PayPal
- Considering PayPal? Start with When to Use PayPal.
- PayPal publishes two online rates and most comparisons quote only the expensive one. PayPal Checkout is 3.49% + $0.49. Standard card payments are 2.99% + $0.49. That second one sits close to the rest of the market.
- PayPal's card-present rate through Zettle, 2.29% + $0.09, has the lowest percentage among the flat rates compared here. Stripe Terminal's fixed fee is lower, so it wins below about a $9.76 ticket
- On the site's blended mix and Helcim entry band, Zettle wins between about $9.76 and $19.53. Helcim's crossover falls to $13.96 in its $500K-$1M band. Recalculate with your ticket and band
- The real cliff is the High Volume Dispute Fee. Cross a 1.5% dispute ratio with more than 100 sales in the prior three months and the $15 becomes $30. Worse, the win exemption disappears. Under the line, a dispute you win costs $0. Over it, a dispute you win costs $30.
- Run PayPal as a second method alongside a primary processor, not as your only one. The freeze risk is the reason, not the rate.
PayPal is the most recognized payment brand in the world. Customers trust it, and setup is easy. The pricing is better than the reputation. The dispute pricing is worse.
- PayPal publishes a $15 dispute fee and a $20 chargeback fee. They don't stack. The $15 covers PayPal-account and Guest Checkout transactions. The $20 covers card transactions that went through neither. Nobody pays $35 on one dispute.
- Compare invoice Pay by Bank (ACH) with the card option on the same invoice. Its fee is 1%, capped at $10.
Your account's closed? Start with the notice and your product policy.
Unless a later check is noted beside the figure, PayPal fees on this page were read from paypal.com/us/business/paypal-business-fees on 2 August 2026. The current page and its Micropayments and Currency Conversions sections were checked 22 October 2026.
Hardware prices for Zettle readers weren't part of that pass. Neither was PayPal Payments Pro pricing. Where this page needs one of those, it says so.
When to Use PayPal
You should use PayPal if:
- Your customers ask for it by name.
- You want a second checkout method alongside cards.
- You sell internationally and want a recognized brand at checkout.
- You take payments in person and want to compare a flat rate with interchange-plus. Price your ticket size and card mix first
- You take payments in person and want one predictable rate, with no interchange statement to read.
- You want invoice Pay by Bank (ACH), at 1% capped at $10.
Skip PayPal as your only processor if:
- You can't survive a funds hold. That's the real risk, not the rate.
- Your dispute ratio is anywhere near 1.5%. Cross it and the High Volume Dispute Fee makes PayPal the most expensive US structure verified here.
- You need a good API. Stripe and Braintree are both much better.
Pricing Breakdown
Online
| Product | Rate |
|---|---|
| PayPal Checkout | 3.49% + $0.49 |
| Standard card payments | 2.99% + $0.49 |
| Invoicing via PayPal Checkout | 3.49% + $0.49 |
| Invoicing via card | 2.99% + $0.49 |
| International | +1.50% on top of the base rate |
Source: paypal.com/us/business/paypal-business-fees, verified 2 August 2026.
A customer paying through the PayPal wallet costs you 3.49% + $0.49. A customer paying by card through PayPal's standard card processing costs you 2.99% + $0.49.
On a $100 order that's $3.98 against $3.48. Fifty cents. On $100,000 a month at a $100 ticket it's $3,980 against $3,480, or $500 a month.
Any table showing PayPal as a single 3.49% line overstates its card cost by half a point. What drives your blended rate is the share of customers picking the wallet over a card. You can measure that.
In Person and Keyed
| Transaction Type | Rate |
|---|---|
| Card-present (PayPal Zettle) | 2.29% + $0.09 |
| Keyed-in | 3.49% + $0.09 |
Source: paypal.com/us/business/paypal-business-fees, verified 2 August 2026.
Zettle has the lowest percentage among the flat rates in this table. Here's a $100 in-person sale on the blended card mix and interchange assumption from How We Compare Processor Costs.
| Processor | Pricing model | Card-present fee on $100 |
|---|---|---|
| Helcim, $100K-$500K band | Interchange-plus | $1.53 on the blended mix |
| Helcim, first band | Interchange-plus | $1.69 on the blended mix |
| PayPal Zettle | Flat | $2.38 |
| Square Premium | Flat | $2.55, plus $149/month per location (Square pricing, checked 22 October 2026) |
| Square Free | Flat | $2.75 |
| Stripe Terminal | Flat | $2.75 |
Sources: paypal.com, squareup.com, helcim.com/pricing, verified 2 August 2026; stripe.com/pricing read from a US connection 4 August 2026.
Stripe Terminal and Square Free tie at $2.75 here, but only because the ticket is $100. Stripe's fixed component is ten cents lower and its rate a tenth of a point higher, so the two cross at exactly this ticket and separate either side of it.
Zettle's percentage is lowest in this flat-rate comparison. Total cost depends on your ticket size, card mix and any subscription.
Ticket size. Stripe Terminal's 5-cent fixed fee is below Zettle's 9 cents. Their rates cross at ($0.09 - $0.05) / (2.7% - 2.29%) = about $9.76; Stripe wins below it. On the blended mix, Zettle beats Helcim's entry band below a $19.53 ticket, below $15.64 at $100K-$500K, and below $13.96 at $500K-$1M. At a $15 ticket on $20,000 a month, Zettle costs $458 + ($20,000 / $15 × $0.09) = $578, against Helcim's $286 + ($20,000 / $15 × $0.258) = $630. At a $50 ticket, those totals are $494 and $389.20.
Card mix. Flat rate means 2.29% whether the customer taps a rewards Visa or a regulated debit card. Interchange-plus passes the real interchange through. Regulated US debit interchange is capped near 0.05% + $0.21. On a $100 in-person sale, Helcim's entry band costs about $0.91 on regulated debit, $1.59 on exempt debit, $2.39 on a standard rewards credit card and about $2.84 on a premium rewards card. Zettle is $2.38 on all of them.
Debit-heavy mix, ticket over about $14 to $20? Interchange-plus beats Zettle, and it isn't close. Even on debit alone the ticket matters. Zettle still wins below about $13.53. Premium-rewards-heavy mix? Zettle's flat rate is the safer bet. Pull your last statement. Find your debit share and your average ticket, then decide from those rather than a headline rate.
Stax is the other interchange-plus option, at interchange + 0% + $0.08 plus a monthly subscription. It charges the same 8 cents as Helcim's entry band and adds a subscription. So it doesn't beat Helcim card-present at any volume where its price is published.
Shopify Payments lists 10c per in-person transaction in the US, on Basic, Grow, Advanced and Plus. The 0c figure is Canadian. Include the plan subscription before comparing a full monthly bill. VENDOR Shopify pricing, checked 22 October 2026.
PayPal's reputation is 'the expensive one.' On the compared flat card-present rates, Zettle wins above about $9.76. Below that, Stripe Terminal's lower fixed fee wins. Compare POS features alongside cost.
Bank Transfers and Payouts
| Item | Rate |
|---|---|
| Invoice Pay by Bank (ACH) | 1%, capped at $10.00 |
| Instant Transfer to bank | 1.50%, $0.50 minimum |
| Standard Payout | 2%, capped at $1.00 |
Source: paypal.com/us/business/paypal-business-fees. Invoice ACH and Checkout rates verified 21 October 2026; other fees last verified 2 August 2026.
On a $10,000 domestic USD invoice, Pay by Bank (ACH) processing costs $10 and PayPal Checkout costs $349.49. Compare the total for the invoice product you use.
Disputes: Three Fees, and Only One Applies at a Time
| Fee | Amount | When it applies | Charged if you win? |
|---|---|---|---|
| Standard Dispute Fee | $15.00 | Transactions through a PayPal account or Guest Checkout | No. Not charged when the case is "Decided in your favor by PayPal or your issuer" |
| High Volume Dispute Fee | $30.00 | Same transactions, once your dispute ratio hits 1.5% with more than 100 sales in the prior three full calendar months | Yes. The win exemption isn't in this tier's list |
| Chargeback Fee | $20.00 | Card transactions that went through neither a PayPal account nor Guest Checkout | Yes. Charged "regardless of whether the buyer is successful" |
Sources: paypal.com/us/business/paypal-business-fees, which states "Last Updated: July 15, 2026", and the PayPal User Agreement. Both read 2 August 2026.
The dispute fee and the chargeback fee attach to different channels. They're alternatives, not a stack. One dispute costs $15, $20 or $30. Never $35. Anywhere you see "$15 + $20 = $35", someone has added two fees that can't both apply to the same dispute.
Crossing 1.5% doesn't just double the money. It removes an exemption.
At a 0.9% dispute ratio you pay $0 on every dispute you win. At 1.5% you pay $30 on every dispute, wins included. So crossing PayPal's line doesn't cost you $15 a dispute. If you win most of your cases, it's the difference between free and $30 a case.
It's in PayPal's User Agreement. It's the most expensive thing on this page.
Against the rest of the market:
| Processor | Published cost of a chargeback |
|---|---|
| Square | $0. "There are no fees for dispute management services for chargebacks" |
| Helcim | $0 if you win, $15 if you lose |
| Braintree | $15 |
| PayPal standard | $15, and $0 if you win |
| PayPal card transactions | $20, win or lose |
| Stripe | $15 to receive, plus $15 to counter, returned only on an outright win |
| PayPal high volume | $30, win or lose |
| Moneris | CA$25, plus a CA$80 authorization chargeback handling fee |
Read that table properly. PayPal's standard tier costs less than Stripe on a dispute you win. At the high-volume tier, its $30 fee matches Stripe's $30 on a countered partial win or loss. Your channel, tier and case outcome decide the fee.
Worked example, with an assumed 60% win rate: At 20 chargebacks a month on card transactions, PayPal's $20 fee is 20 × $20 = $400. On Helcim, 20 × (1 - 60%) × $15 = $120. That's ($400 - $120) × 12 = $3,360 a year. For a separate wallet or Guest Checkout book at PayPal's high-volume tier, 20 × $30 = $600 a month, or $7,200 a year, subject to the tier's exemptions.
Monthly Fees and Volume Pricing
| Item | Status |
|---|---|
| Monthly fee, standard commercial account | None |
| Volume threshold or discount schedule | Not published |
| PayPal Payments Pro pricing | Not on the business fee page |
| Micropayments pricing | Domestic US 4.99% + $0.09, subject to application and eligibility |
| Currency conversion rate | Published by transaction type; check the Currency Conversions section |
PayPal's current fee page also publishes domestic Micropayments at 4.99% + $0.09 USD, subject to application and eligibility. VENDOR PayPal Merchant Fees, checked 22 October 2026. Don't assume it applies to your account.
Shopify retiring PayPal Pro? What to switch to
Using PayPal Payments Pro (US) on Shopify? Move to the Braintree payments app. Shopify requires the same update for PayPal Payflow Pro, PayPal Website Payments Pro (UK) and PayPal Website Payments Pro (CA). Check Settings > Payments for your update notice. Use its deadline; Shopify's public update guide doesn't give a shared cutoff date. No date in your notice? Ask Shopify Support.
- Get an active Braintree account first. Contact Braintree Sales if you don't have one.
- Test before changing the live store. If you've got a test store, use it. Check subscription apps and other payment tools.
- Update during a quiet period. From the admin banner, choose Update > Install > Manage Account. Finish the provider's setup. Still seeing the update banner? It hasn't finished successfully. Reactivate Shop Pay if you used it.
VENDOR Shopify's provider update guide, checked 23 October 2026.
Check your PayPal button separately. If your old gateway included Express Checkout, Shopify says to reactivate it under Additional payment methods. Express Checkout isn't available to US or French merchants. Shopify's Express Checkout guide points those stores to PayPal Wallet through Shopify Payments. Ask Shopify which route fits your store before switching. VENDOR Both Shopify guides checked 23 October 2026.
PayPal still supports its legacy NVP/SOAP APIs. VENDOR PayPal Payments Pro developer docs, checked 23 October 2026. The Shopify update is a change to your store's integration.
Before closing the old account, follow the short switch path for saved cards, exports and old refunds.
What PayPal Does Well
1. Consumer Trust
Customers feel safer buying from an unfamiliar merchant when PayPal is at checkout. That effect is real. It's the whole reason to pay the wallet rate instead of the card rate. Whether it's worth 50 cents on a $100 order is measurable. The test below shows how.
2. One-Click Checkout
Saved addresses, saved payment methods, no card entry. This matters most on mobile, where card entry is where checkouts die.
3. The Lowest Published Flat Card-Present Rate, and the Best Small-Ticket Answer
Covered above. Taking payments in person, no POS ecosystem needed, one predictable rate? Zettle at 2.29% + $0.09 beats the other compared flat rates above about a $9.76 ticket. Stripe Terminal is cheaper below that.
On the site's blended mix, Zettle also beats Helcim's entry band below about $19.53. That puts Zettle between Stripe Terminal and Helcim at tickets of about $9.76 to $19.53. Higher Helcim bands lower the upper crossover. Use your own ticket and card mix before deciding.
4. Cheap ACH
Invoice Pay by Bank (ACH) costs 1%, capped at $10. Compare the full fee with the card option on the same invoice.
5. Global Recognition
PayPal is recognized in most markets you'd want to sell into. That makes it a good secondary method for international customers, even when your primary processor handles the cards.
What PayPal Does Poorly
1. Dispute Fees
Covered above. It's the strongest argument against PayPal as a primary processor in any category with real dispute volume.
2. Account Holds and Freezes
PayPal freezes accounts and holds funds. Common triggers: a sudden volume spike, high-ticket sales, a new account growing fast, customer complaints, and categories PayPal considers risky.
The process runs like this. Account frozen without warning. An email saying it's under review. Funds held. A limited appeal path. This is PayPal's most common complaint by a wide margin, and it's why this page puts PayPal second rather than first.
3. Customer Support
Long phone waits, slow email, scripted responses, no clear escalation path. Plan to solve problems yourself.
4. Clunky API
PayPal's API is dated next to Stripe's. Docs are poor, error messages are inconsistent, webhook handling takes work. Want PayPal acceptance with a decent developer experience? Use Braintree. It's PayPal-owned, it covers PayPal and Venmo, and its card rate is 2.89% + $0.29.
Pricing Comparison (PayPal vs Competitors)
| Processor | Online | Card-present | International | Disputes |
|---|---|---|---|---|
| PayPal | 3.49% + $0.49 wallet, 2.99% + $0.49 card | 2.29% + $0.09 | +1.50% | $15 wallet disputes ($0 if you win), $20 card chargebacks, $30 above a 1.5% ratio |
| Stripe | 2.9% + $0.30 | Terminal 2.7% + $0.05 | +1.5% | $15 + $15, neither returned on a partial win |
| Square | 3.3% + $0.30 Free, 2.9% + $0.30 Plus | 2.6% + $0.15 Free | Not published | $0 |
| Braintree | 2.89% + $0.29 | Not separately published | +1% non-USD, +1% non-US card | $15 |
| Helcim | IC + 0.50% + $0.25 first band | IC + 0.40% + $0.08 first band | Not published | $0 on a win, $15 on a loss |
All verified 2 August 2026 from each vendor's own pricing page, with Stripe's US figures read from a US connection on 4 August 2026.
Verdict: PayPal Checkout is the most expensive online rate in this table. Zettle's percentage is the lowest of the flat card-present rates compared, but Stripe Terminal wins below about $9.76. On the site's blended mix, Helcim entry pricing wins above $19.53. Higher Helcim bands lower that crossover. PayPal's high-volume $30 dispute fee matches a countered Stripe dispute that loses or wins partially. Your product, ticket, mix and outcome decide the answer.
Who PayPal Is Best For
Perfect Fit
| Business Type | Why PayPal Wins |
|---|---|
| New e-commerce stores | Brand trust converts for unknown merchants |
| In-person sellers with tickets between about $9.76 and $19.53 | Zettle wins this comparison against Stripe Terminal and Helcim entry pricing on the site's blended mix |
| In-person sellers who want a flat rate and no interchange statement | Price Zettle against Stripe Terminal at your own ticket; include the POS features you need |
| B2B invoicing | Invoice Pay by Bank (ACH) at 1% capped at $10 |
| International sellers | Recognized nearly everywhere as a second method |
| Secondary checkout option | The intended use, alongside a primary processor |
Poor Fit
| Business Type | Better Alternative |
|---|---|
| Dispute-heavy categories | Helcim or Square |
| Only processor for a business with no cash buffer | Anything. Hold risk is the issue, not the rate |
| Subscription SaaS | Stripe |
| Developer-led | Stripe or Braintree |
| Wallet-heavy checkout at scale | Braintree. Same PayPal acceptance, 2.89% + $0.29 on the cards |
Common Gotchas
1. The Fixed Fee Hurts Small Tickets
PayPal's 49 cent fixed fee is the largest of any processor here.
On a $10 online transaction:
| Fee | Effective rate | |
|---|---|---|
| Braintree | $0.58 | 5.8% |
| Stripe | $0.59 | 5.9% |
| Helcim, entry band | $0.62 | 6.2% |
| Square Free, online | $0.63 | 6.3% |
| PayPal standard card | $0.79 | 7.9% |
| PayPal Checkout | $0.84 | 8.4% |
Helcim's figure uses the assumed 1.50% + $0.172 pass-through plus entry markup of 0.50% + $0.25: $10 × 2% + $0.422 = $0.622. Braintree is $0.579 and Stripe $0.590 before rounding. Helcim crosses Square Free online at about $9.38, Stripe at $13.56 and Braintree at $14.83 on these assumptions. The comparator matters.
At 1,000 transactions a month, PayPal Checkout costs $261 a month more than Braintree on $10 tickets, and $210 more than Square Free. If your average order is under about $15, PayPal Checkout is the wrong default.
2. The Wallet Costs More Than the Card
3.49% + $0.49 for the wallet, 2.99% + $0.49 for a card. Same customer, same order, 50 cents apart on $100. Measure your wallet share. That one ratio moves your PayPal blended rate more than anything else you control.
3. International Fees Stack
Base 3.49% plus 1.50% international is 4.99% + $0.49. On a $100 international wallet order, $100 × 4.99% + $0.49 = $5.48. Conversion can apply too. Check the transaction type in PayPal's Currency Conversions section.
4. Funds Holds
If PayPal freezes your account, funds are held and the appeal path is limited. Keep your PayPal balance minimal and transfer to your bank frequently. Never run PayPal as your only processor if a hold would stop payroll.
5. Venmo Needs Braintree for the Full Experience
Venmo shows up as an option inside PayPal Checkout. The full Venmo checkout runs through Braintree, at 3.49% + $0.49.
Test to Run
Is PayPal earning its fee? (if you already offer it):
Week 1: split the two rates
- In your PayPal reporting, separate wallet transactions from standard card transactions
- Calculate the blended rate you're actually paying. If most of your PayPal volume is wallet, you're paying 3.49% + $0.49 and probably assumed 2.99%
- Calculate what the same volume would cost on your primary processor
Week 2: measure the conversion lift 4. Randomly show eligible checkout visitors PayPal on or off. Compare completed orders per assigned visitor, keeping the other checkout options the same. Comparing people who chose PayPal with card users measures selection, not lift 5. Compare contribution after fees, refunds and disputes between the groups. A rough break-even illustration: if every existing order switches, the fee difference is 0.6 percentage points and each extra order contributes 50% after all variable costs, required relative order lift is 0.6% / 50% = 1.2%. Use your actual switched share, fixed fees and contribution
Week 3: price the disputes 6. Separate wallet and Guest Checkout disputes from other card chargebacks over the last twelve months 7. Sum the fees actually posted, less refunds. Standard disputes can be exempt on a win; high-volume disputes use different terms. Don't multiply every case by $15 8. Add the net fees to the PayPal side of the comparison
Week 4: find the ACH volume 9. Compare the full card fee on your larger invoices with invoice Pay by Bank (ACH), at 1% capped at $10 10. Offer ACH where the saving and payment timing work for you
Success criteria: you know your wallet-versus-card split. You know whether the conversion lift covers the rate gap. You've compared the full card and ACH fees on your larger invoices.
Scale Callout
Under $50K/month:
- Test whether PayPal as a secondary method pays for itself in contribution.
- Watch the 49 cent fixed fee if your average order is small.
$50K-$250K/month:
- Split your reporting between the wallet rate and the card rate first.
- A/B test PayPal on and off for a month. If conversion is flat, the wallet premium is pure cost.
- Move large invoices to ACH.
Over $250K/month:
- Route cards through a cheaper processor and keep PayPal for actual wallet payments. That's what the two-rate structure implies.
- If wallet share is high, Braintree gives you the same PayPal acceptance at 2.89% + $0.29 on cards.
- Dispute fees at this volume become their own budget line.
Over $1M/month:
- PayPal publishes no volume threshold and no discount schedule. Ask anyway.
- Never single-processor at this scale. A hold is an extinction event.
Where This Breaks
-
Account freeze kills your business. If PayPal is your only processor and they freeze you, you can't take payments. Always have a second processor onboarded.
-
The dispute ratio cliff. Under 1.5% you pay $15, or $0 on a case you win. Over 1.5% you pay $30 on every dispute, wins included. Nothing else on this page moves as much money as that one line.
-
No published negotiation path. PayPal publishes no volume threshold and no discount schedule. Below whatever their internal bar is, the rate card is the rate card.
-
Restricted business list is aggressive. PayPal rejects faster than most. Check the acceptable use policy before you build.
-
'PayPal is expensive' is too simple. Zettle wins the compared flat in-person rates above about $9.76; Stripe Terminal wins below it. Compare Helcim on your actual band and card mix too. Online, separate standard cards from the wallet rate, and include dispute fees.
The PayPal Strategy
For most businesses:
- Primary processor: whichever of Helcim, Square, Braintree, Stripe, or Stax fits your channel, ticket size and volume
- Secondary option: PayPal checkout, for customers who want it
- Route deliberately: cards through your primary processor, wallet payments through PayPal, large invoices through ACH
- In person: compare Stripe Terminal below about $9.76. On the site's blended mix, Zettle wins against Helcim entry pricing up to about $19.53. Above it, price Helcim; use your actual band and POS needs
That gets you lower fees on most transactions, whatever conversion lift PayPal delivers, and a backup when one processor breaks.
Don't use PayPal as your only processor. The hold risk is the reason, and it hasn't changed.
Next Steps
Considering PayPal?
- Add it as a second method, not as your primary processor
- Confirm current rates yourself at paypal.com/us/business/paypal-business-fees
- If you're taking in-person payments, price your average ticket and mix. Compare Stripe Terminal below about $9.76, Zettle and Helcim above it, and Square on POS features as well as rate
- Review Buying Payments for the multi-processor approach
Already on PayPal?
- Run the test above, starting with the wallet-versus-card split
- Move large invoices to ACH
- Count your dispute fees. They're probably bigger than you think
Switching from PayPal?
- Read Processor Switch Checklist
- Keep PayPal as a checkout option even after you move primary processing
- If wallet share is high, look at Braintree rather than dropping PayPal acceptance entirely
See Also
- Braintree - PayPal-owned, PayPal and Venmo acceptance, 2.89% + $0.29 on cards
- Stripe - Better as a primary online processor
- Square - Better card-present ecosystem
- Helcim - $0 on a dispute won; compare card-present costs using your band, ticket and mix
- How We Compare Processor Costs - The interchange assumption behind every crossover on this page
- Adyen - Enterprise and global
- Processor Comparison - Full comparison table
- Buying Payments - Multi-processor strategy
- Checkout Conversion - Measuring PayPal's conversion lift
- Going Global - International payment methods