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How does PayPal make money?

Answer: as a middleman financial broker, PayPal makes its profit by charging a percentage of the money it transfers for you.

• PayPal is Free for Buyers and for Sending Money to Someone Else. Once a buyer sets up a Paypal account, then it costs nothing to send money to a vendor. The funds are withdrawn from the user's credit card or bank account, or both. PayPal does not charge buyers to send money.
• PayPal Commonly Charges Money Receivers (Sellers) a 30 Cent Fee + (1.9% to 2.9%) Surcharge. PayPal will only charge you to receive funds. Using a special surcharge formula, PayPal will bill you whenever you receive a payment from a buyer.

  If you are sending money to a friend or family member (someone who is not a registered seller), you can opt to pay for the PayPal surcharge yourself.

Paypal Fee Table:

1. For receiving transfers under $3000 USD: the fee is 2.9% + $0.30 USD.
2. For receiving transfers $3000.01 to $10,000: the fee is 2.5% + $0.30 USD.
3. For receiving transfers $10,000.01 to $100,000: the fee is 2.2% + $0.30 USD.
4. Receiving transfers over $100,000: Paypal charges 1.9% + $0.30 USD.

As you might guess, smart sellers will increase their prices to offset this charge on their side of PayPal.

1. What exactly is PayPal?
2. How does PayPal make money?
3. What can I use PayPal for?
4. How safe is PayPal?
5. How do I get started with PayPal?
6. How do I set up my new PayPal account?
7. How does PayPal withdraw my money?
8. How do I send money with PayPal?
9. I won an eBay auction! What now?
Make online cash