What are standard PayPal merchant fees in 2026?

In 2026, standard domestic commercial transactions through PayPal Checkout incur a fee of 3.49% plus $0.49 per transaction. Direct credit and debit card payments processed through PayPal cost 2.99% plus $0.49.

How do you calculate the reverse invoice gross-up on PayPal?

To receive a target net amount after PayPal fees, use the formula: Invoice Amount = (Desired Net + Fixed Fee) / (1 - Percentage Rate). For example, to net exactly $100 via standard PayPal Checkout (3.49% + $0.49): ($100 + $0.49) / (1 - 0.0349) = $100.49 / 0.9651 = $104.12.

Are PayPal fees higher than Stripe?

Yes, for standard online checkout transactions PayPal charges 3.49% + $0.49 compared to Stripe’s 2.90% + $0.30. On a $100 sale, PayPal deducts $3.98 while Stripe deducts $3.20. However, PayPal’s direct card processing rate is comparable at 2.99% + $0.49.

What is PayPal Micropayments pricing?

PayPal Micropayments pricing charges 4.99% plus $0.09 per transaction. For sales below $12.00, micropayments are cheaper than standard commercial rates because the fixed fee is $0.09 instead of $0.49.

Does PayPal refund fees when I issue a customer refund?

No. PayPal retains all fixed and percentage processing fees when a merchant issues a refund to a buyer. The transaction fee is not returned.

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Merchant Processing & E-Commerce

PayPal Fee & Reverse Gross-Up Calculator

Accurately calculate 2026 PayPal commercial fees (3.49% + $0.49), micropayments, in-person QR codes, international surcharges, and reverse invoice gross-up pricing.

Transaction / Invoice Total (USD)

PayPal Service / Transaction Type

Cross-Border & FX Fees

International Card / Non-US Buyer (+1.50%)

Applied to transactions involving international accounts.

Currency Conversion Spread (+3.50%)

PayPal internal FX exchange fee when converting foreign balances to USD.

Net Seller ProceedsLive Math

$96.02

PayPal takes $3.98 in processing fees from your $100 sale.

Total PayPal Fee

-$3.98

Effective Fee %

3.98%

Stripe Comparison:2.90% + $0.30

Stripe fee on this amount: $3.20. PayPal is +$0.78 higher.

Understanding PayPal 2026 Commercial Fees

In 2021-2022, PayPal restructured its pricing, establishing 3.49% + $0.49 for branded PayPal wallet checkout while maintaining 2.99% + $0.49 for unbranded card processing. Knowing which rate applies to your checkout flow directly impacts your profit margins.

PayPal Checkout

3.49% + $0.49

Applies when customers click the yellow PayPal button, use Venmo, or pay with Pay in 4 installment plans.

Direct Card Processing

2.99% + $0.49

Applies when a shopper enters credit/debit card numbers directly on your hosted checkout without logging into PayPal.

Micropayments Tier

4.99% + $0.09

Specifically designated for merchants selling low-cost digital goods under $10, slashing fixed fees by $0.40 per order.

Frequently Asked Questions About PayPal Fees

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