It depends on the type of payment, how it is funded, and whether it crosses borders. In the United States, an eligible domestic Friends and Family transfer funded by a PayPal balance or bank account has no PayPal sending fee listed for the sender. If it is funded by card, the sender pays a fee. For a Goods and Services purchase, the seller pays PayPal’s receiving transaction fee. The recipient generally pays no fee to receive a personal transfer when no currency conversion is involved.
First decide whether the payment is personal or for a purchase
PayPal distinguishes personal transfers from payments for goods and services. Friends and Family is intended for personal payments such as splitting a bill or sending a gift. Goods and Services is the payment type for buying something.
- Friends and Family: Fees, if any, usually depend on the sender’s funding method, the destination, and currency conversion. Personal payments are not covered by PayPal Purchase Protection.
- Goods and Services: The seller pays the receiving transaction fee. PayPal says eligible purchases may receive Purchase Protection; eligibility and terms apply.
Do not use Friends and Family to pay a seller. Choosing the purchase payment type matters for protection as well as fees. PayPal says a payment cannot simply be retagged after it is sent; if you chose the wrong type, contact PayPal support or the recipient, but do not assume the payment can be changed.
For US personal transfers, the sender’s funding method matters
PayPal’s US consumer fee schedule, last updated May 19, 2026, lists no fee for a domestic personal payment funded by a PayPal balance—including a PayPal Debit Card—or a bank account. For a card-funded domestic personal payment, it lists a fee of 2.90% plus a fixed fee. The fixed amount depends on the currency, so check the schedule and the amount PayPal displays before you send.
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PayPal defines a domestic transaction as one where both parties are registered with or identified by PayPal as residents of the same market. These are US schedule terms, not universal PayPal rates. A card issuer may also charge separately; for example, a credit-card issuer may treat a personal transfer as a cash advance.
International personal transfers can add a sender fee
On the cited US schedule, an international personal payment adds a 5% fee to the applicable domestic sending fee, subject to a $0.99 minimum and $4.99 maximum for that international addition. PayPal lists this international fee for balance or bank-funded payments, cards, and Amex Send. Currency conversion can add a separate cost, so the total may be higher than the international fee alone.
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The fee is charged under the US schedule when sending internationally. PayPal’s local schedules and available features differ, so someone using an account registered in another country should check that country’s terms rather than applying these US figures.
Does the recipient pay to receive money?
PayPal’s US fee schedule lists no fee for receiving a personal transaction when there is no currency conversion. That does not mean every transfer is free: the sender may owe a funding-method or international fee, and conversion can affect the total. A Goods and Services payment is different—the seller pays the receiving transaction fee.
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Check the fee before confirming
- Choose the correct payment type: Friends and Family for a personal transfer, or Goods and Services for a purchase.
- Enter the recipient and amount, then review the funding source and any currency conversion shown.
- Read the transaction review screen. PayPal says it discloses applicable personal-transfer fees before the sender completes the payment.
- If the payment is initiated through an outside service, check that service’s own fee disclosure too; it determines and discloses which side bears its fee.
Fees and eligibility can vary by market, account, payment method, currency, and transaction route. PayPal business accounts may have different receiving eligibility and commercial terms, so do not assume every account can receive Friends and Family payments.
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Official PayPal fee and payment details
- PayPal: What’s the difference between friends and family or goods and services payments?
- PayPal: How to Send Money with PayPal
- PayPal Consumer Fees (US schedule; last updated May 19, 2026)
- PayPal User Agreement
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