It is a widely used payment platform in over 200 countries and supports multiple currencies, making it a popular choice for international transactions. When you use PayPal for trade, you can send and receive payments to sellers, and PayPal will handle the currency exchange. It can save time and hard-earned money compared to traditional international payments, bank transfers, or other payment methods.

While it’s convenient to handle transactions, PayPal levies fees for some of the PayPal services, including invoicing. But there are some methods you can use to save money and avoid fees on PayPal.

Let’s get started by discussing six practical ways to prevent PayPal invoice fees and how Moon Invoice can help in invoicing fees.

6 Effective Ways to Avoid Fees on PayPal

PayPal levies fees for sending and receiving invoices through its platform. The standard fee for sending an invoice is 2.9% + $0.30 per transaction, but the fee may vary depending on factors such as the country, currency conversion fees, currency, and payment method used.

Here are six practical ways of avoiding PayPal fees in detail:

1. Use PayPal Friends and Family

PayPal Friends and Family is a payment option for sending and receiving PayPal business payments that do not charge any PayPal transaction fees. This option is intended for personal transactions, such as sending money to a friend or family member, but it can also be used for business transactions. However, it’s important to note that using the Friends and Family option for business transactions means you will not be eligible for PayPal’s protection programs, such as Buyer or Seller Protection.

You and the other party must have a PayPal account to use the Friends and Family payment option for a transaction. You can then log into your PayPal account and select the “Send & Request” option from the top of the page. Next, choose “Send money to friends and family” and input the recipient’s phone number or email address along with the sum you want to send. You may also write the receiver a note.

Once you confirm the payment, it will be sent to the recipient’s PayPal account as a “Personal Payment.” The recipient will not be charged any PayPal transaction fees, and you will not be charged any fees as long as you have linked a bank account or PayPal balance to your account.

2. Build Fees into the Price

Building fees into the price is another way to avoid paying PayPal fees. This method involves factoring in the fees that PayPal charge when setting the price for your products or services. By doing this, you can ensure you receive the money you expect without any deductions for fees.

For example, if you know that a PayPal account charges a 2.9% + $0.30 fee for sending invoices, you can add that amount to the price of your product or service. If you sell a product for $100, you need to set the price at $103.20 ($100 + 2.9% of $100 + $0.30) to receive a total of $100 from the customer. This way, the customer pays the fee as part of the purchase price, and you receive money that was intended.

You can do this by including a note on your website or invoice that states the total price includes PayPal fees. It can help avoid any confusion or frustration on the part of the customer.

3. Use Another Payment Processor

There are many payment processors available that offer similar features to PayPal but with different fee structures or some free service to transfer funds. Some popular payment processors include Stripe, Square, and Authorize.Net.

When choosing a payment processor, it’s essential to compare each offer’s fees and features to find the best fit for your business needs to avoid PayPal fees. Some payment processors offer lower prices, while others may have more features or better integration with your website or software.

To use another payment processor, you must set up an account with the processor and integrate it with your website or invoicing system. It may require technical expertise or assistance from a developer or IT professional.

4. Use a PayPal Business Account

Using a PayPal Business Account is another way to avoid PayPal fees. It offers a range of features designed for businesses, including sending invoices and receiving customer payments.

When you use an account to send invoices and PayPal invoicing, you are still subject to the same fees as a personal account. However, if you accept PayPal payments through your account, you may be eligible for reduced PayPal fees. PayPal offers discounted transaction rates for businesses that process over $10,000 monthly to their bank account or qualify for micropayment pricing.

To apply for an account, you need some basic information about your business. You will also need to link a bank account or credit card bank transfer to your account to send and receive payments.

Once you set up an account, you can use the invoicing feature to send professional-looking invoices to your customers.

5. Negotiate Lower Prices

Negotiating lesser fees with PayPal is another way to avoid PayPal invoice fees. While PayPal’s fees are generally fixed, you can negotiate a lower rate or reduced fees based on your transaction volume or other factors.

To negotiate and reduce PayPal fees despite the fixed fee plan, you can contact PayPal customer service and ask if they are willing to offer you a lower rate. It’s essential to be prepared with information about your business, transaction volume, business expense, and any other factors that may make you a valuable customer to PayPal.

While not all businesses can negotiate lower PayPal fees, it’s always worth asking.

In addition to negotiating lower fees with PayPal, you may also want to explore other payment processors to see if they offer better business rates or incentives. You can find the best fit for your business needs and budget by comparing payment processors.

6. Use Moon Invoice

Moon Invoice provides several features to make invoicing simpler, such as the capacity to create and send invoices with a professional appearance, track payments, and manage customer information.

By using Moon Invoice, businesses can avoid PayPal fees by sending invoices through the software and accepting payments through other payment processors, such as Stripe, Quickbooks Online, or Square. Moon Invoice integrates with multiple payment processors and bank account services allowing businesses to choose the payment processor that best fits their needs and budget.

It provides features like time tracking, payment protection, project management, spending monitoring, invoicing, and payment processing. It can assist organizations in streamlining their operations and avoiding PayPal fees.

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How Does Moon Invoice Help in Invoicing Fees?

Moon Invoice helps businesses avoid PayPal invoice fees by providing an alternative invoicing and payment processing solution. When businesses use Moon Invoice to send invoices, they can accept payments through multiple payment processors, such as Stripe or Square, other than PayPal. Businesses can avoid PayPal’s transaction fees and keep more revenue.

In addition to helping businesses avoid PayPal invoice fees, Moon Invoice also offers features designed to streamline the invoicing process and improve cash flow. The invoicing software allows businesses to track invoice status and send automatic payment reminders to customers with outstanding invoices.


PayPal invoice fees can increase over time and impact a business’s bottom line. However, several effective ways exist to deduct PayPal fees, including using PayPal Friends and Family, building fees into the price, using another payment processor, using a PayPal account, negotiating lower PayPal fees, and using invoicing and payment processing software Moon Invoice.

Using these methods, you can reduce payment transaction fees on online payments and keep more revenue by using these methods. It’s essential to weigh the pros and cons of each option and choose the solution that best fits your business expense and budget.

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