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
| Payment method | Fee |
| PayPal or bank account | Free |
| Cards | 2.90% + fixed fee |
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.
| Location of Recipient’s Account | Payment method | Rate |
| Europe (excl. UK) and US | PayPal balance or a bank account | $2.99 CAD |
| Europe (excl. UK) and US | Cards | $2.99 CAD + 2.90% + fixed fee |
| All other areas | PayPal balance or a bank account | $4.99 CAD |
| All other areas | Cards | $4.99 CAD + 2.90% + fixed fee |
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:
| Currency | Fee |
| Australian dollar | 0.30 AUD |
| Canadian dollar | 0.30 CAD |
| Euro | 0.35 EUR |
| Hong Kong dollar | 2.35 HKD |
| Israeli new shekel | 1.20 ILS |
| Japanese yen | 40.00 JPY |
| Mexican peso | 4.00 MXN |
| New Taiwan dollar | 10.00 TWD |
| New Zealand dollar | 0.45 NZD |
| Philippine peso | 15.00 PHP |
| Singapore dollar | 0.50 SGD |
| Swedish krona | 3.25 SEK |
| Swiss franc | 0.55 CHF |
| UK pounds sterling | 0.20 GBP |
| US dollar | 0.30 USD |
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
| Transaction Type | Rate |
| Commercial Transactions | 2.90% + fixed fee |
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.
| Payment Type | Rate |
| US – Commercial Transactions | 0.80% |
| All other countries – Commercial Transactions | 1.00% |
Currency Conversion Fees
Currency conversion fees apply when sending or receiving personal payments, for commercial transactions, and when using PayPal Payouts:
| Currency | Minimum Rate |
| CAD, USD, All other currencies | 4.00% |
For all other currency conversions, a minimum rate of 3.00% applies.
Donation Fees
The rates for receiving domestic donations are as follows:
| Transaction Type | Rate |
| Donation | 2.90% + fixed fee |
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:
| Payment Type | Fee |
| US – Commercial Transactions | 0.80% |
| All other countries – Commercial Transactions | 1.00% |
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:
| Currency | Rate |
| Australian dollar | 2.00 AUD |
| Canadian dollar | 2.45 CAD |
| Euro | 1.50 EUR |
| Hong Kong dollar | 15.00 HKD |
| Israeli new shekel | 8.00 ILS |
| Japanese yen | 200.00 JPY |
| Malaysian ringgit | N/A |
| Mexican peso | 20.00 MXN |
| New Taiwan dollar | 70.00 TWD |
| Philippine peso | 100.00 PHP |
| Singapore dollar | 3.00 SGD |
| Swedish krona | 15.00 SEK |
| UK pounds sterling | 1.00 GBP |
| US dollar | 1.95 USD |
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.
| Withdrawal/Transfer Type | Rate |
| Local Account | No Fee (when no currency conversion applies) |
| Instant (with eligible linked debit card | 1.00% of transferred amount (Maximum fees apply based on the card withdrawal currency) |
PayPal Fee FAQs
Who is liable for the Paypal fees, the receiver or sender?
Can I send money to the US through PayPal?
Are there any fees for withdrawal mistakes?
How long does it take to make PayPal transfers from Canada to the US?
What exchange rate does PayPal charge?
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.
