If you sell online, accept payments, or run a small business, understanding PayPal fees is essential. PayPal processes billions of dollars in transactions every year — but their fee structure can be confusing, with different rates for different transaction types.
In this complete guide, we break down every PayPal fee for 2026, explain when each applies, and show you exactly how much you'll keep from every sale. We've also built a live calculator so you can check any amount instantly.
Quick answer: PayPal's standard fee for Goods & Services transactions is 3.49% + $0.49 per transaction in 2026. On a $100 sale, you receive $96.02. Keep reading for all transaction types and how to reduce your fees.
PayPal updated its fee structure in 2023 and the rates have remained stable into 2026. The most important change from the old structure: the standard rate increased from 2.9% + $0.30 to 3.49% + $0.49 for Goods & Services transactions.
Here is a complete overview of all PayPal fees in 2026:
| Transaction Type | Rate | Fixed Fee | Fee on $100 | You Keep |
|---|---|---|---|---|
| Goods & Services (domestic) | 3.49% | $0.49 | $3.98 | $96.02 |
| Invoice | 3.49% | $0.49 | $3.98 | $96.02 |
| QR Code (in-person) | 1.90% | $0.10 | $2.00 | $98.00 |
| Friends & Family | 0% | $0.00 | $0.00 | $100.00 |
| International | 4.99% | $0.49 | $5.48 | $94.52 |
| Charity / Nonprofit | 1.99% | $0.49 | $2.48 | $97.52 |
| Micropayments (<$10) | 4.99% | $0.09 | — | — |
The fee you pay depends entirely on how the payment is sent. A buyer sending you money as "Friends & Family" pays no fee — but if they use "Goods & Services," you pay 3.49% + $0.49.
The Goods & Services fee is what most online sellers pay. Whenever someone buys a product or service from you through PayPal, this is the fee that applies.
The current rate is 3.49% + $0.49 per transaction for domestic US payments.
| Sale Amount | PayPal Fee | You Receive | Effective Rate |
|---|---|---|---|
| $10.00 | $0.84 | $9.16 | 8.4% |
| $25.00 | $1.36 | $23.64 | 5.4% |
| $50.00 | $2.24 | $47.76 | 4.5% |
| $100.00 | $3.98 | $96.02 | 3.98% |
| $250.00 | $9.21 | $240.79 | 3.68% |
| $500.00 | $17.94 | $482.06 | 3.59% |
| $1,000.00 | $35.39 | $964.61 | 3.54% |
⚠️ Important: The effective rate gets lower as the transaction amount increases because the fixed $0.49 becomes a smaller percentage of a larger amount. For very small transactions (under $10), the effective rate can exceed 8%.
PayPal raised fees from 2.9% + $0.30 to 3.49% + $0.49 in 2023 to offset rising operational costs and fraud prevention investments. The increase was controversial among sellers, many of whom moved to alternatives like Stripe or Square.
The advantage of G&S payments is PayPal Buyer Protection. Buyers can dispute transactions if items don't arrive or don't match the description. As a seller, this means you need to keep records of every sale.
Sending money to friends and family through PayPal is free when using your PayPal balance or a linked bank account. However, there are important exceptions.
| Payment Method | Fee to Sender | Fee to Receiver |
|---|---|---|
| PayPal balance or bank account | Free | Free |
| Debit card | Free | Free |
| Credit card | 3.49% (paid by sender) | Free |
🚨 Warning for sellers: Asking buyers to pay via Friends & Family to avoid fees is against PayPal's Terms of Service. It also removes buyer protection, which can lead to disputes and account suspension. Never ask buyers to use F&F for business transactions.
PayPal invoices are commonly used by freelancers and service providers. The fee structure for invoices is identical to Goods & Services: 3.49% + $0.49.
Invoices include buyer protection and give both parties a clear record of the transaction. They're ideal for:
When sending invoices, always add a clear description of the service provided. This protects you in case of disputes and makes your accounting much easier at tax time.
PayPal's QR code payment option is significantly cheaper than standard G&S transactions. The current rate is 1.9% + $0.10 per transaction — roughly half the standard rate.
| Sale Amount | QR Code Fee | You Receive | vs Standard G&S |
|---|---|---|---|
| $50 | $1.05 | $48.95 | Save $1.19 |
| $100 | $2.00 | $98.00 | Save $1.98 |
| $500 | $9.60 | $490.40 | Save $8.34 |
QR codes are ideal for in-person payments — market vendors, pop-up shops, craft fairs, or any situation where you're meeting the buyer face to face.
If you receive payments from buyers in other countries, PayPal adds additional fees on top of the standard rate.
| Fee Type | Rate | Notes |
|---|---|---|
| International transaction fee | 4.99% + $0.49 | Replaces standard G&S rate |
| Currency conversion | 3–4% | Applied on top of transaction fee |
| Cross-border fee | 1.5% | Varies by country |
⚠️ Real cost of international payments: On a $100 international sale paid in a foreign currency, you could lose $8–10 in combined fees — more than double the domestic rate. Consider using Wise or a local payment method for international clients to reduce costs.
Use our live calculator to see exactly how much you'll receive from any PayPal transaction:
Want more options? Try the full PayPal Fee Calculator →
While you can't eliminate PayPal fees entirely, there are several legitimate strategies to reduce what you pay:
If you sell at markets, fairs, or in person, using PayPal's QR code instead of sending a payment request drops your fee from 3.49% + $0.49 to just 1.90% + $0.10. On $1,000 in sales, that's a saving of nearly $20.
You can include the PayPal fee in your listed price so that you always receive your target amount. The formula is:
Charge to buyer = (Amount you want + $0.49) ÷ (1 − 0.0349)
Example: To receive $100, charge the buyer $104.13
For online card payments, Stripe charges 2.9% + $0.30 — significantly less than PayPal's 3.49% + $0.49. On $10,000 in monthly sales, Stripe saves you approximately $78 per month.
If you run a registered nonprofit, PayPal offers a discounted rate of 1.99% + $0.49. Apply through PayPal's nonprofit program to get access.
The fixed $0.49 fee hits hardest on small amounts. Wherever possible, combine small payments into a single larger transaction to minimize the impact of the fixed fee component.
How does PayPal compare to other major payment processors in 2026?
| Platform | Standard Rate | Fee on $100 | You Keep | Best For |
|---|---|---|---|---|
| Venmo Business | 1.9% + $0.10 | $2.00 | $98.00 | US peer-to-business |
| Cash App Business | 2.75% | $2.75 | $97.25 | Simple US payments |
| Square In-Person | 2.6% + $0.10 | $2.70 | $97.30 | Retail / in-person |
| Stripe Online | 2.9% + $0.30 | $3.20 | $96.80 | Developers / SaaS |
| PayPal G&S | 3.49% + $0.49 | $3.98 | $96.02 | Global reach |
PayPal is not the cheapest option for domestic US payments. However, it has some significant advantages: it is accepted globally in 200+ countries, buyers trust it more than newer services, and it has the largest user base of any payment service.
✅ When PayPal is the right choice: International clients, buyers who specifically request PayPal, high-value transactions where buyer trust is important, or when you need dispute resolution support.