Why Choose PayPal to Get Paid
So you've just finished a project for someone, or you've come to an agreement on the goods you're selling. They've asked you to invoice them through PayPal. You're excited that your hard work is finally going to be paid off! But wait a minute, there's an extra fee?
PayPal is a great payment platform that allows you to be paid via credit card, debit card, or bank account. It also lets businesses accept payments in a number of different currencies, which is great if you have clients over the world.
While a PayPal account isn't required, it can be easier for your clients to pay you if you accept PayPal payments. After all, PayPal has more than 325 million active accounts worldwide, and your client might already have one! Since they're already familiar with PayPal, they are more likely to have no issues about safety than if you bill their credit card directly.
You can even easily integrate your PayPal account with many existing shopping cart systems, or accounting and invoicing solutions like InvoiceBerry.
It's also easy to set up and use, whether as a consumer or a business. While personal transfers are free, businesses accepting payments are subject to transaction fees.
Fees 101, and How a PayPal Fees Calculator Can Help
PayPal's transaction fees can be very confusing. While the standard fee can be pretty straightforward:
a fixed fee (i.e. US$ 0.30)
+
a percentage of the total transaction (usually 2.9%)
the actual amount charged against you can change depending on a number of things. These can be:
- The country you reside in and/or the currency you receive the money in
- Whether you and your client are located in the same country or not
- The amount you're receiving
- Payment options you've provided your client (i.e. pay later options, etc)
They can also change the fees at any time, and you might get caught off-guard when they do.
A payment fees calculator can help you with the following:
- You'll know exactly how much you'll receive. Do away with estimates: with a calculator, you'll know how much to expect when you've billed your client. When every dollar counts, you'll appreciate the clarity.
- Adjust pricing easily according to the fees your business is paying. Our calculator can also show you how much you should charge your client if you need to receive a certain amount. This is great if your client will be paying for the fees themselves.
- You can save valuable time and reduce errors. Even if you're a math wizard, manual calculation can still result in wrong numbers, either from common mistakes or not having updated numbers.
- Make your business plans and budgets against actual numbers. Knowing the exact income you'll receive for your transactions will help you make better plans for your business. Make every dollar count!
How to Use the PayPal Invoice Fee Calculator
The PayPal fees calculator can give you an idea of how much the PayPal fees will be on your business transactions. It's a really handy tool that can help with your budgeting and planning. So if you've been wondering about this kind of thing before, it might come in very useful for you!
It's very easy to use. Just enter the amount of money you plan to invoice your client in the calculator.
Click the Calculate button, and the calculator will show you three numbers.
You'll see the total fees you will be paying if your client pays you that amount via PayPal.
You can easily see the amount of money you'll receive in the middle column.
If you want to see how much you should invoice your client so that you receive the amount of money you entered, the third value is the number you need.
Need to change the amount? Simply enter the new amount in the same field and click Calculate again.
What About International Transactions?
International or cross-border fees are not yet implemented in our fees calculator, but we'll be adding these features soon! In the meantime, if you need help with the PayPal fees for your case, here's the lowdown:
If your PayPal account is not in USD, the fixed fee may be different from you. You can check the updated fees at the PayPal website directly, but the most common fixed fees are:
Australia |
0.30 AUD |
Canada |
0.30 CAD |
Europe |
0.35 EUR |
United Kingdom |
0.20 GBP |
Additionally, if you and your client are from different countries, your transaction will be subject to an international or cross-border fee. This is an additional 1.5% on top of the current PayPal fees. This works out to a total of 4.4% of your transaction in addition to the fixed fee based on your currency.