June 21, 2024

How to Avoid PayPal International Transaction Fees

How to Avoid PayPal International Transaction Fees

PayPal and other digital money transfers have gained more prominence with the increasing eCommerce landscape, international relations, and collaborations. They make it convenient to pay for merchandise or send money to family, friends, and employees across the globe. Unlike other online money transfers, many international users complain of steep PayPal charges. In this article, we’ll look at how you can avoid the steep PayPal charges on international transactions. 

How Much Does Paypal Charge On International Fees?

PayPal fees differ for country and international transactions. For starters, PayPal offers two categories of payment methods for international payments or money transfers, each with a different fee structure. 

  • When you’re sending money directly to another PayPal account, the PayPal transaction fee is 5% of the transaction. Under this category, the minimum fee is $0.99, and the maximum is $4.99. This occurs when you find the transfer with a PayPal balance. 
  • If you’re finding the transfer through a debit card, credit card, or PayPal credit, you’ll incur different payment fees. Paypal will charge you a funding fee of 2.9% plus a fixed fee based on your currency.

This article has a complete list of PayPal fees. In addition, you may also incur PayPal currency conversion fees if you’re sending or receiving money. The PayPal exchange rate fee is usually between 3.5% and 4% above your currency’s mid-market exchange rate. Avoiding these PayPal transaction fees is a good strategy for financial health check.

How Do You Avoid PayPal Fees?

PayPal is only free for personal payments you make to friends and family in the United States. This means PayPal international transfers and payments for business transactions. You’ll always incur PayPal transfer fees or merchant fees for the supply of goods and services. The size and frequency of your international transfers may increase the transfer fees. While you can’t wholly avoid PayPal’s transaction fees, you can take steps to avoid paying the full costs of international transaction fees. Use the following ways:

1. Use a Paypal Account to Fund Transactions

Funding your international transfers with your Paypal account will help you avoid credit card or debit card fees. This might not seem to make a major impact initially, but you’ll see it effective in the long run because those fees always add up.

2. Make Larger Payments

The fee for making direct transfers to another PayPal account is $4.99, regardless of the amount you’re transferring. If you transfer $250 twice, that’s a $10 fee, while transferring $500 is still $4.99 still. Making fewer payments in larger amounts will help you keep the costs low. 

3. Factor the PayPal Costs In Your Pricing

If you’re in business, you can factor the payment costs in the total pricing to avoid making the costs your headache. Do this, especially when you make frequent payments because the costs will add up. You need to discuss this with your partners first, as doing so without their knowledge can cost you a client. 


Unless you live in the US and send money to friends and family, PayPal can’t be entirely free. There are related PayPal fees that you must pay, and international fees are always a little high. You can reduce the fees by making large payments, running your transactions with a PayPal account, or factoring in the costs in the pricing.

Avatar for Radhe Gupta

Radhe Gupta

Hello, I am Radhe. I am absolutely in love with writing and by working with News Whizz, I have developed a passion for it. It helps me to stay updated and know what is happening around the globe.

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