Does PayPal cost anything to use
PayPal costs nothing to open an account or to buy items in your own currency, but it charges fees for card-funded, international and instant transfers.
Whether you pay anything depends on what you do with the account. PayPal publishes its current rates on its official Consumer Fees page, so check that page for the transaction you plan to make.
These PayPal actions are free:
- Opening an account: Creating a personal or business PayPal account, or downloading the PayPal app, carries no charge.
- Buying items: Paying for goods or services in your native currency does not cost the buyer anything.
- Domestic personal transfers: Sending money to friends and family in the same country is free when you fund it from a linked bank account or your PayPal balance.
- Standard bank withdrawals: Moving your PayPal balance to a linked bank account through a standard transfer is free.
Anyone who wants a wider PayPal overview should know that fees mainly apply when money crosses borders, changes currency, is funded by a card, or is received as a business payment:
- Receiving payments for goods and services: In the US, sellers and merchants typically pay a domestic rate of 3.49% plus $0.49 per transaction.
- Card-funded personal payments: Using a credit or debit card to send money to friends and family triggers a fee.
- International transfers: Sending money abroad or receiving cross-border payments usually involves a percentage fee or a fixed charge.
- Currency conversion: PayPal adds a markup of around 3% to 4% when it converts one currency into another.
- Instant withdrawals: Moving funds instantly to an eligible debit or bank card costs 1.75% of the amount transferred.
To keep PayPal costs at zero, stick to domestic purchases in your own currency, fund personal payments from your bank or balance, and use standard rather than instant withdrawals.