What is the PayPal cross border fee?

Panna Kemenes
23.11.22
2 minute read

PayPal has various fees, which can make international transactions confusing. The PayPal cross border fee is one of these.

If you’ve been wondering how much the PayPal transaction fee for cross-border payments is, and how to avoid it, then this quick guide will help.

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📝 Table of Contents

What is the PayPal cross border fee?

PayPal charges a range of different fees for different transactions. Many of these fees apply when sending or receiving international transactions.

The PayPal cross border fee is applied every time an international transaction is made. It is applied on both personal and purchase payments.¹

PayPal cross border transaction fees cover the cost involved with processing payments between countries, and with different currencies.

This PayPal transaction fee for cross-border payments is usually paid only by the sender or receiver of the payment - not both.¹

How much is the PayPal cross border fee for sellers?

As a seller, you’ll incur fees every time you receive an international purchase payment.

Specifically, you’ll be charged the standard domestic fee plus a cross border fee, and an additional fixed fee.² On top of this, a PayPal cross border conversion fee will also be applied.³

  • PayPal’s standard domestic fee for receiving payment for goods and services is 2.99%.²

  • The percentage-based cross border fee for PayPal international transactions is 1.5%.²

  • The fixed fee varies depending on the currency.

Here’s a quick overview of PayPal’s fixed fees for some popular currencies:

CurrencyFixed fee
EUR0.39 EUR
GBP0.39 GBP
CAD0.59 CAD
MXN9.00 MXN
AUD0.59 AUD²
    🔍 So, how much would it cost to receive 100 EUR from Germany, at the current exchange rate?
    2.94 USD domestic fee (2.99%) + 1.47 USD cross border fee (1.5%) + 0. 38 USD fixed fee + 2.95 USD currency conversion fee = 7.75 USD
    This means you'll receive 90.64 USD.

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💡 You can also use the PayPal cross border fee calculator to figure out the costs of receiving international payments.

How can you avoid the PayPal cross border fee?

PayPal cross border fees can end up costing your business a lot. But PayPal isn’t the only option.

With Wise Business, you can receive international payments without paying any cross border fees.

Wise Business is a safe and easy way to manage international business transactions. With the account, you can get account details for up to 10 different currencies, allowing you to receive international payments like a local - free of cross border fees.

You’ll only need to pay a one-time fee to get account details for AUD, CAD, EUR, GBP, HUF, NZD, RON, SGD, TRY and USD.

On top of this, once the payment is in your Wise Business account, you can convert these to USD, or your preferred currency, at the real mid-market rate.

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You can also connect Wise Business with several platforms to make receiving payments easier.

For example, If you sell on multiple Amazon marketplaces, you can withdraw your different currency earnings directly into your Wise account. This way, you’ll avoid paying high currency conversion fees.

Go global with Wise


Sources:

  1. PayPal cross border fees
  2. Fees | Merchant and Business | PayPal US
  3. PayPal Help Center Article - Merchant fees

This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.

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