![]() PayPal’s basic fee is 2.9% plus $0.30 USD per sale. There are also some special cases where the PayPal transaction fee is different, based on the transaction: PayPal TransactionĢ.7% when swiped or 3.5% for manual transactions This rate is the foundation of all PayPal seller fees that PayPal charges from within the US for nearly all transactions. Sending Money via PayPal Between Countries PAYPAL FEES MANUAL Sending Fees Using a Debit or Credit Card To reiterate, it doesn’t ever cost money to make a purchase with PayPal (see our notes below.) The transaction rate for PayPal for international businesses is usually 4.4%, plus an amount based on the country’s currency in question. If the transaction is funded from a PayPal Cash or PayPal Cash Plus account, the fee is waived. ![]() Otherwise, the fee for receiving cash to a typical Visa or Mastercard is the regular 2.9% of the transaction plus $0.30 USD. Transferring Money to or from PayPal via a Debit or Credit Card PayPal pricing and fees never apply to consumers. Transferring money from a US debit or credit account is usually instant. Still, there’s a transaction limit to take into account, and the transfer can take up to 30 minutes to clear. This is because the process is reviewed both by PayPal and by the bank which issued the credit or debit card. Individual banks may also impose their own requirements or limits. That 2.9% of every transaction can represent quite a large chunk of change in the long term. Here are just a couple of ideas: Include PayPal Fees into Your Pricing However, there are ways that you, as a business owner, can manage your PayPal fees. ![]() Some consumers may balk at this, but as a seller, it’s your right to structure your prices as you wish. ![]() Ethically, disclosing that PayPal fees are part of your pricing is the right way to use this approach. Since the PayPal scheme is to charge a fee per payment, you can lower the impact of the flat fee portion of a PayPal transaction by bundling together several payments into one invoice and charging a customer all at once. PayPal does not charge fees for payments sent as a friend. While this can be attractive, if you are caught doing this, then PayPal may terminate your account. This is why we do not recommend this strategy for any business. Carry PayPal Charges as a Business Expense on Your TaxesĪre you purchasing on behalf of a business? Paypal and other payment processing charges are deductible when purchased in relation to your business. Withdrawing PayPal Funds with the Correct Method If questions related to taxability, we recommend consulting your tax advisor. No one wants to rack up numerous PayPal fees. ![]() Using the right method for withdrawing PayPal funds can help you avoid getting nicked. Instead of using PayPal to directly transfer your fund from your PayPal account to your credit or debit card, you should instead transfer funds directly to your checking account. Making Use of Alternative Payment Services A bank transfer usually takes a few days to complete (as your bank wants to earn funds on the float), while a direct CC transfer usually involves a 1% fee and is instant, up to a usual limit of $10 USD. It’s in your best interest to present as many payment options as possible, but wouldn’t it be difficult to compile all these options and present them clearly on your site? Payment services such as Amazon Cash, Apple Pay, UnionPay, iDeal, or Alipay have a lot to offer compared to PayPal, especially when it comes to better terms and fees. Luckily, FastSpring can help! In partnering with our full-service SaaS ecommerce platform, you can smoothly support over 20 currencies and instantly offer a diverse array of payment options for global merchant services, like the ones listed above. ![]()
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