PayPal Fees in the UK (2026): The Real GBP Cost

By the Profitvana Editorial Team · Updated August 2026

PayPal UK charges 2.9% + £0.30 on domestic sales, with two different cross-border surcharges — 1.29% for EEA buyers and 1.99% for everyone else — plus a 3% currency-conversion spread. Here is what UK sellers and freelancers actually pay in 2026.

Domestic sales: 2.9% + £0.30

A UK buyer paying a UK seller costs 2.9% + £0.30. On a £100 sale that is £3.20, leaving you £96.80.

For comparison, Stripe's UK domestic card rate is roughly half PayPal's percentage. PayPal's premium buys the familiar checkout button and balance-funded payments.

Cross-border: two tiers since Brexit

Payments from EEA countries add 1.29% (4.19% + £0.30 total). Payments from everywhere else — including the US — add 1.99% (4.89% + £0.30 total).

A £500 payment from a US client therefore costs £24.75 in transaction fees alone, before any currency conversion.

Currency conversion: 3% above the base rate

When PayPal converts USD or EUR income to GBP, it applies a 3% spread above its base exchange rate, on top of the transaction fee. On regular international income this quietly becomes the biggest cost layer.

Fixes: invoice in GBP so the client's side converts, hold the foreign balance, or route repeat international income through Wise (typically ~0.3–0.6% conversion).

Micropayments: for sub-£5 sales

UK sellers of low-priced digital items can apply for PayPal's micropayments rate: 5% + £0.05 domestic. On a £3 sale that is £0.20 instead of £0.39 — nearly half. It needs pre-approval from PayPal and suits accounts where most sales are small.

What a US$1,000 client payment really costs

Transaction fee at the non-EEA rate: 4.89% + fixed ≈ US$49.20. Conversion to GBP at 3%: ≈ US$28.50. Total ≈ US$78 — about 7.8% of the invoice.

Price it in: use the PayPal fee calculator reverse mode to work out what to invoice so you net your target after both layers.

Frequently asked questions

How much does PayPal charge UK sellers?

2.9% + £0.30 for domestic goods-and-services payments, 4.19% + £0.30 from EEA buyers, 4.89% + £0.30 from the rest of the world, plus a 3% currency-conversion spread when PayPal converts to GBP.

How much does PayPal take from a £100 sale in the UK?

£3.20 for a domestic sale (you keep £96.80). From an EEA buyer it is £4.49; from a US buyer £5.19 — before any currency conversion.

Is PayPal or Stripe cheaper in the UK?

Stripe is cheaper per domestic transaction — its UK card rate is roughly half PayPal's 2.9%. PayPal often converts better with consumer buyers who already have accounts; many UK sellers offer both.

PayPal fees in other countries

PayPal prices every market differently — the same sale can cost twice as much depending on where your business is registered. We verify each of these against PayPal’s own published fee page for that country:

Sources

PayPal UK — Merchant fees