Paypal payment fee will be a percentage of the total transaction value plus a minimal fixed fee per transaction. The percentage and fixed fee will vary by country/ currency.
You can check the pricing for your country through visiting https://www.paypal.com/webapps/mpp/paypal-fees and pick your country on the bottom right of the page.
For example, let’s say there is a transaction that involves 3 merchants:
- Merchant 1 transaction value: $10
- Merchant 2 transaction value: $20
- Merchant 3 transaction value: $30
- Marketplace admin commission percentage: 5%
- Marketplace admin commission: 5% of $60: $3
If the marketplace is located in Singapore, the PayPal fee is 3.9% + 50 cents. Below is the calculation of the Paypal fees:
- Paypal fee earned from Merchant 1: (3.9% of $10) + 50¢ = 89¢
- Paypal fee earned from Merchant 2: (3.9% of $20) + 50¢ = $1.28
- Paypal fee earned from Merchant 3: (3.9% of $30) + 50¢ = $1.67
- Paypal fee earned from Marketplace admin: (3.9% of $3) + 50¢ = 61.7¢
Below is the amount each party will get after PayPal fees and admin commission fees have been deducted:
- Merchant 1: $10 - 89¢ - 50¢ = $8.61
- Merchant 2: $20 - $1.28 - $1 = $17.72
- Merchant 3: $30 - $1.67 - $2 = $26.33
- Admin: $3 - 61.7¢ = $2.38
Unlike Stripe, PayPal also charges a commission from the marketplace admin, so it is important to take note that your marketplace admin commission percentage should be enough to cover the PayPal fee.
1. Japanese yen (JPY), Hungarian forint (HUF), New Taiwan dollar (TWD) does not support decimals. If you pass a decimal amount, an error occurs.
To resolve this issue, there needs to be a custom code used to remove the decimal places. You can approach our list of custom coders here
2. Brazilian real (BRL), Malaysia ringgit (MYR) are supported as a payment currency and a currency balance for in-country PayPal accounts only. If the receiver of funds is not from Brazil, then PayPal converts funds into the primary holding currency of the account with the applicable currency conversion rate. The currency conversion rate includes PayPal's applicable spread or fee.
3. Indian rupee (INR) is supported as a payment currency and a currency balance for in-country PayPal India accounts only.
Click here for more information on currency codes for Paypal