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PayPal lets you set up an account for free, and most basic transactions, like sending and receiving money using your PayPal balance, aren’t charged. However, PayPal might charge a fee depending on the type of activity. Here’s what you need to know about PayPal fees and how much they are.
Read more: Everything you need to know about PayPal
Yes, PayPal has fees depending on the type of transaction. However, setting up an account and most basic transactions are free, especially if you’re using your PayPal balance.
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Does PayPal charge a fee?
Ankit Banerjee / Android Authority
You can open a PayPal account and download the mobile app for free. PayPal also doesn’t charge a fee if you send or receive money for personal transactions using your PayPal balance or linked bank account.
You will be charged a fee if you receive money from outside your country, if currency conversion is required, or if you send a personal payment using a linked debit or credit card. The fees also change depending on whether you have a consumer/personal PayPal account or a merchant/seller account.
How much are PayPal fees?
Ankit Banerjee / Android Authority
If you have a consumer/personal PayPal account
- Fees to send money: There is no fee if you send money using your PayPal balance or linked bank account. If you send funds using a linked debit or credit card, you will be charged a 2.9% fee. There is also a 5% fee if you send money internationally, up to a maximum of $4.99.
- Fees for withdrawing money: There’s no fee if you withdraw funds to your bank account, but it will take two to three business days. For an instant transfer to your bank account or linked debit card, you will be charged 1.5% of the total amount, up to $15. If you want a paper check mailed, there’s also a $1.50 fee.
- Shopping fees: PayPal doesn’t charge a fee if you use your PayPal account to shop online or in stores.
Check out the PayPal personal account fees page for a complete breakdown of the fees PayPal might charge you.
If you have a PayPal merchant/seller account:
- Commercial transaction rates: The standard rate for invoicing a customer, or if the customer uses PayPal Checkout, PayPal Guest Checkout, or Venmo, is 3.49%. PayPal charges 2.99% for standard debit and credit card payments. QR code transaction fees for a total below $10 is 1.9% and above $10 is 2.4%.
- Goods and services fees: If you receive money for goods and services, you will be charged a 2.89% fee.
You can find out more on PayPal’s merchant fees page.
Why is PayPal charging me a fee?
PayPal charges a fee depending on the type of transaction. However, it won’t charge a fee for most domestic transactions.
What is a PayPal transaction fee?
PayPal transaction fees are the fees you pay mentioned in the commercial transaction rates section above. This fee is only if you have a PayPal merchant/seller account.
What is a PayPal goods and services fee?
Any product or transaction under the goods and services category will be charged this fee. For domestic transactions, PayPal charges 2.89%.
Does PayPal charge a fee for friends and family?
PayPal doesn’t charge a fee if you send or receive money from friends and family when using your PayPal Balance or linked bank account. There is a 2.9% fee if you send funds from a linked debit or credit card.
How do I avoid PayPal fees?
Changing the way you transact could help you reduce PayPal fees. Opt for bank transfers that aren’t instant and don’t use your debit card or credit card to send funds. You can get a PayPal debit card if you want immediate access to your balance.