These PayPal fees might be the easiest to figure out. Even so, they are usually the most criticised, as it is hard to find anyone who will charge you more than PayPal for currency conversion. In the USA and the UK, you only pay withdrawal fees if you request an instant transfer or withdraw to a card rather than to a bank account.
In other countries, PayPal charges a fee and the banks will sometimes charge another fee on top of that. In the case of all these fees, you will need to check the information for your country and for the country from where you will be receiving payment.
Unfortunately, there is no way around that, but you can find fee calculators online to help you get a rough idea. There are some other fees, such as chargeback fees, records request fees, and bank return fees, but these are unlikely to affect many everyday PayPal users.
The following are 15 tips to help you make decisions that will reduce fees and increase the money in your pocket:. If you do not do this and PayPal refuses your payment order, then you could end up stuck without your hard-earned cash. You might also have to pay that records request fee I mentioned in order to get everything sorted out.
Providing all of the required identifying information is also important if you want to be able to use your business account balance to make purchases or send payments. PayPal will also place limits on your withdrawals if you do not provide all the information they request.
Although you are probably more concerned about receiving money than paying it out, this is a really easy way to avoid a fee of at least 2. If you pay with PayPal credit or a credit card rather than from your PayPal balance or associated bank account, you could be hit with this fee.
A little bit of planning could, therefore, help you to avoid PayPal fees whenever you make purchases or pay others for services. This is a somewhat risky tactic. However, there will be no payment protection on the payment and if PayPal suspects you are doing this they can shut down your account. Just be careful! This is a great option whether you are using PayPal or any other service which charges a fee: Whenever possible, try to group payments.
Although the fixed fees on PayPal are small, it is worth setting this kind of system up with trusted clients. With lots of small payments, those fixed fees suddenly become a huge deal. PayPal has created the Micropayments system so that those who qualify can pay significantly less in fees. This is not easy, I know, but if you can manage it and PayPal agrees to give you Merchant Rates, then your variable fee drops significantly. In the USA it drops from 2. You could increase your prices so that PayPal fees are included, or add a percentage charge at the bottom of your invoices for billable expenses.
If you decide to take this route then it would be a good idea to make this clear to the client! After all, you are reading this because you want to avoid PayPal fees….
That being said, most clients are aware of how transactions fees can hurt freelancers. Believe it or not, many may be happy enough to accept these costs being passed on to them. In many countries, you will be able to add up all your PayPal fees and claim them as a business expense when you pay your taxes. If you are likely to pay for goods or services with PayPal, then you should perhaps consider keeping a balance in your account.
Part of the appeal of PayPal is that using it to make purchases is almost always free of fees. While it can be a good idea to keep some money in your account, at some point you will want to withdraw your money. If you request an instant transfer then you will pay a fee.
Since the options vary from country to country, you should check your PayPal agreement to see what is available to you. Then check on all the PayPal and bank fees that may apply. In my case, I can only withdraw to one particular bank and I get charged a percentage fee by PayPal based on the size of the transaction. You can also read our post on Cash App vs PayPal for another breakdown of an alternative payment solution!
After all, as long as you are running a profitable online business or making money with a blog , should you really care? Learning how to avoid PayPal fees in the early stages of your side hustling can help you save thousands of dollars in the long run, and you can use your savings to invest back into your business or simply grow your savings.
None of these strategies are rocket science, but hopefully you can use some of the ideas in my list to stop paying PayPal fees and maximize the effectiveness of your side hustles. Tom is a 24 year old recent college graduate from Canada with a passion for side hustling, passive income, and marketing. This Online World is all about providing people with honest ways to make and save more money by using technology. To learn more about Tom, read his About Page! I used both Paypal and Payoneer.
My PP is personal account and luckily most of my employers did cover the fee for my payment. Usually the transfer is done immediately if the senders … Read more ».
Wish I could avoid PayPal fees when selling on eBay! I did hear that eBay is introducing a new payment method. Thanks for the tips though! Thanks so much for the information! These fees are so annoying. Anything can do to save money can really be of assistance to raise profits. My readers really will enjoy reading this as it can be so useful! Additional menu At the end of every year, I like to conduct a financial review for the past 12 months to see how my spending habits, side hustles, and general net worth have developed.
I believe it is important to take a granular look at personal finance matters alongside more general month-to-month tracking for 2 reasons: You can analyze broad changes in financial well-being positive or negative. Tracking the income you generate from your work or various side hustles is a valuable source of encouragement. This post will contain: A breakdown of how PayPal fees work. How to avoid PayPal fees. Alternative payment platforms to PayPal that you can consider.
Then they started raising fees. High-volume sellers used to pay 2. If you refunded money to a customer, you used to get ALL your fees back. Then they started keeping the cent fee, and starting in May they will keep ALL fees. I have already talked to a lower-ranking person at PayPal who says that if there is an accidental double-payment, they MAY refund the fees for the double-payment if you ask them.
But frankly, all of this sucks. Fortunately, I am phasing my business out. The real problem is that PayPal has no real competition — heaven knows why. Unfortunately, getting paid less often will only save you 30 cents for each payment you consolidate. Is it really worth the risk getting your payments later in order to avoid 30 cents? As for the way you withdraw money, I always transfer it to my bank or use my PayPal debit card.
I predict, however, that PayPal will begin to charge for transfers to your bank. I also predict that the 2. The posts from other people reveal some misunderstandings.
Now, however, I think they have changed that to a percentage. The usual transfer method is still free for now. You would expect to get paid for your services as well. You must have a high volume of sales if you pay so much in fees. Hi, Kayla! Thank you for such an informative post! I have a question, four years later.
They have made some changes and now a fee is charged to the sender, though not a full 2. I think it varies depending on whether the remitter is foreign.
You might want to look into this and update the article. More important, I believe Paypal terms do not actually permit business accounts to solicit payments this way and they COULD shut you down, with or without a refund of your balance.
Wire transfers and checks are still common and I encourage them because zero fees. Online transfers between same-bank clients and Zelle across banks , both zero fee, are becoming more common. I find that people using Paypal are generally more lacking in trust than credit-card payers, and chargebacks more common. Also, my credit card processor via Costco has a fixed 1. I understand the wish to avoid paying fees, but would you provide a service and NOT charge for it?
Whether you sell online or in person, if a credit card is used for payment the seller will pay a bank fee. Why would a bank provide you a free service? Paypal is providing a payment platform so they charge a fee for you to use their service. Accepting payment as friends and family is great until the first time something goes wrong, then the buyer has no recourse. I tried to opt-in to receive payments once a month to avoid fees.
There is no option to do so. I called customer service and they say they never heard of it. Any specific directions to apply this change to ones Paypal? You would either need to invoice once a month or just not take the money out except for once a month.
How I wish my business is Paypal. I saw in your post that PayPal didnt charge you for transferring money? Would u know if its because im paid from the US and my bank is here in n the Philippines? Last few times I used it there are still fees on friends and family tried sending g to a friends and they still wanted to charge the fee?
Why is that? Thanks so much for the information! These fees are so annoying. Anything can do to save money can really be of assistance to raise profits. My readers really will enjoy reading this as it can be so useful! It is legal to charge the fees to the clients? I think Paypal prohibits that, if not that would be awesome for my business. Do you have info about this? Thanks in advance! Mastercard and Amex charge higher percentage so would need to charge higher in that case.
I have discovered that it was the credit card companies that prohibited merchants from passing on processing fees to clients. Our CPA advised that we build these processing fees into our price and as seller, we cover the processing fee for the client should they wish to use their credit card or use another method. This is the best way to avoid getting into trouble with credit card companies and any other payment processing companies.
Hi I have also a problem with! I opened PayPal for personal and not for business purposes, how to change it please. And can the sender get back the transfer fee? Coz I returned the money to the sender thru full refund option but minus the fee!
Knowing that they I can only take the money after 5 to 7 days and I need that money this week. So that is what I did. Please help me with this matter. I will really appreciate it and thank you so much! Wait a minute! Am I understanding you correctly? Is it cheaper to say wait at the end of the week to transfer the total of multiple invoices at once into my bank? Also if you send dollars to account created outside US there is an international PP fee.
Hi Kayla, thanks for your info! Any idea why it would be charging me that fee? Do you know of a way to avoid this? What do you know about Venmo? Does it have a similar charge? Why does anyone even use this money stealing machine?
Send your money by bank transfer and you pay nothing! Seriously hate PayPal fees too. For me, the biggest fee is the ridiculous conversion rate. Losing hundreds of dollars because of it. Now you are out of that money plus 25 bucks for the chargeback fee. Happened to me personally, I was out bucks for a photoshot I did. Doing family and friends can be costly in the long run. Thank you for the information! I have decided to be very up front with my buyers on an up and coming group crafts site.
I HAVE to offer paypal, but am allowed to offer other methods, too. Thanks, Adrian! If anyone else knows, feel free to chime in! I used to have a PayPal account several years ago when I bought things from Ebay. Fast forward, and I made a business deal where I would get paid for it.
Unless they make a fuss, like I usually do when my credit card tries to stiff me!! This article was very helpful. Gave me something to think about. If you do, let us know what you find out! I really love the calculator part so I actually get my exact money. I just wanna ask if this is an app or if you have a direct link to it cause right now, I have to scroll through the entire post just to get to it.
Either way, thank you for this! Hi James! Thanks so much for reading. Love that you like this tool. But again, these fees can sometimes add up and will lose you a great amount of money.
What you pay and how much you will pay will depend largely on a number of different factors. You will pay a fee when you send or receive money. You will pay when you withdraw money from your PayPal account. Apart from that, you also have PayPal Credit, a working capital and other business fees to factor into the overall charges. So, whether you receive of accept payments, you will feel the burden of these fees.
The same goes if you send money via PayPal. Fortunately, there are different ways you can do to get around this and other fees that are charged to your PayPal account. However, it you are a single contractor, or an independent freelance worker, then this can be the perfect option for you.
All you need is a PayPal account to receive money. However; if they choose the latter, then there will be no PayPal fees needed to be paid by the recipient. If you send them an invoice, the payment will go down as a business transaction, which will always incur transaction fees.
However, this is yet another benefit for the recipient.
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