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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 methodFee
PayPal or bank accountFree
Cards2.90% + 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 methodRate
Europe (excl. UK) and USPayPal balance or a bank account$2.99 CAD
Europe (excl. UK) and USCards$2.99 CAD + 2.90% + fixed fee
All other areasPayPal balance or a bank account$4.99 CAD
All other areasCards$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:

Australian dollar0.30 AUD
Canadian dollar0.30 CAD
Euro0.35 EUR
Hong Kong dollar2.35 HKD
Israeli new shekel1.20 ILS
Japanese yen40.00 JPY
Mexican peso4.00 MXN
New Taiwan dollar10.00 TWD
New Zealand dollar0.45 NZD
Philippine peso15.00 PHP
Singapore dollar0.50 SGD
Swedish krona3.25 SEK
Swiss franc0.55 CHF
UK pounds sterling0.20 GBP
US dollar0.30 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 TypeRate
Commercial Transactions2.90% + 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 TypeRate
US – Commercial Transactions0.80%
All other countries – Commercial Transactions1.00%

Currency Conversion Fees

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

CurrencyMinimum Rate
CAD, USD, All other currencies4.00%

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

Donation Fees

The rates for receiving domestic donations are as follows:

Transaction TypeRate
Donation2.90% + 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 TypeFee
US – Commercial Transactions0.80%
All other countries – Commercial Transactions1.00%

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:

Australian dollar2.00 AUD
Canadian dollar2.45 CAD
Euro1.50 EUR
Hong Kong dollar15.00 HKD
Israeli new shekel8.00 ILS
Japanese yen200.00 JPY
Malaysian ringgitN/A
Mexican peso20.00 MXN
New Taiwan dollar70.00 TWD
Philippine peso100.00 PHP
Singapore dollar3.00 SGD
Swedish krona15.00 SEK
UK pounds sterling1.00 GBP
US dollar1.95 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 TypeRate
Local AccountNo Fee (when no currency conversion applies)
Instant (with eligible linked debit card1.00% 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?

PayPal fees are paid by the person receiving the payment.

Can I send money to the US through PayPal? 

Yes, you can send money to the US from Canada using PayPal. Simply transfer the funds in US dollars from your PayPal account.

Are there any fees for withdrawal mistakes? 

There is no fee if an attempt to withdraw or transfer out of PayPal fails due to inaccurate bank account or delivery information.

How long does it take to make PayPal transfers from Canada to the US?

PayPal transfers from one PayPal account to another take only a few seconds. However, the process to move funds from a PayPal account to a bank account, or vice versa, can take between three to five business days.

What exchange rate does PayPal charge? 

PayPal’s CAD to USD exchange rate is always changing. To find the most current exchange rate, just go onto your PayPal account and click on the “Currency Converter” on your wallet page.

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.

Lisa Rennie avatar on Loans Canada
Lisa Rennie

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

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