PayPal's pricing looks simple but has multiple layers. This guide covers every fee type — standard payments, Friends & Family, international transfers, chargebacks, and refunds — in plain English.
Every PayPal business payment uses the same formula:
| Fee Type | Rate (USA) | When It Applies |
|---|---|---|
| Standard checkout | 3.49% + $0.49 | Goods & Services payments |
| Friends & Family | Free (bank/balance) | Personal transfers — not for business |
| Friends & Family (card funded) | 2.9% + $0.30 to sender | F&F paid by credit card |
| International payment | +1.5% surcharge | Recipient in another country |
| Currency conversion | 3–4% FX markup | Currency change required |
| PayPal Checkout (branded button) | 3.49% + $0.49 | PayPal button on website |
| Refund fee | Keeps $0.49 fixed fee | You issue a refund |
| Chargeback/dispute | $20 | Customer disputes charge |
| Micropayment rate | 5% + $0.05 | Transactions under $10 |
| Monthly fee | $0 | No monthly charge |
PayPal Friends & Family (F&F) transfers are free when funded from a PayPal balance or bank account. This tempts many businesses to ask clients to send F&F payments to avoid fees. This violates PayPal's Terms of Service and:
When you refund a PayPal transaction, PayPal returns the percentage fee but keeps the fixed $0.49. This differs significantly from Stripe, which charges zero refund fees.
| Factor | PayPal | Stripe | Winner |
|---|---|---|---|
| USA processing fee | 3.49% + $0.49 | 2.9% + $0.30 | ✓ Stripe |
| UK processing fee | 1.2% + £0.30 | 1.5% + £0.20 | ✓ PayPal (small txn) |
| Refund fee | Keeps $0.49 | Free | ✓ Stripe |
| Chargeback fee | $20 | $15 | ✓ Stripe |
| Brand recognition | ✅ Global trust | Less known | ✓ PayPal |
| Developer tools | Decent | ✅ Best in class | ✓ Stripe |
| Subscription billing | Basic | ✅ Stripe Billing | ✓ Stripe |
| Global reach | 200+ countries | 45+ countries | ✓ PayPal |
Use our free PayPal fee calculator to see exactly what PayPal charges on any amount in any country.
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