How much cut does PayPal take
The cut PayPal takes depends on the transaction: buying is free for consumers, while US sellers pay fees such as 3.49% plus $0.49 on standard PayPal Checkout payments.
For personal accounts in the US, PayPal's consumer fees work like this:
- Buying goods and services: Free for the buyer within their domestic market, because the seller covers the transaction fee.
- Sending money domestically: Free when paid from a PayPal balance or linked bank account, and 2.90% plus a fixed fee when paid with a credit or debit card.
- Sending money internationally: A 5.00% fee applies when funded by bank or balance, with a minimum of $0.99 and a maximum of $4.99, and card funding adds further fees.
- Instant transfer to a bank or debit card: Moving funds out instantly costs 1.75% of the amount, capped at $25.00, instead of waiting 1 to 3 business days for a standard transfer.
For businesses and sellers in the US, PayPal deducts its fee from each payment received:
- PayPal Checkout and Venmo: 3.49% plus $0.49 per transaction.
- Standard credit and debit cards: 2.99% plus $0.49 per transaction.
- Advanced card processing: 2.89% plus $0.29 per transaction.
- QR code and in-person payments over $10: 2.29% plus $0.09 per transaction.
- PayPal Pay Later: 4.99% plus $0.49 per transaction.
- International commercial payments: An extra 1.50% is added to the standard percentage rate.
Other costs can raise the total cut. When a payment needs converting between currencies, PayPal applies a spread of about 3% to 4% above the base exchange rate. Sellers based outside the US often pay different rates; in India, for example, the commercial fee is 4.4% plus a fixed fee, and 18% GST is charged on that fee.
The fixed fee also changes with the currency you accept, so the same percentage can produce a different total in euros or pounds. Since PayPal pricing varies by country and account type, the official consumer fees and merchant fees pages for your own region give the exact figures.