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PayPal’s payment processing fees for small businesses typically range from 2.29% to 3.49% of each transaction, plus a fixed fee ranging from 9 cents to 49 cents. The exact amount you pay depends on your customers’ payment method and whether you mostly accept cards in-person with PayPal Zettle or online through one of the company’s e-commerce checkout integrations.
Here’s a rundown of PayPal’s fees for small businesses, along with a calculator for estimating how much using PayPal might cost you.
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PayPal fees at a glance
PayPal’s merchant fees page has a dizzying number of pricing details on it. The table below focuses on the fees that are most relevant to small businesses.
Transaction type | Payment processing fee |
|---|---|
In-person or via QR code | 2.29% plus 9 cents. |
Online | 2.59%-3.49% plus 49 cents. |
Invoice | 2.99%-3.49% plus 49 cents. |
Regardless of transaction type, you need to sign up for a free PayPal Business account to process payments with the company.
PayPal Zettle fees for in-person transactions
PayPal Zettle is the company’s POS system for accepting card transactions in-person. There’s no monthly fee to use it, but you do have to pay for hardware and processing costs. Here’s what each costs:
- 2.29% plus 9 cents for in-person and QR code transactions.
- 3.49% plus 9 cents for manual-entry card transactions.
- 2.99% plus 49 cents for invoicing (payment made with card).
- 3.49% plus 49 cents for invoicing (payment made with PayPal).
- $29 for first card reader; additional readers cost $79. Price includes USB cable.
- $199 for terminal only.
- $239 for terminal with barcode scanner built in.
- $229 for Store Kit Mini (tablet stand with card reader and dock).
- $339 for Store Kit Portable kit with mobile card reader and printer.
- $479 for Store Kit Standard (tablet stand, card reader, dock and printer).
- $699 for Store Kit Plus (adds barcode scanner).
» MORE: Top PayPal alternatives
PayPal Checkout fees for online transactions
PayPal Checkout is an integration built for accepting online transactions on your business’s website. There are two different versions of it:
PayPal’s Standard Checkout product is the company’s most basic online payment processing solution for small businesses. It lets you add payment buttons to your website, so that you can accept credit and debit cards, as well as other payments through PayPal, Pay Later and Venmo.
Here’s what per-transaction processing rates look like:
- 2.99% plus 49 cents for debit and credit card payments.
- 3.49% plus 49 cents for PayPal Payments (e.g., PayPal, Pay Later, Venmo).
PayPal’s Advanced Checkout option gives you access to additional features you don’t get with the Standard solution. These include more brand customization opportunities, the ability to accept Apple Pay and Google Pay, add-on protection against chargebacks and fraud, and lower processing rates. You can also choose between interchange-plus-plus pricing, which may be preferable for larger businesses, and flat-rate pricing.
However, you do need to submit an application to subscribe to Advanced Checkout, and it can take a couple of days to be approved. This option also requires additional coding.
Here’s the per-transaction pricing for Advanced Checkout:
- 2.59% plus 49 cents for debit and credit card payments.
- 3.49% plus 49 cents for PayPal Payments (e.g., PayPal, Pay Later, Venmo).
- 0.40% extra for additional chargeback protection.
PayPal fee calculator
To calculate how much you’ll pay in processing fees with PayPal, plug in your business’s average transaction total and payment type (e.g., online debit or credit card, PayPal Payments or in-person).
PayPal payment gateway fees
In addition to payment processing services, PayPal offers payment gateways that connect your e-commerce site to your payment processor and allow customers to securely enter their card information online. This is mainly useful for businesses that use a different payment processor instead of PayPal, but need a way to accept payments online and want to allow customers to pay with their PayPal accounts.
Here are more details about each of PayPal’s payment gateway options:
Payflow link has no monthly fees and costs 10 cents per transaction. You start by adding a PayPal-hosted checkout template to your existing website. This solution also lets you give customers the option to pay with PayPal.
Payflow Pro costs $25 per month and opens up more opportunities for customization. That way, you can customize PayPal’s checkout template to match your site’s branding and give customers a more cohesive checkout experience.
