PayPal: UK 2026 Pricing & Fee Calculator
PayPal charges UK businesses 2.9% + 30p on standard domestic Goods and Services payments, with extra percentage surcharges when the buyer is based in the EEA or further afield.
What PayPal charges
| Fee | Rate |
|---|---|
| UK domestic Goods and Services | 2.9% + 30p |
| EEA buyers | +1.29% on top |
| International buyers | +1.99% on top |
| Currency conversion | About 3% to 4% spread |
| Zettle in-person reader | 1.75% (no fixed fee) |
How the fees work
PayPal's standard UK commercial (Goods and Services) rate is 2.9% + 30p per transaction. If your buyer's PayPal account is registered in the EEA, an extra 1.29% applies; for buyers further afield the surcharge is about 1.99%. Converting a foreign-currency payment into pounds adds a further currency spread of roughly 3% to 4%.
For low-value digital goods under 5 pounds, PayPal offers a micropayments rate you can apply for, which uses a lower percentage but a higher fixed fee. For in-person sales, PayPal's Zettle readers charge 1.75% with no fixed fee, which is much cheaper than the online rate.
Withdrawing your GBP balance to a UK bank account is free on standard transfers. Record the gross sale as revenue and the PayPal fee as a separate expense for your accounts.
Check the official pricing
Fees change. Confirm the current rate at PayPal UK business fees.