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I'd like to clarify the fees charged on international payments.
Someone in the Czech Republic sent me US$50, and PayPal's fees took it down to US$47.75, working out to a total fee amount of 4.5%.
By my understanding of PayPal's fee structure, I should be charged a $0.30 flat fee plus 1.0% for a cross-border transaction, so the fee was a lot more than I was expecting.
This is a transfer between individuals, or at least it should be. I will ask him if he used the "Personal" type instead of "Purchase", but for now I'll assume it was a Personal transaction.
How should my contact send me money so we are both charged a minimum of fees?
Additional information: The email address I use ends in .es even though I am in the US; would that affect anything?
For Personal Payments, the fee depends on the Payment Method (credit/debit card, PayPal balance, bank account) used. Additional fees apply if you are sending or receiving money to or from a country outside the United States, or transacting in a foreign currency.
The "Fees" section of PayPal's User Agreement has all the details...
According to the "Fees" section, the International Personal Payments charge for a credit/debit card funded payment from the Czech Republic would be 3.9% plus 30 cents...
$50.00 - 47.75 = $2.25 fee charged
$50.00 x 3.9% = $1.95 plus 30 cents = $2.25