If you sell goods or services online and accept payment through PayPal, fees come out of every transaction before the money reaches your account. Understanding exactly what PayPal charges, and when, helps you price correctly and avoid surprises.
The Standard Goods and Services Rate
For most sellers, the relevant rate is PayPal's Goods and Services fee: 3.49% + $0.49 per transaction for standard card and PayPal balance payments in the US (as of 2025). This applies when you send a payment request, use PayPal Checkout, or invoice a customer who pays online.
This is not a small number. On a $100 sale, you net $96.02. On a $50 sale, you net $47.77. The flat $0.49 component makes the effective rate notably higher on small transactions.
QR Code Payments Are Cheaper
If you sell in person and the buyer scans a PayPal QR code, the rate drops to 1.89% + $0.10 per transaction. That is a meaningful savings for face-to-face sellers: on a $100 transaction you net $98.01 instead of $96.02.
What "Friends and Family" Does Not Cover
PayPal's personal payment option (Friends and Family) carries no fee for the sender if funded by a bank or balance, but it is not intended for commercial transactions. Using it to receive business payments violates PayPal's terms of service, offers the buyer no purchase protection, and can get your account limited. Do not use it as a workaround for seller fees.
Passing the Fee to Your Customer
Some sellers add a surcharge so the buyer covers the fee. The gross amount you need to charge to net a specific dollar amount can be calculated algebraically:
Charge = (Amount you want + $0.49) ÷ (1 − 0.0349)
For example, to net $100:
Charge = $100.49 ÷ 0.9651 = $104.12
Note: surcharging rules vary by state and by card network. PayPal's policies on this also change periodically, so confirm current rules before displaying fees to customers at checkout.
Currency Conversion Fees
If you receive payment in a foreign currency, PayPal applies a currency conversion spread (typically 3–4% above the mid-market rate) when converting to your balance currency. This is in addition to the transaction fee. International sellers should account for both.
How to Reduce Your PayPal Fees
- Offer bank-linked payment: Buyers paying from a US bank account through PayPal may reduce your fee in some contexts.
- Use QR codes for in-person sales where the lower rate applies.
- Compare alternatives: Stripe (2.9% + $0.30), Square (2.6% + $0.10 in person), and Venmo for Business all have competitive rates depending on your use case.
- Build fees into your price: The most reliable approach is to price your goods with fees already factored in.
Fees Not Covered Here
This calculator focuses on standard transaction fees. PayPal also charges for chargebacks ($20 per dispute), cross-border fees (additional 1.5% for international), and micropayment pricing (5% + $0.05, available by application for sellers with very low transaction amounts). Check PayPal's current merchant fee schedule for the full picture.