PayPal's costs for small businesses primarily revolve around transaction fees incurred when receiving payments, particularly for domestic invoicing transactions. These fees depend on the specific payment method your customer uses.
Understanding PayPal Invoicing Fees for Small Businesses
When your small business receives payments via PayPal invoicing within the U.S., the standard fees typically include a percentage of the transaction amount plus a fixed fee. The rate applied varies based on how the payment is made.
Here is a breakdown of the standard fees for receiving domestic invoicing transactions:
| Payment Type through an Invoicing Transaction | Rate |
|---|---|
| PayPal Checkout, Pay with Venmo, PayPal Pay Later offers, or PayPal Guest Checkout | 3.49% + fixed fee |
| Standard Credit and Debit Card Payments, Apple Pay, or other third-party wallets | 2.99% + fixed fee |
- Fixed Fee: In addition to the percentage, a small, fixed fee is applied per transaction. This fee varies by currency.
These transaction fees cover the cost of processing the payment, ensuring security, and providing customer support related to the transaction. When setting your product or service prices, it's beneficial to consider these processing costs.
For a comprehensive overview of all merchant and business fees, including those for international transactions or specific services, you can visit the official PayPal Business Fees page.
