PayPal Goods & Services (G&S) costs 3.49% + $0.49 USD per transaction for domestic payments, and 4.99% + $0.49 USD for cross-border payments. That's the current rate on PayPal's official Merchant Fees page as of this writing. Friends & Family (F&F) is different: domestic transfers funded by balance, bank account, or Amex Send are free, while card-funded F&F costs 2.90% plus a fixed fee, and international F&F runs a flat 5.00% (min $0.99, max $4.99).
Both move money through PayPal, but they exist for different purposes and carry very different protections. Here's how they actually compare.
G&S is built for commercial transactions. It gives buyers PayPal Purchase Protection and gives sellers a documented, trackable payment. F&F is built for personal transfers between people who already know each other, like splitting rent or paying back a friend. It carries no buyer or seller protection.
Feature | Goods & Services | Friends & Family |
Fee (domestic) | 3.49% + $0.49 | Free (balance/bank/Amex Send); 2.90% + fixed fee (card) |
Fee (international) | 4.99% + $0.49 | 5.00% (min $0.99, max $4.99) |
Buyer protection | Yes, PayPal Purchase Protection | None |
Seller protection | Yes, PayPal Seller Protection | None |
Intended use | Buying/selling goods or services | Personal transfers between people who know each other |
Receiving fee | Included in above | Free unless currency conversion applies |
These are PayPal's published rates for online commercial transactions. Card-present and other transaction types have their own schedules on PayPal's site.
Transaction Type | Fee | |
G&S, domestic (US to US) | 3.49% + $0.49 | |
G&S, international (cross-border) | 4.99% + $0.49 (domestic rate + 1.50%) | |
F&F, domestic, balance/bank/Amex Send | No fee | |
F&F, domestic, debit/credit card | 2.90% + fixed fee | |
F&F, international, any method | 5.00%, min $0.99, max $4.99 | |
F&F, receiving | No fee (unless currency conversion involved) |
Rates verified August 2026. PayPal changes its fee schedule periodically. Confirm current rates at paypal.com/us/webapps/mpp/merchant-fees before making pricing or accounting decisions, and check paypal.com/us/webapps/mpp/paypal-fees for the personal/F&F schedule.
Say a client pays you $500 domestically through Goods & Services. The fee is 3.49% of $500 ($17.45) plus $0.49, for a total fee of $17.94. You net $482.06. This is an illustrative example only — always calculate from PayPal's live rates for your actual transaction.
Some sellers ask buyers to send payment as F&F to dodge the G&S fee. This violates PayPal's terms of service for exactly that reason: F&F isn't meant for commercial activity. Doing it forfeits Purchase Protection for the buyer and Seller Protection for you. If the item never arrives, or a buyer disputes a charge, neither side has recourse. The fee you saved is small next to the risk of an unrecoverable loss or an account review.
Use Goods & Services whenever money changes hands for a product, service, freelance work, or anything a buyer might dispute later. Use Friends & Family only for genuine personal transfers, like paying back a friend for dinner. If you're unsure which side of that line you're on, default to G&S. The fee buys protection that F&F simply doesn't offer.
Once you know what PayPal takes off the top, the next problem is making sure that fee actually shows up in your books. If it doesn't, your QuickBooks revenue overstates what you really earned and your reported margin looks better than it is.
PayTraQer syncs PayPal payments into QuickBooks (or Xero) as Sales Receipts, with the PayPal fee automatically posted as a separate Expense line. It also syncs refunds, payouts as Bank Transfers, and the fee breakdown for each transaction. It does not auto-reconcile your accounts; you still match and reconcile the synced transactions in QuickBooks yourself.
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Does the buyer or the seller pay the PayPal G&S fee?
The seller pays it. PayPal deducts the fee from the amount received, so the buyer's payment is unaffected. Some sellers build the fee into their pricing to offset this.
Can I pass the G&S fee on to the buyer?
PayPal doesn't prohibit charging more to cover fees in most contexts, but it isn't automatic. You'd need to add a surcharge or adjust your price manually; PayPal doesn't split the fee between buyer and seller.
Do fees differ between PayPal Checkout and manual invoicing?
Both use the same underlying Goods & Services rate structure. What can differ is whether currency conversion or a different payment method (like a card) applies, which changes the effective total.
Is there a way to avoid the G&S fee entirely for a legitimate sale?
Not through PayPal. The fee is how PayPal funds Purchase and Seller Protection for that transaction. Alternative payment methods have their own fee structures.
What happens if I get a chargeback on a G&S payment?
PayPal's dispute process applies, and Seller Protection may cover you if you meet its requirements (proof of shipment, matching address, etc.). F&F payments have no equivalent protection or dispute path.
Why did my fee amount look different from the percentage I expected?
The fixed $0.49 (or fee-currency equivalent) is added on top of the percentage, and international transactions add the 1.50% cross-border fee. Currency conversion, if applicable, adds its own cost.
Does PayPal ever change these rates?
Yes, periodically. Always check paypal.com/us/webapps/mpp/merchant-fees for the current schedule before relying on a specific number for pricing or bookkeeping.
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