and Family funded by card: free to you — the sender pays the funding fee
• Goods and Services payments: 2.99% + $0.49, deducted from what you receive

Receiving money on a business account:

• PayPal Checkout payments: 3.49% + $0.49
• Standard credit and debit card payments: 2.99% + $0.49
• Paid invoices: 3.49% + $0.49 (PayPal or Venmo), 2.99% + $0.49 (card), 4.99% + $0.49 (Pay Later), or 1%, max $10 (bank transfer)
• QR code payments: 2.29% + $0.09

Domestic vs. international: payments received from another country add 1.50% on top of the applicable domestic rate, and if the money arrives in another currency, PayPal's conversion spread adds roughly 3%–4% more.

PayPal Fees for Sending Money

PayPal does not charge a fee to send money to friends and family in the U.S. when you fund the payment with your PayPal balance or a linked bank account. Card-funded personal payments cost the sender 2.9% + $0.30, and international personal transfers cost 5.00% of the amount (minimum $0.99, maximum $4.99), plus any currency-conversion spread.

Fees apply when you fund with a card, send internationally, or the money is for a purchase:

• Domestic Friends and Family from balance or bank: free
• Domestic Friends and Family funded by credit or debit card: 2.9% + $0.30
• International personal transfers: 5.00% of the amount (minimum $0.99, maximum $4.99), plus any card-funding fee and a 3%–4% currency-conversion spread
• Paying for goods and services: free for the buyer — the seller pays the processing fee

So how much does PayPal charge to send money? Nothing for most domestic bank-funded transfers, $3.20 on a $100 card-funded personal payment, and $4.99 plus conversion costs on a typical $100 international transfer.

Why Is PayPal Charging Me a Fee?

PayPal charges you a fee for one of four reasons: the payment was a commercial (Goods and Services) transaction, you funded a personal payment with a credit or debit card, the payment crossed a border or currency, or you used instant transfer to cash out. Commercial processing fees always come out of the recipient's side; funding and transfer fees come out of yours.

If you were charged to receive money you expected to be free, check how the sender classified the payment. A Goods and Services payment carries the 2.99% + $0.49 seller fee no matter what kind of account receives it.

Does PayPal Charge a Fee to Cash Out?

Standard transfers from your PayPal balance to a linked U.S. bank account are free and typically arrive in 1 to 3 business days. If you want the money faster, instant transfers to a bank account or debit card cost 1.50% of the amount on business accounts and 1.75% on personal accounts. Cashing out in another currency adds PayPal's 3%–4% conversion spread.

PayPal Business Account Fees

A PayPal business account is free to open, with no monthly fee for the standard tier — you pay per transaction. (PayPal Payments Pro, which adds a hosted checkout and virtual terminal, costs $30/month.) New to the platform? Start with our guide to setting up a PayPal business account.

What a business account costs to actually use:

• Online sales through PayPal Checkout: 3.49% + $0.49
• Standard credit and debit card payments: 2.99% + $0.49
• Advanced (unbranded) card processing: 2.89% + $0.29 (3.39% + $0.29 through Virtual Terminal)
• Invoicing: 3.49% + $0.49 when paid with PayPal or Venmo, 2.99% + $0.49 by card, 4.99% + $0.49 with Pay Later, or 1% (max $10) by bank transfer
• QR code and in-person Zettle payments: 2.29% + $0.09
• Micropayments plan (by application): 4.99% + $0.09
• Chargeback fee: $20 per chargeback; dispute fee: $15 ($30 for high-volume sellers)
• Instant transfer to bank or debit card: 1.50% of the transfer amount (standard transfers are free)
• International sales: additional 1.50% per transaction, plus a 3%–4% currency-conversion spread

What Are the Disadvantages of a PayPal Business Account?

The account itself is free; the trade-offs show up as you grow. Flat-rate pricing does not fall with volume, so your effective rate can stay near 4.5% while interchange-plus merchants pay less every month. Every chargeback costs $20 on top of the lost sale — and how long customers have to dispute a charge is often months, so that exposure lingers. Automated risk reviews can limit an account and hold funds for up to 180 days with little warning. And Seller Protection excludes digital goods, which leaves software, ebook, and subscription sellers uncovered on every claim.

How PayPal compares to a dedicated merchant account: a business processing $50,000 a month through PayPal Checkout with a $50 average ticket pays about $2,235 in fees — an effective rate near 4.5%. A dedicated high-risk merchant account typically runs on interchange-plus pricing that drops as volume grows, includes chargeback mitigation tools, and won't freeze your funds the way PayPal's automated risk reviews can.

PayPal Processing Fees: Full Rate Breakdown

PayPal uses flat-rate pricing: the interchange fee set by the issuing bank, the card network's assessment fee, and PayPal's own markup are bundled into a single blended rate, so you pay the same percentage whether a customer uses a basic debit card or a premium rewards card. The tables below cover PayPal's merchant fees; PayPal also publishes separate tables for donation payments, cryptocurrency, and its other payment services.

Domestic Commercial Transactions

When you sell goods or services, PayPal calls these "commercial transactions." The domestic rate is 3.49% + $0.49 for PayPal Checkout and Venmo payments, 4.99% + $0.49 for Pay Later payments, and 2.99% + $0.49 for standard credit and debit card payments.

International Transactions

Receiving a payment from another country adds 1.50% of the transaction amount to the applicable domestic rate. Currency conversion, when required, adds a 3%–4% spread above the base exchange rate.

Fixed Fees by Currency

The fixed fee is $0.49 for payments received in U.S. dollars; every currency PayPal supports has its own fixed fee, shown below.

QR code transactions carry a smaller fixed fee — $0.09 in USD — at a 2.29% rate, making them PayPal's least expensive way to take in-person payments.

Other Commercial Rates

PayPal's schedule also includes charity transactions at 1.99% + $0.49, micropayments at 4.99% + $0.09, and card-present payments through Zettle at 2.29% + $0.09.

Invoicing

When a customer pays a PayPal invoice, the fee depends on how they pay: 3.49% + $0.49 with PayPal or Venmo, 2.99% + $0.49 with a credit or debit card, 4.99% + $0.49 with Pay Later, or 1% (capped at $10) by bank transfer.

International invoicing adds the same 1.50% cross-border fee on top of the applicable domestic invoicing rate.

The per-currency fixed fee structure matches other commercial transactions — $0.49 in USD — listed below.

How to Avoid PayPal Fees

You can't eliminate PayPal's fees on commercial transactions, but these strategies reduce what you pay:

• Set up a business account. It unlocks invoicing, reporting, and PayPal Working Capital — though even business rates run higher than many competitors'.
• Move small tickets to the micropayments plan. At 4.99% + $0.09, it beats the standard rate on transactions under about $20.
• Choose standard transfers over instant transfers. Standard bank transfers are free; instant transfers cost 1.50%.
• Keep personal payments personal. Balance- and bank-funded Friends and Family transfers are free — but never use them for customer sales, which violates PayPal's terms and voids all protection.
• Build the fee into your pricing. You cannot waive PayPal's fee on money you receive for goods or services, but you can price so the 2.99%–3.49% is covered.
• Deduct PayPal fees from your tax return. Processing fees are a legitimate business expense, so keep clean records for filing.
• Use a PayPal alternative. High-volume and high-risk businesses usually pay less per transaction on a dedicated merchant account with interchange-plus pricing.

PayPal Alternatives for High-Risk Businesses

PayPal is workable for many early-stage businesses, but there are structural reasons to consider an alternative — especially if your industry is classified as high-risk:

• Accounts can be limited with little warning: if PayPal freezes or terminates your account, funds can be held for up to 180 days — and high-risk industries get flagged most often.
• Seller Protection policies don't cover digital goods. Sellers of software, courses, and subscriptions are exposed on every dispute; a dedicated digital goods payment processor underwrites that exposure instead of excluding it.
• Chargebacks cost $20 each, on top of the lost sale and the original processing fee.
• Customer service can be difficult to reach when funds are frozen.

Weighing other flat-rate processors first? Our Stripe vs. PayPal vs. Square comparison covers how their fees and account stability stack up for high-risk sellers.

Specialized processors like PayKings underwrite high-risk industries upfront, so approval holds instead of unraveling after your first spike in volume. Merchants can often get pre-approved for a high-risk merchant account with competitive rates, chargeback mitigation tools, and support for verticals PayPal restricts — from ecommerce payment processing to a dedicated CBD merchant account.