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Work out exactly what PayPal costs you at your volume and average transaction size.
PayPal's standard online checkout rate is the highest headline rate among the major providers. Drag both sliders — ticket size changes the answer as much as volume does, because the fixed per-transaction fee is a much bigger share of a small sale.
Ticket size matters as much as volume: the fixed per-transaction fee is what makes small payments expensive.
At $25, the flat $0.49 adds 1.96% on top of the 3.49% headline rate — which is why the effective rate is 5.45%, not 3.49%.
PayPal effective rate by ticket size
For comparison
PayPal charges a flat percentage plus a fixed fee for standard online checkout. Both components are higher than most competitors, and the 49¢ fixed fee makes it particularly expensive on low-value transactions. Rates differ by product — invoicing, in-person and micropayment plans all price differently.
| Component | Cost |
|---|---|
| Percentage of each transaction | 3.49% |
| Fixed fee per transaction | 49¢ |
A percentage takes the same share of every sale. A fixed fee does not — 49¢ is the same amount on a $5 charge as on a $500 one, so it costs a hundred times more of the small one proportionally.
| Average transaction | Fee | Effective rate |
|---|---|---|
| $5 | $.66 | 13.29% |
| $10 | $.84 | 8.39% |
| $25 | $1.36 | 5.45% |
| $50 | $2.24 | 4.47% |
| $100 | $3.98 | 3.98% |
| $250 | $9.22 | 3.69% |
PayPal suits businesses whose customers specifically want to pay with PayPal, where the conversion benefit can outweigh the higher rate. As a primary processor for card payments it is rarely the cheapest choice.
For your real blended number across all of those, run one month of statements through the effective rate calculator. To see every provider side by side, use the payment processor fee comparison.
GOOD QUESTIONS
PayPal advertises 3.49% for standard domestic card payments. What you actually pay is higher, because the fixed fee is a larger share of small transactions — at a $10 ticket the effective rate is 8.39%.
Because of the fixed 49¢ per transaction. The percentage is the same on every sale, but the flat fee is a much bigger proportion of a small one. Divide your total monthly fees by your total volume to see the real figure.
Not on the standard plan priced here. Some PayPal products and add-ons carry their own monthly costs, so check the plan you are actually on.
Compare effective rates at your own average ticket size, not headline percentages. A provider with a lower percentage and a higher fixed fee can easily cost more if your transactions are small. The payment processor fee comparison table puts every provider side by side at three ticket sizes.