'Does PayPal have fees?': Yes, but not for all transactions — here's how you can avoid fees on PayPal

ShutterstockPayPal might charge you a fee, depending on the transaction.

  • PayPal does have fees in some cases, but they’re pretty easy to avoid as long as you’re making basic transactions within the US.
  • Fees are usually associated with using a credit or debit card to fund payments, sending money abroad, or using PayPal as a payment processor if you’re a vendor.
  • Here’s what you need to know about the various fees you might encounter with your PayPal account.
  • Visit Business Insider’s homepage for more stories.

When it comes to basic transactions, like sending or receiving money between PayPal accounts within the US, the payment transfer platform is free.

But that isn’t the case for every transaction. Here are the situations when you might encounter fees on PayPal.


PayPal does have fees in some cases — here’s how to avoid them

Thomas White/ReutersIt’s free to make a PayPal account, but you might need to pay fees depending on who you’re sending money to.

While you can transfer funds from your PayPal account to your bank for free, there is a fee for instant transfers: 1% of the transfer amount, capped at $US10 per transaction.

You’d also pay a fee to send money to a friend or family member using a debit or credit card. In that case, the fee would be 2.9% plus a fixed amount that varies depending on the currency used.

There are additional fees for sending money to people who live in other countries. For example, you’d pay at least 5% of the amount you planned on sending, plus $US0.99 to $US4.99, depending on your circumstances.

If you were to use a credit or debit card to fund these transfers, you’d also pay a funding fee of 2.9% plus a fixed fee that varies depending on the receiver’s country of residence.

Finally, if you were to sell items and use PayPal as your payment processor, you’ll pay fees on each transaction:

  • Sales within the US: 2.9% plus 30 cents.
  • Discounted rate for eligible charities: 2.2% plus 30 cents.
  • International sales: 4.4% plus a fixed amount which varies by country.
  • PayPal Here card reader fee: 2.7% per swipe, or 3.5% plus 15 cents for manual transactions.

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