Who PayPal suits
Sellers whose buyers already trust and use PayPal, and one-off payments where asking a stranger for bank details would lose the sale. Its reach is the product: almost every online buyer has an account.
On the calculator's two reference payments, PayPal takes 7.75% of $5,000.00 from a US client to a Spanish business, and 2.94% of €1,000.00 between Germany and Spain, where there is no currency to convert.
What to watch out for
- The percentage fee is charged first and the currency markup is applied to what is left, so the two compound. On a cross-border payment in another currency, PayPal is usually the most expensive route in the calculator.
- The conversion markup is published per account country and sits well above card processors and far above bank-transfer accounts.
- Buyer protection means disputes tend to favour the buyer, which matters for services where "delivered" is hard to prove.
How to pay less with PayPal
- Hold balances in the currency you were paid in if your account allows it, and convert only when you need to, or spend them in that currency.
- For recurring clients, move them to a bank transfer once trust is established.
- Check the currency-conversion settings in your account: some conversions can be declined or moved to the card issuer.