United States · Payment fees · PayPal
PayPal friends and family vs goods and services.
The two payment types charge different people. Friends and family is free to send from a balance, bank or debit card, while goods and services charges the seller. Enter an amount to see both costs side by side.
On a $200.00 payment, friends and family sent from a PayPal balance costs $0.00 and the recipient gets $200.00. Paid by card, the sender adds $6.10. As goods and services, the seller pays $7.47 and keeps $192.53.
Your numbers
Your result
How this is calculated
- Friends and family, sender side. PayPal's US consumer fee page lists no fee for sending from a PayPal balance, PayPal Debit Card or bank account, and 2.90% plus $0.30 when the sender pays by card. Receiving is listed at no fee when no currency conversion is involved.
- International. An international friends and family payment adds 5.00%, with a minimum of $0.99 and a maximum of $4.99, on top of the domestic fee for the payment method. Currency conversion carries its own spread, which this tool leaves out.
- Goods and services, seller side. The buyer pays no fee on the consumer page (no currency conversion). The seller's fee is the business rate: 3.49% plus $0.49 for standard checkout or 2.29% plus $0.09 for a QR code payment, from the business fees page.
- The gap. Goods and services fee minus friends and family fee. It shows what the pricing difference is worth on the amount you typed.
Worked example: $200.00
| Line | Friends and family | Goods and services |
|---|---|---|
| Payment | $200.00 | $200.00 |
| Fee, sent from balance or bank | $0.00 | $7.47 (seller) |
| Fee, sent by card | $6.10 (sender) | $7.47 (seller) |
| Fee, international from balance | $4.99 (sender) | $7.47 (seller) |
| Recipient or seller receives | $200.00 | $192.53 |
Friends and family charges the sender only when a card or an international route is involved. Goods and services always comes out of the seller's side, $7.47 on $200.00 at the standard rate or $4.67 with a QR code.
What this does not cover
- Which type a given payment is allowed to use. That depends on what the payment is for and on PayPal's user agreement, which this page does not summarise. The fee gap is not a reason to relabel a payment.
- Currency conversion spreads (4.00% or 3.00% on the consumer page), instant transfer fees (1.75%, minimum $0.25, maximum $25), chargebacks and Seller Protection rules.
- Negotiated or tiered merchant rates, invoicing rates and other business products.
- Tax. The IRS says gifts and reimbursements from friends and family are not taxable income and that you must report any income whether or not a Form 1099-K arrives.
Method and assumptions
Each fee is the published percentage times the amount plus the fixed fee, rounded to the cent. The consumer fee page was marked last updated May 19, 2026 and the business fee page October 1, 2026 when opened. Nothing here forecasts what PayPal will charge later.
Results vary with your account, currencies and payment source. This page uses the numbers you enter and PayPal's published rates.
Sources
- PayPal: Consumer fees, United States (updated May 19, 2026), retrieved October 26, 2026
- PayPal: Business fees, United States (updated October 1, 2026), retrieved October 26, 2026
- IRS: Understanding your Form 1099-K (page last reviewed June 28, 2026), retrieved October 26, 2026
Cite this page: TNAADO Tools, "PayPal friends and family vs goods and services fee calculator," tools.tnaado.ca/us/paypal-friends-family-vs-goods-services-fee-calculator/, figures retrieved October 2026.
Common mix-ups
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Often assumedIf I ask a customer to pay me as friends and family, it is a personal payment and I have no income to report.
What the source saysThe IRS page says that gifts and reimbursements from friends and family are not taxable income, and also that whether or not you receive a Form 1099-K you must still report any income on your tax return. [1]
Checked against these sources on .
Frequently asked questions
Is PayPal friends and family free?
Not always. The US consumer fee page lists no fee for sending from a PayPal balance, PayPal Debit Card or bank account and no fee to receive, but 2.90% plus $0.30 when the sender pays by card, and 5.00% extra (minimum $0.99, maximum $4.99) for international payments.
Who pays the fee on goods and services?
The buyer is listed at no fee on the consumer page. The seller pays the business rate, 3.49% plus $0.49 for standard checkout on PayPal's business fees page, so a $200.00 sale leaves $192.53.
What is the QR code rate?
PayPal's business fees page lists 2.29% plus $0.09 for QR code transactions. On $200.00 that is $4.67 against $7.47 for standard checkout.
Does choosing friends and family make a payment tax free?
No. The IRS page says gifts and reimbursements from friends and family are not taxable income, and also says you must report any income whether or not you receive a Form 1099-K. What counts is what the payment was for.
Why does the calculator show a card fee on friends and family?
Because PayPal lists 2.90% plus $0.30 when the sender pays with a card. Choose balance, bank or debit to see the zero-fee case.
Estimate only
This is an educational estimate built from the numbers you enter and the published figures listed under Sources. Fee schedules change, so check the live page before you rely on a rate. It is not tax, legal or accounting advice. PayPal can change its fees at any time.