What are the Paypal fees when shopping, selling or sending money online in Canada?

Paypal fees Canada

If you are using PayPal to buy something online in Canada then good news is that it’s all free to buy something with PayPal unless it involves a currency conversion.

But if you are selling something at online store then you need to pay a small price for accepting all forms of payments from over 203 million customers worldwide. Also there are no hidden fees and you don’t pay anything until you get paid for your sale.

Keep reading below to know more about the PayPal fees when shopping, sending money or selling online in Canada.

PayPal fees for shopping in Canada

If you sell something with PayPal online then there is a small merchant fee. Sales within Canada you pay 2.9% + $0.30 CAD per transaction.

There is a discount rate for charities registered with the Canada Revenue Agency which is 1.6% + $0.30 CAD per transaction.

If you have sales to the US then there is 3.7% transaction fee + fixed fee based on the currency received

For all other International sales there is 3.9% transaction fee + fixed fee based on the currency received

Sending CAD in Canada with Paypal

PayPal fees for sending money

If you are a Canadian account holder sending Canadian dollars to a friend or family member with a PayPal account in Canada, you may pay a fee depending on how you pay.

If the amount is funded by your PayPal balance or a bank account linked to your PayPal account then there is no fees and it’s all free transaction.

If you are funding by a credit card or Visa Debit card then you pay 2.9% + fixed fee based on the currency.

If you are a Canadian account holder sending money to a friend or family member with a PayPal account in a country other than Canada, you may pay a fee depending on how you pay and which country the recipient’s account is in. You can pay by y your PayPal balance or a bank account linked to your PayPal account ir by a credit card or Visa Debit card. Sending money to US or Europe you pay a fee of $2.99 and for all other countries there is a fee of $4.99

The Fixed Fee

The Fixed fee to send money in other currencies vary according to country

  • For Australian dollars the fixed fee is AU$0.30
  • For New Zealand Dollar: NZ$0.45
  • For Brazilian Real: BRL0.60
  • For Norwegian Krone:2.80 NOK
  • For Canadian Dollar: CA$0.30
  • For Philippine Peso:15.00
  • For Czech Koruna:10.00
  • For Polish Zlotys:1.35
  • For Danish Krone:2.60
  • For Russian Ruble:10
  • For Euro:€0.35
  • For Singapore Dollar:$0.50
  • For Hong Kong Dollar:$2.35
  • For Swedish Krona:3.25
  • For Hungarian Forint:90
  • For Swiss Franc:0.55
  • For Israeli Shekel:1.20
  • For Taiwan New Dollar:10.00
  • For Japanese Yen:¥40
  • For Thai Baht:11.00
  • For Malaysian Ringgit:2.00

Merchant fees if you sell online

PayPal Merchant fees

Merchant fees apply when you sell goods or services (including using PayPal Payments Standard and Express Checkout) and the buyer pays using his/her PayPal account.

If the funds you are receiving are coming from a PayPal account then you pay In Canada a fee of 2.9% of the transaction amount plus $0.30 CAD. You pay in US a fee of 3.7% of the transaction amount plus $0.30 USD. If Outside Canada and the U.S. you pay a fee of 3.9 % of the transaction amount plus a fixed fee based on the currency

As a merchant when you use PayPal there are no startup costs, no termination fee, no monthly fees and you can accept PayPal payments and all major credit cards with PayPal Payments Standard or accept PayPal payments with Express Checkout and allows customers to pay you directly from invoices as you can create online invoices with PayPal’s free built-in templates.

As said above there is a discount rate for charities registered with the Canada Revenue Agency which is 1.6% + $0.30 CAD per transaction.

To apply for the discount, you first must be registered as a charity with the CRA and you’ll need to email the following to compliance@paypal.com:

  • Confirmation of Registration from the CRA
  • A scanned copy of a blank and/or void cheque showing the bank account number and organization name
  • Your contact information, including the email address you used to set up your business account
  • Your business URL

If you are outside Canada then a fee of 2.6% of the transaction amount plus a fixed fee based on the currency is applicable for charities.

Other fees

The Chargeback fee applies when a transaction is charged back to your Account for a payment you received which is not eligible for PayPal Seller protection. The fee that applies is based on the currency of the payment. 

Then there is refund fee which is Fixed fee portion of the original transaction fee (for example, the refund fee is $0.30 for domestic payments)

Also there is Withdrawal Conversion Fees for Qualified Merchants and applies to the conversion of a U.S. Dollar Balance to Canadian Dollars before you withdraw to your bank account if you qualify for Merchant rates.

For more details on PayPal fees you can click here or contact their customer support team in Canada.