Quick answer, PayPal UK receiving fees 2026
- Standard checkout and invoicing: 2.9% + £0.30 per transaction on the amount you receive.
- Cross-border: add roughly 1.29% for EEA buyers and 1.99% for the rest of the world on top of the percentage rate.
- Micropayments (approved, small items): 5% + £0.05 domestic, 6% + £0.05 international. Charity (approved): 1.4% + £0.20.
Rates below are the published PayPal UK merchant fees, verified against the official page (PayPal UK merchant fees, checked 7 July 2026). PayPal changes its pricing periodically and several rates depend on approval, so check PayPal's current fees page before you rely on a figure.
How PayPal receiving fees work in the UK
When someone pays you through PayPal, PayPal deducts a receiving fee before the money lands in your balance. For most UK accounts that fee is a percentage of the amount received plus a small fixed fee per transaction. Sending money to friends and family in GBP is free; these fees apply to commercial payments, invoices and checkout.
The fee has two parts:
- A percentage of the total you receive (item plus any postage you charged). Standard checkout and invoicing is 2.9%.
- A fixed fee per transaction (£0.30 for standard and card, £0.05 for micropayments, £0.20 for charity). This is charged once per payment, so ten payments means ten fixed fees.
The percentage is charged on the gross amount, before your own costs. That is why the effective rate on a small payment can be much higher than the headline percentage, the fixed fee is a bigger slice of a £4 sale than a £400 one.
Cross-border and currency conversion
If your buyer is outside the UK, PayPal adds an international surcharge to the percentage rate. As a guide that is around 1.29% for buyers in the EEA and Europe and 1.99% for the rest of the world, on top of your base rate. The exact figure depends on the buyer country, so treat the calculator as an estimate.
If PayPal also has to convert the payment into another currency, it applies a spread on top of the base exchange rate. That spread is a real cost even though it is not always shown as a separate fee. The calculator models it as an approximate 3% of the gross amount so you can see roughly what conversion costs you, switch it off if you are paid in GBP.
Micropayments are handled differently: the approved micropayment rate is already an all-in figure for domestic (5% + £0.05) and international (6% + £0.05) payments, so the calculator does not stack the EEA or rest-of-world surcharge on top of it.
PayPal UK fee table (2026)
The receiving fee depends on how the money reaches you. Some of these rates need to be approved on your account before they apply.
| Payment type | Receiving fee (per transaction) |
|---|---|
| Standard PayPal checkout / invoicing | 2.9% + £0.30 |
| Card payments (Advanced / virtual terminal) | 1.2% + £0.30 |
| American Express | 3.5% |
| Micropayments (approved, under £5) | 5% + £0.05 domestic, 6% + £0.05 international |
| Registered charity (approved) | 1.4% + £0.20 |
On top of the base rate, add roughly 1.29% (EEA and Europe) or 1.99% (rest of world) for cross-border buyers, plus a conversion spread of around 3% if PayPal changes the currency. Always check PayPal's current fees page for the rate that applies to your account and your buyer's country.
A worked example in pounds
Say you invoice a UK customer for £100 through standard PayPal checkout, one payment, no currency conversion:
- Percentage fee: 2.9% of £100 = £2.90
- Fixed fee: £0.30
- Total PayPal fee: £3.20 (an effective rate of 3.2%)
- Net after fees: £96.80
If that item cost you £40 and postage was £3.50, your profit is £96.80 minus £43.50 = £53.30, a margin of 53.3% of what you received. Now take the same £100 from an EEA buyer: the rate becomes (2.9% + 1.29%) + £0.30, so the fee rises to £4.49 and your net drops to £95.51. A £4 micropayment to a UK buyer is 5% + £0.05 = £0.25, which is an effective 6.25% because the fixed fee dominates on tiny amounts.
PayPal fees vs eBay managed payments
A common mix-up: eBay UK checkout no longer runs on PayPal. eBay moved sellers to its own managed payments system, so when you sell on eBay you pay eBay's final value and per-order fees, not PayPal fees. If you want those numbers, use our eBay fee calculator instead.
This PayPal calculator is for the payments PayPal still processes: PayPal invoices you send to clients, sales on your own website or checkout, off-marketplace deals, donations, and other platforms that use PayPal as the payment method. If the money genuinely arrives through PayPal, the fees above apply; if it arrives through eBay checkout, they do not.
PayPal fee FAQ
How much does PayPal charge to receive £100 in the UK?
On standard checkout or invoicing, a UK domestic £100 payment costs 2.9% + £0.30 = £3.20, leaving you £96.80. Cross-border buyers and currency conversion push that higher. Check PayPal's current fees page for your exact rate.
Is there a fixed fee on every PayPal payment?
Yes. Standard and card payments carry a £0.30 fixed fee per transaction, micropayments £0.05, and charity payments £0.20. Because it is per transaction, splitting one sale into several payments means paying the fixed fee several times.
What are PayPal micropayments and are they cheaper?
Micropayments are an approved pricing option aimed at small-value items, roughly under £5. At 5% + £0.05 (domestic) they beat the standard rate on tiny payments, where the standard £0.30 fixed fee would be a large share. They are worse than standard once the amount gets larger, so they only suit low-ticket sellers, and you have to be approved for them.
Does PayPal charge extra for overseas buyers?
Yes. PayPal adds a cross-border surcharge to the percentage rate, around 1.29% for EEA buyers and 1.99% for the rest of the world as a guide, and a currency-conversion spread if it changes the currency. The precise surcharge depends on the buyer country, so verify against PayPal's current fees page.
Are these PayPal fees the same as eBay fees?
No. eBay UK uses managed payments, not PayPal, so eBay sales are charged eBay's own fees. Use this tool for PayPal invoices, your own website, and other PayPal-based sales, and the eBay fee calculator for eBay.