PayPal has become one of the world’s leading online payment platforms, for good reason. PayPal offers a wide range of services and has a unique way of calculating fees for its services. The platform charges about 1.9% to 3.5% for each PayPal transaction. Additionally, PayPal also charges a fixed fee that can range anywhere from 5 cents to 49 cents. The amount you will be charged will be determined by the product or service you purchased. You might not consider this a large amount until you look at the bigger picture. For every $100 transaction you make on PayPal, you are charged between $2 to $3.99. An accumulation of these PayPal transactions all through the year culminates into a sizable profit.
So, does PayPal offer the best payment processing service for your business? You need to look at all the facts to make an informed decision.
PayPal payment processing fees
PayPal product |
Per-transaction rate |
Per-transaction fee |
Notes |
Digital payments (invoicing, checkout, pay with Venmo and other commercial transactions) |
3.49%. |
$0.49. |
|
Send/receive money for goods and services |
2.89%. |
$0.49. |
|
Standard credit/debit card payments |
2.99%. |
$0.49. |
|
Donations |
2.89%. |
$0.49. |
|
Charity transactions |
1.99%. |
$0.49. |
|
Alternative payment methods |
2.59%. |
$0.49. |
|
PayPal Here (legacy offering for in-person payments) |
|||
Card present or QR code |
2.7%. |
No fee. |
|
Keyed |
3.5%. |
$0.15. |
|
Zettle (for in-person payments) |
|||
Card present or QR code |
2.29%. |
$0.09. |
|
Keyed |
3.49%. |
$0.09. |
|
QR code transactions |
|||
Over $10 |
1.9%. |
$0.10. |
|
Under $10 |
2.4%. |
$0.05. |
|
Online card payment services |
|||
Advanced credit / debit card |
2.59%. |
$0.49. |
Per transaction rate is 3.5% for Amex. |
Payments Advanced |
2.89%. |
$0.49. |
$5 monthly fee. |
Payments Pro |
2.89%. |
$0.49. |
$30 monthly fee. |
Virtual terminal |
3.09%. |
$0.49. |
Per transaction rate is 3.5% for Amex. There is also a $30 monthly fee. |
Apart from the fees listed above, there are other optional fees on the PayPal website that you may be charged for, like the Chargeback protection. These calculated fees are guaranteed to save you money in the long run. Other fees you may be required to pay like Advanced Fraud Protection, will ensure you rest easy without any fear especially if you work in a high-risk industry.
When you sign up, the rate at which you’re charged is set at default, if you want cheaper transactions, and access to services like Chargeback Protection, then you need to select Advanced Debit/Credit Card in payments. Also, international transactions are charged at a different rate.
You can use fees calculator here:
https://tools.joinflyp.com/
Is PayPal a good deal?
For years, PayPal has made a name for itself as a great platform for businesses and customers. Even though PayPal may charge a little higher than other payment processing platforms, the ease and comfort it offers while making or receiving payments is well worth it. Before you choose PayPal as your payment processing platform, you must first weigh your options and determine if it is best for your business.
You shouldn’t make the decision just after calculating the rates of different platforms and how much you would save if you go with the cheaper platform. Consider one which makes it easy for customers to make payments, integrates a great website, supports your business especially if it involves high-end e-commerce etc. PayPal excels in all these, and so should top your list.