Will there be extra fee using PayPal?

1/1/2021

Our site is denominated in USD and we currently accept payment via PayPal. If your PayPal balance or credit card is in USD, there will be NO additional fee. 

However, if your PayPal balance or credit card is in another currency, there will be 4% transaction fee due to currency conversion.

Here's the scenario: If you're paying directly by your credit card for something in another currency online (let's say Japanese Yen,) your credit card bank will first impose a 1.5% ~ 3% out of the transaction amount as "overseas transaction fee." depending on your bank and country. The card bank will then adopt VISA/MASTER's currency exchange rate (usually 3% higher than actual market rate at the transaction date) to settle the final amount in your local currency. So you won't find out the final amount you actually have to pay until you receive credit card bill later on. In the end, the overseas transaction fee along with the hidden cost through VISA/MASTER's currency exchange rate you paid is about  4.5% ~ 6% of the transaction amount.

For PayPal payment, 4% fee may seem hostile at first but if you take above into consideration, it is about the industry average. The difference is that PayPal let you know about the fee structure in the beginning. That's an inevitable cost when you buy something in another currency from overseas.