PayPal Fees UK: Business Rates and Examples for 2026
By Saurabh Pandey · Updated · 3 min read
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PayPal is still one of the most trusted ways for UK buyers to pay online, but PayPal fees in the UK add up quickly, especially on small payments and payments from abroad. This guide explains every PayPal fee a UK business pays to receive money for goods and services in 2026, with worked examples in pounds.
PayPal's UK fees at a glance
| Payment type | Fee |
|---|---|
| Standard rate (sales under £4,000 a month) | 2.9% + £0.30 |
| Merchant rate (£4,000–£8,000 in the previous month) | 2.4% + £0.30 |
| Merchant rate (over £8,000 in the previous month) | 2.1% + £0.30 |
| Buy Now Pay Later | 3.9% + £0.30 |
| Extra for buyers in the EEA | +1.29% |
| Extra for buyers everywhere else | +1.99% |
The £0.30 fixed fee applies to payments in pounds sterling; other currencies have their own fixed fees. The live table with the date we last checked it:
| Country | Payment type | Fee | Extra fees |
|---|---|---|---|
| United Kingdom | Standard rate (sales under £4,000 a month) | 2.9% + £0.30 | +1.29% Buyer in the EEA; +1.99% Buyer anywhere else |
| Merchant rate (£4,000–£8,000 last month) | 2.4% + £0.30 | ||
| Merchant rate (over £8,000 last month) | 2.1% + £0.30 | ||
| Buy Now Pay Later | 3.9% + £0.30 | ||
| Card payment without a PayPal account | 1.2% + £0.30 |
United Kingdom: Fixed fee for pound sterling payments is £0.30. Merchant rates depend on your previous month's sales volume.
Last verified: . Official sources: PayPal UK merchant fees
Worked examples
A £50 payment from a UK buyer. 2.9% × £50 + £0.30 = £1.75. You receive £48.25 (the fee is 3.5% of the payment).
The same £50 from a buyer in France. Add 1.29%: the fee rises to £2.40 and you receive £47.61.
The same £50 from a buyer in the US. Add 1.99%: the fee is £2.75 and you receive £47.26.
A £10 payment. 2.9% × £10 + £0.30 = £0.59, which is 5.9% of the payment. The fixed fee makes small payments expensive.
With merchant rates. If you sold over £8,000 through PayPal last month, the £50 payment costs just £1.35 (2.7%).
Check any amount, in either direction:
PayPal Fee Calculator
Open full calculatorFee breakdown
Enter an amount to see PayPal's fee.
How to receive an exact amount
If you invoice a client and need to receive exactly £200 after fees, simply adding 2.9% is not enough, because the fee is also charged on the extra you add. Use this formula:
Amount to charge = (amount you want + £0.30) ÷ (1 − 0.029)
(£200 + £0.30) ÷ 0.971 = £206.28. PayPal takes £6.28 and you receive exactly £200. The PayPal calculator's "I want to receive" mode does this for you.
Merchant rates for higher volumes
PayPal's lower merchant rates depend on your previous month's sales through PayPal. At £4,000–£8,000 the rate drops to 2.4% + £0.30, and above £8,000 to 2.1% + £0.30. Check your account's fee settings to see which rate applies to you, as merchant rates may need to be applied for.
Currency conversion
If you receive a payment in another currency and convert it to pounds, PayPal applies a currency conversion margin on top of the exchange rate. To avoid it, you can hold balances in other currencies or invoice in pounds so the buyer handles the conversion.
PayPal vs card payments through Stripe
For card payments from UK buyers, Stripe's standard rate is 1.5% + 20p, much lower than PayPal's 2.9% + 30p. On a £50 payment that is £0.95 with Stripe versus £1.75 with PayPal. Many UK shops offer both: Stripe (or Shopify Payments) for cards and PayPal for buyers who prefer it. See Stripe vs PayPal fees for a full comparison.
Tips to pay less in PayPal fees
- Encourage bigger orders. The fixed £0.30 hurts most on small payments.
- Offer card payments through a cheaper processor alongside PayPal.
- Invoice in pounds and let international buyers handle conversion.
- Build fees into your prices, especially for international customers.
- Never ask for "friends and family" payments for sales. It breaks PayPal's rules and removes protection for you and the buyer.
The bottom line
Expect PayPal to take around 3.5% of a typical UK payment, more on small or international payments. Price with fees included, gross up your invoices when you need an exact amount, and check every figure with the PayPal fee calculator. For other countries, read PayPal fees explained.
Fees in this guide were checked against PayPal UK's merchant fees page in October 2026.
Frequently asked questions
How much does PayPal charge in the UK?
The standard rate for receiving payments for goods and services in the UK is 2.9% + £0.30 per transaction. Merchant rates of 2.4% and 2.1% (plus £0.30) apply at higher monthly volumes, and international payments cost an extra 1.29% to 1.99%.
How much is the PayPal fee on £100?
At the standard UK rate, 2.9% × £100 + £0.30 = £3.20, so you receive £96.80.
Does PayPal charge to receive money from abroad in the UK?
Yes. On top of the standard rate, PayPal adds 1.29% for payments from the EEA and 1.99% for payments from everywhere else.
Are PayPal fees tax-deductible in the UK?
PayPal fees on business sales are generally an allowable business expense. Keep your PayPal statements as records.