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PayPal’s payment processing fees
How much are PayPal fees?
Digital payments (invoicing, checkout, pay with Venmo and other commercial transactions)
Send/receive money for goods and services
Standard credit/debit card payments
Alternative payment methods
PayPal Here (legacy offering for in-person payments)
Card present or QR code
Zettle (for in-person payments)
Card present or QR code
QR code transactions
Online card payment services
Advanced credit / debit card
Per transaction rate is 3.5% for Amex.
$5 monthly fee.
$30 monthly fee.
Per transaction rate is 3.5% for Amex. There is also a $30 monthly fee.
- When you sign up for PayPal, your default rate will be the Standard Credit/Debit Card Payments rate of 2.99% plus $0.49 per transaction.
- Choosing Advanced Credit/Debit Card Payments will give you a lower per-transaction rate of 2.59% plus $0.49; it will also give you access to features such as Chargeback Protection.
- Be aware, though, that additional features incur additional fees — sometimes negating any savings. Weigh any benefits you will gain against these additional fees.
- International transactions incur different per-transaction rates and fees as well as currency conversion fees. Again, PayPal’s Merchant Fee page breaks down all its rates and fees in detail.
How to avoid PayPal fees
- Have customers pay less frequently. PayPal charges a per-transaction fee as well as a percentage fee, so fewer transactions mean fewer per-transaction fees.
- See if you can deduct the fees as a business expense. Costs you pay to accept credit cards may be deductible, according to IRS Publication 535.
PayPal competitors and alternatives
Stripe and Square
- Stripe charges 2.9% plus 30 cents per transaction.
- Square charges 2.9% plus 30 cents per online transaction.
- Be careful, though, as these fees aren’t always “apples to apples," as PayPal, Stripe and Square all have slightly different use cases.
- You’ll need to weigh the advantages of each against the features you need for your business, including integration into your website and point of sale systems. One of PayPal's best features of is how easy it is for customers to pay you. If your customer has a PayPal account, they don’t have to reach for their wallet in order to pay. A few quick clicks and their purchase is complete. This can lead to higher sales conversions, which means more profit.
- Google Pay is now competing on this front, and it is not currently charging businesses a fee to use its services. There are no fees at all if your customer uses a bank account to make a purchase through Google Pay.
- Do note, though, that credit card providers might charge your business a transaction fee if your customer uses a credit card linked to their Google Pay account to complete a purchase.