How to Determine PayPal Fees

If you use PayPal to accept payments from your customers you get charged PayPal fees on each incoming transaction. You do not get charged fees if you pay for an item using PayPal. You may also be paying fees for other things such as taking money out of your account.

Instructions

Difficulty: Moderately Easy

1. Log into your PayPal account and click on the link that says "History."
2. Scroll down the page to see each of your account transactions. Scroll to the right to view the fee for each transaction and the actual amount that gets deposited after the fee is deducted. You want to be sure you are recording these fees for tax purposes at the end of the year. PayPal fees are an operating expense.
3. Monitor other fees that you pay to PayPal through the history section of your account. If you take money out of your PayPal account through an ATM service you are charged PayPal fees as well as the fee that you pay to the bank that owns the ATM. If you request PayPal send you checks to withdraw money from the account you are being assessed a fee for that as well.
4. Sign up for the Seller's Report at eBay auctions if your customers are paying you for goods sold on eBay. The Seller's Report is a free service offered by eBay that will track and total your eBay and PayPal fees for each month that you do business.
5. Keep your own records of your PayPal fees and what they add up to each month if you sell on your own website or a site other than eBay.