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PayPal Information

What are the fees for PayPal accounts?

(All fees are as of the time of this writing. Please check PayPal for their current fee structure)

PayPal doesn’t charge a fee to open a PayPal account.

Sending money – Personal payments:
It’s free within the U.S. to send money to family and friends when you use only your PayPal balance or bank account, or a combination of their PayPal balance and bank account.

There is a fee to send money as a personal payment using a debit card or credit card. The fee is arond 2.9% plus $0.30 USD of the amount you send. For example, if you send $100.00 USD by credit card, the fee would be $3.20 USD ($2.90 + $0.30). For personal payments, the sender can pay the fee or pass it on to the recipient. If the recipient doesn’t want to pay the fee, they can choose not to accept the payment.

Receiving money – Personal payments:
It’s free to receive money from friends or family in the U.S. when they send the money from the PayPal website using only their PayPal balance or their bank account, or a combination of their PayPal balance and bank account.

If you receive a personal payment made from a debit card or credit card, the sender has the option to pay the fee or pass it on to you. If you don’t want to pay the fee, you can choose not to accept the payment.

If the fee is passed to you, it is 2.9% plus $0.30 USD of the amount you receive. For example, if you are sent $100.00 USD by credit card, the fee would be $3.20 USD ($2.90 + $0.30).

This fee also applies if you click Request Money on the PayPal website and request money from friends and family. The fee applies if your friend or family member pays you using only their PayPal balance or their bank account, or a combination of their PayPal balance and bank account.

Goods and services – Purchase payments:
There’s no fee to use PayPal to purchase goods or services. However, if you receive money for goods or services (such as from selling an item on eBay), the fee for each transaction is about 2.9% plus $0.30 USD of the amount you receive.

International payments:
There is a fee when you send a payment to someone in another country or if you receive a payment from someone in another country. Please note that exchange rate fees also apply if there is a currency conversion. The Fees section of the PayPal User Agreement has specific information. You can find the User Agreement by clicking Legal Agreements at the bottom of any PayPal page.

Withdrawing money:
You can withdraw money from your PayPal account to your bank account at no cost. If you prefer to receive a check, there is a $1.50 fee.


Can a customer use a credit card instead of a PayPal account?

Yes. You can use Visa, MasterCard, Discover, and American Express with PayPal.  Plus, when you pay with PayPal, you don’t expose your credit card number to merchants.


Which type of PayPal account do I need for a small e-commerce site?

PayPal Standard:
This is the account we recommend when starting your on-line store. It has no monthly fees attached and provides all the features you will need to get started including free integration with WooCommerce for WordPress. The account can be easily upgraded if additional features are necessary.

PayPal Standard takes the customer to PayPal’s site AFTER the ENTIRE checkout in order to make payment. Your site does not collect or process any customer or credit card information, although WordPress plugin’s provide ways to collect non-secured customer information on your website to get around this limitation. The customer can pay without having a PayPal account (depending on what country YOU are in. PayPal limits that feature for some countries). Once the payment is completed, your store is notified of the completed payment, after which time the order is stored in your database.

This option is available in all countries, is a free plugin for WordPress, and does NOT require an SSL certificate as all PCI information is collected and stored on PayPal.

Website Payments Pro:
This type of account allows the customer to enter their information on your website. They have no idea that in the background you’re processing their card via PayPal. They have to make an account on your site, and supply the address details, but once they confirm the order, the payment is collected immediately and the order saved. PayPal sees Website Payments Pro as a payment gateway for handling credit cards. That’s exactly what it is. Coupled with Express Checkout, it gives your customers the maximum amount of choice about how to pay: either by credit card directly on your site, or by using their PayPal account to submit payment.

This option is available in limited countries, requires additional paid plug-ins for WordPress, and requires an SSL certificate.

PayFlow:
This account is essentially a merchant account. Transactions conducted via Payflow Pro (for US Merchants) do not appear in your PayPal account. Instead, they are forwarded directly to your merchant bank account. Basically, Payflow Pro is just like any other traditional payment gateway (akin to Authorize.net etc).

This option is available in limited countries, requires additional paid plug-ins for WordPress, and requires an SSL certificate.

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