Business

PayPal Invoice Fee

Panna Kemenes

31.08.26 (last updated)

Read time 2 minutes

PayPal does not charge a monthly or setup fee to create and send invoices, but businesses pay a transaction fee when a customer pays an invoice.¹

This guide explains the current US PayPal invoice fee structure and ways to compare your payment options.

Are you looking for a hassle-free business account with free tools? Consider a Wise Business account for low-cost, multi-currency transactions, a free invoicing tool and business templates.
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PayPal invoice fees

The fee depends on how the customer pays the invoice. For US domestic invoicing transactions, PayPal currently lists these rates:¹

Payment method	Fee
PayPal Checkout, Pay with Venmo, or PayPal Guest Checkout	3.49% + a fixed fee
Standard credit or debit card, Apple Pay, or another supported third-party wallet	2.99% + a fixed fee
PayPal Pay Later	4.99% + a fixed fee

For payments received in USD, the fixed commercial-transaction fee is currently $0.49.¹ International commercial transactions add 1.50% to the applicable domestic rate. If currency conversion is required, PayPal’s transaction exchange rate can also include a conversion spread.¹ Fees can change, so check PayPal’s live fee page and the amount shown in your account before sending an invoice.

Can you send a PayPal invoice without fees?

Compare international receiving costs with Wise Business

You generally cannot avoid PayPal’s processing fee when a customer pays a PayPal invoice. However, you can compare other ways to receive international payments.

With Wise Business, eligible companies can get account details in multiple currencies and add those details to an invoice so a customer can pay by bank transfer. US businesses pay a one-time $31 setup fee to unlock account details; domestic non-wire receipts in supported currencies are free, while some wire and SWIFT receipts have fixed fees.²

You can compare the exact currency, payment route, exchange rate, and recipient amount before choosing.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in multiple currencies. You can get major currency account details for a one-off fee to receive overseas payments like a local. You can also send money to 140+ countries.

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Some key benefits 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. Wise Multi-Currency card for business and team expense cards, to make global spending easy Access to BatchTransfer. Fast payment of up to 1,000 people.

Some key benefits 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.
Wise Multi-Currency card for business and team expense cards, to make global spending easy
Access to BatchTransfer. Fast payment of up to 1,000 people.

Link an eligible bank account for withdrawals

If you receive money through PayPal, you can link an eligible bank account and transfer your balance. Standard transfers are generally free when no currency conversion is involved; faster transfers can have a fee. Review PayPal’s current withdrawal options and Wise’s account-detail requirements before linking accounts or changing your invoice workflow.

Record PayPal invoice fees accurately

Payment-processing fees may be deductible business expenses, depending on your facts and tax treatment. They should not be reported as “other income.” Keep invoices, PayPal statements, and fee records, and ask a qualified tax professional how to classify the expense on your return.³

Editor & Business Expert:
	Panna is an expert in US business finance, covering topics from invoicing to international expansion.	You can read more useful business articles on her author profile.

Sources:

All sources checked August 31, 2026.

*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.