Paypal raising fees effective August 2, 2021


On June 18, 2021, Paypal Senior Vice President, Dan Leberman announced that Paypal will be raising its rates in the United States "to better align our pricing with the value that our products and services provide".

Previously PayPal charged a flat rate to sellers for processing payments.  They charged merchant processing online 2.9% plus a 30-cent fee per transaction, meaning a $25 charge would cost the merchant $1.03. The new, higher rates (listed below) will apply to the company's newer products, like PayPal Checkout, and Pay with Venmo.

So what rates will be changing?

  • PayPal Digital Payments: For PayPal payment products (such as PayPal Checkout, Pay with Venmo, PayPal Credit, Pay in 4, PayPal Pay with Rewards, Checkout with crypto), which include Seller Protection on eligible transactions, the rate for online transactions will be 3.49% + $0.491 per transaction, an increase from 2.9% + 30-cent fee.  A $25 online transaction previously cost $1.03 and with the new rates will now cost $1.36.
  • In-person Payments: For PayPal and Venmo QR code transactions over $10, the rate will be 1.90% + $0.10, and for such transactions $10 and under, the rate will be 2.40% + $0.05. For certain in-person debit and credit transactions the rate will be 2.29% + $0.09.
    Credit and Debit Card payments: Online credit and debit card transactions will be 2.59% + $0.491 per transaction without Chargeback Protection, or 2.99% + $0.49 with Chargeback Protection.
  • Charity Transactions: Fees for charity transactions will be 1.99% + $0.49 for confirmed charities (subject to application and pre-approval).
  • Non-standard Pricing: For U.S. merchants who have custom, non-standard pricing, rates will remain unchanged for those services as agreed.

The new rates will go into effect August 2, 2021, following an earlier rate increase June 30, 2021.

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Tuesday, 07 December 2021
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