Invoice Penguin - Dead Simple Invoice Builder

Calculate PayPal transaction fees for invoice payments. Understand PayPal invoicing costs and know exactly how much you'll receive after fees.

PayPal Fee Structure

Standard Fees

• Online payments: 2.9% + fixed fee (varies by currency)
• In-person payments: 2.7% + fixed fee
• International payments: Additional 1% fee applies
• Fixed fees: USD/CAD/AUD: $0.30, EUR: €0.35, GBP: £0.20

How PayPal Fees Work

PayPal charges a percentage-based fee plus a fixed fee for each transaction. The percentage fee is 2.9% for online payments and 2.7% for in-person payments. The fixed fee varies by currency, with USD, CAD, and AUD transactions having a $0.30 fixed fee, EUR transactions having a €0.35 fixed fee, and GBP transactions having a £0.20 fixed fee.

International payments (where the payer and merchant are in different countries) incur an additional 1% fee on top of the standard rates. This applies to both online and in-person transactions.

PayPal Invoicing

PayPal offers built-in invoicing features that allow you to send professional invoices directly through PayPal. When clients pay via PayPal invoice, the same fee structure applies. PayPal invoicing is convenient because it integrates payment directly into the invoice, making it easy for clients to pay.

Tips for Minimizing PayPal Fees

• Use PayPal's invoicing feature for professional, integrated payment processing
• Consider passing processing fees to customers (where legally allowed)
• Use PayPal Here for in-person payments to get lower rates
• Negotiate lower rates if you process high transaction volumes
• Consider PayPal Business accounts for additional features and potential discounts

PayPal vs Other Payment Processors

PayPal's fees are similar to other major payment processors like Stripe and Square. The main advantage of PayPal is its widespread recognition and trust among consumers, which can lead to higher payment conversion rates. PayPal also offers built-in invoicing and payment tracking features.