Want your own numbers? The PayPal calculator shows every fee and your profit as you type.
Open the PayPal US fee calculatorThere is no trick that makes PayPal free for business payments, and you should be wary of any that claims to. What you can do is choose the right payment type, avoid unnecessary charges and price so the fee does not come out of your margin. Test each option in the PayPal fee calculator.
1. Use the QR code rate in person
For face-to-face sales, PayPal’s QR code payments cost 2.29% plus $0.09 over $10. That is far cheaper than a goods and services payment, especially on small sales.
| Price | Goods & services | QR code | Card processing |
|---|---|---|---|
| $10.00 | $0.84 | $0.32 | $0.79 |
| $25.00 | $1.36 | $0.66 | $1.24 |
| $50.00 | $2.24 | $1.24 | $1.99 |
| $100.00 | $3.98 | $2.38 | $3.48 |
2. Combine small payments
The $0.49 fixed fee is painful on small amounts. Invoicing a regular client once a month instead of weekly saves the fixed fee three times over.
3. Price in the fee
The simplest way to protect profit is to price with the fee included. Use the take-home field to find the exact amount. Charging a separate surcharge for paying by PayPal can breach PayPal’s terms and some state rules, so building it into the price is the safer approach.
4. Avoid needless conversion
Invoice international clients in US dollars when you can. Converting currency inside PayPal adds a markup that is easy to miss. See PayPal international fees.
5. Offer cheaper options for large payments
For big invoices, bank transfers or ACH payments are usually much cheaper. Stripe’s ACH, for example, is capped at $5. Compare in Stripe ACH vs card fees.
What not to do
Do not ask customers to send business payments as friends and family. It is against PayPal’s rules, removes Seller Protection and can get your account limited. Our guide to goods and services vs friends and family explains why.
Frequently asked questions
Can I avoid PayPal fees completely?
Not for business payments. Friends and family payments are free but must not be used for sales.
What is the cheapest PayPal payment type?
For in-person sales, QR code payments are the cheapest commercial option at 2.29% plus $0.09 over $10.
Run your next sale through the calculator before you commit.
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