You could also try charging your clients extra fees to cover your PayPal expenses. Limiting the number of payments you can accept before PayPal notices your attempt to avoid fees.Making your business look unprofessional by asking clients to lie.Preventing you from using PayPal to generate invoices (generating an invoice will automatically designate the payment as a business transaction instead of a personal transfer).This approach quickly leads to several problems, such as: A "Friends and Family" payment doesn't get charged any fees, so you might think you have made a smart choice.
For example, you could ask a client or customer to choose "Family and Friends" instead of "Goods and Services" when paying you. None of them are long-term solutions, though. Can I Avoid PayPal Fees?Ī few options can potentially help you avoid PayPal fees. If you accept international debit or credit cards, standard transaction fees apply-there is no additional processing fee. There is a small flat fee for wire transfers in USD, and BILL offers competitive currency exchange rates. If you need to convert foreign currency, PayPal charges a spread of 4%, which is effectively an additional 4% in fees.īILL currently supports transfers with over 130 countries, offering international wire transfers in local currency starting at $0 if you don't need to convert currency. However, not all clients have American Express cards or want the inconvenience of being limited to only using one specific credit card for business expenses. They do have a special partnership with American Express where payments made using an American Express card don't get charged the extra 1.5%. PayPal adds an additional fee of 1.5% on international transactions for a total fee of 4.99%. If you have international clients, PayPal fees can be even more expensive. What about PayPal fees for International Transactions? If you want to see how much you'll lose to PayPal invoice fees on higher amounts, check out this PayPal fee calculator.įortunately, there are alternatives to PayPal, such as BILL, that provides an affordable, efficient way to get paid via ACH payments. You'll end up paying $35.39 in fees on the incoming payment, netting only $964.61. For example, let's say you invoice a customer for $1,000. If you're using PayPal as your main platform for invoicing and payments, these fees stack up quickly.
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