Wallet
PayPal is a digital wallet and payment processor. Online stores use it to offer PayPal, Venmo and Pay Later at checkout and to process card payments, often alongside another card processor.
Strengths
Watch out for
Best for
Stores that want to add PayPal, Venmo and Pay Later as extra checkout options next to their main card processor.
| Type | Wallet |
|---|---|
| Pricing model | flat rate by product |
| Card rate | 2.99% + 49¢ (standard credit and debit card payments) |
| International | +1.50% for international commercial transactions; currency conversion spread of 3.00% to 4.00% |
| Monthly fee | None for standard or advanced card payments; Payments Advanced $5/month; Payments Pro and Payments Pro Payflow $30/month |
| Setup fee | Not published |
| Chargeback fee | $20 card chargeback fee; dispute fee $15 (standard) or $30 (high volume) |
| High-risk businesses | Not published |
|---|---|
| Dropshipping | Not published |
| Reserves | PayPal holds the initial payments new sellers receive for up to 21 days and may hold payments again if it sees unusual changes in selling patterns. |
| Payout speed | 1-3 business days (standard transfer from PayPal balance to bank) |
|---|---|
| Merchant countries | 200+ countries and regions |
| Currencies | 25 currencies |
| Shopify | Third-party gateway |
|---|---|
| WooCommerce | Yes |
| Subscriptions | Yes |
| One-click upsells | Not published |
| Apple Pay | Yes |
| Multiple MIDs | Not published |
| Token portability | Not published |
US merchant fees page, last updated October 1, 2026. PayPal Checkout, Guest Checkout and Venmo are 3.49% + 49¢. Pay Later is 4.99% + 49¢. Advanced credit and debit card payments are 2.89% + 29¢, with no extra international percentage on interchange plus plus pricing. Virtual Terminal is 3.39% + 29¢.
PayPal's Acceptable Use Policy prohibits products that present a risk to consumer safety, products identified by government agencies as likely to be fraudulent, and the sale of certain items before the seller has control or possession of the item. It does not name supplements, nutraceuticals, negative option billing or dropshipping, and its pre-approval list does not cover them.
Funds land in the PayPal balance first. Standard bank transfers are free; instant transfers usually arrive within minutes for a fee.
Shopify creates a PayPal Express Checkout account for new stores in most countries, but PayPal Express Checkout is not available to merchants in the United States or France. Stores there offer PayPal Wallet through Shopify Payments instead. WooCommerce has an official PayPal Payments extension.
PayPal sources · checked 2026-10-21