How Much Does PayPal Charge Per Transaction?
PayPal charges a percentage of the transaction amount plus a fixed fee. The exact rate depends on the payment product, the buyer's country, and whether currency conversion is involved. For US merchants in 2026:
| Payment type | Rate | Fixed fee |
|---|---|---|
| Standard checkout | 3.49% | $0.49 |
| Advanced card processing | 2.89% | $0.49 |
| PayPal / Venmo | 3.49% | $0.49 |
| QR code (in-person) | 2.29% | $0.09 |
On a $55 order using standard checkout, the fee is $55 × 3.49% + $0.49 = $2.41. On a $20 order, the same rate gives $1.19 — the fixed fee makes up a larger share of small transactions.
These are the rates used by this calculator. PayPal's rates can vary by account, country, and transaction type; check your account's current pricing before making a final pricing decision.
PayPal Fee Formulas
Base fee = (Transaction amount × Rate %) + Fixed fee per transaction
Cross-border fee = International transaction amount × 1.5%
Currency conversion cost ≈ Converted transaction amount × 3.5%
Dispute cost = Number of disputes × $20 (standard) or $8 (Seller Protection eligible)
Refund fee loss = Number of refunded transactions × Fixed fee (retained by PayPal)
Total monthly fees = Base fees + Cross-border + Conversion + Disputes + Refund losses
The transaction-fee formulas assume percentage-based rates and exclude any fixed per-order charges beyond the standard fixed fee. The calculator applies all of these to your monthly revenue and order volume.
PayPal Goods and Services Fees
When you receive payment for goods and services through PayPal, the standard commercial rate applies — 3.49% + $0.49 for US checkout transactions. This is the rate most Shopify merchants pay when a customer buys a product through PayPal at checkout.
PayPal distinguishes between:
- Goods and services — commercial transactions where a buyer pays for a product or service. The full processing fee applies and the buyer gets PayPal Purchase Protection.
- Friends and family — personal transfers with no processing fee for domestic payments, but no Purchase Protection. Merchants cannot use friends and family to accept payments for goods.
If you sell physical or digital products, your transactions are goods and services, and the calculator's rates apply. Using friends and family for commercial transactions violates PayPal's terms and removes buyer protections.
PayPal International Fees
International transactions incur additional charges on top of the base processing fee:
| Fee type | Rate | When it applies |
|---|---|---|
| Cross-border fee | 1.5% | Buyer's PayPal account is in a different country than the seller's |
| Currency conversion | ~3.5% | Transaction requires converting between currencies |
On a $55 international order that also requires conversion, the added cost is $55 × 1.5% + $55 × 3.5% = $2.75 on top of the base fee — bringing the total to roughly $5.16 per order.
These two fees are separate. A buyer in the UK paying in USD triggers the cross-border fee but may not trigger conversion. A buyer in the UK paying in GBP triggers both.
To reduce international fees:
- Price in the buyer's currency to avoid conversion on their end (but you may pay conversion on yours)
- Track your international percentage — enter it in the calculator to see the real cost impact
- Compare with Stripe's international rates using our Stripe Fee Calculator
PayPal Fees by Country (2026)
PayPal rates differ by the seller's country. These are the standard commercial rates for domestic transactions:
| Country | Standard rate | Fixed fee | Cross-border surcharge |
|---|---|---|---|
| United States | 3.49% | $0.49 USD | +1.5% |
| United Kingdom | 2.90% | £0.30 GBP | +1.29% |
| Australia | 2.60% | $0.30 AUD | +1.50% |
| Canada | 2.90% | $0.30 CAD | +1.50% |
| European Union | 2.49% | €0.35 EUR | +1.29% |
US rates are among the highest for domestic transactions. UK and EU merchants pay a lower percentage but face different fixed-fee structures. Australian merchants have one of the lower base rates in the table.
The calculator uses US rates by default. If you sell from another country, use the rates above to estimate manually or adjust your expectations when comparing the calculator's output to your actual PayPal statements.
PayPal Refund Policy and Fees
When you refund a PayPal transaction:
- The percentage-based fee is returned — PayPal refunds the portion calculated from the transaction rate.
- The fixed fee is kept — PayPal retains the $0.49 (US) fixed fee per refunded transaction.
On 500 monthly orders with a 3% refund rate, that's 15 refunds × $0.49 = $7.35/month in retained fees. At a 5% refund rate, it becomes $12.25/month.
Refund fees matter most for stores with high return rates or low average order values, where the fixed fee is a larger share of the transaction. Track refunds by product category to identify which items drive the most refund-related fee loss.
How to Use This Calculator
- Product Type — Choose the PayPal payment product: standard checkout, advanced card processing, or QR payments. Each has different rates.
- Monthly Revenue — Enter total PayPal revenue before fees.
- Average Transaction — Enter your average order value. The calculator divides revenue by this to estimate transaction count.
- International Percentage — Share of orders from international buyers. The cross-border surcharge applies to this portion.
- Currency Conversion Percentage — Share of transactions requiring currency conversion, which adds ~3.5%.
- Dispute Rate — Percentage of transactions that become disputes ($20 each).
- Refund Rate — Share of transactions you expect to refund. PayPal keeps the fixed fee.
Use recent order data for the percentages. To compare processors on the same sales mix, enter identical numbers in our Stripe Fee Calculator.
Step-by-Step Example
A Shopify store processes 500 orders per month at $55 average ($27,500 revenue), using standard checkout with 10% international, 5% conversion, 0.5% dispute rate, and 3% refund rate.
| Cost | Calculation | Monthly estimate |
|---|---|---|
| Standard checkout fees | $27,500 × 3.49% + 500 × $0.49 | $1,204.75 |
| Cross-border surcharge | $27,500 × 10% × 1.5% | $41.25 |
| Currency conversion | $27,500 × 5% × 3.5% | $48.13 |
| Disputes | 2.5 expected × $20 | $50.00 |
| Retained refund fees | 15 refunds × $0.49 | $7.35 |
| Total PayPal fees | $1,351.48 | |
| Effective rate | $1,351.48 ÷ $27,500 | 4.91% |
The effective rate is nearly 1.5 percentage points above the base rate of 3.49%. International fees and disputes account for most of the gap.
PayPal Fee Benchmarks by Payment Type
Comparing domestic processing on a $55 transaction before international or dispute charges:
| Payment type | Rate | Fee on $55 | Effective % |
|---|---|---|---|
| Standard checkout | 3.49% + $0.49 | $2.41 | 4.38% |
| Advanced card | 2.89% + $0.49 | $2.08 | 3.78% |
| QR code | 2.29% + $0.09 | $1.35 | 2.45% |
| Stripe (for comparison) | 2.9% + $0.30 | $1.90 | 3.45% |
The fixed fee makes standard checkout proportionally more expensive on small orders. On a $15 order, the effective rate jumps to 6.76% for standard checkout vs. 4.29% for QR code.
6 Ways to Control PayPal Costs
- Test a different checkout method. Switch from standard checkout to advanced cards and compare — the 0.6% rate difference saves $165/month on $27,500 in revenue.
- Model low average order values. Enter $18 instead of $55 to see how the fixed fee inflates the effective rate. Consider bundles or a minimum order threshold.
- Separate cross-border from conversion costs. Try 20% international with 0% conversion, then add conversion separately. This shows where the real cost is.
- Check dispute exposure before scaling ads. Change dispute rate from 0.3% to 0.8% and see the added cost. Use our Chargeback Cost Calculator for the full picture.
- Compare local-currency pricing. Test different conversion shares to see if pricing in the buyer's currency saves money or shifts the cost.
- Review refunds by product line. One high-return product can skew the whole store's refund fee loss. Clear sizing guides and product descriptions reduce returns.
Frequently Asked Questions
How much does PayPal charge per transaction?
PayPal standard checkout charges 3.49% + $0.49 per US transaction. Advanced card processing is 2.89% + $0.49, and QR code payments are 2.29% + $0.09. International transactions add a 1.5% cross-border fee, and currency conversion adds roughly 3.5%.
What is the PayPal fee for $100?
On a $100 US standard checkout transaction: $100 × 3.49% + $0.49 = $3.98. If the buyer is international, add 1.5% ($1.50) for a total of $5.48. With currency conversion, add another ~3.5% ($3.50) for up to $8.98.
Is PayPal more expensive than Stripe?
For US merchants, PayPal standard (3.49% + $0.49) is more expensive than Stripe (2.9% + $0.30) on the same transaction. PayPal Advanced Card (2.89% + $0.49) has a similar percentage but a higher fixed fee. Compare total cost on your actual order values — the fixed fee gap matters more on small orders.
Does PayPal refund processing fees?
PayPal returns the percentage-based portion of the fee but keeps the fixed fee ($0.49 per US transaction). At a 3% refund rate on 500 orders, you lose $7.35/month in retained fixed fees.
How much does PayPal charge for international payments?
PayPal adds a 1.5% cross-border fee for international transactions. If currency conversion is also needed, expect an additional ~3.5% spread. Together, international fees can add 5% on top of the base rate.
What is the PayPal goods and services fee?
The goods and services fee is the standard commercial rate: 3.49% + $0.49 for US checkout transactions. This applies whenever a buyer pays for a product or service. Friends and family transfers have no fee but cannot be used for commercial sales.
Are PayPal fees tax deductible?
Payment processing fees are generally a deductible business expense. Track them as a cost of doing business in your accounting. Consult a tax professional for advice specific to your situation.
How do I reduce PayPal fees?
Switch to advanced card processing (saves ~0.6% per transaction), reduce international conversion by pricing in local currencies, lower your dispute rate with clear policies and Seller Protection compliance, and minimize refund-related fee loss with better product descriptions.
About This Calculator
The PayPal Fee Calculator was built by Luis Dev Studio for Shopify merchants comparing payment processing costs. For help configuring payments on your store, contact us or explore our Shopify services.
Updated by Luis Gonzalez · May 21, 2026