How Much Does PayPal Charge? Every PayPal Fee Explained

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.

Jump to a section:

• Does PayPal Charge a Fee? Quick Answer
• What Percentage Does PayPal Take Per Transaction?
• PayPal Goods and Services Fee
• PayPal Fees for Receiving Money
• PayPal Fees for Sending Money
• PayPal Business Account Fees
• PayPal Processing Fees: Full Rate Tables
• How to Avoid PayPal Fees
• PayPal Alternatives for High-Risk Businesses

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 3.49% + $0.49 per paid invoice. 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
• 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 per paid invoice
• 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/dispute fee: $20 per dispute

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.

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.

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 you a fee to receive money whenever the payment is a commercial transaction — that is, a payment for goods or services. 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. Personal payments funded by a balance or bank account arrive free.

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 — even on a personal account

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
• 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. 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.

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: 2.59% + $0.49
• Invoicing: 3.49% + $0.49 per paid invoice
• QR code and in-person Zettle payments: 2.29% + $0.09
• Micropayments plan (by application): 4.99% + $0.09
• Chargeback/dispute fee: $20 per dispute
• 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

How PayPal compares to a dedicated merchant account: flat-rate pricing is simple but expensive at volume. 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 Tables

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.

Standard Rate for Domestic Transactions

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

Receiving International Transactions

With these transactions, the fee for receiving domestic transactions must be paid along with an additional fee of 1.50% of the transaction amount. Currency conversion, when required, adds a 3%–4% spread above the base exchange rate.

Fixed Fee for Commercial Transactions (Based on the Type of Currency Received)

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

Fixed Fee for Transactions Done With QR Codes (Based on the Type of Currency Received)

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

Other Commercial Transaction Fees

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.

Standard Rate for Receiving Domestic Invoicing Transactions

When you send a PayPal invoice as a payment request for the sale of your goods and services and the customer pays through that invoice, PayPal charges 3.49% + $0.49 per domestic invoice payment.

Receiving International Invoicing Transactions

For international invoicing, the fee for domestic invoicing applies and an additional percentage-based international fee of 1.50% is added as well.

Fixed Fee for Invoicing Transactions (Based on the Currency Being Received)

Invoicing carries the same per-currency fixed fee structure as 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, PayPal Working Capital, and eligibility for discounted rates — though even business rates run higher than many competitors'.
• Apply for lower rates. Businesses processing more than $3,000 per month can apply to PayPal for reduced merchant rates.
• 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.
• 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 alternate payment method — 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, leaving software, ebook, and subscription sellers exposed on every dispute.
• Chargebacks cost $20 per dispute, on top of the lost sale and the original processing fee.
• Customer service can be difficult to reach when funds are frozen.

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.