---
title: "PayPal fees for sellers 2026: goods and services, invoices"
description: "PayPal takes 2.99% of a goods and services payment: $0.75 on $25, $2.99 on $100. Checkout 3.49% + $0.49, cards 2.99% + $0.49. Instant transfers, disputes."
canonical: https://resellerindex.com/payments/paypal-fees/
last_updated: 2026-10-23
publisher: "The Reseller Index"
---

# PayPal fees for sellers 2026

**PayPal charges the seller 2.99% of a goods and services payment, with no fixed fee: $0.75 on a $25 sale and $2.99 on $100.** A payment through PayPal Checkout or a PayPal invoice or link that the buyer pays with a PayPal account costs 3.49% + $0.49 ($1.36 on $25), a card through PayPal's card processing 2.99% + $0.49 ($1.24), and a card tapped in person with PayPal Point of Sale 2.29% + $0.09 ($0.66).

Rates are from [PayPal Merchant Fees (US)](https://www.paypal.com/us/business/paypal-business-fees) (last updated Oct 1, 2026), checked Oct 23, 2026. [PayPal Policy Updates (US)](https://www.paypal.com/us/legalhub/paypal/upcoming-policies-full) (last updated Sep 28, 2026), where PayPal announces fee changes, listed none that day; its one notice amends the Privacy Statement. The buyer pays no fee to send a goods and services payment; PayPal's user agreement adds: "In that case, the seller will pay a fee."

Rates verified on Oct 23, 2026

- **Goods and services, $25 sale**
  $0.75
- **Goods and services, $100 sale**
  $2.99
- **Instant transfer, personal account**
  1.75%
- **Standard Dispute fee**
  $15.00

## The rules, in PayPal's words

> "Not ask your buyer to send you money as a personal transaction"

[PayPal User Agreement (US)](https://www.paypal.com/us/legalhub/paypal/useragreement-full), "Receiving payments", page dated Sep 14, 2026; checked Oct 23, 2026

Sales go through goods and services (or an invoice), never "Friends and Family." PayPal's agreement says it may remove your account's ability to accept payments from friends or family if you ask for one, and that the friends and family option may not be available at all when paying a business account. PayPal defines a personal transaction as one where "the payment is not for the purchase of goods or services or for making any other commercial transaction". Seller Protection doesn't cover personal payments either.

> "You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method."

[PayPal User Agreement (US)](https://www.paypal.com/us/legalhub/paypal/useragreement-full), "No surcharges", page dated Sep 14, 2026; checked Oct 23, 2026

You can set a price that covers the fee, as long as it's the price for everyone, but not add a charge for paying with PayPal. A handling fee is allowed if it isn't a surcharge in disguise and "is not higher than the handling fee you charge for non-PayPal transactions".

> "Physical, tangible items delivered in person, including in connection with a payment made in your physical store, unless the buyer paid for the transaction in person using PayPal's goods and services QR code."

[PayPal's Seller Protection Program (US)](https://www.paypal.com/us/legalhub/paypal/seller-protection), "Ineligible Items and Transactions", page dated Jan 26, 2026; checked Oct 23, 2026

That is on Seller Protection's list of ineligible transactions. For a local pickup, have the buyer pay in person by scanning your PayPal goods and services QR code (2.29% + $0.09, $0.66 on $25) rather than sending a payment from home.

> "the item is later redirected to a different address, you will not be eligible for PayPal’s Seller Protection program"

[PayPal's Seller Protection Program (US)](https://www.paypal.com/us/legalhub/paypal/seller-protection), "Basic Requirements", page dated Jan 26, 2026; checked Oct 23, 2026

That is one of Seller Protection's basic requirements: ship to the address on the payment's Transaction Details page, and if the package is then redirected, the sale loses Seller Protection. PayPal recommends not using a shipping service the buyer arranges. Proof of delivery means a tracking number you can look up online, "delivered" status, the delivery date and an address that matches the Transaction Details page.

> "the fees you originally paid to receive the payment are not returned to you"

[PayPal Merchant Fees (US)](https://www.paypal.com/us/business/paypal-business-fees), "Other Merchant Fees: Commercial Transaction and Invoicing Transaction Refunds", page dated Oct 1, 2026; checked Oct 23, 2026

Refunding costs nothing to send, but the fee stays with PayPal: refund a $25 goods and services sale in full and you are out $0.75. Lose a Purchase Protection claim and you forfeit the full price plus the original shipping; the agreement adds: "You will not receive a refund of the PayPal fees that you paid in connection with the sale."

> "Claims with a transaction value that is less than twice the amount of a Standard Dispute fee."

[PayPal User Agreement (US)](https://www.paypal.com/us/legalhub/paypal/useragreement-full), "Dispute fees", page dated Sep 14, 2026; checked Oct 23, 2026

PayPal lists that as one of the cases with no Standard Dispute fee. The fee is $15.00, so a claim on a payment under $30.00 doesn't carry it.

## PayPal fees on a $10, $25, $50, $100 and $200 sale

Each cell is the fee, then what you keep before shipping costs. Charge shipping on the same payment and the fee is on that too.

*PayPal fees by how you get paid, US, from PayPal Merchant Fees (US); checked Oct 23, 2026. Fees rounded to the cent.*

| How you get paid | Rate | $10 | $25 | $50 | $100 | $200 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Goods and services payment | 2.99% | $0.30 keep $9.70 | $0.75 keep $24.25 | $1.50 keep $48.50 | $2.99 keep $97.01 | $5.98 keep $194.02 |
| PayPal Checkout or invoice, paid with PayPal | 3.49% + $0.49 | $0.84 keep $9.16 | $1.36 keep $23.64 | $2.24 keep $47.76 | $3.98 keep $96.02 | $7.47 keep $192.53 |
| Card through PayPal's card processing | 2.99% + $0.49 | $0.79 keep $9.21 | $1.24 keep $23.76 | $1.99 keep $48.01 | $3.48 keep $96.52 | $6.47 keep $193.53 |
| PayPal Pay Later | 4.99% + $0.49 | $0.99 keep $9.01 | $1.74 keep $23.26 | $2.99 keep $47.01 | $5.48 keep $94.52 | $10.47 keep $189.53 |
| QR code in person | 2.29% + $0.09 | $0.32 keep $9.68 | $0.66 keep $24.34 | $1.24 keep $48.76 | $2.38 keep $97.62 | $4.67 keep $195.33 |
| Card in person (PayPal Point of Sale) | 2.29% + $0.09 | $0.32 keep $9.68 | $0.66 keep $24.34 | $1.24 keep $48.76 | $2.38 keep $97.62 | $4.67 keep $195.33 |
| Card typed in (PayPal Point of Sale) | 3.49% + $0.09 | $0.44 keep $9.56 | $0.96 keep $24.04 | $1.84 keep $48.16 | $3.58 keep $96.42 | $7.07 keep $192.93 |
| Invoice paid by bank (ACH) | 1%, $10.00 cap | $0.10 keep $9.90 | $0.25 keep $24.75 | $0.50 keep $49.50 | $1.00 keep $99.00 | $2.00 keep $198.00 |
| Micropayments (by application) | 4.99% + $0.09 | $0.59 keep $9.41 | $1.34 keep $23.66 | $2.59 keep $47.41 | $5.08 keep $94.92 | $10.07 keep $189.93 |

*Fee to cash out the same amounts instantly with PayPal instead of waiting for the standard transfer. Source: PayPal Merchant Fees (US) and PayPal Consumer Fees (US), checked Oct 23, 2026.*

| Transfer | Rate | $10 | $25 | $50 | $100 | $200 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Instant transfer from a business account | 1.5%, $0.50 min | $0.50 | $0.50 | $0.75 | $1.50 | $3.00 |
| Instant transfer from a personal account | 1.75%, $0.25 min, $25.00 cap | $0.25 | $0.44 | $0.88 | $1.75 | $3.50 |

## PayPal fee calculator

Enter the sale, including any shipping you charge on the same payment.

The calculator needs JavaScript. The tables above have the same fees for $10 to $200.

Goods and services payment: **fee on $25: $0.75**. You keep **$24.25**.

## Edge cases that change the fee

- **Selling from a personal account:** the rates are the same. PayPal's consumer fees page sends sellers to the merchant fees page for selling rates.
- **Buyer in another country:** add 1.5%. A $100 goods and services payment from abroad costs $4.49 instead of $2.99.
- **Currency conversion:** when PayPal converts the money, its exchange rate includes a 3% spread for "all other transactions" (4% for the cases its fee page lists, such as a buyer paying in a currency other than the listing's).
- **In person:** a card tapped, dipped or swiped with PayPal Point of Sale is 2.29% + $0.09 ($0.66 on $25); a card number typed in there is 3.49% + $0.09 ($0.96); a buyer's goods and services QR code scan is 2.29% + $0.09.
- **Small sales:** if PayPal approves your account for Micropayments pricing, the rate is 4.99% + $0.09: $0.59 on a $10 sale against $0.84 through Checkout. It costs less than Checkout only up to $26.55 and less than card processing up to $19.93, and it never beats the 2.99% goods and services rate. PayPal's agreement says Dynamic Micropayments applies whichever rate gives the lower fee on each payment, while an account on Static Micropayments pays the Micropayments rate on every payment, whatever the amount.
- **Pay Later:** if the buyer picks a PayPal Pay Later option, you pay 4.99% + $0.49: $5.48 on $100.
- **Invoice paid from a bank account (Pay by Bank, ACH):** 1% capped at $10.00, so a $2,000 invoice costs $10.00.
- **Disputes and chargebacks:** a dispute that becomes a claim costs $15.00, or $30.00 at the High Volume rate (a dispute ratio of 1.5% or more with more than 100 sales in the last three full months). There's no Standard Dispute fee on a case decided in your favor, or one PayPal deems to have met all of Seller Protection's requirements; neither case is on the High Volume fee's list of exceptions. A card payment that didn't go through a buyer's PayPal account or Guest Checkout carries a $20.00 chargeback fee instead, which the agreement says applies whether or not the buyer wins the chargeback.
- **Holds on new accounts:** PayPal's agreement lists new sellers, or sellers with limited selling activity, among the common reasons it holds payments. "Risk-based holds generally remain in place for up to 21 days from the date the payment was received into your PayPal account." It may release one sooner, for example once you upload tracking.
- **Getting the money out:** a standard transfer to your bank is free. An instant transfer costs 1.75%, $0.25 min, $25.00 cap from a personal account and 1.5%, $0.50 min (no maximum listed) from a business account.

## What to do

1. Send an invoice or ask for a goods and services payment. Don't ask for Friends and Family.
2. Build the fee into one price for everyone (no PayPal surcharge). To keep $25 on a goods and services payment, ask $25.77; to keep $50 through Checkout, $52.32.
3. Ship to the address on the payment's Transaction Details page, with tracking that shows "delivered" at that address. PayPal's Seller Protection terms require it, and they exclude claims that an item isn't as described.
4. Use the free standard transfer unless you need the cash today; an instant transfer of $100 from a personal account costs $1.75.

## Form 1099-K

The IRS says: "A payment app or online marketplace is required to send you a Form 1099-K if the payments you received for goods or services total over $20,000 in more than 200 transactions." "However, they may send you a Form 1099-K with lower amounts and/or transactions." ([IRS: Understanding your Form 1099-K](https://www.irs.gov/businesses/understanding-your-form-1099-k), Page Last Reviewed or Updated: 28-Jun-2026).

Venmo's user agreement (Venmo is a PayPal, Inc. service) says PayPal reports goods and services payments to the IRS "once you receive at least $600 in payments for goods and services", totaled across "all of your PayPal accounts (including Venmo accounts) associated with the same tax identification number", so PayPal and Venmo sales under one tax ID count together. The IRS adds: "Whether or not you receive a Form 1099-K, you must still report any income on your tax return." and "Use Form 1099-K with other records to help you figure and report your taxable income when you file your tax return."

Thresholds, what counts and what to do with the form: [1099-K for resellers](https://resellerindex.com/guides/1099-k-for-resellers/). This is general information, not tax advice; check with a tax professional about your own return.

## Questions

### How much does PayPal take from $100 goods and services?

$2.99, so you keep $97.01. The rate is 2.99% with no fixed fee ([PayPal Merchant Fees (US)](https://www.paypal.com/us/business/paypal-business-fees), Commercial Transaction Rates).

### Is there a 49-cent fixed fee on PayPal goods and services?

No. In PayPal's US table of commercial transaction rates, the "Send/Receive Money for Goods and Services" row reads 2.99%, while the PayPal Checkout, card and Pay Later rows read "+ fixed fee" ($0.49 when you receive US dollars). So $100 sent as goods and services costs $2.99, not the $3.48 you'd get by adding $0.49. The fixed fee comes with Checkout, card payments, Pay Later and payment links, on invoices too ([PayPal Merchant Fees (US)](https://www.paypal.com/us/business/paypal-business-fees)).

### What is the lowest-fee way to get paid for a sale through PayPal?

It depends on how the buyer pays. On a $100 sale: an invoice paid by bank (Pay by Bank, ACH) $1.00; your goods and services QR code scanned in person $2.38; a goods and services payment $2.99; a card through PayPal's card processing $3.48; PayPal Checkout $3.98. On an invoice, the rate follows the way the buyer chooses to pay it. Friends and Family isn't an option for a sale (below).

### Who pays the PayPal goods and services fee, the buyer or the seller?

The seller. PayPal's user agreement says a buyer sending a goods and services payment pays no transaction fee and "In that case, the seller will pay a fee." ([PayPal User Agreement (US)](https://www.paypal.com/us/legalhub/paypal/useragreement-full)).

### Can I add the PayPal fee to what the buyer pays?

Not as a separate charge. PayPal's agreement says: "You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method." You can price the item to cover the fee, and a handling fee is allowed only if it "is not higher than the handling fee you charge for non-PayPal transactions" ([PayPal User Agreement (US)](https://www.paypal.com/us/legalhub/paypal/useragreement-full), "No surcharges").

### Can I take Friends and Family payments for things I sell?

No. Under what a seller must do, PayPal's agreement lists: "Not ask your buyer to send you money as a personal transaction" ([PayPal User Agreement (US)](https://www.paypal.com/us/legalhub/paypal/useragreement-full), "Receiving payments"). The IRS says money from friends and family as a gift or repayment of a personal expense isn't taxable income and shouldn't be on a Form 1099-K; a sale is neither.

### Does PayPal Seller Protection cover a local pickup?

Only if the buyer pays in person with your PayPal goods and services QR code. Seller Protection's list of ineligible transactions includes "Physical, tangible items delivered in person, including in connection with a payment made in your physical store, unless the buyer paid for the transaction in person using PayPal's goods and services QR code." ([PayPal's Seller Protection Program (US)](https://www.paypal.com/us/legalhub/paypal/seller-protection)).

### Does PayPal give the fee back when I refund a buyer?

No, for a full or a partial refund. PayPal charges nothing to make the refund, but "the fees you originally paid to receive the payment are not returned to you" ([PayPal Merchant Fees (US)](https://www.paypal.com/us/business/paypal-business-fees), Other Merchant Fees, which says the same under "Full Refunds" and "Partial Refunds"). Refund $10 of a $100 goods and services sale and PayPal keeps the whole $2.99.

### How much is a PayPal instant transfer?

1.75%, $0.25 min, $25.00 cap from a personal account and 1.5%, $0.50 min from a business account. On $100 that's $1.75 or $1.50; a standard transfer to a linked bank account is free.

### What does a PayPal dispute or chargeback cost the seller?

$15.00 for a standard dispute that becomes a claim, $30.00 at the High Volume rate, and $20.00 for a chargeback on a card payment not made through a PayPal account or Guest Checkout ([PayPal Merchant Fees (US)](https://www.paypal.com/us/business/paypal-business-fees); [PayPal User Agreement (US)](https://www.paypal.com/us/legalhub/paypal/useragreement-full)).

### Will PayPal send me a Form 1099-K?

When your goods and services payments total over $20,000 in more than 200 transactions in the year, the IRS says a payment app must send one; it may send one for less ([IRS: Understanding your Form 1099-K](https://www.irs.gov/businesses/understanding-your-form-1099-k)). More in [1099-K for resellers](https://resellerindex.com/guides/1099-k-for-resellers/).

## Related questions

- [Payment fees compared at $25 and $100](https://resellerindex.com/payments/)
- [Venmo fees for sellers](https://resellerindex.com/payments/venmo-fees/)
- [Cash App fees for sellers](https://resellerindex.com/payments/cash-app-fees/)
- [Square fees for sellers](https://resellerindex.com/payments/square-fees/)
- [Stripe fees for sellers](https://resellerindex.com/payments/stripe-fees/)
- [Zelle fees for sellers](https://resellerindex.com/payments/zelle-fees/)
- [Do payment apps send a 1099-K?](https://resellerindex.com/guides/1099-k-for-resellers/)
- [What selling apps charge (eBay, Mercari, Poshmark and more)](https://resellerindex.com/guides/selling-fees-compared/)

## Sources

Rates verified on Oct 23, 2026 from each official page below.

- [PayPal Merchant Fees (US) (Last Updated: October 1, 2026)](https://www.paypal.com/us/business/paypal-business-fees)
- [PayPal Consumer Fees (US) (Last Updated: May 19, 2026)](https://www.paypal.com/us/digital-wallet/paypal-consumer-fees)
- [PayPal User Agreement (US) (Last updated on September 14, 2026)](https://www.paypal.com/us/legalhub/paypal/useragreement-full)
- [PayPal's Seller Protection Program (US) (Last updated on January 26, 2026)](https://www.paypal.com/us/legalhub/paypal/seller-protection)
- [PayPal Policy Updates (US) (Last updated on September 28, 2026)](https://www.paypal.com/us/legalhub/paypal/upcoming-policies-full)
- [Venmo User Agreement (effective as of August 24, 2026)](https://venmo.com/legal/us-user-agreement)
- [IRS: Understanding your Form 1099-K (Page Last Reviewed or Updated: 28-Jun-2026)](https://www.irs.gov/businesses/understanding-your-form-1099-k)

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