PayPal charges 3.49% + $0.49 per domestic online transaction — slightly higher than
Stripe's 2.9% + $0.30. For international payments, fees rise to 4.99% + $0.49.
Micropayments (transactions under $10) have a special rate: 5% + $0.05, which is
cheaper on tiny amounts but expensive as a percentage.
PayPal vs Stripe fee comparison
Scenario
PayPal
Stripe
$10 domestic
$0.84 (8.4%)
$0.59 (5.9%)
$100 domestic
$3.98 (4.0%)
$3.20 (3.2%)
$1,000 domestic
$35.39 (3.5%)
$32.30 (3.2%)
$100 international
$5.48 (5.5%)
$4.70 (4.7%)
For most transaction sizes, Stripe is cheaper. PayPal's advantage is consumer familiarity
— checkout conversion can be higher when PayPal is offered as an option.
Fee pass-through mode
If you need to receive a specific net amount, the calculator solves the gross-up:
to receive exactly $100 via a domestic PayPal charge, you would need to charge $104.66.
PayPal Friends & Family
Personal payments (Friends & Family) are free for domestic bank-funded or PayPal-balance
transactions — but using this method for business payments violates PayPal's Terms of Service.
Doing so risks account termination without the seller protection that standard transactions provide.
Frequently asked questions
Does PayPal charge for refunds?
PayPal returns the fixed $0.49 fee but keeps the percentage portion (3.49%) when you refund.
This differs from Stripe, which returns the fixed fee but also keeps the percentage.
Can I avoid PayPal fees?
For domestic bank account transfers to personal contacts, yes. For business transactions,
the only way to reduce fees is through PayPal's Merchant Rate program — which requires
applying and demonstrating high transaction volume. Generally, Stripe offers lower fees
for most business use cases.
PayPal Fees in the UK — Rates, Examples & Stripe Comparison
Exact PayPal processing fees for UK businesses — domestic and international rates with worked examples and a Stripe comparison.
PayPal charges UK businesses 1.2% + 30p for domestic UK Debit Card payments,
2.99% + 30p for standard card payments (Visa/Mastercard), and 3.49% + 49p
for PayPal Checkout. For international transactions, an additional cross-border fee
of 1.5% applies, plus a currency conversion spread of 3–4%.
PayPal UK fee examples (GBP)
Charge
PayPal Standard
PayPal Checkout
Stripe (UK domestic)
£10
£0.60 (6.0%)
£0.84 (8.4%)
£0.35 (3.5%)
£50
£1.80 (3.6%)
£2.24 (4.5%)
£0.95 (1.9%)
£100
£3.29 (3.3%)
£3.98 (4.0%)
£1.70 (1.7%)
£500
£15.30 (3.1%)
£17.94 (3.6%)
£7.70 (1.54%)
When PayPal is worth the higher fee
PayPal's primary advantage for UK businesses is buyer trust and conversion rate.
Studies show 56% of UK shoppers trust PayPal more than entering card details on
an unknown site. For stores with cold traffic (low brand recognition), the conversion
lift from offering PayPal can offset the higher processing cost.
Rule of thumb: If your average order value is under £30 and you're driving
traffic from social media to an unknown brand, PayPal's conversion uplift likely
justifies the cost. For subscription SaaS or high-AOV B2B, Stripe is almost always
cheaper and better.
PayPal Fees in Canada — CAD Rates and Stripe Comparison
PayPal processing fees for Canadian businesses — CAD rates, cross-border fees, and when Stripe is cheaper.
Canadian PayPal merchants pay 2.99% + C$0.49 for standard PayPal transactions.
For PayPal Checkout (the newer branded flow), the rate is 3.49% + C$0.49.
Cross-border transactions add 1.5%, and currency conversion adds 3–4% spread on
the exchange rate.
PayPal Canada fee examples (CAD)
Charge
PayPal Standard
PayPal Checkout
Stripe (CA domestic)
C$25
C$1.24 (5.0%)
C$1.36 (5.4%)
C$1.03 (4.1%)
C$100
C$3.48 (3.5%)
C$3.98 (4.0%)
C$3.20 (3.2%)
C$500
C$15.44 (3.1%)
C$17.94 (3.6%)
C$14.80 (3.0%)
GST/HST on PayPal fees
PayPal applies GST or HST to processing fees for Canadian businesses based on the
province of registration. This is generally recoverable as an input tax credit for
registered businesses. PayPal issues a fee statement monthly.
PayPal vs Stripe for Canadian businesses
Stripe is cheaper for standard card processing (2.9% + C$0.30 vs PayPal's
2.99% + C$0.49). The difference compounds at scale: at C$10,000/month, Stripe
saves approximately C$24/month over PayPal Standard. Stripe also has better
subscription support, webhook reliability, and developer tooling.
PayPal Fees in Australia — AUD Rates and Stripe Comparison
PayPal processing fees for Australian businesses — AUD rates, worked examples, and Stripe comparison.
Australian PayPal merchants pay 2.6% + A$0.30 for domestic transactions
(down from the previous 2.6% + $0.30 rate which was the same). For PayPal Checkout
the rate is 3.49% + A$0.49. Cross-border transactions (cards issued outside
Australia) add 1.5% on top.
PayPal Australia fee examples (AUD)
Charge
PayPal Standard
PayPal Checkout
Stripe (AU domestic)
A$25
A$0.95 (3.8%)
A$1.36 (5.4%)
A$0.74 (2.96%)
A$100
A$2.90 (2.9%)
A$3.98 (4.0%)
A$2.05 (2.05%)
A$500
A$13.30 (2.66%)
A$17.94 (3.6%)
A$9.05 (1.81%)
BPAY and bank transfer as alternatives
For B2B invoices in Australia, BPAY (bank transfer via BSB + account number) is
effectively free for the merchant. For high-value invoices (A$2,000+), offering
direct bank transfer alongside PayPal and card can save 2–3% per transaction.
Use the invoice calculator to add a "bank transfer discount" line item as an incentive.
Exact PayPal fee on a $100 payment — standard, Checkout, and Goods & Services breakdown with Stripe comparison.
On a $100 payment via PayPal Standard (card), the fee is $3.49 (3.49%):
- 2.99% of $100 = $2.99
- Fixed fee = $0.49 (for USD domestic)
- Total fee = $3.48 | You receive = $96.52
For PayPal Checkout (the newer flow): $3.98 fee | $96.02 net
For PayPal Goods & Services (Friends & Family is for personal use only — using
it for business violates PayPal's TOS): $3.48 fee.
$100 comparison: PayPal vs Stripe vs Square
Processor
$100 fee
Net received
PayPal Standard
$3.49
$96.52
PayPal Checkout
$3.98
$96.02
Stripe (domestic)
$3.20
$96.80
Square (online)
$3.20
$96.80
Stripe and Square are $0.29–0.78 cheaper per $100 transaction. At 100
transactions/month, that's $29–78/month saved by switching. At $1M/year volume,
the difference is $2,900–7,800 annually.
To receive exactly $100 net from PayPal
Charge $103.59 to receive exactly $100 after PayPal Standard fees:
($100 + $0.49) / (1 - 0.0299) = $103.59.
How Much Does PayPal Take on a $1,000 Transaction?
Exact PayPal fee on a $1,000 payment and when volume discounts apply.
On a $1,000 payment via PayPal Standard, the fee is $30.49 (3.05%):
- 2.99% of $1,000 = $29.90
- Fixed fee = $0.49
- Total fee = $30.39 | You receive = $969.61
For PayPal Checkout: $35.39 fee | $964.61 net
At what volume does PayPal offer lower rates?
PayPal's Merchant Rate program reduces fees based on monthly sales volume:
- $0–$3,000/month: 2.99% + $0.49 (standard)
- $3,001–$10,000/month: 2.89% + $0.49
- $10,001–$100,000/month: 2.79% + $0.49
- $100,001+/month: contact PayPal for custom rates
At the $1,000 transaction level with $50k/month volume (2.79% + $0.49):
Fee = $28.39 | Net = $971.61 — saving about $2 per transaction vs standard.
ACH / bank transfer as a $1,000 alternative
For $1,000 B2B invoices, ACH bank transfer costs $0 (or a flat $1–5 with some
processors). This is 30× cheaper than PayPal. If your buyer is a business, offering
ACH alongside PayPal with a "3% surcharge for PayPal" is increasingly common and
compliant in most US states.
Tools our audience uses alongside this calculator.
StripePayPal alternative
2.9% + $0.30 for domestic cards — same as PayPal's standard rate, but with significantly better developer tooling, subscription support, and fraud protection.
For international transactions, Wise charges the mid-market exchange rate + a small fee — typically 40–80% cheaper than PayPal's cross-border conversion markup.
PayPal's developer-focused gateway: 2.59% + $0.49 standard, same PayPal network but with a full REST API and better webhook support than standard PayPal.