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'Does PayPal have fees?': Yes, but not for all transactions — here's how you can avoid fees on PayPal

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PayPal might charge you a fee, depending on the transaction. Shutterstock
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When it comes to basic transactions, like sending or receiving money between PayPal accounts within the US, the payment transfer platform is free. 

But that isn't the case for every transaction. Here are the situations when you might encounter fees on PayPal.

PayPal does have fees in some cases — here's how to avoid them

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It's free to make a PayPal account, but you might need to pay fees depending on who you're sending money to. Thomas White/Reuters

While you can transfer funds from your PayPal account to your bank for free, there is a fee for instant transfers: 1% of the transfer amount, capped at $10 per transaction. 

You'd also pay a fee to send money to a friend or family member using a debit or credit card. In that case, the fee would be 2.9% plus a fixed amount that varies depending on the currency used.

There are additional fees for sending money to people who live in other countries. For example, you'd pay at least 5% of the amount you planned on sending, plus $0.99 to $4.99, depending on your circumstances. 

If you were to use a credit or debit card to fund these transfers, you'd also pay a funding fee of 2.9% plus a fixed fee that varies depending on the receiver's country of residence.

Finally, if you were to sell items and use PayPal as your payment processor, you'll pay fees on each transaction:

  • Sales within the US: 2.9% plus 30 cents.
  • Discounted rate for eligible charities: 2.2% plus 30 cents.
  • International sales: 4.4% plus a fixed amount which varies by country.
  • PayPal Here card reader fee: 2.7% per swipe, or 3.5% plus 15 cents for manual transactions.

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Devon Delfino is a Brooklyn-based freelance journalist specializing in personal finance, culture, politics, and identity. Her work has been featured in publications such as The Los Angeles Times, Teen Vogue, Business Insider, and CNBC. Follow her on Twitter at @devondelfino.