PayPal fee for transaction between PayPal accounts

[Rajeesh]

Hi,

We are using normal paypal payment in one of our web application and we are making the transaction by transferring between paypal accounts. But when we checked the payment summery, we found that paypal is still deducting he money as fee even though the transaction was between paypal accounts. Please find the summary below.

Purchase Total

$182.00 USD

Sales Tax

$0.00 USD

Shipping Amount

$0.00 USD

Handling Amount

$0.00 USD

Insurance Amount

$0.00 USD

Gross Amount

$182.00 USD

PayPal Fee

-$5.58 USD

Net Amount

$176.42 USD

I want to know that if this is normal behavior of paypal or not. Please note that the above transaction made in Sandbaox since we are still in testing phase.   

[angelleye · Accepted solution]

Yes, of course this is normal behavior. Just because the payment was PayPal to PayPal doesn't mean they don't charge a fee.

What you're thinking of is a Friends and Family payment. With this type of payment, as long as the funds are cash (ie. bank account or PayPal funds) then there would be no fee.

This should not be taken advantage of, though, and it does not come with the same buyer/seller protections as regular payments.

If you are selling products or services you need to be using regular payments and plan on paying the fees.