How much fee does PayPal charge for overseas money transfers?

How much fee does PayPal charge for overseas money transfer

If you are planning to do money transfer this holiday season then remember that PayPal Australia has introduced a new $6 fee for overseas money transfers and has increased its processing fee for credit card transactions.

PayPal Australia has made a number of changes to its financial services guide, including adding a new $5.99 fee for overseas personal money transfers to a “friend and family member”.

If all or part of that transfer is covered by a credit or debit card, Aussies will also cop a 2.6% fee, plus a currency conversion fee. Before the updated terms, this fee was 2.4%. It’s important to note that the new fees are incurred by Australian account holders sending money out of the country that doesn’t involve international commercial transactions.

Also while it might be meant for sending your family some dosh when needed, it should be noted that some sellers request a “personal transaction” as opposed to a “goods and services” settlement when making a purchase.

Commercial transactions, however, will not incur any fees if there is no currency conversion required. So as long as you pay in Aussie dollar, you won’t be paying extra fees for buying something.

Fees for Commercial and Personal Transaction

PayPal Fees for personal and commercial transaction Australia

Fees for transactions depend on whether you are making a Commercial Transaction or Personal Transaction.

Personal Transaction fees are based on the Payment Method used to fund the transaction. A currency conversion may apply if sending a foreign currency.

If you are an Australian account holder sending money to a friend or family member with a PayPal account in Australia, you may pay a fee depending on how you pay.

Payment Method Fees
PayPal balance or Australian bank account Free
Any portion funded by a Credit Card or Debit Card 2.6% of the portion funded +
fixed fee based on the currency

If you are an Australian account holder sending money to a friend or family member with a PayPal account in a country other than Australia, the fee you pay depends on the Payment Method used.

Payment Method  Fees
PayPal balance or Australian bank account $5.99 AUD
Any portion funded by a Credit Card or Debit Card $5.99 AUD+
2.6% of the portion funded +
fixed fee based on the currency

If you are sending commercial transactions and no currency conversion is involved, there is no fee for sending Commercial Transactions (i.e., buying something).

Fees for receiving Commercial Transactions are taken from the total transaction amount and that involves online and invoicing transactions, website payments pro hosted solution and API as well as Virtual terminals.

Fixed fees for PayPal Transactions

Fixed fees are based on the currency received and transaction type.

Currency received Personal Transaction fixed fee Commercial Transaction fixed fee Micropayments fixed fee
Argentine Peso 2 ARS 2 ARS Not applicable
Australian Dollar $0.30 AUD $0.30 AUD $0.05 AUD
Brazilian Real Not applicable 0.60 BRL 0.10 BRL
Canadian Dollar $0.30 CAD $0.30 CAD $0.05 CAD
Czech Koruna 10 CZK 10 CZK 1.67 CZK
Danish Krone 2.60 DKK 2.60 DKK 0.43 DKK
Euro €0.35 EUR €0.35 EUR €0.05 EUR
Hong Kong Dollar $2.35 HKD $2.35 HKD $0.39 HKD
Hungarian Forint 90 HUF 90 HUF 15 HUF
Israeli Shekel 1.20 ILS 1.20 ILS 0.20 ILS
Japanese Yen ¥40 JPY ¥40 JPY ¥7 JPY
Mexican Peso $4 MXN $4 MXN $0.55 MXN
New Zealand Dollar $0.45 NZD $0.45 NZD $0.08 NZD
Norwegian Krone 2.80 NOK 2.80 NOK 0.47 NOK
Philippine Peso 15 PHP 15 PHP 2.5 PHP
Polish Zlotych 1.35 PLN 1.35 PLN 0.23 PLN
Russian Ruble 10 RUB 10 RUB 2 RUB
Singapore Dollar $0.50 SGD $0.50 SGD $0.08 SGD
Swedish Krona 3.25 SEK 3.25 SEK 0.54 SEK
Swiss Franc 0.55 CHF 0.55 CHF 0.09 CHF
Taiwan New Dollar 10 TWD 10 TWD 2 TWD
Thai Baht 11 THB 11 THB 1.8 THB
UK Pounds Sterling £0.20 GBP £0.20 GBP £0.05 GBP
US Dollar $0.30 USD $0.30 USD $0.05 USD

Currency conversions fee

Where a currency conversion is required, it will be completed at the transaction exchange rate that paypal has set for the relevant currency exchange. The transaction exchange rate is adjusted regularly and includes a currency conversion fee applied and retained by Paypal on a base exchange rate to form the rate applicable to your conversion.  The base exchange rate is based on rates within the wholesale currency markets on the conversion day or the prior business day; or, if required by law or regulation, set at the relevant government reference rate(s).

Currency conversion Currency conversion fee
Converting within your PayPal account and not as part of a payment 2.5%
Converting to US Dollars or Canadian Dollars 3.5%
Converting to all other currencies 4%

Chargeback fees

Chargeback fees are based on the currency received. Chargeback fees do not apply if the transaction is eligible for the PayPal Seller Protection Policy.

Currency Chargeback fee Currency Chargeback fee
Argentine Peso 30 ARS New Zealand Dollar $15 NZD
Australian Dollar $15 AUD Norwegian Krone 65 NOK
Brazilian Real 20 BRL Philippine Peso 500 PHP
Canadian Dollar $15 CAD Polish Zlotych 30 PLN
Czech Koruna 250 CZK Russian Ruble 320 RUB
Danish Krone 60 DKK Singapore Dollar $15 SGD
Euro €11.25 EUR Swedish Krona 80 SEK
Hong Kong Dollar $75 HKD Swiss Franc 10 CHF
Hungarian Forint 2000 HUF Taiwan New Dollar 330 TWD
Israeli Shekel 40 ILS Thai Baht 360 THB
Japanese Yen ¥1,300 JPY UK Pounds Sterling £7 GBP
Mexican Peso $110 MXN US Dollar $10 USD

PayPal also has recently attempted to boost its street credit among young, ‘digital-savvy’ Australians with a new campaign by Isobar. The online payment service launched a mobile-first campaign ‘Pay the Easy Way’ in a bid to school “time-poor and spoilt-for-choice” young people in how the Paypal app makes spending quicker. As part of an effort to promote the payment method’s usage beyond just e-commerce, the campaign show shoppers using Paypal for Flight Centre, Spotify and Uber. Pay the Easy Way connects Australian consumers to the ease and convenience of PayPal in other areas of their online experience – which is a lot broader than buying a new dress or pair of shoes.

For more details on PayPal fees visit here.

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