PayPal · Payment processors
PayPal review
PayPal lets customers pay with their PayPal balance, cards or Pay Later at checkout. In Canada, commercial transactions cost 2.90% plus a fixed fee, payments from the US add 0.80% and payments from other countries add 1.00%.
Who PayPal is best for
Online stores whose customers prefer PayPal and businesses selling to consumers in other countries.
B2B SaaS companies billing by invoice or bank debit.
PayPal lets customers pay with their PayPal balance, cards or Pay Later at checkout. In Canada, commercial transactions cost 2.90% plus a fixed fee, payments from the US add 0.80% and payments from other countries add 1.00%. PayPal also adds its own spread whenever it converts currencies, which can make cross-border sales expensive, so it pays to hold or receive funds in the currency you sell in. Pay Later payments cost 4.9% plus a fixed fee.
Fees, features and eligibility
| Recurring billing | PayPal Subscriptions for recurring billing |
|---|---|
| Card rate | 2.90% + fixed fee on domestic commercial transactions |
| International cards and FX | +0.80% on payments from the US and +1.00% from other countries; a currency conversion spread applies when PayPal converts |
| Type | Payment processor |
| Coverage | Global |
| Best fit | Online businesses selling to consumers |
Source: PayPal published product information.
What stands out
Pros
- Trusted checkout brand
- Accepts PayPal, cards and Pay Later
Cons
- Surcharges on international payments
- Currency conversion spread when PayPal converts
PayPal: common questions
What does PayPal charge businesses in Canada?
2.90% plus a fixed fee on domestic commercial transactions.
Does PayPal charge more for international payments?
Yes: an extra 0.80% for payments from the US and 1.00% from other countries.
Does PayPal charge for currency conversion?
Yes. PayPal adds a spread to the exchange rate when it converts currencies.
Used PayPal? Help other businesses choose.
