Who pays PayPal fees: buyer or seller?
For most freelance and business payments, PayPal deducts the transaction fee from the seller or recipient. The client may still see currency conversion or card costs depending on how they pay.
Common PayPal fee situations
| Situation | Who usually pays? | What to do |
|---|---|---|
| Freelancer sends a PayPal invoice | Freelancer receives the net amount after fees | Use the reverse fee calculator before quoting. |
| Client pays in another currency | Recipient may pay transaction fee; payer or recipient may face conversion spread | Agree on invoice currency before payment. |
| Marketplace payout | Marketplace rules decide the fee flow | Read the platform fee page and compare Payoneer or bank transfer if available. |
| Friends and family style payment | Rules vary by funding source and country | Do not use personal payment types for business invoices. |
| Large recurring client | Negotiable through pricing | Offer bank transfer, Wise or Payoneer before PayPal. |
Can you ask the client to cover PayPal fees?
You can usually set your price to cover business costs, including payment processing. A safer wording is to quote the total project price upfront instead of adding a surprise fee after the client agrees.
Before adding a separate surcharge, check the rules for your platform, your PayPal account type and local consumer or card surcharge laws. For recurring work, a cleaner approach is to offer two prices: a standard invoice price and a lower bank-transfer price.
Example wording
The project price is $1,050 through PayPal to cover processor costs, or $1,000 by bank transfer/Wise. Both options include the same deliverables and invoice record.
How to calculate the invoice amount
- Choose the net amount you need to receive.
- Enter the PayPal percentage fee and fixed fee.
- Use the gross amount as the invoice price.
- Show the client the payment options before they approve the project.
How much to charge to cover PayPal fees