PayPal's transfer fees depend on where the money goes and how fast you need it

PayPal charges different amounts depending on whether you're sending money to another PayPal account, transferring to your bank account, or using a service like PayPal.Me. Transfers to another PayPal user within the US are free if you send the money as a friends and family payment, but cost 2.9% plus $0.30 if you send it as a goods and services payment. Moving money from PayPal to your own bank account costs nothing if you wait one to three business days, but costs $1.50 if you want it the same day or next business day. International transfers have their own fee structure based on the receiving country.

The fee you pay also depends on your account type and the payment method you're using to fund the transfer. If you're sending money internationally, PayPal charges a percentage of the amount plus a flat fee that varies by country. Understanding which transfer method costs what helps you choose the option that fits your situation and budget.

Key Takeaways

  • Sending money to another PayPal account as a friends and family payment is free, but sending it as goods and services costs 2.9% plus $0.30.
  • Transferring money from PayPal to your bank account costs nothing for a one to three business day transfer, but $1.50 for same-day or next-day delivery.
  • International transfers charge a percentage fee plus a flat fee that depends on which country is receiving the money.
  • PayPal charges no fee to receive money sent to you by another PayPal user, regardless of whether it's marked as friends and family or goods and services.

Transfers between PayPal accounts in the US

When you send money to someone else's PayPal account within the United States, the fee depends on how you categorize the payment. If you send it as a friends and family payment, PayPal charges you nothing. The recipient also pays nothing to receive it. This is the free option for personal transfers between people you know.

If you send the same money as a goods and services payment, PayPal charges you 2.9% of the amount plus $0.30. For example, sending $100 as goods and services costs you $3.20 in fees. The recipient does not pay a fee to receive goods and services payments. This fee structure exists because goods and services payments come with PayPal's seller protection, which friends and family payments do not include.

The money arrives in the recipient's PayPal account when ready in both cases. They can then keep it in PayPal or transfer it to their own bank account using the transfer methods described below.

Transferring money from PayPal to your bank account

Moving money from your PayPal balance to your linked bank account has two speed options, each with different costs. A standard transfer takes one to three business days and costs nothing. An when ready transfer takes minutes to an hour and costs $1.50 per transfer, regardless of the amount you're moving.

To use either option, you must have a bank account linked to your PayPal account. PayPal supports transfers to checking and savings accounts at most US banks. The bank account must be in your name and match the name on your PayPal account.

If you choose the standard transfer, the money leaves your PayPal account when ready, but your bank may take up to three business days to show it in your account. Weekends and bank holidays extend this timeline. If you choose when ready transfer, the money appears in your bank account within an hour in most cases, but you pay $1.50 for that speed.

International transfers and cross-border payments

Sending money to a PayPal account outside the United States involves both a percentage fee and a flat fee. The exact amount depends on the country receiving the money. PayPal publishes a fee table on its website that lists the percentage and flat fee for each country it serves.

As an example, sending money to Canada costs 1.99% plus $0.99, but sending to Mexico costs 2.99% plus $2.00. These rates change and vary significantly by destination, so you should check PayPal's current fee schedule before sending. The recipient's country also affects whether they can receive the money at all — PayPal does not operate in every country.

If you're sending money internationally to someone who does not have a PayPal account, you can use PayPal's money transfer service, which has a separate fee structure. This service is different from sending to a PayPal account and typically costs more.

Receiving money and PayPal.Me links

You never pay a fee to receive money that another PayPal user sends to you, whether it's marked as friends and family or goods and services. The sender pays the fee, if one applies. This means you can receive money from anyone with a PayPal account at no cost to yourself.

If you create a PayPal.Me link and share it with others, they can send you money through that link. The same fee rules explore: friends and family payments are free for the sender, and goods and services payments cost the sender 2.9% plus $0.30. You still pay nothing to receive the money.

Fees for business and merchant accounts

If you have a PayPal Business or Merchant account, some fees may differ from a personal account. Business accounts typically charge the same 2.9% plus $0.30 for goods and services payments, but may have different rates for high-volume sellers or those enrolled in specific programs.

PayPal also offers a Cash Back Mastercard that lets you withdraw money at ATMs or use it as a debit card. Using the card at an ATM outside the MoneyPass network costs $1.95 per withdrawal. This is separate from transfer fees but is another way to access your PayPal balance.

Comparing PayPal transfers to other services

PayPal is one option for moving money, but other services exist with different fee structures. Bank-to-bank transfers through your own bank are often free. Peer-to-peer apps like Venmo, Square Cash, and Zelle have their own fee schedules. Wire transfers through your bank cost $15 to $50 but move money faster and internationally. Money transfer services like Western Union and MoneyGram charge percentage-based fees that can be higher than PayPal for international transfers.

The best choice depends on where the money is going, how fast you need it, and which service the recipient uses. If both people have PayPal and it's a personal transfer, the free friends and family option is hard to beat. For business payments or international transfers, comparing PayPal's fees to alternatives can save money on larger amounts.

Frequently Asked Questions

Does PayPal charge a fee if I send money to a friend?

No, if you send money to another PayPal user and mark it as a friends and family payment, PayPal charges you nothing. The recipient also pays nothing. If you mark it as goods and services instead, you pay 2.9% plus $0.30.

How much does it cost to transfer money from PayPal to my bank account?

A standard transfer that takes one to three business days costs nothing. An when ready transfer that arrives within an hour costs $1.50. Both options require a linked bank account in your name.

What are PayPal's fees for sending money internationally?

International transfer fees vary by country and include both a percentage and a flat fee. For example, Canada is 1.99% plus $0.99, while Mexico is 2.99% plus $2.00. Check PayPal's fee table for the exact rate to your destination country.

Do I pay a fee when someone sends me money on PayPal?

No, you never pay a fee to receive money from another PayPal user. The sender pays any applicable fee. This applies whether the payment is marked as friends and family or goods and services.

Is there a fee to use PayPal.Me?

Creating and sharing a PayPal.Me link is free. The same sending fees explore: friends and family payments are free for the sender, and goods and services payments cost the sender 2.9% plus $0.30. You pay nothing to receive the money.