Selling or invoicing clients through PayPal UK? British domestic commercial rates, cross-border European fees, and currency conversion margins impact your net bank deposits in British Pounds (GBP).
PayPal UK operates under a tiered fee schedule governed by UK financial regulations. For domestic transactions within the United Kingdom where both sender and receiver use GBP, the standard merchant fee is 2.90% plus a fixed £0.30 fee per payment. However, for UK businesses selling internationally, PayPal applies geographic surcharges: transactions from the European Economic Area (EEA) incur an additional 1.29% fee, while transactions from the United States, Canada, Australia, and the rest of the world incur an extra 1.99% surcharge. In addition, when converting incoming foreign currencies (such as USD or EUR) into your UK GBP balance, PayPal applies a currency conversion spread of 3.00% to 4.00% above wholesale interbank rates. To receive a clean £500.00 net payout on a domestic transaction, your invoice must total £515.24 ((£500 + 0.30) / (1 - 0.029)).
PayPal Fee Calculator UK
Calculate exact PayPal merchant fees for domestic and international transactions, including reverse calculations to know how much to invoice.
PayPal Fee Parameters
Standard US domestic PayPal Checkout, Goods & Services, and Invoicing transactions.
Formula: Fee = Amount × 3.49% + $0.49 · Reverse Invoice = (Target + $0.49) ÷ (1 − 0.0349)
Rates checked on 2026-10-16 against PayPal US Merchant Fees.
If you invoice $100.00
To receive exactly $100.00 after processing fees
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