The bottom line
PayPal POS charges 2.29% + 9¢ per in-person card sale, with a free POS app and no monthly or setup fees. A month with $10,000 in card sales over 400 payments costs about $265.
The catches are its chargeback and dispute fees, and a clause in its terms that lets PayPal raise the percentage part of its fees with 30 days’ notice.
PayPal POS fees at a glance
Visit PayPal POS- Pricing model
- flat
- Contract
- No contract stated
- Payouts
- Instant transfer for 1.5% (min $0.50)
- Monthly cost to take cards
- $0 (Free POS app)
- True cost: first year at $10,000/month in card sales (est.)
- $3,209 (12 months of processing at 400 payments a month, plus the listed monthly cost, plus the PayPal Card Reader at $29)
| Payment type | Rate | Source |
|---|---|---|
| In person (card present) | 2.29% + 9¢ | paypal.com |
| Online | 2.99% + 49¢ | paypal.com |
| Keyed in | 3.49% + 9¢ | paypal.com |
| ACH | 1% | paypal.com |
Monthly fees and plans
- POS app: $0
- PayPal POS app: $0/month
Checked October 19, 2026 on paypal.com. Prices change, so confirm with PayPal POS before you sign.
Who it’s for
- Solo sellers and small shops. PayPal says that if you don’t need extra hardware, don’t have staff, and your back office is simple, Tap to Pay in the PayPal app “could be right for you.”
- Market stalls, pop-ups and mobile sellers. The first card reader is listed at $29, and there’s no monthly fee.
- Businesses with small average sales. The fixed fee is 9¢ per sale, against 15¢ at Square.
Who should skip it
- Sellers who get a lot of chargebacks. Each one costs $20, plus dispute fees.
- Businesses that need a locked-in rate. PayPal’s terms let it raise the percentage part of its fees, up to 5.00% per transaction, after 30 days’ notice.
- Shops that sell mostly online through PayPal Checkout. Those payments are 3.49% + 49¢, much higher than the in-person rate.
The catch
PayPal can raise your rate. PayPal’s fee page says “PayPal may increase the percentage components of your Transaction Fees after giving you 30 days prior notice,” up to 5.00% per transaction.
Chargebacks cost $20. Dispute fees add $15 for a standard dispute, or $30 at the high-volume level.
Online costs more. Standard online card payments are 2.99% + 49¢. PayPal Checkout and Venmo are 3.49% + 49¢.
Extra readers cost more. Only the first Card Reader is $29. Each one after that is $79.
Fast cash costs extra. Instant transfers cost 1.5% of the amount, with a 50¢ minimum. PayPal’s fee page doesn’t say how long a standard transfer takes.
Typed-in cards cost more. Manual card entry is 3.49% + 9¢.
What it costs at your size
These are estimates. They use PayPal’s published POS rate and assume every payment is a card tapped, dipped or swiped in person.
Example: $10,000 a month in person, 400 payments.
- Rate: 2.29% × $10,000 = $229
- Per-sale fee: 400 × 9¢ = $36
- Monthly fee: $0
- Estimated total: $265 a month, an effective rate of 2.65%
If PayPal ever raised the percentage part to its 5.00% limit, the same month’s percentage fee would be 5.00% × $10,000 = $500 instead of $229. That’s the ceiling in the terms, not a rate PayPal has announced.
One $20 chargeback that month would add about 7.5% to that $265 bill. Compare your own month in the fee calculator.
Compared with
- Square: 2.6% + 15¢ in person on its Free plan, with no monthly fee and hardware from a $59 reader up to a $1,999 kiosk. It charges no dispute management fee, but you don’t get the processing fee back if the customer wins.
- Stripe: 2.7% + 5¢ in person and 2.9% + 30¢ online, with no monthly fee. Disputes cost $15, plus $15 more if you respond and lose.
Beyond the rate
What the rate table doesn't show, taken from PayPal POS's own terms and help pages.
Can they hold your money?
PayPal says it can put a reserve on your business account at any time if it sees high risk, which makes some or all of your money unavailable to withdraw.
Source: paypal.comWorks offline?
Yes. Chip and contactless only (no swipe). $1,000 USD per payment and $10,000 USD total queued per device. Must reconnect within 24 hours or offline payments pause. You take the risk of declined, expired, or disputed payments. PayPal says to contact your POS provider to start using it.
Source: paypal.comLeaving
PayPal says there are no monthly or setup fees and does not state a contract term or cancellation fee.
Source: paypal.com
Common questions
How much does PayPal POS charge per transaction?
PayPal lists 2.29% + 9¢ for card-present payments and QR code payments through PayPal POS. Manually entered cards are 3.49% + 9¢. Online, standard card payments are 2.99% + 49¢, and PayPal Checkout or Venmo payments are 3.49% + 49¢. There's no monthly fee for the POS app.
Can PayPal raise its POS fees?
Yes. PayPal's fee page says "PayPal may increase the percentage components of your Transaction Fees after giving you 30 days prior notice," up to 5.00% per transaction. It's tied to risk. The rate you start with is not locked in, so read any notice PayPal sends you.
What does PayPal charge for chargebacks?
PayPal lists a $20 chargeback fee. It also lists dispute fees of $15 for a standard dispute, or $30 at the high-volume level. A returned or unauthorized ACH payment costs $5. If disputes are common in your line of work, add these to your cost estimate.
How much is the PayPal card reader?
PayPal lists its Card Reader at $29 for the first one and $79 for each one after that. The PayPal Terminal is $199, or $239 with a built-in barcode scanner. PayPal also says Tap to Pay in the PayPal app may suit sellers who don't need extra hardware or staff.