PayPal has been used as a convenient way to pay for goods and services for a long time now, however, many people are still sceptical of the money transfer service and the fees that may be incurred when using it.

PayPal began as an eBay subsidiary and has been in the online payments market for well over a decade now.

It’s an online financial service that lets you pay for things with a secure online account. Just enter your bank account, credit and/or debit card information, then pick which account you want to set as your preferred payment method. You may also make one of them your default payment method, which will be utilised unless you change your mind or need to use a different account.

Do PayPal Have Fees? - You Might Be Pleased!Pin

PayPal allows you to send and receive money, too. Any money you get is deposited into your PayPal account and may be used to make purchases or send to a family member or friend, with the amount being replenished using your nominated cards or bank account.

With PayPal being such an efficient service to use in a number of circumstances, surely there are some fees associated with using it?

Is PayPal Free To Use?

While paying for goods or transferring money to friends and family is completely free of charge, there are some fees that can be charged to you or the recipient in certain situations.

As a PayPal account holder in the United State, you can anticipate paying the following fees:

Receiving Money

  • Domestic online transaction – 2.9% and a fixed fee of 0.30 USD
  • International online transaction – additional 1.5% fee on top of the above

Withdrawing Money

  • No fee to your linked bank account
  • Instant withdrawal to your bank account incurs a fee of 1% of the total amount you are transferring
  • Withdrawal to your linked debit card incurs a fee of 1% of the total amount you are transferring

Currency Conversion

It’s difficult to forecast currency exchange fees. The transaction exchange rate is one thing, but the conversion charge is another. It might range from 3 to 4%, depending on who you’re paying.

Credit Card Processing

  • 2.7 percent charge for PayPal Here (point-of-sale/card reader)
  • International PayPal Here transactions incur an additional 1.5 percent charge.
  • 2.9 percent plus a set charge of 0.30 USD for online credit or debit card transactions
  • An additional 1.5 percent fee is charged for international online credit card transactions.
  • 3.5 percent charge for American Express payments. This fee is the same whether it’s an international American Express payment or a domestic payment.

Of course, these fees can change (and quite regularly, too), but they’ll never be far away from these amounts. PayPal is always clear with its fees, so as long as you’re paying attention while making your transactions, you’ll know exactly how much you’ll be charged.

Benefits Of Using PayPal

Regardless of these fees, PayPal is an excellent, safe and secure way to pay for things online and send money to friends and family when needed.

Plus, while there are many more online and mobile payment methods available these days, such as Apple Pay and Google Pay, PayPal has a few advantages that others may not.

Here are some of the benefits PayPal has over many of its competitors:

Buyer Protection

PayPal’s buyer protection features will ensure that you receive a refund if an item you purchase online does not arrive or does not match the seller’s description. This is especially handy when purchasing goods on platforms like eBay, where shop warranties are not always available.

Those who sell products on a personal or company level and get paid using PayPal are likewise safe. If you can show documentation that you shipped an item by mail but the buyer claims not to have gotten it, you can keep your money.


The online store you are purchasing from can not store your payment details in its database since you do not have to input your card details each time you purchase something, only your PayPal login and password or your cellphone number and PIN.

You can also use OneTouch payments in some cases, where PayPal keeps you signed in if you enable the service and you don’t have to input your information every time you buy anything, regardless of where you buy it. This is due to the fact that it is device and browser-specific. If you enable OneTouch on your iPhone, for example, it will only operate if you use that iPhone and the same browser.


Although mobile banking has made transferring money to friends and family a much simpler process than it used to be, using PayPal is still a very easy way to complete such tasks.

Open the PayPal app on your phone, use your fingerprint to sign in, select a payment recipient and use the “friend or family” method to avoid fees, type in how much you want to transfer and click Send. If you have money in your PayPal balance already, then the amount will simply be deducted from there, or, the amount will be taken from your preferred bank account.

How To Get A PayPal Account

If you don’t already have a PayPal account, we highly recommend signing up as it’s free to do so and you might find you prefer using it to your current method. Here’s a step-by-step guide on how to create a PayPal account:

  1. Head to paypal.com and click the blue “Sign-Up” button that is located in the top right-hand corner of the screen
  2. Select whether you want a personal account or a business account
  3. Input and verify your phone number
  4. Enter your credentials and click “Continue”
  5. Add the remaining information, such as your address, then click “Continue”
  6. Verify your email address through the link they’ve sent you, then you’re all done.

And check out Why Does Apple Pay Say Pay With Passcode?