How much does PayPal charge for $1000

Question

Accepted Answer

PayPal's charge on $1000 ranges from $0 to about $80, depending on whether the payment is personal or commercial, domestic or international, and how it is funded.

The same $1,000 can cost very different amounts, so it helps to identify which type of transaction you are making before estimating the fee.

Personal transfer within the US: Sending $1,000 to friends or family from a PayPal balance or linked bank account costs nothing. Funding it with a credit card adds 2.90% plus a fixed fee, about $29.49.
Personal transfer abroad: An international personal payment funded by a bank account or balance carries a flat fee of up to $4.99. If currencies differ, PayPal also adds a markup of around 3% to 4% to the exchange rate.
US domestic card payment received: A seller pays 2.99% plus $0.49, so $30.39 is deducted and $969.61 arrives.
US checkout or invoice payment received: The rate is 3.49% plus $0.49, which takes $35.39 and leaves $964.61.
International payment to a US seller: A 1.50% cross-border surcharge sits on top of the base rate, bringing the fee to about $45.39 to $50.39.

For a business account in India, PayPal applies 4.4% plus a $0.30 fixed fee to a commercial payment, which is $44.30 on $1,000. Two further layers follow: 18% GST charged on that fee, and a currency conversion markup of about 3% to 4% when USD becomes INR. Together these can push the total cost on $1,000 to around $70 to $80. A PayPal overview that only quotes the headline percentage will understate this amount for Indian freelancers and exporters.

Standard withdrawal: Moving the balance to a local bank account is free and usually takes 1 to 3 days.
Instant withdrawal: Pushing funds straight to an eligible debit card or bank account costs 1.75%, which is $17.50 on $1,000.

To estimate your own cost, check the countries of the sender and receiver, whether the payment is personal or for goods and services, the funding method, and whether you need the amount the sender pays or the amount the recipient keeps.