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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
- Offer another form of payment. It may be less expensive to accept cash, checks and ACH transfers, for example.
- 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 payment processing fees
- 2.9% plus 30 cents for online transactions.
- 2.7% plus 5 cents for in-person transactions.
- 3.4% plus 30 cents for manually keyed transactions.
- 3.9% plus 30 cents for international cards or currency conversion.
Square payment processing fees
- 2.6% plus 10 cents for in-person transactions (2.5% plus 10 cents with Retail Plus plan).
- 2.9% plus 30 cents for online transactions or invoices without a card on file.
- 3.5% plus 15 cents for manually keyed transactions or card-on-file invoices.
- 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.