PSA: PayPal Fees (DO's and DONT'S) + TUTORIAL

Posted 2 years, 6 months ago (Edited 2 years, 1 month ago) by sonyaism

EDIT: Unsure where to put this, a follower of mine told me "General" would be good enough. lol


Hey everyone. Recently, I was in a situation concerning PayPal fees that left me salty.

So, being salty, I posted a PSA on my bulletins.

Then, being even saltier, I updated and moved my PayPal Tutorial (used to be on dA) which I am here to share with you today!

Before I get started, I would like to just address PayPal Fees.


It goes against PayPal's User Agreement to charge
your customer/buyer PayPal's Trasaction Fees.


International Transactions

Please be aware that as of late 2016, PayPal has installed auto-currency exchange.
Please refer to my guide on Weebly on how to deal with it.
Please check in with people you are buying from outside the country if they want their money in USd or their home-currency.
ALSO, fees are higher than normal fees when sending abroad.


Transaction Fees

  • DO know that asking someone to cover your PayPal Fees will get you in trouble.
    • They can limit or freeze your account which means you won't be able to receive or spend funds, depending.

  • DO know that it is against PayPal's User Agreement to charge someone PayPal's Transaction Fees.

  • DO raise your prices discreetly if the fees are that much of a hassle.

  • DO not ask for your buyer to cover your PayPal Fees.
  • DON'T use "Friends & Family" payment method to avoid fees.
    • As a Seller: Potentially can limit/freeze your account.
    • As a Buyer: The seller is able to scam you because this does not offer "PayPal Protection" which means you are unable to open a dispute against them if they run off with your money.

  • DON'T ask your buyer to cover your PayPal Fees.

  • DON'T ask your buyer to cover your PayPal Fees.

  • DON'T ask your buyer to cover your PayPal Fees.
Note: If you were someone that added an extra dollar or more when sending money, that can be considered a "tip."
You put extra money onto the transaction out of your own volition. No one asked you to do so.
If the seller did ask you to cover the fees, then they are violating PayPal's User Agreement which you, under no circumstance, should be covering the fees.



Screenshot of the User Agreement Clause






Thanks for taking a read!

Feel free to critique, corret, and comment below!

I need the feedback. :')

>>sonyaism ♥


: O oh gosh yesss 


this tutorial saved my life LOL


I've only ever used PayPal once which was to buy an item which came from Germany (€) and my currency is GBP (£) since I'm from the uk. Since it was goods I paid through the buying an item section.

I paid a currency conversion fee but no other fee which as far as I'm aware Is correct?

The buyer pays the conversion fee and the seller pays a seller fee? 

I'm not sure how it works so if anyone can explain I'd appreciate it!


I'm legit spreading this??? This is one of my biggest pet peeves.

Than people get mad at me when I tell them "hey you know thats against the paypal rules" lmao

Ik this is old but its damn gold bro.


As a buyer I really wish I had seen this sooner ;×;


I'm considering opening commissions soon and I was wondering what specific way you ask your buyers to send to your paypal? Do you use an invoice (and if so how does one use invoice) or do you give them specific instructions or anything? Just curious. 




Thank you for this!

I've been seeing it more and more as of late and its rather unsettling! In my current situation, there is an artist I want to commission but in their T.O.S, it read the following:

"An additional $5.00 will be added to the total order to cover Paypal fees"

Isn't that a bit much? Like I want to say something but not too sure on how to go about it.


^^^This is probably too late now, but the fee is proportional to how much you're sending.

$5 transaction fee is about $100 USD for the original art price.


I know not to charge fees or ask for friends and family, but if a customer sent friends and family without asking me, am I in trouble? ^^;


Question- is it bad to raise my prices so I get a certain amount once the PayPal fees are taken away? Example, when I’m paid I want £5 so I make the commission I want £5 from £5.38? Listed as £5.38, not asking the buyer to pay more than listed?


I would like to point out as of 2019 the SENDER PAYS A FEE ON FRIENDS AND FAMILY. So not only are they asking you to break rules with that option the buyer is being charged more than agreed upon.

Example of a test run:

You'll send

$1.00 USD


$0.33 USD

You'll pay$1.33 USD

When selecting the friends and family option^


woeful Better to send the money back and tell them to pay goods & services or set up a to have them pay that way by default so they don't get to choose.

Seafoam-Cities You're free to adjust your prices higher, just don't mention it was due to Paypal fees. I would raise it to the next higher whole number. 5.38 becomes 6 or even 7.


So I did want to add something of a footnote to this. Just like when you tip your servers at a restaurant because you know they're underpaid otherwise, you should tip your artists because of how much tax they face being self-employed. Artists, specifically self-employed ones have to pay income tax just like everyone else, which is about 12% of income in the Unites States. State income tax will average out to about 5% if you're a low-income freelancer. On top of the standard taxes that everyone pays they also have to pay a self-employment tax, which is a whopping 15.3% of their income. This means that if they're offering PayPal as a way to accept your payment they are also being taxed a fourth time for offering a service of their own volition. With PayPals 2.9% fee, this totals out to at least 35.2% of their income being taxed away. Not including the 30 cents per-transaction charge. At the end of the day it's a pretty penny to lose because they have a passion they want to share and a talent that they can sell.

You don't have to pay transaction fees, and it's not your responsibility. But rewarding artists with a tip for going out of their way to train themselves and to take the initiative to offer their unique services to you is a good way to let them know that you appreciate their time and effort, and against a system built to discourage the success of creative entrepenourship, it counts for a lot.