Can sender pay PayPal fees?

Understanding PayPal Fees for Senders

When sending money via PayPal, senders may encounter a small fee depending on the transaction method used. This fee is typically added when using a credit or debit card as the payment source.

Sender’s Options for Handling Fees

PayPal offers senders two options for handling fees:

• Absorb the Fee: The sender can choose to pay the fee themselves, resulting in the recipient receiving the full amount sent.
• Pass the Fee to the Recipient: The sender can pass the fee onto the recipient, increasing the total amount the recipient must pay.

Transaction Agreement Determines Fee Allocation

The decision of whether the sender absorbs the fee or passes it on is determined by the transaction agreement. This agreement is established between the sender and recipient prior to the transfer.

Why Senders Might Choose to Pass on Fees

Some senders may opt to pass on fees to the recipient for several reasons:

• Convenience: It eliminates the need for the sender to pay the fee out of pocket.
• Cost-Saving: In cases where the transaction amount is substantial, passing on the fee can be a cost-saving measure for the sender.
• Responsibility Sharing: The sender may believe it is fair to share the transaction cost with the recipient.

Consider Fees When Budgeting for Transactions

When using PayPal, senders should be aware of the potential fees associated with card payments. It is advisable to consider these fees when budgeting for transactions to ensure adequate coverage.

Conclusion

PayPal provides senders with flexibility in handling transaction fees. Senders can choose to absorb the fee themselves or pass it on to the recipient, depending on the agreed-upon transaction terms. Understanding these fees and their allocation options is essential for seamless and cost-effective PayPal transactions.