Does PayPal Charge International Fees? Yes, Big Ones. Here's How to Avoid Them in 2023

Does PayPal charge international fees? Yes, they do, and they can be more expensive than you might think! Depending on what you're using PayPal for, these fees typically range from 3% to 5% of the transfer value. In this guide, we'll untangle PayPal's notoriously complex fee structure and clarify what you need to pay, why, and when.

Fortunately, despite the fees, there are a few tips and tricks for keeping the costs down, as well as a few market-leading online alternatives to use instead of PayPal for specific use cases. We've summarised them below:

• Paying online: Revolut
• Transferring internationally to a bank account: Wise
• Transferring internationally for cash pick-up: Remitly
• Transferring internationally to a mobile wallet: WorldRemit
• Transferring internationally to a card deposit: Paysend

If you're interested in transferring money internationally (as opposed to paying online in a foreign currency), then you can compare market-leading money transfer alternatives now to see how much you could save compared to PayPal on your next transfer. 👇

What Are PayPal's International Fees?

If you've ever tried to search for a list of international fees on PayPal's website, you'll be very aware that its fee schedule can be confusing to navigate. Fortunately, we're here to simplify it for you! Below, we've outlined all of the fees you should be aware of.

In summary, the basic principle to note is that domestic bank transfers and transfers between PayPal users are free of charge. Otherwise, if you use a credit or debit card or make any international payments or transfers, you will incur fees. If you're a merchant or the host of a fundraiser, PayPal will charge you a percentage and fixed fees on every good or service you sell. If you're sending money abroad, we highly recommend using our real-time comparison engine to find better rates than PayPal.

Fees For International Online Payments

This category is the most straightforward. It's free to use your PayPal balance to pay for a purchase or make a donation as long as it is a domestic transaction. If it's an international transaction, you'll be charged a fee since the transaction will require currency conversion. We will explain PayPal's high currency conversion fees later in this guide.

Selling With PayPal

PayPal's fixed fees for merchants who use the service to sell goods and services are so complex that they deserve an article of their own, with the company offering many solutions for businesses to complete customer transactions.

In general, PayPal’s payment processing rates range from 1.9% to 4.99%, plus a fixed fee that ranges from $0.05 USD to $0.49 USD. In addition, be aware that you will lose money to their weak exchange rates if you receive transactions that require currency conversion (more on this later).

As a business owner, the most common fee you will probably encounter is the rate for standard card payments is 2.99% plus $0.49 USD per transaction.

Fees For Transferring Into a Foreign Currency

The bottom line here is that PayPal is free to use if you send and receive money domestically with your PayPal balance or linked bank account. Otherwise, you should expect to pay fees using a linked credit or debit card. Whenever you're dealing with transferring money internationally, you will lose money to PayPal's weak exchange rates.

When you receive money that is denominated in a foreign currency, PayPal will charge you a fee as a recipient, which varies based on the currency received, ranging from £0.20 GBP to R$0.60 BRL.

Here's a broken-down table of PayPal fees for sending and receiving money:

To avoid high fees, don't use PayPal to make or receive money that requires currency conversion. Use our comparison engine below to find cheaper international money transfer alternatives:

Currency Conversion Fees/Exchange Rates

When converting foreign currencies, PayPal applies a weaker exchange rate than the real market rate and pockets the difference. The markup starts at 4% of the total transfer amount and is subject to change.

So, if you're ever sending money to a friend's foreign bank account or are buying something online from a foreign marketplace with your PayPal balance, your money will be subject to PayPal's currency conversion rate. Read our in-depth guide to learn how to avoid these expensive, hidden fees.

Use Monito's real-time comparison engine to find cheaper and more transparent providers for sending money abroad.

Tips to Avoid PayPal's International Fees

Depending on what you're after, there are a few tricks and tips to reduce the fees you pay on PayPal for international transactions. We've summarised them into the three below:

Tip 1: Pay Domestically As Much As Possible

Of course, sometimes, you simply cannot escape paying in a foreign currency, but in many instances, you can — even if it may not seem like the option's available. Here's what to do before you make any international payment with PayPal:

• select your home currency during a PayPal transaction (if the option is available),
• if you're shopping in an e-commerce store, make sure to set the site's default currency to your home currency,
• keep a balance in your PayPal account in your home currency.

Tip 2: At Checkout, Select Check Currency Options

If you must pay an amount in a foreign currency, PayPal will often give you a choice of whether to pay in the seller's currency or your home currency, like this:

Monito

In these cases, it's generally a much better idea to pay in the seller's currency, as you can dodge PayPal's conversion fees and leave the currency exchange to your bank or card provider. To do so, click the See currency options button on the payout screen and click on the merchant's local currency.

Here's a video tutorial explaining how it works:

And here's an in-depth guide breaking this down with an example.

Tip 3: Find Better Alternatives

PayPal has long been a popular choice for online payments, but it's not always the best option for every situation. Especially in travel and international shopping, PayPal's conversion fees can add up quickly and leave you with less money in your pocket.

That's why it's always worth considering some alternatives that may better suit your needs. Below, we introduce you to a few alternatives to PayPal that may be available for you.

1. Revolut

Revolut is like PayPal in many ways, allowing you to make payments and transfer money digitally. It's an international peer-to-peer solution that offers a multi-currency account, making it more advanced than PayPal when it comes to foreign currency spending.

With this savvy account, you'll get a real mid-market exchange rate instead of a weak markup by PayPal. Revolut is a great choice for anyone who frequently travels or shops online from international marketplaces. Plus, Revolut also offers other features like fee-free ATM withdrawals and the ability to hold and exchange up to 28 different currencies.

2. Cash App

Cash App is a domestic peer-to-peer platform that allows you to easily send and receive money from friends and family without any hidden fees.

Unlike PayPal, Cash App has a straightforward fee schedule that is easy to understand, making it a great choice for anyone looking for a simple and transparent way to send money domestically. It is becoming easier to use every day, as it is one of the fastest-growing peer-to-peer networks in the United States and the UK.

Alternatives For Money Transfers

According to millions of searches from our real-time search engine, PayPal is one of the worst options for converting currency and sending money abroad because it applies very weak exchange rates to your transfers. Instead, use our comparison search engine below for a more transparent and cost-effective solution. 👇