PayPal Fees for Subscription Payments
Everything you need to know about PayPal's subscription and recurring payment fees. Includes a calculator, comparison with alternatives, and tips to reduce your costs.
Last updated: January 2026
Quick Answer: What Does PayPal Charge?
PayPal charges 3.49% + €0.49 per transaction for domestic subscription payments in Europe. For international payments, the fee increases to 4.49% + €0.49.
- Domestic subscriptions: 3.49% + €0.49 per payment
- International subscriptions: 4.49% + €0.49 per payment
- No monthly fee for PayPal Subscriptions
- Currency conversion: 3-4% additional fee
PayPal Subscription Fee Breakdown
Domestic Payments (EU)
When payer and receiver are in the same region
International Payments
When payer is in a different region than receiver
Micropayments (under €10)
Special rate for small transactions - requires account opt-in
Subscription Fee Calculator
Calculate your actual PayPal costs and compare with alternatives.
PayPal vs Stripe vs PayRequest
| Provider | EU Rate | International Rate | Monthly Fee | Chargeback Fee |
|---|---|---|---|---|
| PayPal | 3.49% + €0.49 | 4.49% + €0.49 | Free | €16 |
| Stripe | 1.5% + €0.25 | 2.9% + €0.25 | Free | €15 |
| PayRequest | 1.5% + €0.25* | 2.9% + €0.25* | €5/mo | €15* |
* PayRequest uses Stripe as payment processor. Stripe fees apply, plus €5/month for PayRequest subscription.
4 Ways to Reduce PayPal Subscription Fees
Target Domestic Customers
Focus on customers in your region to avoid the 1% international fee surcharge. Use geo-targeted marketing.
Consider Annual Billing
Offer annual subscriptions at a discount. Fewer transactions = fewer fixed fees. A €0.49 fee on monthly vs annual billing adds up.
Use Alternative Providers
Stripe charges just 1.5% + €0.25 for EU card payments - nearly half of PayPal's 3.49% rate. Consider switching.
Offer Bank Transfers
SEPA Direct Debit costs just €0.35 per transaction with no percentage fee. Great for B2B subscriptions.
When Should You Use PayPal?
Use PayPal Subscriptions if:
- Your customers prefer PayPal (brand trust)
- You sell to US customers (PayPal is dominant)
- You need buyer protection as a selling point
- You're already using PayPal for other payments
Consider alternatives if:
- You want lower transaction fees (Stripe: 1.5%)
- Most customers are in Europe (iDEAL, SEPA)
- You need professional invoicing features
- You want to offer multiple payment methods
Frequently Asked Questions
Does PayPal charge a monthly fee for subscriptions?
No, PayPal doesn't charge a monthly fee to use their subscription feature. You only pay transaction fees (3.49% + €0.49) when customers make payments.
What's the difference between PayPal Subscriptions and Recurring Payments?
PayPal Subscriptions are customer-controlled plans that renew automatically. Recurring Payments (Reference Transactions) are merchant-initiated charges. Subscriptions are easier to set up; Recurring Payments offer more flexibility but require API integration.
How do I reduce PayPal fees for high-volume subscriptions?
For high-volume businesses, you can negotiate custom rates with PayPal. Contact their sales team if you process over €50,000/month. Alternatively, switch to Stripe (1.5% + €0.25) for significant savings.
Does PayPal charge fees on failed subscription payments?
No, PayPal only charges fees on successful transactions. Failed payments don't incur fees, but you should monitor your decline rates as they affect your account standing.
Can I pass PayPal fees to my customers?
In most EU countries, you cannot surcharge customers for using PayPal (due to EU regulations). However, you can price your subscriptions to account for the fees or offer discounts for lower-fee payment methods.
What are the chargeback fees for PayPal subscriptions?
PayPal charges €16 per chargeback (dispute). If you lose the dispute, you also lose the transaction amount. Subscriptions have lower chargeback rates than one-time payments due to the recurring nature.
Looking for Lower Subscription Fees?
PayRequest uses Stripe's lower 1.5% rates and adds professional invoicing, customer portal, and 20+ payment methods. Start your free trial.