@deegan87 wrote:
I'm trying to better understand the fee system of PayPal. So, if I send my roommate a money request for utilities, PayPal charges a 2.9% fee if he pays from his bank account, but if my roommate simply sends the same amount from his bank account, there's no fee?
link to fees https://cms.paypal.com/us/cgi-bin/?cmd=_render-content&content_ID=ua/UserAgreement_full&locale.x=en_.... Fees.
8. Fees.
8.1 Fees Overview. Fees are based on whether you are making a Purchase Payment, a Personal Payment or a PayPal Business Payment. Some fees are expressed as a percentage of the payment amount. All Fees are in U.S. Dollars unless otherwise stated.
- For Purchase Payments, the recipient of the payment will always pay the Fee.
- For Personal Payments, the following applies:
- The Fee depends on the Payment Method you use.
- The Fee is paid by either the sender or recipient, not both.
- The sender of the payment generally determines who pays the Fee at the time the sender makes the payment. If you send a Personal Payment from a third party (non-PayPal) website or by using a third party’s product or service, then the third party will determine if the sender or recipient of the Personal Payment will pay the Personal Payment Fee. This will be disclosed to you by the third party before the Personal Payment is initiated.
- It is free to send a Personal Payment to someone in the United States in U.S. Dollars if you use your bank or Balance as the exclusive Payment Method. If you use a different Payment method to send a Personal Payment, the Fees set out below will apply.
- 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.
- If you use your credit card as the Payment Method for a Personal Payment, you may be charged a cash-advance fee by your credit card company.
- In some instances, Personal Payment pricing may not be available. In these instances, all payments must be Purchase Payments.
- Personal Payments may not be available on non-PayPal websites or other applications that offer you the ability to send a payment from your Account.
- Personal Payments may not be sent to recipients in certain countries.
- For PayPal Business Payments, the PayPal Business Payment Fee is paid by the recipient unless it is disclosed to you before you send the payment that you, the sender, must pay this Fee.
8.2 Domestic Payments in U.S. Dollars. This applies when both the sender and recipient are in the United States, and the payment is in U.S. Dollars.
a. Domestic Personal Payments in U.S. Dollars. Activity Payment Method Personal Payment Fee
| Sending or receiving* | Exclusively Balance or bank account | Free |
Other, including a fully or partially funded payment
by credit or debit card, or PayPal Credit. | 2.9% + $0.30 USD |
| *Sender generally determines whether the sender or recipient pays the Fee. See Section 8.1(b). |
b. Domestic Purchase Payments in U.S. Dollars.
Activity Purchase Payment Fee
| Sending (buying) | Free |
| Receiving (selling) | Standard rate: | 2.9% + $0.30 USD |
| Merchant rates*: | Monthly Sales Volume:
$0.01 - $3,000.00
$3,000.01 - $10,000.00
$10,000.01 - $100,000.00
Over $100,000.00 | Fee:
2.9% + $0.30 USD
2.5% + $0.30 USD
2.2% + $0.30 USD
1.9% + $0.30 USD |
Nonprofit rates**:
| Monthly Donation Volume:
$0.01 - $100,000.00
Over $100,000.00 | Fee:
2.2% + $0.30
1.9% + $0.30 |
*To qualify for our Merchant rates you must submit a one-time application, have qualifying monthly sales volume, and have an Account in good standing.
** Nonprofit rates are only available for registered charities with 501(c)(3) status. |
