PayPal Fees for Australia: A Full Guide 2026
PayPal is a huge global online shopping and digital payment provider, with a presence in almost every country in the world.
Thanks to its convenience, many people use it when making purchases abroad, transferring money overseas, or receiving payments from other countries.
However, PayPal’s handling fees can be more significant compared to other providers. If you want to manage the cost of spending and sending money overseas, there are other alternatives such as Wise or OFX, that can offer transparent fees.
In this article we’ll explain everything you need to know about PayPal fees, how they compare to alternative providers, and we’ll share some useful tips to help you avoid some of the fees that PayPal charges.
Does PayPal charge fees?
- Domestic transfers: You can send AUD to other Australian accounts without a fee if you fund the payment using your PayPal balance or a linked bank account.
- International payments: Sending money overseas typically incurs a 5% transaction fee, which is capped at 5.99 AUD.
- Currency conversion: PayPal usually adds a markup of 3% to 4% to the exchange rate when you shop internationally or send payments in a foreign currency.
- Merchant costs: If you are selling goods or services, standard domestic commercial transactions cost 2.90% + a 0.30 AUD fixed fee.
- Card payments: Using a credit or debit card for transfers generally results in additional funding fees compared to using a bank account.
PayPal fees: an overview
If you’re spending online or in person with a retailer based here in Australia there’s no fee as long as no currency conversion is needed.
If you’re sending a payment domestically in AUD, there are also options available to let you avoid PayPal fees entirely. Simply pay with your PayPal balance, or a linked bank account for a fee free PayPal domestic transfer. Fees do creep in if you’re using a card to make your AUD payment – in this case you’ll pay 2.6% + a fixed fee based on the currency involved (0.30 AUD if you’re sending locally).
Where PayPal fees become unavoidable is when you’re converting currencies or moving money across borders. Here’s what you’ll pay in this case:
| Payment type/fee | Send a personal PayPal payment overseas | Shop online internationally |
|---|---|---|
| Cross-border transaction fee |
|
No fee (unless it involves currency conversion) |
| Exchange rate | 3% – 4% | 3% – 4% |
*Information correct at time of writing – 19th March 2026
The exact charges you pay when using PayPal may vary depending on how your account is set up, and your location. Check your account terms and conditions to learn more before you get started.
Once you add up all the PayPal fees that apply to your international transaction, you may be surprised by how much it pushes up your overall costs. We’ll dive into this a little more later – and look at a comparison with alternative providers like Wise and OFX, which may present a cheaper alternative for your payment.
Writer’s tip: Managing PayPal fees for Australia
To manage PayPal fees for Australia when shopping internationally, try paying in the recipient’s local currency rather than AUD. By doing this, you may be able to utilise a better exchange rate from a linked card or a provider like Wise, avoiding PayPal’s currency conversion markup of up to 4.00%.
PayPal currency conversion fee
PayPal adds a 3% – 4% markup fee to the conversion rate used to switch your dollars to the currency you need whenever you send a payment overseas, convert currencies in your account or shop with an international retailer.
What this means is that PayPal takes the wholesale or mid-market exchange rates, and adds this markup to calculate the rate used for your transaction. This makes it difficult for users to see the full costs of the transfer, whether these are charged to their own bank account or to that of the beneficiary.
You can check the PayPal exchange rate of the day by following these steps:
- Go to “Wallet”
- Open the menu to the right of any currency balance and select “Convert Currency”
- Select the desired currency and click “Next”
- Enter the remittance amount to check the exchange rate
Compare PayPal exchange rate here.
PayPal transaction fees
The transaction fee applies when you sell products and services in-store or online.
There are different rates for each type of transaction. You might also hear this fee described as a payment processing fee, or seller fee. The exact fees you pay will depend on whether the transaction is considered domestic or international, and the payment method.
There are lots of different ways to get paid as a seller with PayPal, so you’ll need to check out the full details online if you’re looking to compare all the alternatives – but here are the standard PayPal transaction fees for some of the most popular types of payment method:
| Payment type | Domestic | International |
|---|---|---|
| Commercial transactions | 2.90% + fixed fee (0.30 AUD | 3.90% + fixed fee |
| QR code transactions | 1.20% | 2.20% |
| Donations | 2.90% + fixed fee (0.30 AUD) | 3.90% + fixed fee |
*Information correct at time of writing – 19th March 2026
PayPal withdrawal fees
Once you have money in your PayPal account you may want to withdraw it to your linked bank account or card. There may be a fee for this service, depending on exactly how you want to process the withdrawal. Here are the PayPal Australia withdrawal fees for consumer and merchant accounts:
| Withdrawal type | PayPal fees |
|---|---|
| Standard withdrawal to bank account |
|
| Withdraw to a linked card |
|
| Currency conversion fee |
|
*Information correct at time of writing – 19th March 2026
PayPal fees: a comparison
Choosing an international payment specialist like PayPal may cost less than sending money using your bank. However, some providers might offer more competitive fees and rates.
Let’s look at how a few different payments from PayPal compare to other well-established providers in the market: Wise and OFX.
| Payment/provider | With PayPal recipient gets: | With Wise recipient gets: | With OFX recipient gets: | Recipient gets most with: |
|---|---|---|---|---|
| 1,000 AUD to GBP | 513.07 GBP | 524.92 GBP | 515.10 GBP | Wise |
| 5,000 AUD to GBP | 2,565.34 GBP | 2,626.36 GBP | 2,588 GBP | Wise |
| 1,000 AUD to EUR | 594.26 EUR | 608.87 EUR | 596.18 EUR | Wise |
| 5,000 AUD to EUR | 2,971.29 EUR | 3046.37 EUR | 2,999 EUR | Wise |
Fees and rates correct at time of writing – 19th March 2026
What customers are saying:
To give you a better idea of how these providers perform in the real world, here is what some users have shared about their experiences:
Wise: “They deliver a great service with a low fee. I have been using their service for the last seven years and I am very satisfied.” — P. Taylor*
OFX: “I’ve used OFX numerous times to transfer money to individuals overseas. The transfer was easy, quick and the exchange rate was good. It’s nice to trust a company with large amounts of money going to someone unknown, not to mention the excellent fee.” — R. Richards*
PayPal: “The service payment charge is higher than others. Not as reliable for small transfers because of its high fee.” — T. Parker*
*(Customer name changed for privacy. The customer was not paid to share a review. Review taken from Trustpilot in March 2026).
As you can see in our comparison, Wise and OFX are both competitive options to send money abroad compared to PayPal.
Specialist services like these also tend to offer their own specific competitive advantages. For example, Wise also has a multi-currency account and the Wise card which you can use to hold and exchange 40+ currencies with the mid-market exchange rate, and spend in 150+ countries around the world. OFX on the other hand offers currency risk management solutions to individuals and businesses with a 24/7 phone service when you need support or advice.
How to avoid PayPal fees?
Let’s look at some tips on how to help lower the cost when using PayPal to send payments or shop internationally.
- Try to avoid using your credit or debit card with PayPal where possible as this often means extra fees to pay
- Look at your PayPal currency conversion options carefully – the charge varies depending on the transaction type
- PayPal merchant transaction fees vary according to the way your customers pay – check out which works best for your business as you may be able to minimise fees here
- Consider using alternative ways to process your payments, like Wise or OFX
Conclusion: Is PayPal a good deal?
PayPal is easy for both business customers and personal customers to use. It’s also extremely commonly used and globally accepted.
If you’re a merchant or business customer, the benefits of offering PayPal payments may outweigh the fees you pay, at least for domestic transactions. But if you’re making or receiving regular international transactions for business or personal use, you may want to compare PayPal to a few other providers which could offer lower fees and better exchange rates, with just as convenient and quick a service.
On our Currency Shop comparison page, you’ll find the best deals to send your money abroad depending on the currency and amount that you need to exchange.
FAQs – PayPal Fees Australia
How much are PayPal fees?
PayPal fees vary depending on your account type and the specific transaction. Domestic fees are often low, with many transactions completely fee free to personal customers when using a PayPal balance or linked bank account. However, international payments are more costly: sending money overseas has a 5% transaction fee (capped at 5.99 AUD) plus a 4% currency conversion markup on the exchange rate. Fees are even higher if you choose to fund your payment with a credit card.
How can I avoid PayPal fees?
Cut the costs of using PayPal domestically by sticking to AUD payments funded from your bank account or PayPal balance. To avoid PayPal’s fees when sending money internationally, pick an alternative provider which offers lower charges and a better exchange rate.
How much are PayPal seller fees?
PayPal seller fees vary based on the transaction type and whether the customer is in Australia or abroad. For most standard commercial transactions, you will pay a domestic fee of 2.90% + a 0.30 AUD fixed fee. If you receive a payment from an international buyer, the fee increases to 3.90% + the fixed fee. QR code transactions offer a lower rate of 1.20% for domestic and 2.20% for international payments.
How can I send money with PayPal without fees?
Send domestic PayPal payments from your linked bank account or PayPal balance fee free. For international payments you’ll need to pick a different provider to avoid PayPal fees, as charges apply to all payment methods.
How do I avoid PayPal conversion fees?
Avoid PayPal conversion fees by sticking to local transactions funded with your bank or PayPal balance only – or pick a different provider like Wise or OFX when you need to send or spend in a foreign currency.
Is PayPal free to send money internationally?
No. Sending money overseas with PayPal carries a 5% transaction fee (capped at 5.99 AUD) plus a 4% currency conversion fee added to the exchange rate. These costs apply if you are funding the payment from your bank account or PayPal balance. If you use a credit or debit card, additional funding fees will also apply.
How do I avoid PayPal foreign transaction fees?
Pick a different provider like Wise or OFX when you’re sending payments internationally or spending in foreign currencies. Otherwise you’re likely to find that conversion and international transaction fees apply.
What is the PayPal fee to receive money in Australia?
Receiving AUD from friends or family is typically fee-free when funded by a bank account or PayPal balance. For commercial sales, merchants pay a domestic fee of 2.90% + 0.30 AUD. International business payments or card-funded personal transfers incur a fee of 3.90% + a fixed fee based on the currency received.
Useful resources
- PayPal Australia Business Fees: Official 2026 Merchant Fee Schedule for Australian Residents
- PayPal Australia Consumer Fees: Official 2026 Consumer Fee Schedule for Australian Residents
- Wise Australia: Personal pricing and fee information
- Reserve Bank of Australia (RBA): Official page for the Reserve Bank of Australia with information on monetary policy, market operations and financial services
- OFX Australia: The official page for OFX Australia with information on fees and pricing
