How PayPal fees work in 2026
PayPal charges the seller, not the buyer, on every commercial payment. The fee has two parts: a percentage of the amount and a small fixed fee per transaction. The percentage depends on how the buyer pays. A buyer who checks out with their PayPal balance or wallet costs you 3.49% + $0.49. A buyer who pays by credit or debit card through your PayPal integration costs 2.99% + $0.49. Pay Later purchases cost the most at 4.99% + $0.49, because PayPal is financing the purchase.
Two surcharges can stack on top. If the buyer's account is outside the United States, PayPal adds 1.5% for an international commercial transaction. If you then convert the money into another currency, PayPal applies a conversion spread of about 4% (3% for some transaction types).
The formulas
- Fee = amount × rate + fixed fee, where rate = base rate (+1.5% if international).
- You receive = amount − fee (− 4% of what is left if you convert currency).
- Amount to charge to receive a target = (target + fixed fee) ÷ (1 − rate). This is why you cannot simply add 3.49% to your price: the fee is also charged on the extra you add.
Worked examples
A customer pays $100 with PayPal Checkout. The fee is $100 × 3.49% + $0.49 = $3.98, so you receive $96.02. If the same buyer is in Canada, the rate becomes 4.99% and the fee rises to $5.48.
To receive exactly $100 from a PayPal Checkout payment, charge ($100 + $0.49) ÷ (1 − 0.0349) = $104.12. PayPal keeps $4.12 and you get $100.00.
On a $500 invoice, the fee is $17.94 if the client pays with their PayPal account but $15.44 if they pay by card. On large invoices it can be worth suggesting the card option.
Ways to pay less
Goods and services payments sent between PayPal accounts are 2.99% with no fixed fee, which beats checkout on small amounts. QR code payments at a physical counter are 2.29% + $0.09. For high monthly volume, compare PayPal with Stripe and Square in our payment processing fee comparison. If you sell on a marketplace, the marketplace's own fees usually matter more: see the Etsy fee calculator and the eBay fee calculator.
Limitations
Rates are PayPal's standard published US merchant rates. Businesses with large volume can negotiate lower rates, and some accounts have legacy pricing. Chargebacks ($20), disputes ($15, or $30 for high-volume disputes), and fees on refunds are not included. Sellers based outside the US pay different rates. This tool covers US accounts only.
Sources
PayPal merchant fees (US), last updated by PayPal October 1, 2026, checked October 7, 2026.