Navigating PayPal fees in the UK can be complex, with different charges depending on whether you are a personal or business user, the type of transaction, and if currency conversion is involved. This guide breaks down all relevant PayPal fees for UK residents, including domestic and international transfers, business-specific charges, withdrawal costs, and effective ways to minimise what you pay. Use the anchor links below for quick access to specific topics.
- Personal PayPal Fees UK
- PayPal Business Fees UK
- International & Currency Conversion Fees
- Withdrawal Fees and Limits
- How to Avoid PayPal Fees in the UK
- FAQ: PayPal Fees UK
Personal PayPal Fees UK
For UK users making everyday transactions such as buying online or sending money to friends, PayPal is often free—provided no currency conversion is required. However, certain activities may incur costs.
- Buying with PayPal (UK merchants): Free
- Sending money to friends & family (UK): Free, unless funded by credit card (fee applies)
- Receiving money from UK friends/family: Free
- Receiving money for goods/services: Seller/recipient pays a business fee (see next section)
- Currency conversion: 3% fee above base exchange rate
- Withdrawing to UK bank/card: Free (no conversion). US bank: 3%
- Bank return on withdrawal: £0.50
- Inactive account: £9.00 per year if no activity for 12+ months
| Activity | Fee (GBP, UK Accounts) |
|---|---|
| Send to Friends & Family (GBP, UK) | Free* |
| Receive from Friends & Family (GBP, UK) | Free |
| Currency Conversion (Personal/Business) | 3% above base rate |
| Withdraw to UK Bank/Card | Free |
| Withdraw to US Bank | 3% |
| Inactive Account Fee | £9.00/year |
*Fee applies if funded by credit/debit card: 2.9% + fixed fee
For more on personal account setup and use, see our step-by-step PayPal UK guide.
PayPal Business Fees UK
Businesses and sellers pay PayPal fees when receiving commercial payments, whether for e-commerce, freelance work, or selling items. Charges depend on the payment method, transaction location, and service used.
| Type | Standard Fee (GBP, UK business accounts) |
|---|---|
| Card-funded payments (via guest checkout) | 1.2% + £0.30 |
| Alternative Payment Methods (APMs) (e.g., Apple Pay) | 1.2% + £0.30 |
| All other commercial transactions (standard PayPal payment) | 2.9% + £0.30 |
| QR code payments (£10.01+) | 1.5% + £0.10 |
| QR code payments (£10.00 or less) | 2% + £0.05 |
| Charity transactions (with charity status) | 1.4% + £0.20 |
| Domestic donations (button/checkout) | 2.9% + £0.30 |
Online card payment services, payout bulk payments, micropayments (for under £5), and other specialised products have their own rates. See the full and most current breakdown on the official PayPal UK business fees page.
If you use PayPal as a payment option at an online casino, see our guide to PayPal casino withdrawals and deposits for specifics around gambling-related transactions.
International & Currency Conversion Fees
When either the sender or recipient is outside the UK, or the transaction involves currency conversion, extra fees apply.
- International personal transfer (outside UK): 5% of the amount sent (min £0.99, max £2.99)
- Receiving an international business payment: Domestic fee (1.2–2.9% + £0.30) plus an additional fee:
- EEA sender: +1.29%
- Other markets: +1.99%
- Currency conversion (all accounts): 3% above the base exchange rate
| Transaction Type | Extra Fee |
|---|---|
| International business payment (EEA sender) | +1.29% of amount |
| International business payment (Rest of World) | +1.99% of amount |
| Currency conversion | 3% above base rate |
To calculate expected international costs, try the PayPal fee calculator. For detailed savings tactics, see this UK-specific guide.
Withdrawal Fees and Limits
UK PayPal users, both personal and business, usually withdraw to a linked UK bank account or eligible debit card without incurring a fee (when no conversion is needed).
| Withdrawal Method | Fee |
|---|---|
| UK bank account / eligible card | Free |
| US bank account | 3% |
| Other currency conversion | 3% above base rate |
Fees also apply for failed withdrawals (£0.50 in the UK), and PayPal may introduce inactivity fees if your account goes unused for 12 months or more. For businesses using the PayPal Business Debit Mastercard, ATM withdrawals cost £1 per transaction (plus any ATM provider charge).
Full withdrawal terms and the latest updates are available on the PayPal UK merchant fees page.
How to Avoid PayPal Fees in the UK
While some fees are unavoidable, there are strategies that help reduce or eliminate PayPal fees:
- Send money in GBP within the UK via ‘friends and family’: Avoids most transfer charges (ensure no currency conversion or card funding).
- Withdraw in GBP to a UK bank account: Free for personal and business users.
- Avoid currency conversion: If possible, keep your transaction in one currency.
- Use a business account for commercial activity: Access to lower rates for charities or micropayments (subject to approval).
- Consolidate withdrawals/transactions: To minimise the frequency of small fees.
For more on optimising PayPal usage for businesses, see our small business PayPal guide. For alternative low-fee payment options, consider reviewing PayPal alternatives in the UK.
FAQ: PayPal Fees UK
What is PayPal’s standard fee for UK business payments?
The standard fee for receiving commercial payments in the UK is 2.9% + £0.30 per transaction. Card-funded and alternative payment method transactions may be charged 1.2% + £0.30. Special rates may apply for charities, QR codes, or micropayments. See full details on the official fee schedule.
Are personal PayPal transfers in the UK really free?
Sending and receiving money between friends and family in GBP using a UK PayPal account is free, as long as you do not fund the payment by credit or debit card or require a currency conversion. Card-funded personal transfers incur a 2.9% + fixed fee.
How are currency conversions calculated on PayPal?
If PayPal converts currency on your behalf, a 3% fee is added above the base exchange rate. The applicable rate is shown at the time of transaction, and you can use PayPal’s currency converter tool for an estimate.
What happens if I refund a customer?
Refunding a customer does not incur any new PayPal fee, but the original PayPal processing fee is not returned to the seller. This applies to both full and partial refunds.
Where can I see the most current PayPal fee changes?
You should check PayPal’s policy updates page and the business fees page for the latest changes and upcoming rates.
Understanding PayPal fees is essential for UK users and businesses seeking to manage costs and select the right payment solution. For further reading on security and scam prevention, see our PayPal Security Guide. For information on buyer and seller protection, visit our protection guide.
