Your Online Business and PayPal Fees
PayPal is undoubtedly one of the world’s largest online payment system with almost 227 million accounts currently in use.
Even among online sellers, it is a popular option for accepting payments. But, like every other payment system, there are charges associated with the transaction that you need to consider into the cost and pricing of your business and transactions.
Gladly, with Shopify Payments, there are ways for the customers paying through PayPal that help them to check out without paying the heavy fees.
You don’t need to pay any setup fees to create a PayPal account. Create your account for free and link it to your credit card or bank account and you will be able to accept 25 currencies from 202 countries of the world.
PayPal Express is supported by Shopify merchants and is a gateway to easily incorporate into your store.
Calculate Seller Fees
PayPal charges may vary for different regions of the world and depend upon whether you are purchasing or selling something. For purchasing products and services in the US there is no fees to use PayPal, but to sell products and services you will be charged not only a percentage from your transaction but also a fixed fee.
You need to pay 2.9% of your transaction amount along with $0.30 USD of the flat fee. For example for a payment of $50 USD, you will be charged $1.75 USD ($1.45 + $0.30). Therefore, in the end, you will get $48.25 of that $50.
As for outside the US, while receiving payments you will be charged 4.4% per transaction along with the fixed fees based on your currency.
PayPal Express and Shopify Payments
If in your store, you are using Shopify Payments to accept credit card payment you will have to pay the credit card fees at every transaction according to your payment plan.
Users get confused and uncertain about the payment stats and whether they will be double charged for using PayPal Express and Shopify Payments together as their payment gateway.
Luckily, you will not be double charged for using them together but only pay the fees for that payment gateway that your customer choses at the checkout.