What a paid PayPal invoice costs
Sending the invoice is free. When it’s paid, PayPal charges by payment method:
- PayPal or Venmo: 3.49% + $0.49.
- Card or Apple Pay: 2.99% + $0.49.
- Pay Later: 4.99% + $0.49.
- Bank (ACH): 1%, at most $10.
A client outside the US adds 1.50% (PayPal Merchant Fees).
| A $1,000 invoice paid by… | Fees | Fee rate | You keep |
|---|---|---|---|
| PayPal or Venmo | $35.39 | 3.54% | $964.61 |
| Card or Apple Pay | $30.39 | 3.04% | $969.61 |
| Pay Later | $50.39 | 5.04% | $949.61 |
| Bank (ACH) | $10.00 | 1.00% | $990.00 |
PayPal Invoice Fees by How Your Client Pays
The gap between methods is the whole story. On small invoices it barely matters; on big ones it’s the difference between $10 and $100+. A $3,000 invoice costs $105.19 through a PayPal balance but $10 by bank, because the bank fee stops at $10.
Our rule for freelancers: always enable bank payment on invoices over $1,000, and say so in the invoice note. Most business clients are happy to pay by bank.
A worked example: a $250 invoice
A $250 invoice paid by card costs $7.97 (2.99% + $0.49), so you receive $242.03. Paid from a PayPal balance it costs $9.22; paid by bank it’s $2.50. On small invoices the method barely matters, but the habit of offering bank payment pays off on larger ones.
When the fee is charged. PayPal takes it when the invoice is paid, not when you send it, and it comes out of the payment before it reaches your balance. If you need to recover the fee from a client, it’s cleaner to build it into your rate than to add a separate “PayPal fee” line, which some clients dispute (PayPal Merchant Fees).
| Fee | Amount | Charged on | When |
|---|---|---|---|
| Invoice paid with PayPal or Venmo | 3.49% + $0.49 | Invoice amount | Every salesource |
| Invoice paid with Card or Apple Pay | 2.99% + $0.49 | Invoice amount | Every salesource |
| Invoice paid with Pay Later | 4.99% + $0.49 | Invoice amount | Every salesource |
| Invoice paid with Bank (ACH) | 1%, at most $10 | Invoice amount | Every salesource |
Other ways to invoice
If you invoice regularly, compare QuickBooks Payments (2.99% by card, 1% by bank, no fixed fee), Stripe and Square invoices. For one-off sales paid through a PayPal button instead of an invoice, the goods and services fee calculator applies.
