Full comparison of fees, protection, and legal risks
Quick Comparison
Goods & Services (G&S)
✗ Seller pays fee: 3.49% + fixed feee.g. $3.98 on a $100 USD transaction
✓ Buyer has Purchase ProtectionCan dispute if item not received or not as described
✓ Seller covered for physical goods with trackingSeller Protection applies in most cases
✓ For commercial transactionsSelling items, freelance invoices, services
✓ PayPal ToS compliantThe only correct option for sales
Friends & Family (F&F)
✓ No fee (bank/balance)2.9% fee applies if sender uses a card
✗ Zero buyer protectionNo dispute option if item never arrives
✗ Zero seller protectionChargeback possible via bank/card
✓ For personal transfers onlySplitting bills, repaying friends/family
✗ Violates ToS if used for salesAccount can be limited or banned
Bottom line: Use G&S for any commercial transaction — selling goods, freelance work, services. Use F&F only for genuine personal money transfers where you trust the other party completely.
Fee Breakdown: G&S in 2026
The PayPal G&S fee is charged to the recipient (seller). The buyer pays the full amount; PayPal deducts the fee before the seller receives the money.
Currency
Rate
Fixed Fee
On $100
Seller Nets
USD
3.49%
$0.49
$3.98
$96.02
EUR
3.49%
€0.35
€3.84
€96.16
GBP
3.49%
£0.30
£3.79
£96.21
CAD
3.49%
CA$0.49
CA$3.98
CA$96.02
AUD
3.49%
A$0.59
A$4.08
A$95.92
Cross-border (international) transactions add ~1.50% to the above rates.
F&F Fee: When Is It Actually Free?
Payment method
Sender fee
Recipient fee
PayPal balance or linked bank account
Free
Free
Credit or debit card
2.9% + fixed fee
Free
Cross-border transfer
Additional 0.5–2%
Free
Legal Risks of Using F&F for Sales
Warning: Using Friends & Family for a commercial sale violates PayPal's Acceptable Use Policy. Consequences can include: account limitation, permanent ban, held funds, and no recourse if either party disputes the transaction.
For sellers: The buyer can still file a chargeback through their bank or card issuer — you have no Seller Protection to fall back on
For buyers: If the seller doesn't deliver, PayPal will not refund you — you sent a personal transfer, not a payment for goods
For high-risk items (electronics, expensive goods): always insist on G&S — the fee is cheap insurance
How to Pass the Fee to the Buyer
If you want to use G&S but not absorb the fee yourself, use the reverse calculator to find the amount to charge. The buyer pays a slightly higher price, and you net your target amount exactly.
Example: to net $200 USD → charge $208.79. PayPal deducts $8.79, you receive $200.00.
Frequently Asked Questions
Not illegal by law, but it violates PayPal's Terms of Service. PayPal can limit or permanently ban your account. The buyer has zero Purchase Protection, and the seller has zero Seller Protection. Risk far outweighs the fee savings.
No fee if paying from a PayPal balance or linked bank account. A 2.9% + fixed fee applies if the sender uses a credit or debit card. The recipient always receives the full amount for free.
Yes — charge a higher amount so that after the fee, you net your target. Use the reverse calculator on the homepage. Alternatively, some sellers list two prices: one for G&S (includes fee) and one for F&F (friends only, genuine personal transfers). Never pressure buyers into using F&F for a sale.
The transaction cannot be changed after sending. If you're the buyer and you sent F&F by mistake for a purchase, you have no Purchase Protection. Contact the seller immediately and ask them to refund and re-send with G&S — the seller will also save on the fee since they're no longer receiving a G&S payment.
Calculate the exact G&S fee for your transaction instantly