All Other Commercial Transactions are 3.49% + a How to Invoice as a Freelancer fixed fee ($0.49 USD for USD transactions). Receiving payments through methods like PayPal Checkout, Pay with Venmo, and PayPal Credit typically incurs PayPal’s standard commercial transaction rate for digital payments. Use PayPal Checkout to easily accept payments online or in-store. Link your account to e-commerce platforms like Shopify, BigCommerce, and GoDaddy to drive revenue right from your site. Send customized invoices to get paid quickly and securely. It’s also important to separate your business finances from your personal finances for tax purposes.

Account for Fees in your Billing Total

• Fees are 3.39% + a fixed fee of $0.29 USD for USD transactions, plus a monthly fee of $30.00 USD.
• Sending money to friends or family outside the US incurs international fees.
• 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.
• Of course, you’ll have to undergo a stricter underwriting process to be approved to use Helcim, and your account will come with fewer built-in services included.

Use of applicable Services is subject to eligibility, application, and approval by PayPal and your acceptance of the PayPal Online Payment Services Agreement. These rates will apply to the following payment types received using PayPal Online Payment Services. The fee for receiving domestic charity transactions applies plus the additional percentage-based fee for international charity transactions. The exchange rate you’ll see before buying or selling Crypto Assets will also include a cryptocurrency conversion spread.

• Determine your markups and profit margin to set the perfect price and increase your bottom line with our product pricing calculator.
• You can view your specific fees in the Activity section of your PayPal account.
• Make sure your pricing for products or services includes payment processing fees.
• With Lili’s Invoicing Software, you can easily create and send professional custom invoices to your clients that clearly display account details and guide them through the payment process.
• So here’s an idea – batch record your deposits and the related fees.
• It involves 2 invoices for 1 customer and a $92.18 fee for Paypal.
• That said, you can fill these feature gaps with third-party integrations.

Fixed fee for QR code transactions (based on currency received)

However, if you prefer to have instant access to funds without paying a fee, don’t forget that PayPal offers a business debit card that’s linked to your PayPal balance, too. These merchants will pay 4.99% + $0.09 for low-value transactions, with the lower fixed fee more than making up for the higher percentage fee. 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). Exchange rates or fees charged by a customer’s card issuer or bank may still apply. Please see the fees for Ukrainian personal accounts page and this Help Center article for updates and more information about our services for Ukrainian customers. If your business transactions are high volume, contact PayPal’s sales team to ask about potential customized or volume-based pricing.

• This guide provides an overview of common PayPal fees relevant to users in the United States (US), focusing primarily on business transactions but also covering key consumer fees.
• The expected deposit amount that A2X allocates to the clearing account per PayPal payout is the gross amount – so the PayPal fees are not deducted.
• With an established PayPal charity account, eligible organizations unlock a host of advantages designed to boost their fundraising efforts and broaden their visibility.
• In QuickBooks Online, Undeposited Funds is found on the Sales Receipt or Receive Payment entry forms under the “Deposit to” drop down box.
• Adding a line to the deposit of each sales receipt for the merchant fee can turn into a lot of work.

Types of PayPal Fees

Encrypted payments help you reduce the likelihood of identity theft while helping you meet your PCI compliance requirements. Merchants who sign up with PayPal for in-person payments are now onboarded to PayPal Zettle, rates for which are provided above. Per PayPal’s user agreement, you are not permitted to surcharge transaction fees to your clients, but that doesn’t mean you can’t cover the fees in the invoice total. If you have an average or common transaction retained earnings amount you bill clients for, calculate a fixed “service fee” or “processing fee” based on that dollar amount and charge the same fee for every transaction. For international transactions, an additional percentage-based fee of 1.50% is charged for all commercial transactions on top of the standard PayPal fee from the table above.

Fixed fee for personal transactions (based on currency received)

This way, you’re splitting the payment between the two invoices. Here’s a brief overview of common US consumer fees according to PayPal’s consumer fee schedule. These fees are for personal use, distinct from fees business users might encounter with a business account. PayPal Payouts has specific fees for sending mass payments (e.g., to freelancers, affiliates, and contractors). Send/Receive Money for Goods and Services are priced a bit lower, at 2.99% (plus a fixed fee of 0.49 paypal accounting USD for USD transactions).

Choosing the tax rate

Gustav Christopher Wagner “Gus” began his career in investment banking and equity trading before transitioning to fintech entrepreneurship. With 15 years’ experience in the financial markets and a CFA charter, he has developed a deep expertise in communicating complex financial concepts clearly and effectively. I wrote out a really lengthy post once already, but I panicked that maybe I was asking to much, and not being direct enough. So I’m gonna summarize this time, and elaborate more in comments if need be. Separating business and personal finances can help streamline your bookkeeping and give you peace of mind.