What is seller transaction fee?

The seller transaction fee on PayPal refers to the charge applied to sellers when they receive payments for goods or services through the platform. Here’s a breakdown of what you need to know about these fees:

What is the Seller Transaction Fee?

1. Definition
   • The seller transaction fee is a percentage of the total payment amount, plus a fixed fee, that PayPal deducts from each payment received. This fee is charged to the seller for using PayPal’s services to process transactions.
2. Purpose
   • These fees help cover the costs associated with maintaining the PayPal platform, ensuring secure transactions, and providing customer support.

How Are Seller Transaction Fees Calculated?

1. Percentage and Fixed Fee
   • The seller transaction fee typically consists of a percentage of the transaction amount plus a fixed fee based on the currency received. For example, in the U.S., the standard fee is usually around 2.9% plus $0.30 per transaction.
   • Rates may vary depending on the seller’s transaction volume, location, and whether the transaction is domestic or international.
2. Example Calculation
   • If you receive a payment of $100, the fee would be calculated as follows:
     • 2.9% of $100 = $2.90
     • Plus a fixed fee of $0.30
     • Total fee = $2.90 + $0.30 = $3.20
   • Therefore, you would receive $96.80 after the transaction fee.

When Are Fees Charged?

• Every Transaction
  • Seller transaction fees apply to each transaction where money is received through PayPal, whether for goods, services, or donations.

Additional Considerations

1. Currency Conversion Fees
   • If you receive payments in a different currency, PayPal may also charge currency conversion fees.
2. Business Accounts vs. Personal Accounts
   • Fees may differ for personal and business accounts. Business accounts may have access to lower rates based on transaction volume.
3. Refunds
   • If you issue a refund to a buyer, PayPal does not return the transaction fees, which means you may lose the fee amount even if the sale is canceled.