How PayPal charges a seller
PayPal takes a percentage of the payment plus a fixed fee. Both come out of the amount you receive, and each is rounded to the cent on its own. The fixed fee is for payments received in your own currency.
| Market | Rate (PayPal checkout) | Payer sends | Fees | You receive |
|---|---|---|---|---|
| United States | 3.49% + $0.49 | $50.00 | $2.24 | $47.76 |
| United Kingdom | 2.9% + £0.30 | £50.00 | £1.75 | £48.25 |
| Canada | 2.9% + C$0.30 | C$50.00 | C$1.75 | C$48.25 |
| Australia | 2.9% + A$0.30 | A$50.00 | A$1.75 | A$48.25 |
Domestic payment, paid in your own currency. Amounts are in the local currency of each market. Computed by the PayPal calculator.
Here is the US payment step by step, using the same figures as the PayPal calculator.
- The payer sends $50.00.
- The percent fee is 3.49% of $50.00, which is $1.75.
- The fixed fee is $0.49, so the total fee is $2.24.
- You receive $47.76, which is 95.5% of what the payer sent.
These are commercial transaction rates. Sending money to friends and family is a personal payment, not a sale: PayPal lists it as free domestically, and in the US 2.9% when funded by card.
The rate depends on how the payer pays
PayPal lists a separate rate for each way a payer can pay. In the US a card payment is cheaper than PayPal checkout, Pay Later costs more, and QR codes are the cheapest.
| Market | Payment type | Rate | Fees | You receive |
|---|---|---|---|---|
| United States | PayPal checkout | 3.49% + $0.49 | $2.24 | $47.76 |
| United States | Cards | 2.99% + $0.49 | $1.99 | $48.01 |
| United States | Pay Later | 4.99% + $0.49 | $2.99 | $47.01 |
| United States | QR code | 2.29% + $0.09 | $1.24 | $48.76 |
| United Kingdom | PayPal checkout | 2.9% + £0.30 | £1.75 | £48.25 |
| United Kingdom | Pay Later | 3.9% + £0.30 | £2.25 | £47.75 |
| United Kingdom | QR code | 2% + £0.05, or 1.5% + £0.10 above £10 | £0.85 | £49.15 |
The UK QR code rate changes at £10. Only payment types with a confirmed fixed fee are listed.
In Canada and Australia we list only the types whose rates PayPal states in full. The calculator shows what each market offers.
Small payments pay the most
The fixed fee does not shrink with the payment. On $5.00 in the US, fees are 13.2% of what the payer sends, and on $200.00 they fall to 3.7%.
| Payment | US fees | US share | UK fees | UK share |
|---|---|---|---|---|
| 5 | $0.66 | 13.2% | £0.45 | 9% |
| 20 | $1.19 | 5.9% | £0.88 | 4.4% |
| 50 | $2.24 | 4.5% | £1.75 | 3.5% |
| 200 | $7.47 | 3.7% | £6.10 | 3% |
US in dollars, UK in pounds.
If you sell low-priced items, the QR code rate or bundling items into one payment can change the math. Check which payment types your buyers can actually use.
International payments
When the payer is in another country, PayPal adds a percentage on top of the domestic rate. The surcharge varies by market, and in the UK and Canada it also varies by where the payer is.
| Who pays | Added percent | Domestic fees | International fees | You receive |
|---|---|---|---|---|
| United States, payer in another country | +1.5% | $2.24 | $2.99 | $47.01 |
| United Kingdom, payer in the EEA | +1.29% | £1.75 | £2.40 | £47.60 |
| United Kingdom, payer in another country | +1.99% | £1.75 | £2.75 | £47.25 |
| Canada, payer in the US | +0.8% | C$1.75 | C$2.15 | C$47.85 |
| Canada, payer in another country | +1% | C$1.75 | C$2.25 | C$47.75 |
| Australia, payer in another country | +1% | A$1.75 | A$2.25 | A$47.75 |
The surcharge is added to the percent fee for every payment type. PayPal names commercial, invoicing and micropayment receipts, so treat it as an estimate for QR codes.
On the US payment that adds $0.75, taking fees from $2.24 to $2.99.
If the payer pays in a currency other than yours, PayPal converts it at a spread above its base rate: 3% or 4% in the US and 3% in the UK. That cost is not a fixed fee, so it is not in the figures above.
How much to request to receive a target amount
PayPal's fee comes out of what the payer sends, so asking for the amount you want leaves you short. Asking for $100.00 in the US leaves $96.02.
The amount to request is the target plus the fixed fee, divided by one minus the percent. For $100.00 that is (100 + 0.49) divided by 0.9651, which rounds to $104.12.
The same sum works in the other markets with their own rates. The UK, Canada and Australia share one rate, 2.9% + 0.30 in local currency, so in the UK you request £103.30 to receive £100.00.
Add the international surcharge to the percent first if your buyer is abroad. The request grows, and a buyer who is shown a higher total may think twice, so price the item with the surcharge in mind.
| Market | You want | Request (domestic) | Fees | Request (international) | Fees |
|---|---|---|---|---|---|
| United States | $100.00 | $104.12 | $4.12 | $105.77 | $5.77 |
| United Kingdom | £100.00 | £103.30 | £3.30 | £104.69 | £4.69 |
| Canada | C$100.00 | C$103.30 | C$3.30 | C$104.15 | C$4.15 |
| Australia | A$100.00 | A$103.30 | A$3.30 | A$104.37 | A$4.37 |
International rows use the first payer region PayPal lists for each market. Computed by Find price in the PayPal calculator.
What is not included
- Currency conversion, which depends on the payer paying in another currency.
- Withdrawal and dispute fees, and the optional UK tiered rate plan.
- Anything PayPal charges that is not on its merchant fee pages, which we read on the date shown.