How to Calculate PayPal Fees (2020 EXPLANATION)

In recent years, freelancing has made huge progress. Both big and small organizations get lots of benefits from freelancers with multiple skills at an affordable price than the cost of a single worker. As a freelancer, being a part of this new economy means working with multiple clients and pay them for work.

PayPal is the most popular payment processor in the world for online businesses and is the commonly used choice for sending and receiving the payments. Despite all the PayPal alternatives, most of the people use the services of PayPal because of its simplicity, convenience, global recognition, and for its security.

However, there is one aspect where PayPal doesn’t get many points for its fee of receiving and sending money. The rate of PayPal fee is high in the industry, especially for international transactions. The receiving and sending rate of money can be measured with the assistance of the PayPal fee calculator that allows calculating the PayPal fee deduction rate of sending and receiving money so that they can receive the required amount.

How does PayPal fee work?

PayPal fee is always a fair policy, that’s what they say on the PayPal fee page. When it comes to PayPal fees it doesn’t become transparent and user-friendly. 

There are various sorts of PayPal fee calculators that can quickly calculate the  PayPal fee deduction rate when someone is sending and receiving money through different platforms. They support both domestic and international fees, but most of them calculate for the U.S only. In addition to that, it is questionable when they’re updated as PayPal is continuously changing its policies to keep up with the change in regulations and compliances.

As a freelancer, PayPal charges a fee in a specific amount when you receive money in return for the services that you provide to clients. Since the relationship between you and your clients is like a buyer and seller.

In this case, PayPal treats you as a seller and will charge you the commercial payment fee. PayPal characterizes the commercial payments as payment for services and products, any payment that is sent and received by a business, and any other nonprofit entity.

 The Equation:

The PayPal fee structure is based on the percentage of the transaction and fixed currency fee. That’s look like this:

x.x% + fixed currency fee = total fee you have to pay.

You can use this equation in order to measure the rate of deduction that PayPal charges for each transaction. And also you can try the PayPal fee calculator that allows you to calculate PayPal fees when a person makes a transaction from PayPal. 

Well, In domestic and international payment transactions the fixed PayPal fee remains the same but the transaction percentage is a bit higher for international payments.

How Secure is PayPal?

One question comes to mind when think about to paying online in general or by PayPal  is that:

Can I get scammed by using PayPal? Well, that’s a good question and yes PayPal is famous for its security. Here are things that are important to know:

  • PayPal does not share the customer’s data with anyone.
  • Customer’s information is not stored by PayPal.
  • PayPay purchase policy claims, if your order doesn’t arrive or in case of change in item that you choose.

Ending words:

PayPal is an American based company running an online payment system that supports the online transfer of money. It is an online money transfer service that is serving more than 200 countries with 25 currencies. PayPal allows you to purchase essentials from online platforms and you can use it as a debit and credit card as well.

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1 thought on “How to Calculate PayPal Fees (2020 EXPLANATION)”

  1. Hello Amit,

    Very insightful post. I am a big fan of paypal and using it from past 10 years. It is my primary ways to receive money from my clients and affiliate programs that i promote. You have clearly describe how PayPal fees works. I am sure that this post will definitely help those who are still not sign up with paypal or didn’t understand their fees structure. Very detailed Post. Thanks for sharing.

    Regards,
    Vishwajeet Kumar

    Reply

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