What Percentage Does PayPal Take Out?

Last Updated on December 11, 2020 by

PayPal is an online payment method that becomes essential for the online transactions market. In United States of America this online payment method is the second most used and popular method of online payment surpassed by credit card payments only. On the other hand in European countries like United Kingdom, Ireland, Italy, Spain, Germany, and many others PayPal is the first and top choice payment method used for online purchases. User-friendliness and easy access make PayPal an easy choice for the customers.

Percentage PayPal takes out:

For the PayPal users that are businessmen or merchants who use it for getting the payments from their clients or customers the PayPal charge 2.9 percent plus 30 cents on each transaction before transferring the money into your bank account. PayPal charged this fee from only the business side of the receiver of the money the customers don’t need to pay anything.

How to calculate the PayPal fee?

Calculating the PayPal fee is not difficult. You can easily calculate the fee through calculators.tech PayPal fee calculator. You can get this calculator online without paying any money. Through this PayPal fee calculator, you can calculate the fee in the currency of your own country or in the currency you want to calculate the fee.

PayPal charge fees:

In general, the standard PayPal fee is 2.9 percent plus 30 cents but for an average person the PayPal fees are a bit confusing. As in every situation it varies slightly, for example, your country from where you are sending money or receiving it or whether you are having a personal account or a business account. In all these situations the fee of PayPal will vary. Receiving a payment from a purchase, sending a payment using your credit or debit card, receiving or sending money from another country, or when you transfer money from PayPal to a credit or a debit card are some situations in which you have to pay the PayPal fees. For example if you are living in United Kingdom the PayPal fee will be 0.20p plus 3.4 percent of the transaction money. You can get all the details of fees on your PayPal account that will make your task easier.

PayPal fees for opening an account:

For creating a PayPal account you do not need to pay anything. It is totally free of cost.

PayPal fee policy on personal payments:

For sending money to your family or friends from your PayPal balance or bank account or with the combination of both is totally free within the United States of America. But sending money through the credit or debit card has a fee. Similarly for receiving the money from your family and friends from the PayPal account is totally free. You do not need to pay any percentage of transaction as a PayPal fee.

How to lessen the PayPal fees as an online retailer?

If you are an online retailer here is good news for you. You can lessen the PayPal fees by taking some steps.


One step is to use micropayments in less than $10. With these micropayments, you will get the financial benefit in the long run.

Sell the product in local currency:

Exchanging the currency has a fee itself that increases the fee on the transaction. Thus, by selling the product in your local currency you will save your money on the exchange fee. On your PayPal account set your local currency as a default currency it will help you to save the money. To set the default currency on your account is not tough with some simple commands you can set it. Go on your PayPal profile and go to the icon of “My Money”. Now scroll down to the icon of “Currencies”.  After that click on the three dots next to the icon of the currency and click “Make primary” to select your top choice currency. In case if your required currency is not available in the list then press the “Add a currency” and select which currency you want as your default or primary currency.

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Apply for the “Merchant rates”:

If your per month sale is $3000 minimum than it will be better for you to apply for the Merchant Rates. It will automatically lower your transaction rate from 2.9 to 1.9 percent. But before applying for the Merchant Rates it is important to see whether you are fulfilling the eligibility criteria or not. For this your per month receiving PayPal payments should be $3000 or more than 3000. Secondly, your PayPal account must have good standing and make sure that it doesn’t have any negative balance.

Advantages of PayPal:

PayPal is a very useful online payment service that is becoming popular with each passing day. It makes your transaction process more fast and easy. Any retailer can use this money transaction program to transfer money globally.

Low fees:

PayPal does not charge you much. With a low fee, you can send or receive money through your PayPal account.

Fast Payments:

Through PayPal know for the payments you do not need to wait for days. As compared to other transaction sources you can now transfer or receive the payments fast.

24/7 customer service:

To help you out and to answer your queries PayPal has 24/7 customer service with an expert customer care team. At any time you can contact them online and can ask or discuss your problem. They will ensure to provide you the solution to your problems.


PayPal is becoming a trustworthy money transaction source for all the big online retailers or sellers. Make sure that the pay pal account you create is verified. Verifying your PayPal account in 2020 is essential. It is used by the prominent and big online brands like google, amazon, Fiverr, 99designs, Airbnb, wish, Envato, taboola, freelancer, crossover, and the list goes on. Because of its efficient work and credible repute all the companies are adopting it as their money transfer medium.


PayPal is a credible and effective money transaction source for the merchants, sellers, and businessmen. Anyone of the age of 18 or more can use this medium to send and receive the money from any corner of the world.

What Percentage Does PayPal Take Out?

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