Most sellers know PayPal takes "about 3%," but few could say what a specific payment actually costs them once the buyer is overseas or the money gets converted.
The fee rate isn't a single number: what you pay depends on how the payment is made, whether the buyer is overseas, and whether a currency is converted along the way.
This guide covers every PayPal fee a seller or freelancer runs into, what each one costs on a real payment, and the practical ways to keep more of what you're paid.
Quick answer: PayPal charges 2.99% + $0.49 to receive a domestic goods-and-services payment in the US, and 3.49% + $0.49 for a PayPal Checkout or invoice payment. International payments add 1.5%, plus a currency-conversion spread of roughly 3% to 4% when funds are converted. The person receiving a commercial payment pays the fee; personal payments funded by balance or bank are usually free.Calculate your PayPal fees
How much does PayPal charge?
PayPal's standard US fee is 2.99% + $0.49 to receive a goods-and-services payment, rising to 3.49% + $0.49 for PayPal Checkout and invoices, with surcharges for international and converted payments. There's no monthly fee on a standard business account, so almost everything you pay is per transaction.
Transaction type | US fee |
|---|---|
Goods and services (standard card or balance) | 2.99% + $0.49 |
PayPal Checkout (button on your site) | 3.49% + $0.49 |
Invoicing | 3.49% + $0.49 |
Pay with Venmo | 3.49% + $0.49 |
QR code (in person) | 2.29% + $0.09 |
Micropayments (small transactions) | 4.99% + $0.09 |
International surcharge | +1.5% |
Currency conversion | 3% to 4% |
Two things decide most of what you pay. The fixed $0.49 costs you more on small payments than large ones: it's a big share of a $5 sale but barely noticeable on a $500 one. And the rate depends on how you take the payment: a PayPal button on your website (Checkout) is 3.49%, while a standard goods-and-services payment is 2.99%.
PayPal fees by transaction type
PayPal charges a different rate for each way of getting paid, so the same $100 can cost you anywhere from $2.38 to $5.08 depending on how it reaches you. Here's what each one covers.
Goods and services payments
When a customer pays you for goods or services, PayPal charges 2.99% + $0.49 and covers the payment with Purchase Protection. It's the standard rate for a commercial payment, whether the buyer sends it or pays an amount you've requested. You pay the fee as the receiver, and in the US you can't add it on top as a separate surcharge.
PayPal Checkout and invoicing
If you take payments through a PayPal button on your website, or send a PayPal invoice, the rate is 3.49% + $0.49. You're paying for the hosted checkout and invoice tools, so this is the most common rate for online sellers using PayPal as their store checkout. Pay with Venmo, offered through the same integration, is charged at the same 3.49% + $0.49.
QR code and in-person payments
Payments taken in person through a PayPal or Venmo QR code are cheaper, at 2.29% + $0.09, with a lower fixed fee than online rates. This suits market stalls, pop-ups, and service businesses taking payment face to face.
Micropayments
For businesses selling lots of low-value items, PayPal offers a micropayments rate of 4.99% + $0.09. The percentage is higher but the fixed fee is much lower, so it works out cheaper on small amounts: on a $3 sale, micropayments cost $0.24 against $0.58 on the standard rate. You have to apply to enable it on your account.
Sending money and personal payments
Sending money to friends and family is free when it's funded by your PayPal balance or a linked bank account. If the sender funds it with a card, a fee of around 2.9% applies and can be passed to the sender. These personal payments carry no Purchase Protection, which is why buyers should not use them to pay for goods.
Refunds and disputes
When you refund a sale, PayPal does not return the full original fee, so a refunded transaction still costs you at least the fixed portion. Chargebacks and disputes can add a separate dispute fee on top. PayPal has changed its refund-fee terms more than once and they vary by region, so check the current policy for your account before relying on getting any fee back.
PayPal international and currency-conversion fees
On a cross-border sale PayPal adds 1.5% to your base rate, and if the money is converted into another currency it adds a further spread of roughly 3% to 4%, so an international payment can cost close to 8%. These surcharges stack on top of the standard rate rather than replacing it.
Payment on $100 (goods and services) | Fee | Effective rate |
|---|---|---|
Domestic | $3.48 | 3.5% |
| $4.98 | 5.0% |
| $7.98 | 8.0% |
The conversion cost is the easiest to miss, because PayPal builds it into the exchange rate instead of showing it as a separate charge. If you hold a balance in the currency your buyer pays in, you can sometimes skip the second conversion. For sellers who take a lot of overseas payments, the international and conversion surcharges together often matter more than the headline rate.
PayPal fees in the UK
UK sellers pay 2.9% + £0.30 to receive a commercial payment, with the same 1.5% international surcharge and a higher 5% rate on micropayments. The structure mirrors the US, but the base rate and fixed fee differ.
Transaction type | UK fee |
|---|---|
Commercial transaction (standard) | 2.9% + £0.30 |
Micropayments | 5% + £0.05 |
International surcharge | +1.5% |
On a £100 sale that works out to £3.20 in fees, or 3.2%, before any international or conversion cost. UK sellers taking payment from overseas buyers meet the same 1.5% surcharge and the currency-conversion spread, so a payment from a US customer converted to pounds can cost close to double the domestic rate.
What you actually keep on a PayPal payment
PayPal's headline 2.99% understates the cost on small and international payments: the fixed $0.49 alone takes 7.9% of a $10 sale, and a converted overseas payment can leave you keeping about 92%. The table shows what you're left with on a $100 payment under each scenario, and how much a small sale really costs.
Scenario | Fee | You keep | Effective rate |
|---|---|---|---|
$100, goods and services | $3.48 | $96.52 | 3.5% |
$100, PayPal Checkout (3.49%) | $3.98 | $96.02 | 4.0% |
$100, international card | $4.98 | $95.02 | 5.0% |
$100, international + conversion | $7.98 | $92.02 | 8.0% |
$10, goods and services | $0.79 | $9.21 | 7.9% |
$5, standard rate | $0.64 | $4.36 | 12.8% |
The fixed fee is why very small payments are expensive: a $5 sale loses 12.8% on the standard rate, which is where the micropayments option (or batching sales into larger invoices) starts to pay off.
Working backwards also helps when you need to net a specific amount. To actually receive $100 on a domestic goods-and-services payment, you'd ask for about $103.59, since the fee comes out before the money reaches you. Our calculator does this in reverse so you can set a price that nets what you need.
How we calculated these fees: figures use PayPal's published US rates (verified July 2026): 2.99% + $0.49 standard, 3.49% + $0.49 for Checkout and invoices, plus a 1.5% international surcharge and a currency-conversion spread of roughly 3% to 4%. Effective rates are calculated from those published rates. Your real rate varies with the payment type, the buyer's country, and whether a currency is converted.
How to reduce your PayPal fees
You can't negotiate PayPal's standard rates unless you process at high volume, but five changes lower what you actually pay: use the cheaper payment type, turn on micropayments for small sales, avoid unnecessary conversions, keep disputes down, and route online sales through a lower-fee checkout.
- Use the right product for the payment. A standard goods-and-services payment (2.99%) costs less than PayPal Checkout (3.49%), so if you're invoicing a client or requesting a payment, use the lower-rate option rather than a website button where you can.
- Apply for micropayments if you sell cheap items. At 4.99% + $0.09, the micropayments rate beats the standard rate on anything under about $12, because the fixed fee is $0.09 instead of $0.49.
- Avoid double currency conversion. Hold a balance in the currencies you sell in where possible, so PayPal doesn't convert at both the payment and the withdrawal. The conversion spread is one of the largest hidden costs for cross-border sellers.
- Keep disputes and chargebacks low. Clear descriptions, accurate delivery times, and quick responses to buyer questions prevent most disputes from turning into chargebacks that carry a fee.
- Route your online checkout through a lower-fee platform. PayPal Checkout at 3.49% + $0.49 is one of the more expensive ways to take card payments online. A Stripe-based checkout charges Stripe's card rate (2.9% + $0.30) with no percentage on top, so for your main store checkout it can cost less per sale while still letting you keep PayPal as one payment option elsewhere.
Checkout Page runs on your own Stripe account and charges 0% in platform fees, with a free plan that covers up to $3,000 in monthly sales. For online sellers whose PayPal fees are climbing, moving the core checkout onto Stripe rates is usually the single biggest saving. Our guide to Stripe's processing fees breaks down how those rates compare, and Stripe vs PayPal weighs the two side by side.
Calculate your PayPal feesSell your products, subscriptions, and event tickets with Checkout Page. Start free for up to $3,000 in monthly sales, with 0% platform fees. Start for free, no credit card required.
PayPal fees FAQ
Does PayPal charge a fee to receive money?
Yes, for commercial payments. Receiving money for goods or services costs 2.99% + $0.49 in the US on the standard rate, or 3.49% + $0.49 through PayPal Checkout or an invoice. Personal payments from friends or family are free when funded by a balance or bank, but carry no Purchase Protection.
How much are PayPal fees on $100?
On a $100 goods-and-services payment in the US, PayPal takes $3.48 (2.99% + $0.49), leaving you $96.52. Through PayPal Checkout it's $3.98. An international payment adds 1.5%, and a currency conversion adds roughly 3% to 4% more, which can push the fee close to $8 on $100.
How do I avoid PayPal fees when receiving money?
You can't avoid fees on commercial payments, but you can lower them: use the standard 2.99% rate rather than Checkout where possible, apply for micropayments on small sales, and avoid unnecessary currency conversions. There's no legitimate way to take payment for goods fee-free, since fee-free personal payments have no buyer protection.
What are PayPal's fees for international payments?
PayPal adds a 1.5% surcharge to your base rate for cross-border payments. If the money is converted into another currency, a further spread of roughly 3% to 4% applies to the exchange rate. Stacked on the base rate, an international payment can cost around 8% of the amount received.
Who pays the PayPal fee, the sender or the receiver?
On goods-and-services payments, the person receiving the money pays the fee. On personal payments funded by a card, the fee usually falls to the sender and can be passed on. In the US, a seller can't add a separate PayPal surcharge to a buyer's goods-and-services payment.
