Business Getting paid

What are the PayPal Fees to Cash Out?

Panna Kemenes

06.12.24

Read time 2 minutes

A PayPal Business account offers a way to take payments from clients and customers, whether through online payment links or invoices. But when it comes time to transfer the funds to your business bank account, the fees PayPal charges can catch users off guard – especially if there is currency conversion involved.

So, what are the fees to cash out on PayPal? This article provides a detailed breakdown of PayPal’s fees to cash out and offers strategies to minimize how much you pay, helping you keep more of your hard-earned money.

💡 One way to use PayPal cost effectively is by sending payments to a Wise Business account to avoid foreign currency charges.

What Are the PayPal Fees to Cash Out?

The are various fees to cash out from PayPal depending on the type of account and withdrawal method. Here is how the fees break down for PayPal Business accounts.

Withdrawing funds from PayPal to a linked business bank account in most countries is free. However, instant transfers incur a fee, which is typically 1.50% of the transfer amount with a minimum of $0.50. Additionally, PayPal applies a currency conversion fee of 3-4% for withdrawing funds in a different currency.¹

PayPal charges a flat fee of $1.50 for a physical check.

Cashing out from a PayPal Business account to a PayPal Debit or Prepaid Mastercard carries a 1% fee for instant access to funds, in addition to any ATM withdrawal charges.

Understanding these fees can help you to avoid unexpected fees to cash out using PayPal and reduce your withdrawal costs.

How to Minimize PayPal Fees When Cashing Out

While PayPal charges fees for instant transfers and currency conversion, there are ways you can reduce how much you pay in fees to cash out money on PayPal.

Withdrawing to your business account using a standard bank transfer whenever possible avoids instant transfer fees.

If you receive payments from clients or customers in different currencies, cashing out in the same currency avoids conversion fees. For example, if you receive payments in EUR, transfer the funds to a Wise Business account and convert the EUR to USD. Wise charges the mid-market exchange rate and a transparent flat fee, saving you money.

If your business receives frequent payments, consolidate the withdrawals into larger batches of transactions to reduce the frequency of per-transaction fees.

You can also avoid ATM withdrawal fees by using the PayPal Debit Card to make purchases directly from your account instead of withdrawing cash.

Discover Wise Business: Manage Your Business in Multiple Currencies

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks that can makes it easy for you to manage your PayPal payments while avoiding currency conversion fees. Simply open a Wise Business account, and send your international payment from PayPal to your Wise currency account details with no conversion fee.

With Wise, you can hold over 40 currencies in one place, send international payments at the mid-market rate. What's more, there are no monthly account fees.

Find out more and register today

Some key features of Wise Business include:
Major local account details to receive international payments with ease No monthly account fees just a simple one-off fee for account details Receive payments from e-commerce platforms such as Amazon or via Stripe. Free invoicing tool to generate and send invoices. Create invoices using the Wise invoice generator or invoice templates. Accounting integrations, including a QuickBooks Bill Pay connection. Bill payments will be synced, matched, and categorized in QuickBooks for simple reconciliation. Access to BatchTransfer:** Signing up to Wise Business allows access to BatchTransfer which you can use to pay multiple invoices in one go.

Some key features of Wise Business include:

Major local account details to receive international payments with ease
No monthly account fees just a simple one-off fee for account details
Receive payments from e-commerce platforms such as Amazon or via Stripe.
Free invoicing tool to generate and send invoices*. Create invoices* using the Wise invoice generator or invoice templates.
Accounting integrations, including a QuickBooks Bill Pay connection. Bill payments will be synced, matched, and categorized in QuickBooks for simple reconciliation.
Access to BatchTransfer: Signing up to Wise Business allows access to BatchTransfer which you can use to pay multiple invoices in one go.

Sources:

¹ PayPal fees

Sources checked December 2024.

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.