What Are The Fees For PayPal Accounts?

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    Opening an account: 
    PayPal doesn’t charge a fee to open a PayPal account.

    Sending money – Personal payments: 
    There are no fees within the U.S. to send money to family and friends when you use only your PayPal balance or bank account, or a combination of your PayPal balance and bank account.

    There is a fee to send money as a personal payment using a debit card or credit card. The fee in the U.S. is 2.9% plus $0.30 USD of the amount you send. For example, if you send $100.00 USD by credit card, the fee would be $3.20 USD ($2.90 + $0.30).

    Receiving money – Personal payments: 
    There are no fees to receive money from friends or family in the U.S. when you send the money from the PayPal website using only your PayPal balance or your bank account, or a combination of your PayPal balance and bank account.

    Goods and services – Purchase payments:
    There’s no fee to use PayPal to purchase goods or services. However, if you receive money for goods or services (such as from selling an item on eBay), the fee for each transaction is 2.9% plus $0.30 USD of the amount you receive.

    International payments: 
    There is a fee when you send a payment to someone in another country or if you receive a payment from someone in another country. The PayPal User Agreement has specific information. You can find the User Agreement by clicking Legal Agreements at the bottom of any PayPal page.

    Note: It is currently not possible to send or receive a personal payment to and from India using PayPal. If you’re sending money for a personal payment to India, we ask that you find another way, we currently recommend Xoom.

    Withdrawing money: 
    You can withdraw money from your PayPal account to your bank account at no cost. If you prefer to receive a check, there is a $1.50 USD fee.

    Paypal Fees in the Philippines — Regular Commercial Transactions

    First, let’s discuss Paypal fees for regular commercial transactions. Below is a table summarizing the revised fees charged to Philippine-based sellers.

    New Paypal Fees — Regular Commercial Transactions

    DOMESTIC PAYMENTS Paypal Fee
    Standard Fee 3.9% + PHP 15.00
    eBay Transactions Fee 3.4% + PHP 15.00
    INTERNATIONAL PAYMENTS
    Standard Fee 4.4% + PHP 15.00
    eBay Transactions Fee 3.9% + PHP 15.00

     

    Example of Paypal fees charged to Different Transactions

    If you are a Philippine-based merchant selling a product (outside eBay) worth P1,000, you will be charged 3.9% + PHP15.00 or total fees amounting to PHP54.00 — if the buyer is from the Philippines.

    Thus, the net amount you will receive from the sale of a P1,000 product is PHP946.00.

    Here are the fees charged to other cases of commercial transactions:

    • 3.4% + PHP15.00 for sellers on eBay (eBay owns Paypal, that’s why rates are lower) if buyers are from the Philippines;
    • 4.4% + PHP15.00 if payments are from abroad (international payments).

    If the transaction is done on eBay and the buyer is from another country, the international eBay payment fee of 3.9% + PHP15.00 applies.

    Here’s an example of an International payment on the eBay website:

    A Philippine-based merchant selling a product on eBay worth P2,000 is charged a Paypal fee of 3.9%+PHP15.00 or a total of PHP93.00 — if the buyer is from abroad (outside the Philippines).

    Thus, the net amount you will receive from the sale is PHP1,907.00.

    Domestic payments are payments from users within the same country, in this case, the Philippines.

    International payments, meanwhile, are payments from users in another country.

    Discounted Merchant Rates for Qualified Sellers

    Paypal offers discounted rates for qualified merchants. These “Merchant Rates” apply to members in good standing (whose accounts are not currently under investigation) and who received more than PHP150,000.00 in PayPal payments in the previous calendar month.

    Qualified users have to apply first in order to be granted the discounted “Merchant Rates”.

    Here is the discounted fees table applied to qualified merchants.

    New Paypal Fees — Discounted Merchant Rates

    DOMESTIC PAYMENTS Merchant Rate
    Merchant Rate From 2.9% to 3.9% + PHP 15.00
    Merchant eBay Rate From 2.4% to 3.4% + PHP 15.00
    INTERNATIONAL PAYMENTS
    Merchant Rate From 3.4% to 4.4% + PHP 15.00
    Merchant eBay Rate From 2.9% to 3.9% + PHP 15.00

    The increase in Paypal fees also becomes effective for users in other Asian countries such as China, Hong Kong, India, Indonesia, Malaysia, Singapore, Taiwan, Thailand and Vietnam.

    The rates are the same as in the tables above. The only difference is the fixed fee charged which varies per country (this is PHP15.00 in the Philippines).

    Definition of “Commercial Payments”

    The new rates above affect online commercial payments. According to Paypal, “commercial payments” include the following:

    • Payment for the sale of goods or services;
    • Payment received after the Seller has used the “Request Payment” tab on the PayPal website; or
    • Payment sent to, or received by, a business or other commercial or non-profit entity.

    Paypal Fees for Personal Payments

    Personal payments, on the other hand, are charged 3.4% + PHP15.00 in the Philippines.

    Personal payments are payments made mainly to individuals as opposed to businesses, for example, splitting the cost of a birthday gift or paying back a friend for lunch.

    The fee may be paid either by the sender or the recipient of the Personal Payment. In most instances, the sender will determine who pays the fee.

     

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