Ubiquitous payment processor with buyer trust but higher headline rates.
- Starting price
- 3.49% + $0.49 per PayPal Checkout transaction
- Pricing model
- Paid
- User rating
- 4.4 / 5
- Best for
- Getting paid quickly with buyer trust built in
PayPal is the payment method most buyers already have. That recognition is what you are paying for: checkout conversion often rises simply because the button says PayPal.
Who PayPal is for
Small businesses, freelancers and marketplaces selling to consumers. Setup takes minutes, no developer is required, and buyers can pay without entering card details.
The cost is the catch. PayPal is among the more expensive processors once you look past the convenience.
What PayPal costs
PayPal Checkout is 3.49% plus $0.49 per commercial transaction in the US, which is meaningfully more than Stripe’s 2.9% plus $0.30.
Cross-border sales add 1.5%, and currency conversion carries a spread of up to 4%, which is where most sellers lose money without noticing.
Some transaction types are cheaper: QR code payments are 2.29% plus $0.09, and goods-and-services transfers are 2.99%. Pay Later is 4.99% plus the fixed fee.
Standard Checkout has no monthly fee. Payments Advanced is $5 a month and Payments Pro is $30.
PayPal pricing and plans
PayPal Checkout
3.49% + $0.49
per commercial transaction
No monthly fee. US domestic rate.
- Buyer trust at checkout
- No developer required
- Buyer and seller protection
- Instant account setup
Goods and services transfer
2.99%
per transaction
For send and receive payments.
- Lower rate than Checkout
- Seller protection applies
- No fixed fee stated
QR code payments
2.29% + $0.09
per transaction
The cheapest PayPal rate.
- In-person payments
- Lower fixed fee
- Works from the mobile app
Pay Later
4.99% + $0.49
per transaction
Buyer pays in instalments, you are paid up front.
- Instalment options for buyers
- Paid in full immediately
- Higher conversion on larger baskets
Payments Advanced
$30
per month, plus transaction fees
Payments Advanced is $5 a month; Payments Pro is $30.
- Hosted and custom checkout options
- Advanced reporting
- Virtual terminal
Pricing checked against the official PayPal pricing page on 5 September 2026. Vendors change plans often, so confirm before you buy.
What PayPal actually does
- Checkout button recognised by most consumers
- Buyer and seller protection programmes
- Invoicing and payment links
- Subscriptions and recurring billing
- Pay Later instalment options
- QR code payments for in-person sales
- Support for 100+ currencies
- Instant setup without a developer
Pros and cons
What works well
- Buyers recognise and trust the checkout
- Set up in minutes with no developer
- No monthly fee on standard Checkout
- Pay Later can lift conversion on larger baskets
- Buyer and seller protection included
What to watch out for
- 3.49% + $0.49 is well above Stripe’s standard rate
- Currency conversion spread reaches 4%
- Account holds and reserves are a common complaint
- Cross-border sales add another 1.5%
- Fee structure varies confusingly by transaction type
PayPal FAQs
How much does PayPal charge sellers?
PayPal Checkout is 3.49% plus $0.49 per US commercial transaction. Cross-border sales add 1.5% and conversion carries a spread of up to 4%.
Is PayPal more expensive than Stripe?
Yes, on standard card payments. Stripe charges 2.9% plus $0.30 against PayPal’s 3.49% plus $0.49, and PayPal’s conversion spread is wider.
Is there a monthly fee?
Not on standard Checkout. Payments Advanced is $5 a month and Payments Pro is $30, both on top of transaction fees.
What is the cheapest PayPal rate?
QR code payments at 2.29% plus $0.09. Goods and services transfers are 2.99%.
Why do people still use it despite the fees?
Conversion. A large share of buyers already have a PayPal account and will complete a checkout they would otherwise abandon.
How much is currency conversion?
Up to a 4% spread on standard conversions, or 3% on certain transaction types. This is the fee sellers most often overlook.
Does PayPal hold funds?
It can, particularly on new accounts, high-value orders or unusual activity. Reserves and holds are a common complaint among newer sellers.
Where does the 4.4 rating come from?
It is the aggregate score from 2,748 reviewers on G2, checked 12 August 2026. It is not our own hands-on test score.
Weighing up other options? Read the 6 best PayPal alternatives.
Ready to try PayPal?
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