PayPal Business Fees in the UK

If you use PayPal to accept payments for your company, you’ll need to understand the fees before you start selling. Costs can vary depending on payment type, customer location, currency and PayPal product used.

In this guide, we've covered the main PayPal business fees in the UK, including domestic transaction fees, international fees, online card payment fees, payout fees, micropayments, chargebacks, dispute fees and currency conversion costs.

We've also explained how Wise Business can help businesses that receive sales proceeds in foreign currencies or pay suppliers, contractors and platforms internationally.

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Note: Wise Business offers a free Essential plan for basic spending and transferring. If you need to receive money, set up direct debits, or generate invoices, you'll pay a one-time £50 setup fee to unlock the Advanced features.

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⚠️ PayPal Business fees, eligibility checks, payment protections, payout timelines and product availability mentioned in this article may vary by customer, business type, application outcome, payment method, currency and country. Check PayPal’s website and terms and conditions for the most accurate and up-to-date information.

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Key takeaways

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Is a PayPal Business account free in the UK?

PayPal does not list a standard account-opening fee on its UK merchant-fee page.¹

However, that does not mean PayPal Business is free to use. Fees can apply when you receive business payments, use online card payment services, send payouts, process international payments, convert currency, receive chargebacks or use paid services such as Website Payments Pro.¹

Before you start selling, check which PayPal products your business will use, and which transaction, service and currency fees may apply.

PayPal domestic business transaction fees UK

Worked example

For example, if your business receives a 100 GBP domestic payment as a standard commercial transaction, the fee could be 2.9% + 0.30 GBP. That would be a percentage fee of 2.90 GBP, plus a 0.30 GBP fixed fee, giving an estimated PayPal fee of 3.20 GBP and an estimated amount before other costs of 96.80 GBP.¹

These calculated figures are illustrative and may not match your exact account, product, agreement, customer location, payment type or currency conversion.

PayPal international business fees UK

For international commercial transactions, PayPal applies the relevant domestic commercial or QR code fee, plus an additional percentage-based fee.¹

This means a standard PayPal commercial transaction received in GBP from an EEA sender could cost 2.9% + 1.29% + 0.30 GBP. A standard PayPal commercial transaction received in GBP from a sender outside the EEA could cost 2.9% + 1.99% + 0.30 GBP.¹

Worked example

If your business receives 100 GBP from an EEA customer as a standard commercial transaction, the estimated PayPal fee could be 4.49 GBP. That includes a total percentage fee of 4.19 GBP and a 0.30 GBP fixed fee, leaving an estimated amount before other costs of 95.51 GBP.¹

If your business receives 100 GBP from a customer outside the EEA as a standard commercial transaction, the estimated PayPal fee could be 5.19 GBP. That includes a total percentage fee of 4.89 GBP and a 0.30 GBP fixed fee, leaving an estimated amount before other costs of 94.81 GBP.¹

These are simplified calculations based on PayPal’s listed standard rates. Some merchants may have separate agreements or additional service fees, so check your own PayPal account terms before relying on the standard schedule.

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💡 If you use PayPal to receive international customer payments, Wise Business can help with the next step: managing foreign-currency revenue, converting currencies and paying overseas suppliers. You can convert funds at the mid-market exchange rate with low, transparent fees.

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PayPal online card payment fees

International card transactions may include additional international fees. Check PayPal’s merchant fee schedule and your agreement before choosing a checkout setup.¹

PayPal currency conversion fee UK

If your business receives, holds or converts money in different currencies, PayPal currency conversion fees can matter.

PayPal lists a 3% fee above the base exchange rate when converting a business account balance, or for transactions where the receiver has agreed to bear the currency conversion.¹

This is separate from transaction fees. If a customer pays in one currency and you withdraw, hold or convert into another, check whether PayPal will convert the money and what rate applies at the time.

For example, if your business receives foreign-currency revenue and PayPal converts the balance, the final GBP amount depends on the exchange rate PayPal applies at the time of conversion, plus any transaction fees already charged.

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💡 With Wise Business, you get low, transparent fees shown before you pay. You can hold money in 40+ currencies and convert currencies anytime at the mid-market exchange rate.

Wise Business also offers discounts on large transfers, helping you save more when you move higher amounts internationally.

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PayPal Payout fees

PayPal Payouts lets businesses send payments to multiple recipients. PayPal says it charges a fee for each payment sent using PayPal Payouts, based on the payment type and currency.¹

For GBP payouts, PayPal lists a domestic maximum cap of 10.00 GBP and an international maximum cap of 60.00 GBP.¹

PayPal Micropayment fees

Micropayment pricing is subject to application and pre-approval from PayPal.¹

PayPal says micropayment rates can be an alternative for businesses processing payments under 5.00 GBP, but the rate applies to all commercial payments received into the account once enabled.¹

PayPal Chargeback and dispute fees

For GBP transactions, PayPal lists a chargeback fee of 14.00 GBP.¹

PayPal also lists a 12.00 GBP standard dispute fee and a 24.00 GBP high-volume dispute fee for GBP transactions.¹

A chargeback can occur when a cardholder asks their card issuer to reverse a transaction. Chargebacks are different from PayPal disputes, and different fees or rules can apply.¹

If you need to pay an overseas supplier from GBP into another currency, compare the upfront transfer fee, exchange rate, any currency conversion fee or markup, recipient fees, delivery time and whether the supplier needs to receive a specific currency.

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💡 With Wise Business, you can send money to 140+ countries at the mid-market exchange rate with low, transparent fees and no hidden exchange rate markups.

You can also use the batch payments tool to create and send up to 1,000 payments in a single transfer.

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Consider Wise Business alongside PayPal for international payments

For UK businesses receiving sales proceeds in foreign currencies or paying overseas suppliers, contractors or platforms, international payment costs can affect margins.

Wise Business can help you hold, convert and send money in multiple currencies, with fees and exchange rates shown before you pay.

Wise Business offers a free Essential plan for basic spending and transferring. If you need to receive money, set up direct debits, or generate invoices, you'll pay a one-time £50 setup fee to unlock the Advanced features.

With Wise Business, you can:

• 🌍 Send money to 70+ countries and pay overseas invoices at the mid-market exchange rate with low, transparent fees and no hidden exchange rate markups (product availability varies by region)
• 📥 Receive payments in 24 currencies and counting
• 💵 Get local account details for 8+ currencies, including USD and EUR, to let your customers pay in a currency they know and trust - convenience for them and peace of mind for you
• 💰 Hold money in 40+ currencies
• 🔁 Convert currencies anytime at the mid-market exchange rate with low, transparent fees
• ⚡ Use the batch payments tool to create and send up to 1,000 payments in a single transfer
• 👥 Run payroll and make international payments for up to 1,000 employees all over the world - including paying suppliers using local payment methods like ACH, SEPA, and Faster Payments
• 💳 Get business debit cards with 0.5% cashback for you and your team to keep track of team expenses and spend all over the world, with real-time visibility and categorisation. See full cashback terms and conditions
• 🏢 Manage cash in 55+ currencies across international offices from a single business account and move money between business accounts in seconds (exact speeds can vary depending on individual circumstances and may not be the same for all transactions)
• 🧾 Connect and sync every business transaction to your favourite accounting software, including Xero, Quickbooks, and more
• 🔐 Create your own payment approvals process to manage your team better with customised access for different team members, roles and permissions
• 📑 Create custom professional invoices and schedule invoice payments for future dates
• 📈 Earn variable returns on GBP, USD and EUR with Wise Interest (Growth not guaranteed. Your balance will go down in the event of a government default or interest rates going negative.)
• 🔗 Create payment links and QR codes to get paid easily (Card payment acceptance for new Wise Business customers is currently unavailable. Payment methods subject to eligibility and availability.)
• ⚙️ Automate payouts with the Wise API (comes with 24/7 customer support, a sandbox account to test integrations, API tokens, and clear documents on how to implement and make the most of our API)

Make the wise choice when selecting a business account for your domestic and global needs.

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Wise Interest disclaimer: Growth not guaranteed. Your balance will go down in the event of a government default or interest rates going negative. Taxes may apply. 3.32% variable rate on GBP is based on 7 day performance as of 05 Aug 2026. For full 5-year past performance and fund information, visit https://wise.com/interest. Investments are offered by Wise Assets UK Ltd. (FRN 839689)

FAQs

What is the standard PayPal business transaction fee in the UK?

PayPal’s UK merchant fees currently list all other commercial transactions at 2.9% + fixed fee. For GBP commercial transactions, the fixed fee is 0.30 GBP.¹

How much does PayPal charge for international business payments?

For international commercial transactions, PayPal adds 1.29% for EEA sender markets, or 1.99% for all other sender markets, to the relevant domestic commercial or QR code fee.¹

What is PayPal’s UK currency conversion fee for business accounts?

PayPal currently lists a fee of 3% above the base exchange rate for converting a business account balance and for transactions where the receiver has agreed to bear the currency conversion.¹

What is PayPal’s GBP chargeback fee?

PayPal currently lists the GBP chargeback fee as 14.00 GBP. It separately lists a 24.00 GBP high-volume dispute fee for GBP transactions.¹

Sources:

1. PayPal Merchant Fees - Seller Fees | PayPal UK

Sources last checked on 8 July 2026