PayPal charges a fee when you use a credit card to send money or make a purchase, but the fee depends on what you're doing and which card you use
PayPal's credit card fees are not one fixed amount. If you're sending money to someone using a credit card, PayPal charges you a percentage of the amount plus a flat fee — this is their standard money transfer rate. If you're making a purchase at a store or online that accepts PayPal, you typically won't see a fee at all, because the merchant pays it instead. The key is understanding which transaction type you're doing and whether you're the one footing the bill.
The reason PayPal charges at all is that credit card networks (Visa, Mastercard, American Express) charge PayPal a processing fee every time a card is used. PayPal passes some or all of that cost to you depending on the transaction type. If you use a bank account or PayPal balance instead of a credit card, you often avoid the fee entirely.
Key Takeaways
- Sending money to another person using a credit card triggers PayPal's standard money transfer fee, which is a percentage plus a flat amount.
- Making a purchase at a merchant that accepts PayPal does not charge you a fee — the merchant pays PayPal's processing cost instead.
- Using a bank account or your PayPal balance to send money costs less or nothing, depending on whether the transfer is domestic or international.
- PayPal's fees vary by country and transaction type, so the exact amount you see depends on where you and the recipient are located.
- You can see the fee before you confirm the transaction, so you know the total cost before your money leaves your account.
Credit Card Fees When Sending Money to Another Person
When you use a credit card to send money through PayPal to a friend, family member, or business, PayPal charges you a fee. In the United States, this fee is currently 2.2% of the amount you send plus $0.30. So if you send $100 using a credit card, you pay $2.50 in fees ($100 × 0.022 + $0.30). The fee is deducted from your account at the time of the transaction.
This fee applies whether the recipient is in the US or another country. International transfers may have additional fees depending on currency conversion, but the credit card processing fee itself is the same. PayPal shows you the total fee amount before you confirm, so you can see exactly what you'll pay.
If you want to avoid this fee, use a bank account or your PayPal balance instead. Sending money from a bank account to someone in the US costs nothing. Sending to another country from a bank account costs less than using a credit card, though PayPal does charge a currency conversion fee for international transfers.
Why You Don't Pay a Fee When Using PayPal at Checkout
When you pay for something at a store or online using PayPal, and your credit card is linked to your PayPal account, you don't pay a fee. The merchant — the store or website you're buying from — pays PayPal's processing fee instead. This is true whether you're buying groceries, clothing, or anything else.
The merchant's fee is different from yours. They pay a percentage of the sale price to PayPal for accepting the payment. You see none of that cost. Your credit card company may charge you interest if you carry a balance, but that's separate from PayPal's fee.
How to See Your Fee Before You Send Money
PayPal always shows you the fee before you confirm a transaction. When you're sending money to someone, after you enter the amount and choose your payment method, PayPal displays a summary that includes the fee amount and your total cost. You can change your payment method at this point — for example, switching from a credit card to a bank account — and the fee will recalculate when ready.
This summary page is your final note to review before the money leaves your account. If the fee is higher than you expected, you can cancel and choose a different payment method or decide not to send the money at all.
Fees for Different Types of PayPal Accounts
PayPal's credit card fees are the same whether you have a personal account or a business account when you're sending money to someone. Both account types use the same 2.2% plus $0.30 rate for money transfers paid by credit card.
However, if you're a business owner accepting payments from customers, your fees are different. Merchants who use PayPal to receive payments are charged a different rate based on their transaction volume and account type. That's a separate fee structure from what you pay when you're the one sending money.
What Happens If You Use a Debit Card Instead
A debit card linked to your PayPal account is treated the same as a credit card for fee purposes. When you send money using a debit card, PayPal charges the same 2.2% plus $0.30 fee. The difference between a debit card and a credit card doesn't matter to PayPal — both are card-based payment methods, and both trigger the same processing fee.
If you want to avoid the fee, use the bank account that your debit card is connected to instead. Sending money from a linked bank account costs nothing for domestic transfers in the US.
International Transfers and Additional Costs
When you send money internationally using a credit card, you pay PayPal's standard 2.2% plus $0.30 fee, plus an additional currency conversion fee. The currency conversion fee varies depending on the exchange rate at the time of the transfer and the countries involved. PayPal shows this fee separately on the summary page before you confirm.
If you're sending money to someone in another country regularly, a bank account transfer is usually cheaper. PayPal charges a flat international transfer fee (which varies by destination country) plus currency conversion, but no percentage-based fee. You'll see both fees before you confirm the transfer.
Frequently Asked Questions
Can I avoid the credit card fee by paying with something else?
Yes. Use a bank account or your PayPal balance instead. Sending money from a linked bank account to someone in the US costs nothing. International transfers from a bank account cost less than credit card transfers because you avoid the 2.2% percentage fee.
Does PayPal charge a fee if I use a credit card to buy something online?
No. When you use PayPal to pay for a purchase, the merchant pays the fee, not you. Your credit card company may charge interest if you carry a balance, but PayPal does not charge you a separate fee for the transaction.
Why does PayPal charge more for credit cards than bank accounts?
Credit card networks charge PayPal a processing fee every time a card is used. PayPal passes that cost to you when you send money. Bank accounts have lower processing costs, so PayPal charges you less or nothing. When you use PayPal at checkout, the merchant absorbs the cost instead.
Will I see the fee before I send the money?
Yes. PayPal shows you a summary with the fee amount and your total cost before you confirm the transaction. You can change your payment method or cancel at this point if the fee is higher than expected.
Is the fee the same for everyone?
The fee is the same percentage and flat amount for all personal PayPal users in the US sending money domestically. International transfers and business accounts may have different rates. Currency conversion fees also vary depending on the countries and exchange rate involved.