PayPal is a safe and secure way of exchanging money and completing financial transactions without giving away your personal financial details to a third party. Naturally, PayPal will take certain percentages from each transaction as a form of commission.
The PayPal standard fee for each domestic transaction as of December 2010 is 2.9 percent + $0.30 to cover for services and goods. Those whose transactions procure more than $3,000.00 per month can apply for a merchant rate, which operates on a sliding scale. For transactions between $3,000.00 and $10,000.00 per month, the commission is reduced to 2.5 percent + $0.30. For $10,000.00 to $100,000.00, it is reduced further to 2.2 percent + $0.30, and for $100,000.00 and over, you pay 1.9 percent + $0.30.
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Overseas transaction vary slightly according to country and currency, but the average merchant rate for sales under $3,000.00 is 3.9 percent + $0.30. Higher monetary values will reduce on a sliding scale if a merchant account is in place.
If you send a personal money gift via PayPal, you will pay 3.4 percent + $0.30, although this will vary between currencies and the amount of money you are sending to the recipient.