PayPal Transfer Fees

PayPal is one of the most commonly-used online money transfer platforms among Canadians and consumers across the globe. 

The fintech company was once wholly owned by eBay, though it became an independent company in 2015. About 28 million merchants and 361 million customers currently have active PayPal accounts, which is a testament to the platform’s popularity. 

But like other money transfer platforms, PayPal charges fees for specific types of transactions.

Let’s take a closer look at PayPal’s transfer fees to help you determine what it will cost you to use this service when sending and receiving funds.

Types Of PayPal Fees

There are several fees that PayPal charges to send and receive money, depending on the exact type of transaction involved. 

Sending Money 

When you send money to friends and family in Canada using your PayPal account or bank account for non-commercial purposes (personal payment), it’s free. However, when you send money to purchase goods or services (a commercial transaction), certain fees may apply. Fees may also apply when you make a personal payment using a debit or credit card.

Personal PayPal Transfer Fees In Canada

Personal International PayPal Transfer Fees 

If you’d like to send money to friends and family outside of Canada, you’ll be charged a fee depending on your payment method (PayPal balance, bank account, debit or credit card).

Do note, that if you’d like to send or receive money from India, you cannot use PayPal. However, you can use their other money transfer service called Xoom. 

Receiving Money 

If your friends and family send you money using their PayPal balance or bank account, it’s free. Similarly, if there is no currency conversion involved when receiving money, then no fee applies. However, when currency conversions are required, there are fixed fees:

Find out the tax rules on international money transfers.

Fees When Making A Purchase Using PayPal 

As a consumer, no fee is applied to buy a product or pay for a service in a commercial transaction or to donate money, unless a currency conversion is required.  

However, if you’re a merchant receiving money from customers through Paypal, there are certain fees involved. 

Fees When Accepting Money For A Purchase Using PayPal

If you’re selling a product or service and are receiving money through PayPal for a commercial transaction, merchant fees apply as follows.

Receiving Domestic Payments 

Receiving International Payments

If you have international customers, the fees for receiving money from them is higher. In fact, the international commercial transaction fees include the domestic transaction fees, plus a percentage-based fee. 

Currency Conversion Fees

Currency conversion fees apply when sending or receiving personal payments, for commercial transactions, and when using PayPal Payouts:

For all other currency conversions, a minimum rate of 3.00% applies.

Donation Fees

The rates for receiving domestic donations are as follows:

The rates for receiving international donations includes the domestic rate, plus an additional percentage-based fee. The expected rate of the fees are as follows:

How To Calculate Your PayPal Fees

Calculating your PayPal fees depends on several factors, including the following:

• Where the transaction is made from
• Where the recipient is located 
• Type of transaction 
• Whether it’s a personal or business transaction

Domestic transfers typically involve small fees or no fees at all. International transfers, on the other hand, are charged a percentage of the transfer on top of a flat fee. 

Any transfers between PayPal accounts are free, regardless of the locations of the buyer and seller.

Ways To Save On PayPal Fees

There are a few ways to save on PayPal fees:

• Compare your options. There are other similar payment platforms to look into besides PayPal, such as Wise (formerly TransferWise), which offers low rates on transfer fees.

• Transfer funds between PayPal user accounts. There is no fee applicable to transfers made from one PayPal account to another. 

• Crunch the numbers. Before you go through with a transaction, be sure to calculate your fees beforehand so you’re not caught off guard. 

Other PayPal Fees To Consider

Other fees may be applicable to your transaction, including the following.

Credit/Debit Card Confirmation(s)

Some users may be charged a fee when linking a credit or debit card. This amount is refunded when the credit card or debit card verification process has been successfully completed. The following table represents the fee amount:

Inactive PayPal Account

Paypal accounts deemed to be inactive will be charged a fee. The fee is the published fee or remaining balance in the account, whichever of the two is lower. The maximum inactivity fee charged is $20 CAD.

Withdrawal Fees

You can withdraw funds from PayPal and deposit them into your linked bank account or eligible cards. However, there are certain withdrawal limits. The maximum withdrawal limit per day, week and transaction is $5,000. The maximum withdrawal limit per month is $15,0000. 

PayPal Fee FAQs

Final Thoughts

PayPal is a convenient tool to use when sending and receiving money, whether the funds are being transferred for personal or business purposes. Just be sure to calculate the fees for using their services so you’re not caught off guard by added fees when receiving funds or sending a payment.