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Paypal Fees explained

Updated on July 2, 2012

Most websites that have to pay you money, require you to have a PayPal account. Many people are confused by PayPal's explanation of charges so here's a good guide to charges you will receive depending on your account use.

First let's cover a basic withdrawal of earnings into a bank account. You have to have a minimum of $1.00 to withdraw and it takes 3-4 business days to complete the transaction (although in my experience it usually takes about 5-6 days). There is no fee at this time to transfer money from PayPal to any US bank account. However, if you are transferring to a bank account outside of the US you will be charged a 'small' fee. Here is a link to PayPal's fee calculator to help you figure out any fees for transferring to a bank outside the US.

If you want to pay for goods or services on the internet using your PayPal balance or your linked bank account there are also no fees. If you want to use your credit or debit card to send money you or the receiver will have to pay a fee of 2.9% of the total amount plus $0.30 per transaction. Additional fees will be applied when receiving or sending money outside of the US. These fees can also be figured out through PayPal's fee calculator.

Receiving money is where they get you. Sellers are also charged a 2.9% fee plus $0.30 per transaction if you make from $0.00 to $3,000.00 monthly. If you make $3,000.01 to $10,000.00 monthly you pay 2.5% plus the $0.30 per transaction fee. Only the percentage goes down if you make more monthly however, If you are receiving money from another country, the fees can be different. This calculator is the best I can find on the web to explain fees in depth and help you calculate exact amounts. (This website is in no way associated with me, I do not run it, and I do not receive anything for posting the link here. I am only posting this for the benefit of fellow PayPal users) I wish you luck and I truly hope this helps.


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    • mecheshier profile image

      mecheshier 5 years ago

      Great Hub. Very helpful hints. Thank you fro sharing. Voted up for useful.