PayPal payment processing fees range from 2.29% plus 9 cents to 3.49% plus 49 cents. What you'll pay depends on your customer's payment method.
Here's a rundown of PayPal's fees, along with a calculator for estimating how much using PayPal will cost you.
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PayPal fees at a glance
PayPal’s merchant fees page has a dizzying number of pricing details on it. The table below focuses on the fees that are most relevant to small businesses.
| Transaction type | Payment processing fee |
|---|---|
| In-person or via QR code | 2.29% plus 9 cents. |
| Online | 2.89%-3.49% plus plus 29-49 cents. |
| Invoice | 2.99%-3.49% plus 49 cents. |
Regardless of transaction type, you need to sign up for a free PayPal Business account to process payments with the company.
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PayPal POS fees for in-person and invoice transactions
PayPal POS is the company’s POS system for accepting card transactions in-person. It doesn't have any monthly fees. But you do have to pay for hardware and processing costs. Here’s what each costs:
Payment processing fees
- 2.29% plus 9 cents for in-person and QR code transactions.
- 3.49% plus 9 cents for manual-entry card transactions.
- 2.99% plus 49 cents for invoicing (payment made with card).
- 3.49% plus 49 cents for invoicing (payment made with PayPal).
Hardware costs
- $29 for first card reader; additional readers cost $79. Price includes USB cable.
- $199 for terminal only.
- $239 for terminal with barcode scanner built in.
- $229 for Store Kit Mini (tablet stand with card reader and dock).
- $339 for Store Kit Portable kit with mobile card reader and printer.
- $479 for Store Kit Standard (tablet stand, card reader, dock and printer).
- $699 for Store Kit Plus (adds barcode scanner).
» MORE: Top PayPal alternatives
PayPal Checkout fees for online transactions
PayPal Checkout lets you accept transactions on your business’s website. There are two different versions of it:
PayPal Checkout fees
PayPal Checkout is the company’s most basic online payment processing solution for small businesses. It lets you add payment buttons to your website. You can use it to accept credit and debit cards, along with PayPal, Pay Later and Venmo payments.
PayPal Checkout is easy to start using because it doesn't require an application. And it includes advanced fraud protection — something you have to pay extra for if you use Expanded Checkout.
However, it doesn't let you accept Apple Pay and other digital wallet payments. It also gives you minimal control over your checkout flow. For example, you can only choose the module's colors and style. Additionally, PayPal will show up on your customers' card statements — not your business's name.
Here’s what per-transaction processing rates look like for PayPal Checkout:
- 2.99% plus 49 cents for debit and credit card payments.
- 3.39% plus 29 cents per virtual terminal transaction.
- 3.49% plus 49 cents for PayPal and Venmo payments.
- 4.99% plus 49 cents per Pay Later transaction.
Expanded Checkout fees
PayPal’s Expanded Checkout option gives you access to additional features you don’t get with the standard solution. These include more brand customization opportunities, the ability to accept Apple Pay and Google Pay, add-on protection against chargebacks and lower processing rates. You can also choose between interchange-plus-plus and flat-rate pricing.
However, you do need to submit an application to subscribe to Expanded Checkout. And it can take a couple of days to be approved. This option also requires additional coding.
Here’s the pricing for Expanded Checkout:
- 2.89% plus 29 cents for debit and credit card payments.
- 0.40% extra per transaction for chargeback protection.
- 7 cents extra per transaction for advanced fraud protection.
- 3.39% plus 29 cents per virtual terminal transaction.
- 3.49% plus 49 cents for PayPal and Venmo payments.
- 4.99% plus 49 cents per Pay Later transaction.
PayPal fee calculator
To calculate how much you’ll pay in processing fees with PayPal, plug in your business’s average transaction total and payment type (e.g., online debit or credit card, PayPal Payments or in-person).
PayPal payment gateway fees
In addition to payment processing services, PayPal also offers payment gateways. These are mainly beneficial for businesses that use a different payment processor.
You can use PayPal's gateways to connect your e-commerce site to your merchant account. PayPal isn't necessarily the company processing the payment. But the gateway allows you to accept PayPal payments. This is a plus for customers who are familiar with and trust the PayPal brand.
Here are more details about each of PayPal’s payment gateway options:
Payflow Link
Payflow link has no monthly fees and costs 10 cents per transaction. You start by adding a PayPal-hosted checkout template to your existing website. This solution also lets you give customers the option to pay with PayPal.
Payflow Pro
Payflow Pro costs $25 per month and 10 cents per transaction. Compared to Payflow Link, it opens up more opportunities for customization. This lets you customize PayPal’s checkout template to match your site’s branding. You can also give customers a more cohesive checkout experience.
Methodology
NerdWallet independently reviews payment processing companies before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company representatives. Our editorial team reviews information on a regular basis for consistency and accuracy.
We also periodically update our scoring system to reflect changing industry norms and business needs. For instance, in 2026, we dropped the “free trials” category from our rubric. Payment processing systems can be time-consuming to set up. Testing out multiple products isn’t an ideal approach. Instead, we recommend taking cost and features into consideration.
NerdWallet’s ratings of payment processing providers rewards companies whose products and services are priced well and work in a variety of payment scenarios, among other criteria.
Ratings are based on weighted averages of scores in several categories, including overall cost, hardware and software options, system capabilities, customer service, contract requirements and integrations. Learn more about how we rate payment processing providers.
These ratings are a guide, but fees, hardware, software and contract requirements can vary widely from business to business and provider to provider. We encourage you to shop around and compare several providers.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
