What is the PayPal fee on $100?

Decoding the PayPal Dollar: Understanding the Fees on a $100 Transaction

Sending money online has become second nature, and PayPal remains a dominant player in this space. But understanding the fees associated with transactions can sometimes be confusing. Let’s break down exactly what you can expect when sending $100 through PayPal using their standard online payment rate within the U.S.

The current fee structure for sending money to friends and family within the United States using a linked bank account or PayPal balance involves two components: a percentage-based fee and a fixed fee. For a $100 transaction, this translates to a 3.49% fee ($3.49) and a fixed fee of $0.49. Adding these together, the total fee comes to $3.98.

Therefore, if you send $100 through PayPal using this standard method, the recipient will receive $96.02. It’s crucial to factor in this fee when determining how much to send to ensure the recipient receives the intended amount.

Keep in mind that these fees apply specifically to “Goods and Services” payments within the U.S. funded by a linked bank account or existing PayPal balance. Different fee structures apply for international transactions, payments funded by credit or debit cards, and sending money to friends and family using those funding sources. For “Friends and Family” payments funded through a bank account or PayPal balance, there are no fees if sending within the U.S. However, if you choose to fund a Friends and Family payment with a credit or debit card, fees will apply. Always double-check the fee breakdown presented by PayPal before confirming your transaction to avoid any surprises.

PayPal also offers business accounts with different fee structures designed for merchants processing payments for goods and services. These rates typically differ from the standard rates for personal transactions.

In conclusion, while sending $100 through PayPal seems straightforward, understanding the underlying fee structure is essential for managing your finances effectively. Taking a moment to calculate the total cost, including fees, ensures both sender and recipient are on the same page. Remember to check PayPal’s current fee schedule directly for the most up-to-date information, as rates can change.