Which PayPal method does not charge a fee?

Sending Money Fee-Free with PayPal: Your Guide to Avoiding Charges

PayPal offers a convenient way to send and receive money, but fees can sometimes sting. Luckily, you can avoid those extra charges by understanding which payment methods within PayPal are fee-free. This article breaks down how to send money without incurring any PayPal processing fees.

The key to free transfers lies in the funding source you choose. PayPal waives its fees when you send money using the following methods:

• Your Linked Bank Account: Linking your checking or savings account directly to your PayPal account is the most common way to avoid fees. Transfers directly from your bank are free of charge, making it an ideal option for sending money to friends, family, or even paying for goods and services where the seller accepts PayPal.

• Your Existing PayPal Balance: If you already have funds sitting in your PayPal account from previous transactions or deposits, using this balance to send money is also completely free. Think of it like using cash in your wallet – no extra charges applied.

• PayPal Cash: Similar to your PayPal balance, using funds loaded onto your PayPal Cash card or account won’t incur any fees when sending money. This acts as a prepaid account within PayPal.

However, it’s crucial to be aware of the payment methods that do incur fees:

• Debit or Credit Cards: Using your debit or credit card linked to your PayPal account will trigger a fee. This fee is typically calculated as 2.9% of the transaction amount plus a fixed fee based on the currency being used. This can add up, especially for larger transactions.

• PayPal Credit: Financing a transaction through PayPal Credit, their in-house credit line, will also result in fees. Similar to using a credit card, using PayPal Credit subjects the transaction to the 2.9% plus a fixed fee structure.

In Summary:

To keep your PayPal transactions fee-free, stick to using your linked bank account, existing PayPal balance, or PayPal Cash. While the convenience of debit/credit cards and PayPal Credit is tempting, the associated fees can easily be avoided with a little planning. By understanding these options, you can maximize the benefits of PayPal and keep more of your money in your pocket.