Our Complete List of PayPal Fees and Rates Updated For 2023

Apr 5, 2023
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With over 420 million users, PayPal is one of the most well-known money transfer and payment processor companies around the world. However, it can be gruelling to read the fine print of its fee schedule for bank transfers, international wires, currency exchange, and business transactions. PayPal also updates its fee schedule often, making it difficult to keep track of its rates.

In this guide, we will provide a comprehensive and easy-to-read list of all of the PayPal fees, rates, and charges you need to know in 2023. We will offer tips for avoiding PayPal fees and provide cheaper alternatives too.

If you want to make an international money transfer with PayPal, then we highly recommend you first try out a search on the comparison engine below (since PayPal is never the cheapest option):

Find cheaper ways than PayPal to transfer money or exchange currency:

Key Facts About PayPal Fees

🤔 Cheapest Alternative?
💰 Fixed Fee For Currency Conversion


💱 Exchange Rate Margin


💸 Instant Transfers/Withdrawals


🏦 Domestic Transfer to Bank


💳 Domestic Transfer to Card

2.90% + fixed fee

Every PayPal Fee You Need to Know (Updated for 2023)

PayPal's fee schedule can be confusing to navigate, but we're here to simplify it for you.

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. For those sending money abroad, we highly recommend using our real-time comparison engine to find better rates than PayPal.

In our last section, we'll cover the best alternatives to PayPal, including Revolut, Cash App, and Payoneer.

Fees For Buying With PayPal

This category is the most straightforward. It is free to use your PayPal balance to pay for a purchase or make a donation as long as it is a domestic transaction.

You'll be charged a fee if the transaction requires currency conversion. We will explain PayPal's high currency conversion fees later in this guide.

Merchant Fees: 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. The company offers 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 5 cents to 49 cents. In addition, be aware that you will lose money to their weak exchange rates if you receive transactions that require currency conversion.

As a business owner, the most common fee you will probably encounter is the rate for Standard Credit/Debit Card Payments:

  • 2.99% plus $0.49 per transaction.

For a full and easy-to-navigate view of PayPal's fees, please reference the table below that we have prepared. Here is the information that corresponds to each tab:

  • 1: Domestic Commercial Transactions
  • 1a: Fixed Fee For Domestic Commercial Transactions
  • 1b: Fixed Fee For QR Code 10.01 USD+
  • 1c: Fixed Fee For QR Code 10.00 USD or Less
  • 2: PayPal Online Card Payment Services
  • 2a: Fixed Fee For Online Card Payment
  • 3: Other PayPal Products

How Customers Pay

Merchant Fee

PayPal Checkout

3.49% + fixed fee

PayPal Guest Checkout

3.49% + fixed fee

QR code Transactions – 10.01 USD and above

1.90% + fixed fee

QR code Transactions – 10.00 USD and below

2.40% + fixed fee

QR code Transactions through third party integrator

2.29% + 0.09 USD

Pay with Venmo

3.49% + fixed fee

Send/Receive Money for Goods and Services


Standard Credit and Debit Card Payments

2.99% + fixed fee

For international commercial transactions

Additional 1.5%

Fees For Sending and Receiving Money With PayPal

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 when you use a linked credit or debit card. Whenever you are dealing with transferring money internationally, you will lose money to PayPal's weak exchange rates.

When you receive money that was denominated in a foreign currency, PayPal will charge you a fee as a recipient.

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

Payment Method

Fee Amount

PayPal balance or bank account

No fee


2.90% + fixed fee

Amex Send™ Account

No fee

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:

Find cheaper ways than PayPal to transfer money or exchange currency:

Currency Conversion Fees (aka Hidden Exchange Rate Margins)

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

So if you are 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 our comparison engine to find more transparent providers for sending money abroad.

Transaction Type


Paying for goods or services in a different currency

4.00%, or such other amount disclosed

Sending money to a friend or family member in a different currency

4.00%, or such other amount disclosed

Sending money using PayPal Payouts in a different currency

4.00%, or such other amount disclosed

Fees For Making Withdrawals Out of PayPal

It is free to withdraw money out of your Paypl balance into your home bank account. This could take up to three business days, which is why PayPal offers Instant Transfers as a service for a 1.75% fee.

Also, keep in mind that the withdrawal limit for instant bank transfers is $25,000 per transaction. The withdrawal limit to debit or credit cards is $5,000 per transaction.



Standard withdraw to local bank account

No Fee (when no currency conversion is involved)

Instant withdrawal to local bank account

1.75% of amount transferred

Withdraw to linked debit card

1.75% of amount transferred

Have paper check mailed to you

1.50 USD

Fees For Receiving and Sending Donations With PayPal

It is free for you to send a donation via PayPal to a fundraiser domestically. If you send a donation to someone abroad, then you'll be charged the same currency conversion fees as any other international PayPal transfer.

Fees become a bit more complicated if you are the creator of the fundraiser who is asking for donations. We show this in the table below. What you need to know is that fees for using PayPal's 'Donate' button or PayPal's 'Checkout for Donations' both charge 2.89% plus a fixed fee. This fixed fee varies by currency (also shown in the table).

PayPal also offers listed fundraisers, which are promoted by PayPal on the web and app. The fee is 2.99%. However, if the fundraiser is unlisted and distributed by the host only, there is no fee charged.

Payment Type


Donate Button

2.89% + fixed fee

PayPal Checkout for Donations

2.89% + fixed fee

PayPal Fundraisers (Listed Fundraisers)


PayPal Fundraisers (Unlisted Fundraisers)

No Fee

Fees for Buying, Selling, and Transferring Cryptocurrencies on PayPal

When using PayPal to buy, sell, or transfer cryptocurrencies, fees will apply depending on the type of transaction (buying, selling, or transacting). Here's what you need to know:

Purchase or sale amount


1.00 – 4.99 USD

0.49 USD

5.00 – 24.99 USD

0.99 USD

25.00 – 74.99 USD

1.99 USD

75.00 – 200.00 USD

2.49 USD

200.01 – 1000.00 USD


1000.01 USD +


Cheaper Alternatives to PayPal

PayPal has long been a popular choice for online payments, but it's not always the best option for every situation. Especially when it comes to 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 worth considering some alternatives that may better suit your needs. We'll introduce you to three alternatives to PayPal: Revolut, Cash App, and Payoneer.


Revolut, on the other hand, is an international peer-to-peer solution that offers a multi-currency account. With this powerful account, you'll get the real mid-market exchange rate instead of a weak markup by PayPal. This makes Revolut 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.

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.


For merchants, we recommend Payoneer. This platform offers good integrations into other online marketplaces and uses the mid-market exchange rate to do international transactions, meaning there's no exchange rate margin as you would see with PayPal. Instead, Payoneer charges a flat percentage fee when you withdraw funds to your local bank account. Payoneer also gives you unique bank account details in over 10 foreign currencies, making it a great choice for anyone who does business internationally.

In a Nutshell: 3 Tips for Avoiding PayPal's Fees

In summary, PayPal offers free transactions for peer-to-peer payments using your PayPal balance and local bank transfers. However, the fees can add up quickly for debit or credit card payments, instant transfers, and any transactions involving foreign currency. These fees can be steep for businesses too, making PayPal a less favorable option compared to its competitors.

To avoid PayPal fees, there are several strategies to consider.

1. Always pay in the local currency to avoid additional conversion fees.

  • Dynamic currency conversion (DCC) happens when merchants offer customers the option to pay in their home currency when making purchases abroad. If the transaction is processed with DCC through PayPal, the transaction amount is converted from the merchant's local currency to the customer's home currency using an exchange rate set by PayPal. However, this exchange rate is always less favorable than the default rate offered by the customer's card issuer or bank (like MasterCard or Visa), which means customers end up paying more for the transaction if they choose to pay in their home currency.

2. If you're a merchant, consider having customers pay less frequently to reduce transaction fees.

  • Because PayPal charges a per-transaction fee and a percentage fee, fewer transactions mean fewer fees levied on you.

3. Use an international money transfer service instead of PayPal to send money abroad.

  • According to Monito's search engine, PayPal is one of the worst options for converting currency and sending money abroad because they apply very weak exchange rates to your transfers. Use our comparison search engine below to find a more transparent and cost-effective solution 👇

Compare PayPal fees for bank transfers and currency exchange:

Frequently Asked Questions About PayPal Fees, Rates, and Charges

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