Does PayPal cut money
Yes, PayPal does cut money on some transactions, although opening an account and paying for purchases in your own currency cost nothing. Whether a fee applies depends on what you are doing and how the payment is funded.
PayPal lists the following actions as free:
- Account opening: Creating a personal or business PayPal account, or downloading the PayPal app, carries no charge.
- Purchases: Paying for goods or services in your native currency does not attract a fee.
- Domestic personal transfers: Sending money to friends or family within the same country is free when the payment comes from your bank account or PayPal balance.
- Standard withdrawals: Moving funds from PayPal to your linked bank account through a standard transfer has no fee.
A useful PayPal overview is that fees mostly fall on selling, cross-border activity, card funding and speed. These are the main cases where PayPal deducts money:
- Receiving payment for goods and services: Sellers in the US typically pay a domestic rate of 3.49% plus $0.49 on each transaction.
- Card-funded personal payments: Using a credit or debit card to send money to friends and family attracts a fee.
- International transfers: Sending money abroad or receiving cross-border payments generally comes with a percentage fee or a fixed charge.
- Currency conversion: When PayPal converts one currency to another, it adds a markup of roughly 3% to 4% to the exchange rate.
- Instant withdrawals: Moving money instantly to an eligible debit or bank card costs 1.75% of the amount transferred.
Rates can change and differ by country, so check the PayPal Consumer Fees page on the official PayPal website before making a payment.