How Much Does PayPal Charge?

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This guide will answer your question, ‘How Much Does PayPal Charge or ‘What does PayPal charge for Credit Card Processing’? It is important to understand that certain PayPal fees are associated with your PayPal account. We will provide you with examples of PayPal fees based on dollar amounts. 

PayPal does not charge a fee to sign up or create an account. All you need is your email address, your name, banking information, and your debit and/or credit card information, and you can begin using PayPal to buy, sell, and/or send or receive money. 

What does PayPal charge for credit card processing?

How Much Does PayPal Charge?

Determining how much does Paypal charge depends on the type of account that you have. Some of these products and services will charge a fixed fee in addition to the transaction fee. The fixed fee is based on the type of currency received and is charged per transaction. 

Personal/Business PayPal Account Fees

When you use your Paypal account to make purchases, transfer money out of, and/or send money using your PayPal account balance there is no fee. However, fees are assessed if you make certain transactions using other methods of payment including your PayPal Credit Account or Cash Card.

Here is a breakdown of those fees:

Sending/Withdrawing/Transferring Money

If you send money to friends or family using your PayPal account balance, or your bank account, the fee is $0. If you use a debit or credit card, PayPal Credit Account, or PayPal Cash card, you will pay a fee of 2.9% of the transaction amount plus a fixed fee of .30 for U.S. transactions. 

*Example: You send $1,000 to a friend and you have to use your linked debit card to cover the payment, you will pay the $1,000 + $29 (transaction fee) $.30 fixed fee. Your total that you would pay is $1029.30 as long as this is a domestic personal transaction. 

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What does PayPal Charge for Credit Card Processing?

PayPal Cash Card

Making withdrawals from an Automated Teller Machine(ATM) in the U.S. using your Personal Identification Number(PIN) will be assessed a $2.50 per transaction fee. This also includes making a balance inquiry using your PIN at an ATM. The fee that is assessed does not include withdrawals from foreign ATM’s nor does it include fees charged from the owner of the ATM machine. 

If you use the PIN-based cash back option when making purchases in-stores, you will not be assessed any fees except those charged by the merchant, and currency conversion is not involved. However, teller-assisted withdrawals are charged a $3.00 fee per withdrawal whether you use the Cash Card or Business Debit Card. 

PayPal Business Debit MasterCard

Withdrawing money from an ATM within the U.S. is charged $1.50 per transaction. For international withdrawals, the fee is $1.50 with a foreign transaction fee of 1% for the use of non-U.S. ATMs.  

You can make transfers out of your personal or business PayPal account balance to your local bank account or a linked debit card, or by having a check mailed to you. There are no fees for transferring to your local bank account as long as you are not required to use the currency conversion. If you request that a check be mailed to you the fee is $1.50 which is deducted from your PayPal account balance. 

If you transfer to your bank account using instant transfer or you transfer to your linked debit card, the fee is 1% based on the amount transferred. The maximum fee limit applies according to:

  • Instant bank transfers per transaction are up to $25,000.
  • Instant card transfers per transaction, day, and week are up to $5,000. Business accounts are $50,000 per transaction, $100,000.00 per day, and $250,000 per week.
  • Instant card transfers per month are up to $15,000. Business accounts are $500,000 per month.

The maximum fee applied based on the information above is $10.00. 

*Example: You make an instant card transfer of $5,000 to your linked debit card. The transfer limit for the personal instant card transfers is $5,000. The maximum fee of $10.00 will be deducted from your transfer amount. 

PayPal Fees Charged for Foreign Transactions

Foreign transaction fees are assessed whether you need currency conversion or not. Currency conversion fees are based on the type of transaction that you make and are in addition to the foreign transaction fees and any other fees you are charged.

Additional fees are charged when you make a purchase from a non-U.S. merchant when using non-U.S. ATM’s, when you receive or send money internationally.   International fees for money transfers are 5% plus an additional 2.9% and the fixed fee if you are using a card. The most that you can be charged for international transaction fees is $4.99 and the minimum amount you are charged is $.99. 

*Example: You send $600 to your mom on vacation in Australia using your PayPal balance. You will pay $600 + the maximum transaction fee of $4.99 for a total of $604.99. There are no additional fees since you are using your PayPal account balance and the maximum you can be charged for transaction fees is $4.99. If currency conversion is necessary, additional fees will apply.

The fee for making purchases through a non-U.S. merchant is 2.5% of your purchase amount. Withdrawing money or using a non-U.S. ATM is 2.5% of the transaction amount for the PayPal Cash Card. 

Foreign transaction fees are assessed whether you need currency conversion or not. Currency conversion fees are based on the type of transaction that you make and are in addition to the foreign transaction fees and any other fees you are charged.

The currency conversion spread for using currency that is different from currency received by recipients when sending money to friends or family, using the PayPal Payouts or Mass Pay services, or paying for goods and services, is 4%. Transactions outside of the ones listed are assessed a 3% currency conversion spread. 

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Buying/Selling Using Your Personal or Business PayPal Account

It is not required to have a PayPal Business Account to make commercial transactions. The fees for commercial transactions apply to both business and personal accounts.

PayPal considers commercial transactions to involve any of the following:

  • Buying or selling goods and/or services
  • Charity donations (sent or received)
  • Using the request money feature when receiving money

Here is the answer to what does PayPal charge for credit card processing for the different types of commercial transactions:

  • 2.9% for online transactions + fixed fee
  • 2.7% for In-store transactions + fixed fee
  • QR code $10.01 and up is assessed 1.9% + fixed fee
  • QR code $10.00 and below is assessed 2.4% + fixed fee
  • The use of Venmo is 2.9% + fixed fee
  • Using the pay later offers 2.9% + fixed fee
  • 2.2% for Charity transactions plus fixed charity fee of $0.30

*If the above commercial transactions are international, an additional 1.5% will be assessed to the above fees. 

*Example: You request payment of $4,000 for selling a car to someone online. The fees assessed would be $116.00 for the transaction fee and $.30 for the fixed fee. The total fee of $116.30 will be deducted from the $4,000 that you receive.  

Additional Merchant Fees

If you sign up for a PayPal Business account, you are subject to Paypal Merchant fees for additional services other than the commercial transactions that you make. 

PayPal fees for Chargebacks/Disputes

The chargeback fee is based on the currency received and the dispute fee is determined by the country in which the transaction originated. Chargeback fees are $20, standard dispute fees are $15, and High dispute fees are $30. High dispute fees are applied based on a dispute rate of 1.5% and above, plus over 100 sales transactions in the last 3 full months. 

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What does PayPal charge for Credit Card Processing Domestic PayPal Here Transactions

Fees for using PayPal Here to accept payments and transactions are as follows:

  • Transactions for Cards is 2.70%
  • Transactions that are keyed in without the card are 3.50% + fixed fee
  • In-store transactions are 2.70%
  • The use of QR code transactions is 2.70% 

*Example: You accept a transaction from a customer who knows their card number but does not have the physical card in hand. You have to key in the card for this transaction totaling $750.00. The fees for this transaction are $26.25 + $.30 for the fixed fee. For a total of $26.55 in fees. 

Miscellaneous PayPal Fees

Additional fees for both personal and business accounts include:

  • Confirmations for credit and debit cards are subject to a $1.95 fee refunded upon completion of the verification process.
  • Authorization holds for preauthorization at a gas pump using the PayPal Cash Card or PayPal Business Debit Card can be as high as $100. When using either card in restaurants, to rent a car or at a hotel, a hold is placed on the purchase amount plus an additional amount of up to 20%. These funds are not available for up to 10 days. 

 *Example: You eat out at a restaurant and the bill is $200, you use your PayPal Business Debit MasterCard to cover the bill. The restaurant can place a preauthorization hold for up to 10 days in the amount of up to $240. 

What does PayPal Charge for Credit Card Processing: Conclusion

The fees mentioned in this guide are only a partial listing of the PayPal fees charged for personal and business accounts. Refer to your account agreement or terms and conditions for a full listing of fees charged. 

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