How to calculate PayPal commission when sending money

How to calculate PayPal commission when sending money 2

PayPal has become the most widely used service to send and receive payments over the Internet. This platform has always placed a lot of emphasis on shopper safety, something that has been key to its becoming so popular. What some users may not know is that PayPal applies a commission system when sending and receiving money. In this article we explain in a very simple way how you can know the commission that will be applied to your PayPal operations.

In this case we are going to use a free service called PayPal Commission Calculator . It is a very simple application to use, which will help us to know in advance the commission that will be applied to our operation in PayPal, either to send money or to receive it.

Knowing the PayPal commission has several advantages. In the event that we are going to receive a payment, we can know in advance the amount that PayPal will charge us for the operation of our payment . In this way, we can decide if we want to charge the amount of the commission to the buyer or if we are willing to "lose" this amount of money.

On the other hand, if we are the ones who are going to make a payment on the Internet through PayPal, knowing the amount of the commission will allow us to know how much the total amount that we will have to pay will increase.

How PayPal Commission Calculator works

PayPal Commission Calculator is a web application that stands out for its simplicity and ease of use. As soon as we enter, we can see that the page states that PayPal charges us a commission of 5.4% plus $ 0.30 for each transaction.

At this point, we highlight that the application only works in dollars , so if we want to know the amounts in euros we will have to use an external converter.

If we scroll the page slightly down, we will see the options offered by the application both to receive and to send the money. In the event that we want to receive the money, we will have to put the net amount that we want to receive , with this the application will tell us both the commission and the total amount of money that we must ask the payer.

How to calculate PayPal commission when sending money 1

In the event that we are going to be the payers, we can place the amount requested by the seller , to which the application will add the PayPal commission to give us the total amount that the seller will receive.

Important facts about PayPal

If you have never used PayPal before, you may be wondering if it is a good idea to use this service to make your payments or collections over the Internet. Here we summarize some features of PayPal that you should take into account when using this service.

PayPal's security policies that are more focused on protecting the buyer than the seller . This means that if you are going to receive a payment through this platform, the buyer will have a much better chance of being victorious than you in a claim.

how-to-calculate-paypal-commission-when-sending-money-3

PayPal allows payments to be made both using the bank account and the credit card . In case you want to use the bank account, you will have to go through a small verification process. This process consists of two small amounts of money that PayPal will enter into your checking account, to complete the verification of your account, you will only have to enter the amounts received.

How to calculate PayPal commission when sending money 4

Despite not being a bank, PayPal is governed by the statutes and laws of the United States Department of the Treasury and the Financial Services Authority of the European Union .

PayPal allows payments to be made internationally , regardless of the currency used in each country. If the currencies are different, your system will take care of the conversion automatically so you don't have to worry about anything. A small commission may apply.