What are PayPal's current fees for receiving money?
PayPal fee structure (2024): Goods & Services (domestic US) — 3.49% + $0.49 per transaction for standard payments; 2.99% + $0.49 for PayPal Checkout (merchants). Venmo business payments — 1.9% + $0.10. Friends & Family (domestic) — no fee if funded by PayPal balance or bank account; 3% + fixed fee if funded by credit/debit card (paid by sender). International personal payments — 5% + fixed fee (capped at $4.99), plus currency conversion fee of 3–4% above mid-market rate. Micropayments rate — 5% + $0.05 for transactions under $10 (better than the standard rate for very small amounts). Note: PayPal's fee schedule changes periodically — always verify at paypal.com/webapps/mpp/paypal-fees before making business decisions.
How do I calculate how much to charge so I receive a specific amount after PayPal fees?
To find the gross amount to charge so you net a specific amount after PayPal's percentage + fixed fee: Gross charge = (Net desired + Fixed fee) ÷ (1 − Percentage rate). Example: you want to receive $100 after PayPal's 3.49% + $0.49 standard G&S fee: Gross = ($100 + $0.49) ÷ (1 − 0.0349) = $100.49 ÷ 0.9651 = $104.12. So you must charge $104.12 to receive exactly $100. This is the "gross-up" formula — never divide by (1 + rate) which gives the wrong answer. For $500 net: Gross = ($500 + $0.49) ÷ 0.9651 = $518.59. The calculator above performs this automatically for any fee structure.
What is the PayPal currency conversion fee and how does it affect international payments?
When PayPal converts currency, it uses an exchange rate that includes a markup above the mid-market (interbank) rate: 3% above mid-market for most currency conversions. 4% for conversions between some currency pairs. Example: EUR/USD mid-market rate is 1.0800. PayPal might use 1.0476 (3% markup), meaning for €1,000 received from Europe, you get $1,047.60 instead of $1,080 — PayPal keeps $32.40 in currency spread. Additionally, international transactions incur the cross-border fee (typically 1.5% extra on top of the base transaction fee) plus potential recipient's country fees. For frequent international business payments, Wise (formerly TransferWise) typically offers 0.4–0.8% above mid-market and is substantially cheaper than PayPal for currency conversion, though it lacks PayPal's buyer/seller protection ecosystem.
Is it cheaper to use PayPal Friends & Family vs Goods & Services?
Friends & Family (F&F) is free when funded by PayPal balance or a linked bank account — vs Goods & Services (G&S) at 3.49% + $0.49. This makes F&F appear 100% cheaper. However: Using F&F for business transactions violates PayPal's Terms of Service and can result in account suspension. F&F offers zero buyer protection — if you pay for goods via F&F and the seller doesn't deliver, PayPal will not refund you and you have no recourse. F&F is intended for splitting a dinner bill or paying back a friend. The IRS also monitors 1099-K reporting — receiving business income via F&F does not exempt it from taxation. For legitimate business transactions, use G&S — the 3.49% fee buys dispute resolution, buyer protection, and compliance with PayPal policy. Never accept F&F payment from strangers for goods/services.
How does PayPal compare to Stripe, Square, and Venmo for business payments?
Fee comparison for standard domestic card-present/online transactions: PayPal (standard G&S) — 3.49% + $0.49 online; 2.29% + $0.09 in-person. Stripe — 2.9% + $0.30 online (most popular for developers/e-commerce); 2.7% + $0.05 in-person. Square — 2.6% + $0.10 in-person; 2.9% + $0.30 online. Venmo for Business — 1.9% + $0.10 (lowest rate for peer-to-business payments, but limited to US Venmo users). Key differences: Stripe is preferred for subscription billing (best API, recurring revenue tools), international expansion (135+ currencies), and complex e-commerce. Square is best for brick-and-mortar retail (free POS hardware, inventory management). PayPal wins on buyer recognition — over 430 million active accounts globally, and many customers prefer it for trust. For high-volume merchants (>$50,000/month), all providers offer negotiated rates.