In the UK, PayPal charges sellers 2.9% plus a fixed 30p on most domestic sales, with an extra 1.29% or 1.99% when the buyer is abroad. Sending money to friends and family in the UK and withdrawing to a UK bank account are usually free, unless currency conversion is involved.
PayPal's UK fee pages are long because they cover every kind of business, from charities to card terminals. If you sell a few things online, take payments as a freelancer or send money to family, only a handful of lines matter. Here's the shortlist, in plain English and pounds.
PayPal UK fees that matter most
| What you're doing | PayPal UK fee |
|---|---|
| Receiving a payment for goods or services from a UK buyer | 2.9% + 0.30 GBP |
| Card payment from someone without a PayPal account | 1.2% + fixed fee |
| Buy Now Pay Later sale | 3.9% + fixed fee |
| Buyer in the EEA (extra) | +1.29% |
| Buyer elsewhere outside the UK (extra) | +1.99% |
| QR code sale of 10.01 GBP and above | 1.5% + 0.10 GBP |
| QR code sale of 10.00 GBP and below | 2% + 0.05 GBP |
| Withdraw to a UK bank account | Free if no currency conversion |
| Converting currency | 3% above the base exchange rate |
PayPal treats payments between the UK, Guernsey, Jersey and the Isle of Man as domestic for fees.
A worked example
Sell something for 100 pounds to a buyer in the UK and PayPal takes 2.9%, which is 2.90 pounds, plus 0.30 pounds, so 3.20 pounds in total. You receive 96.80 pounds. If the same buyer were in the EEA, add another 1.29%, which is 1.29 pounds, making the fee 4.49 pounds. These sums are mine, worked from PayPal's published percentages.
The fee that catches small sellers
The fixed 30p is what hurts on cheap items. On a 100 pound sale it's barely noticed, but on a 3 pound digital download it's a big chunk of the price. PayPal also has a separate micropayments rate of 5% plus a micropayments fixed fee for very small domestic payments. If most of your sales are tiny, it's worth checking which rate your account is on.
Tiered pricing for busier sellers
PayPal UK offers an optional tiered plan based on your eligible monthly sales:
| Monthly eligible volume | Rate |
|---|---|
| Up to 4,000.00 GBP | 2.9% + fixed fee |
| More than 4,000.00 GBP up to 8,000.00 GBP | 2.4% + fixed fee |
| More than 8,000.00 GBP | 2.1% + fixed fee |
It's on request, not automatic, so if you regularly sell more than 4,000 pounds a month, ask PayPal about it.
Sending money to friends and family
PayPal's UK consumer fee page lists no fee for sending or receiving domestic personal payments, as long as no currency conversion is involved. Sending a personal payment abroad costs 5% of the amount, with a minimum of 0.99 GBP and a maximum of 2.99 GBP, and if the money is converted, the 3% conversion spread applies on top.
Withdrawals
Taking your balance out to a UK bank account is free when no currency conversion is involved. Withdrawing to a US bank account costs 3.00%. If you hold dollars or euros in your PayPal balance, converting them to pounds first triggers the conversion spread, so think about which currency you price in.
How to keep PayPal fees down
- Price in pounds and sell to UK buyers where you can, so the cross-border fee doesn't apply.
- Avoid lots of tiny transactions; bundle small items so the 30p doesn't eat your margin.
- Ask about the tiered plan once your monthly sales pass 4,000 pounds.
- Don't hold balances in other currencies unless you'll spend them; conversion isn't free.
- Withdraw to a UK bank account, which is free when there's no conversion.
None of this is about squeezing PayPal. It's about knowing which decisions trigger which fee. Most sellers accept the 2.9%; it's the extras they haven't noticed that sting. If you sell to friends of friends who pay as goods and services, remember that's a commercial payment and the seller fee applies, even if it feels personal.
Disputes and chargebacks
PayPal lists separate chargeback and dispute fees on its UK page and says it may raise the percentage it charges if an account gets a disproportionately high number of complaints, reversals or chargebacks. Clear listings, quick shipping with tracking and good communication are the cheapest way to keep your rate low.
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My verdict
For UK sellers, PayPal costs about 3.2% on a typical 100 pound domestic sale and more on cross-border and small sales. Price that in, keep payments in pounds, and look at the tiered plan once you're selling regularly. To compare options, see Stripe vs PayPal, Wise vs Revolut and PayPal vs Venmo.
Frequently asked questions
What are PayPal fees in the UK for selling?
2.9% plus a fixed 0.30 GBP on most domestic commercial payments, plus 1.29% for EEA buyers or 1.99% for buyers elsewhere.
Is it free to send money to family on PayPal in the UK?
PayPal lists no fee for domestic personal payments when no currency conversion is involved. International personal payments cost 5%, with a minimum of 0.99 GBP and a maximum of 2.99 GBP.
Does PayPal charge to withdraw to a UK bank?
No, when there's no currency conversion. Withdrawing to a US bank account costs 3.00%.
Does PayPal UK offer lower fees for bigger sellers?
Yes, an optional tiered plan: 2.4% for monthly volume over 4,000 GBP up to 8,000 GBP, and 2.1% above 8,000 GBP, each plus the fixed fee.
How much does PayPal take from a 100 pound sale?
For a UK buyer, 2.9% plus 0.30 GBP, which is 3.20 pounds, so you receive 96.80 pounds. An EEA buyer adds 1.29%.
Are QR code payments cheaper on PayPal UK?
Yes. PayPal lists 1.5% plus 0.10 GBP for QR code sales of 10.01 GBP and above, and 2% plus 0.05 GBP for 10.00 GBP and below.
How much does PayPal charge to convert currency in the UK?
PayPal lists a 3% spread above the base exchange rate for personal currency conversion.
