PayPal business fees are not one universal percentage. Cost depends on the receiving account’s country, payment route, currency, buyer’s market, and optional products.
This guide compares public rates for United States and United Kingdom sellers across checkout, cards, point of sale, payment links, and invoicing. Your completed PayPal transaction remains authoritative.
Rate review: August 29, 2026. PayPal marked both merchant fee pages used below as last updated on July 15, 2026. Negotiated pricing, eligibility, account settings, and later policy changes can produce a different rate.
What determines a PayPal seller fee?
Before comparing percentages, identify four parts of the transaction:
- Receiving market: the country or region where the seller’s PayPal account is registered. The currency on the order does not determine whether US or UK pricing applies.
- Payment route: PayPal Checkout, a standard card payment, Advanced card processing, Pay Later, point of sale, QR code, payment link, invoice, or another commercial route.
- Domestic or international status: PayPal defines this from the sender’s and receiver’s registered or identified markets, not simply from the currency.
- Currency and products: the received currency determines any fixed fee; conversion and optional products can add separate costs.
For a percentage-plus-fixed route, the basic forward estimate is gross sale × percentage + fixed fee. For a detailed explanation of forward and reverse calculations, use the manual PayPal fee calculation guide.
Current US PayPal business fees for sellers
These rates apply to US-registered accounts and assume a domestic USD transaction. The $100 examples exclude tax, shipping, international, FX, refund, dispute, and optional costs.
| US seller route | Published domestic rate | Fee on $100 | Net from $100 | Decision note |
|---|---|---|---|---|
| PayPal Checkout, Guest Checkout, or Pay with Venmo | 3.49% + $0.49 | $3.98 | $96.02 | PayPal-hosted wallet or guest-checkout route. |
| Send/Receive Money for Goods and Services | 2.99% | $2.99 | $97.01 | The published row does not add a fixed fee. See the Goods and Services fee guide for this specific route. |
| Standard credit and debit card payments | 2.99% + $0.49 | $3.48 | $96.52 | A card funding source alone does not prove which product classification PayPal used. |
| PayPal Pay Later options | 4.99% + $0.49 | $5.48 | $94.52 | Compare the higher processing cost with the value of offering installments to eligible buyers. |
| Advanced credit and debit card payments | 2.89% + $0.29 | $3.18 | $96.82 | Subject to eligibility, application, approval, and the applicable service agreement. |
| POS card-present or QR transaction | 2.29% + $0.09 | $2.38 | $97.62 | For eligible transactions processed through PayPal Point of Sale. |
| POS manual card entry | 3.49% + $0.09 | $3.58 | $96.42 | Manual entry costs more than a card-present sale. |
| Invoice paid by PayPal, Venmo, or Guest Checkout | 3.49% + $0.49 | $3.98 | $96.02 | Creating and sending an invoice is separate from the fee charged when it is paid. |
| Invoice paid by standard card, Apple Pay, or another listed third-party wallet | 2.99% + $0.49 | $3.48 | $96.52 | The customer’s payment route changes the invoice processing rate. |
| Invoice paid by eligible Pay by Bank (ACH) | 1%, capped at $10 | $1.00 | $99.00 | Availability and eligibility apply. |
PayPal’s US commercial fixed fee depends on the currency received. The current table lists $0.49 USD, £0.39 GBP, and €0.39 EUR among its currency-specific amounts. Do not substitute $0.49 when the account receives another currency.
There is no fee to open a standard US PayPal Business account and no monthly maintenance fee, according to PayPal’s US business-account page. That statement is market-specific and does not mean every PayPal product is free: transaction charges and optional-product fees can still apply.
Official sources: PayPal US Merchant Fees and PayPal US Business Account.
Current UK PayPal business fees for sellers
These examples assume a UK-registered account and a domestic £100 transaction without conversion or optional services.
| UK seller route | Published domestic rate | Fee on £100 | Net from £100 | Decision note |
|---|---|---|---|---|
| Card-funded payment from a user covered by PayPal’s terms for payments without a PayPal account | 1.20% + £0.30 | £1.50 | £98.50 | Do not assume every card-funded payment automatically receives this classification. |
| All other commercial transactions | 2.90% + £0.30 | £3.20 | £96.80 | The general UK wallet or commercial example used in this guide. |
| QR code transaction of £10.01 or more | 1.50% + £0.10 | £1.60 | £98.40 | The QR fixed fee changes for transactions of £10 or less. |
| POS card-present transaction | 1.75% | £1.75 | £98.25 | Processed through eligible PayPal Point of Sale. |
| POS manual card entry | 3.40% + £0.20 | £3.60 | £96.40 | Subject to service availability. |
| POS payment link paid by PayPal Checkout, Pay Later, or Guest Checkout | 2.90% + £0.30 | £3.20 | £96.80 | Wallet and guest routes published for PayPal POS payment links. |
| POS payment link paid by standard card, Apple Pay, or another listed third-party wallet | 1.20% + £0.30 | £1.50 | £98.50 | The lower published card route is not interchangeable with every PayPal payment. |
| Advanced credit and debit card payments, blended pricing | 1.20% + £0.30 | £1.50 | £98.50 | Eligibility, application, approval, and service terms apply. |
The current UK table lists a standard commercial fixed fee of £0.30 GBP, $0.30 USD, or €0.35 EUR, depending on the currency received.
What about PayPal invoice fees in the UK?
UK invoice creation has no setup or monthly fee. Unlike the US page, the current UK fee page has no separate invoice-rate table. Match a paid invoice to its actual payment type and commercial rate; do not import the US invoice schedule.
Official sources: PayPal UK Merchant Fees and PayPal UK Invoicing.
UK timing note: the table above reflects rates in force on August 29, 2026. PayPal has announced UK changes scheduled for October 1, 2026, including an optional tiered-rate plan. Check PayPal’s UK Policy Updates before pricing a transaction on or after that date.
How should a seller choose a PayPal payment route?
The lowest headline percentage is not automatically the best commercial choice. Availability, checkout experience, risk ownership, hardware, and optional services can change the total cost. If the decision is between processors rather than PayPal routes, compare our current PayPal vs Stripe fees breakdown.
| Selling situation | Routes to compare | Question to answer before choosing |
|---|---|---|
| Online store where customers expect PayPal or Venmo | PayPal Checkout, Guest Checkout, payment links | Is a PayPal-hosted experience and wallet choice more important than the difference between route rates? |
| Card-heavy ecommerce store | Standard cards, Advanced card processing, interchange-based options for eligible merchants | Who manages checkout, compliance, fraud tools, and chargeback risk, and what optional costs are required? |
| Physical retail, events, or mobile selling | POS card-present, QR, or manual entry | Will most payments qualify as card-present, and what hardware is required? |
| Project, wholesale, or service billing | PayPal Invoicing and supported payment routes | How is the customer expected to pay the invoice, and is the transaction domestic? |
| Many low-value sales | Standard route versus approved micropayments pricing | Does the smaller fixed fee offset the higher percentage across the actual order mix? |
| Large or growing processing volume | Published standard rates versus eligible custom or tiered pricing | Does the account qualify, and do the written terms lower total cost after every add-on? |
For a US invoice decision, the dedicated PayPal invoice fee calculator compares PayPal or Venmo, cards and wallets, Pay Later, and eligible ACH without duplicating that topic here.
International fees and currency conversion are separate
A seller can pay an international transaction addition even when no currency conversion occurs. A conversion spread can also apply when PayPal converts funds. Budget these as separate layers.
US international example
A US seller receives a $100 international PayPal Checkout payment in USD. PayPal’s published domestic Checkout rate is 3.49% + $0.49, and the international commercial addition is 1.50%:
- Combined percentage: 3.49% + 1.50% = 4.99%
- Estimated fee: $100 × 4.99% + $0.49 = $5.48
- Estimated net: $94.52
This assumes USD is received without conversion. The US page separately lists a 4.00% conversion spread for specified scenarios and 3.00% for other listed conversions, or another disclosed amount.
UK international examples
For a UK seller receiving a £100 payment classified as “All Other Commercial Transactions,” the current domestic rate is 2.90% + £0.30. PayPal lists an additional 1.29% when the sender is in the EEA and 1.99% for other international markets:
- EEA sender: £100 × 4.19% + £0.30 = £4.49 fee; estimated net £95.51.
- Other international sender: £100 × 4.89% + £0.30 = £5.19 fee; estimated net £94.81.
The UK page also notes a possible EEA service fee for merchants with separate agreements and lists a 3% conversion spread for the specified business-account conversions. Check the transaction preview and agreement.
For cross-border planning, read the focused guide to PayPal international transaction fees.
Refunds, disputes, and chargebacks can change the real cost
Processing cost does not end when a sale completes. Refund and dispute outcomes should be part of a seller’s margin and risk model.
| Event | US published treatment | UK published treatment | Seller planning effect |
|---|---|---|---|
| Full or partial commercial refund | No fee to make the refund, but the original fee paid to receive the commercial or invoicing payment is not returned. | No fee to make the refund, but the original fee paid to receive the commercial payment is not returned. | Refunding the customer does not normally restore the original processing margin. |
| Standard dispute fee | $15 in the USD row | £12 in the GBP row | PayPal may charge this for applicable claims or chargebacks; waivers and exceptions can apply under the user agreement. |
| High-volume dispute fee | $30 in the USD row | £24 in the GBP row | Higher fee can apply when PayPal’s high-volume dispute criteria are met. |
| Card chargeback settlement fee for transactions not processed through a PayPal account or guest checkout | $20 in the USD row | £14 in the GBP row | This chargeback table covers a different transaction category from the PayPal-account or guest-checkout dispute table. |
Publish clear customer-service, return, refund, delivery, and privacy information where required. Keep order records and delivery evidence. Seller Protection is eligibility-based, not automatic coverage for every sale.
Withdrawal fees and cash-flow choices
The amount left after processing is not always the amount that reaches the bank:
- US: an eligible standard bank or debit-card transfer is free without conversion. An eligible instant transfer is 1.50%, with a $0.50 USD minimum; limits apply.
- UK: an available bank withdrawal is free without conversion. The table lists 3.00% to a US bank and no fee for eligible local card withdrawals without conversion.
For cash-flow planning, compare the value of faster access with the instant-transfer cost. Also confirm whether PayPal will convert the balance before withdrawal, because conversion can add a separate spread.
When can micropayments pricing help?
Micropayments replace the standard fee for eligible low-value transactions; they are not an automatic discount added on top of a standard account.
- US: eligible merchants may apply for 4.99% + $0.09 for domestic USD micropayments. On a $5 transaction, that estimates to $0.34, compared with $0.66 at 3.49% + $0.49. An international micropayment also has a 1.50% addition.
- UK: subject to application and pre-approval, the current domestic micropayment rate is 5% + £0.05. On a £5 transaction, that estimates to £0.30, compared with £0.45 at 2.90% + £0.30. PayPal says the upgraded rate applies to all commercial transaction payments received into that account, so a mixed order book needs account-wide comparison.
A smaller fixed fee helps small orders, while the higher percentage becomes less attractive as order value rises. Compare the plan against the route you actually use, not against an unrelated headline rate.
Optional PayPal products can add another cost layer
A standard account and a specialized product are not the same thing. PayPal’s merchant tables publish separate pricing for products such as Virtual Terminal, Payments Advanced or Pro, invoice subscription, recurring billing, fraud tools, and chargeback-protection tools. The products and fees differ by market, and eligibility or approval may apply.
Choose an add-on only after comparing its transaction rate, monthly cost, coverage, and exclusions with your real payment and loss history. Established sellers may also receive custom or interchange-based pricing; compare the complete written proposal rather than its headline percentage.
Do not use surcharges or Friends and Family to avoid seller fees
PayPal’s US user agreement says a seller must not impose a surcharge or other fee for accepting PayPal. It permits a handling fee only when that fee does not operate as a PayPal surcharge and is not higher than the handling fee for non-PayPal transactions. The UK agreement says sellers must not surcharge for using PayPal services and notes that UK law strictly limits surcharging.
Build expected processing cost into the economics of the business before publishing prices, but do not add a PayPal-specific checkout fee without confirming the current agreement and applicable law.
Friends and Family is also not a fee workaround for a sale. The US agreement says sellers must not ask buyers to send a personal payment for goods or services. The UK agreement lists requesting or sending a personal payment for a commercial transaction as a restricted activity. Use the correct commercial route so the payment is classified and documented as a sale.
Official terms: PayPal US User Agreement and PayPal UK User Agreement.
A practical monthly fee model for sellers
- Separate sales by route. Track Checkout, cards, POS, invoices, and any other route instead of applying one percentage to all revenue.
- Separate domestic from international payments. Add the relevant cross-border percentage only to qualifying international transactions.
- Record FX and lifecycle costs separately. Include conversions, refunds, disputes, withdrawals, hardware, and paid products.
- Calculate an effective monthly rate. Divide total PayPal-related cost by gross PayPal sales, accounting for order size and route mix.
- Review the official fee page. Rates, product names, and account-specific pricing can change.
To estimate a single payment before it arrives, use the PayFeeCalc forward and reverse estimator. Select the receiving market and payment route that most closely matches the expected transaction. The result is an estimate; the completed PayPal transaction is authoritative.
Frequently asked questions
Is a PayPal Business account free?
For the United States, PayPal states that there is no fee to open a Business account and no monthly maintenance fee. Sellers still pay applicable transaction fees, and optional products can have monthly or per-transaction charges. Do not assume the same account terms apply in every market.
How much does PayPal charge a US seller on $100?
At the current domestic USD rates, $100 through PayPal Checkout estimates to $3.98, a standard card payment to $3.48, and a POS card-present payment to $2.38. Other costs are separate.
How much does PayPal charge a UK seller on £100?
At current domestic GBP rates, £100 classified as “All Other Commercial Transactions” estimates to £3.20; a qualifying card-funded payment without an account estimates to £1.50; and POS card-present estimates to £1.75.
Does PayPal charge a fee to send an invoice?
Creating and sending invoices has no setup or monthly fee. A processing fee applies when paid. The US publishes invoice rates by payment method; UK sellers should match the payment to its commercial route.
Does PayPal return the original seller fee after a refund?
No. Issuing a full or partial commercial refund has no fee, but the original fee paid to receive the payment is not returned.
Are international fees the same as currency conversion fees?
No. The international addition is market-based; currency conversion is a separate spread that applies when a conversion occurs. A transaction can have either or both.
Can a seller surcharge the buyer or request Friends and Family?
No. PayPal’s US and UK agreements restrict PayPal-specific surcharges and prohibit or restrict personal payments for commercial sales. Use a commercial route and plan ordinary processing cost within overall pricing, subject to the agreement and applicable law.
Sources and scope
This guide focuses on public US and UK seller pricing checked on August 29, 2026. Other markets, charities, donations, payouts, cryptocurrencies, partner platforms, negotiated accounts, and specialized agreements can use different fee schedules. Verify any material decision against the official US merchant fees, UK merchant fees, and the terms shown inside the receiving account.