PayPal UK Fee Calculator (2.9% + 30p Domestic Transactions)
Calculate PayPal merchant deductions in the United Kingdom with reverse invoice charge markup.
Rate Clarification: 3.49% + $0.49 applies to PayPal Checkout, Guest Checkout, and invoices. Standard Goods & Services rate: 2.99% + $0.49.
Rate Clarification: 3.49% + $0.49 applies to PayPal Checkout, Guest Checkout, and invoices. Standard Goods & Services rate: 2.99% + $0.49.
Base customer charge
3.49% + £0.49 fixed
Actual received funds
Total % lost to gateway
Competitor Fee Comparisonat £250.00
Exact net payout differences across major merchant networks. Click any card to switch.
PayPal Merchant Fees Explained: Standard, QR & Micropayments (2026)
A transparent analysis of PayPal Commerce (3.49% + $0.49), PayPal Checkout buttons (2.99% + $0.49), QR codes, micropayments (5% + 5¢), and cross-border currency conversion.
3.49% + $0.49 applies to PayPal Checkout, Guest Checkout, and invoices. Standard Goods & Services rate: 2.99% + $0.49.
Standard commercial invoicing and invoicing API charges on PayPal in the US cost 3.49% plus $0.49 per transaction. When buyers use PayPal Checkout buttons or guest checkout on your store, the discounted rate is 2.99% plus $0.49. On a $100 customer payment, PayPal deducts $3.98 (invoicing/checkout) or $3.48 (standard card). For international cross-border transactions, PayPal adds an extra 1.50% fee plus a 3% to 4% currency conversion margin.
When to Use the PayPal Micropayments Program (5.0% + $0.05)
Because standard PayPal transactions carry a hefty $0.49 fixed cents fee, selling low-ticket items under $10 results in punishing effective fee rates. To protect small merchants selling digital downloads, gaming assets, and song downloads, PayPal offers an opt-in Micropayments fee schedule: 5.0% plus $0.05.
The mathematical tipping point is $11.00: for items priced under $11, the 5% + $0.05 micropayments rate is cheaper. For items priced over $11, standard 2.99% + $0.49 is more economical.
Data Table: PayPal Checkout vs. Invoicing Deductions
| Amount | Checkout (2.99% + 49¢) | Checkout Net | Invoicing (3.49% + 49¢) | Invoicing Net | Micropayments (5% + 5¢) |
|---|---|---|---|---|---|
| $5.00 | $0.64 (12.8%) | $4.36 | $0.66 | $4.34 | $0.30 (6.0%) |
| $10.00 | $0.79 (7.9%) | $9.21 | $0.84 | $9.16 | $0.55 (5.5%) |
| $50.00 | $1.99 (3.98%) | $48.01 | $2.24 | $47.76 | $2.55 |
| $100.00 | $3.48 (3.48%) | $96.52 | $3.98 | $96.02 | $5.05 |
Cross-Border Currency Conversion & International Surcharges
Accepting international buyers on PayPal carries two distinct friction points: an added 1.50% cross-border fee, and PayPal's internal retail currency exchange spread of 3.0% to 4.0% above mid-market interbank rates. To protect margins when selling globally, consider routing foreign currency receivables into multi-currency balances or utilizing dedicated cross-border processors.
Technical Breakdown & Formula Specifications
Transparent mathematical reference and standardized volume benchmarks
Mathematical Formula & Calculation Logic
PayPal standard UK commercial transactions incur 2.9% + 30p for domestic purchases. Cross-border payments carry additional percentage markups.
Standard Transaction Volume Tiers
Compare expected deductions across typical commercial ticket sizes
| Gross Transaction | Deductions | Net Received | Effective Rate |
|---|---|---|---|
| £50.00 | -£1.75 | £48.25 | 3.50% |
| £250.00 | -£7.55 | £242.45 | 3.02% |
| £1,000.00 | -£29.30 | £970.70 | 2.93% |
| £5,000.00 | -£145.30 | £4,854.70 | 2.91% |
PayPal UK Fee — Frequently Asked Questions
Authoritative answers to common questions, regulatory rules, and compliance guidance.
How much does PayPal charge merchants in the UK?
What are international cross-border PayPal fees in the UK?
Which payment processor is cheaper: Stripe, PayPal, or Square?
What is the cheapest payment processor for micropayments under $10?
How do international card surcharges compare across Stripe, PayPal, and Square?
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