Here’s a Guide to PayPal Fees and How to Save Money Using PayPal

By  //  January 24, 2022

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If you operate PayPal as a payment platform, the different pricing levels can get confusing for sellers like you. So, you need a guide to help you understand the respective fees and calculate fees.

PayPal fees for sellers

As a seller using PayPal, you are expected to pay fees for every transaction and other business actions.

Here are some primary fees you’ll have to pay as a business merchant using PayPal.

Transaction fees

The transaction fee is applied when you sell products and services, whether online or in a store. Different rates apply for different kinds of transactions.

There are four different rates of transaction fees for sellers and they depend on your business location, and whether or not the sale was made offline or online.

If you make sales online and within the U.S, you’ll pay a fee that amounts to 2.9% of the overall transaction amount, as well as a fixed fee depending on the trade currency. However, when you make sales outside the US, the transaction rate increases to 4.4% of the total cost alongside currency fees.

When you sell in stores, the transaction fee is only 2.7% of the overall amount, and then the currency fee applies. In-store sales outside the U.S amount to 4.2% for the transaction and then currency fees.

Balance transfers

You can transfer earnings from your PayPal balance to a bank account in two ways. First, the standard transfer method goes from your PayPal account to a linked bank account. This method doesn’t attract a withdrawal fee and the funds arrive the next business day.

Also, Instant Transfers sends your earnings to a bank account or debit card in minutes with a 1% charge of the amount transferred.

Virtual Terminal fees and PayPal Payments Pro

You can sign up for PayPal Payments Pro that allows you receive payments through your website. 

The Virtual Terminal solution makes your computer a virtual credit card terminal that allows you to accept payments at retail locations.

The fee for PayPal Payments Pro includes 2.9% and $0.30 per transaction within the US and 4.4% and a fixed fee for international transactions, depending on location. 

As for Virtual Terminal transactions, domestic fees are 3.1% and $0.30, while international transactions are 4.6% and $0.30.

Mobile card reader fees

PayPal has an app for mobile card readers. When you use a mobile card reader, you’ll need to pay transaction fees.

Swiped and check-in transactions cost 2.7% of the transaction fee. For keyed and scanned transactions, you’ll pay 3.5% and $0.15 for each transaction.

International cards cost an extra 1.5%, while there is a 2.5% currency conversion fee for different currency payments.

Chargeback fees

When you process a chargeback request with PayPal, you’ll pay a chargeback fee, depending on the payment currency.

The PayPal website has a list of fees depending on the currency, but they are usually around $20 per chargeback.

Refund fees

Processing a refund to a buyer on PayPal is free, but you cannot get refunds on seller fees. 


International sales have an additional currency conversion charge of 3.0% alongside the 1.5% increase already existing on foreign transaction fees.

The PayPal calculator can help you calculate all the PayPal fees connected to your business activities.