PayPal Singapore business account: Rates, charges, fees and more

As a Singapore startup, there are many of knowledge you must get familiar quickly. Understanding PayPal fees for merchants in Singapore is that knowledge; it is crucial for managing your business finances effectively. 

You can refer to PayPal's official website for the most up-to-date information on fees. But in this article, we show you a general overview of the most common PayPal fees for Singapore merchants.

1. An overview of PayPal Singapore fees

For more information on relevant fees when using PayPal, you should definitely read the merchant fees guide of PayPal.

1.1. How does PayPal determine different rates and fees for each transaction for Singapore merchants?

PayPal determines different rates and fees for each transaction based on various factors, and these can vary based on whether the transaction is domestic or international.

A domestic transaction occurs when both the sender and receiver are registered with or identified by PayPal as residents of the same market. Fees for domestic transactions are generally lower compared to international transactions.

An international transaction takes place when the sender and receiver are registered with or identified by PayPal as residents of different markets.  PayPal may group certain markets together when calculating international transaction rates. The grouping is based on regions or countries. 

Fees for international transactions are often higher due to additional considerations such as currency conversion and cross-border processing.

With that knowledge in mind, let's take a look at how PayPal charges fees for domestic transactions and international ones.

2. PayPal fees and rates for receiving domestic and international transactions

PayPal charges merchants for receiving payments, based on the quantity and value of orders made through PayPal and where the payments were made. Depending on whether the buyers are from Singapore or other countries, the fees Merchants bear are as follows:

After opening a PayPal Business account, what Merchants (sellers, PayPal account holders) need to do next is to calculate costs to optimize profits and cash flow. Typically, Merchants perform these 3 types of transactions:

(1) Receive payments from customers via PayPal;

(2) Payment to 3rd parties (such as agencies, suppliers, etc.) via PayPal;

(3) Withdraw money from the PayPal Business account to a bank account. Merchants can withdraw US dollars (USD), Singapore dollars (SGD), or other currencies that are supported by PayPal and banks.

Different types of transactions are subject to different PayPal fees.

PayPal charges merchants for receiving payments, based on the quantity and value of orders made through PayPal and where the payments were made. Depending on whether the buyers are from Singapore or other countries, the fees Merchants bear are as follows:

For example: If you are a Singapore-based company and have 2 buyers, one is a Singapore resident, and the other is a US resident. They both conduct 1000 SGD transactions, then the total fee you need to pay for PayPal for each customer is:

• For Singapore residents (Local payment): the charged fee is (3.9% of SGD 1000) +0,50 SGD = 39.5 SGD
• For  US residents (international payment): the charged fee is (4.4% of SGD 1000) +0,50 SGD = 44.5 SGD

PayPal may also adjust these fees. For up-to-date information, please refer to the pricing page on PayPal’s website. On a side note, merchants who have large monthly transaction volumes can apply for PayPal Underwriting for more favorable fees. As a partner with PayPal, Global Link Asia Consulting will guide you along this process.

2.1. PayPal fees and rates for sending domestic and international transactions

In many cases, you will need to send money to many different partners such as foreign suppliers, advertising agencies, employees working overseas, and so on. Payment fees typically include applicable fees or currency conversion charges, if any.

These fees are often paid by the recipients and can vary depending on the currency in which Merchants are sending funds. Merchants can sign up for MassPay to absorb this fee when sending money, instead of the recipients. MassPay is only available for PayPal Business VIP accounts that have completed the Underwriting with PayPal. With MassPay, the fee is usually 2% of the transaction, up to a maximum of 80SGD (approximately 60USD) per transaction. Please check the PayPal User Agreement for the most updated fee chart.

2.2. PayPal fees and rates for chargeback

If a transaction is not completed via a buyer's PayPal account or through guest checkout, a settlement fee is applied to sellers for chargebacks on credit and debit card transactions. A chargeback happens when a buyer disputes or reverses a charge on their card through the card issuer.

Here is a table showing common PayPal chargeback fees

2.3. PayPal fees and rates for withdrawing money from a PayPal Business account to a bank account in Singapore

The fee for withdrawals from PayPal to a Singapore bank account will be 1 SGD if the withdrawal amount is less than 200 SGD; and free if above that threshold. When making a withdrawal, Merchants should also be aware of the currency conversion fee, which is usually included in the PayPal exchange rate. The fee for withdrawals made to a USD bank account is usually 3%.

Fees for transactions made via a PayPal Business account are quite complicated. This requires Merchants to keep up to date with exchange rates and any changes in PayPal regulations and fees. This can pose a big obstacle for Merchants when they must maintain business efficiency whilst coping with the changes in PayPal and the currency market.

The good news is that these fees can be reduced if your PayPal Business account is upgraded to a PayPal Business VIP and with PayPal Pro. Upgrading to PayPal Pro will help Merchants increase conversion rates, significantly reduce transaction costs, and keep accounts stable.

3. How to set up a PayPal Singapore business account?

Important note

To register for a PayPal Singapore business account, you first need to establish your business presence in Singapore by incorporating your company in Singapore. PayPal will ask you to fill in your company information for verification. Upon successful verification, you will gain access to amazing features available for business owners

We offer one-stop Singapore company registration from company formation, and account opening to accounting handling and tax filings

Contact our expert today!

To make it easier for you, we present to you these 3 essential steps to open your PayPal Singapore business account right away.

• 1

  Singapore company formation

• 2

  PayPal business account creation

• 3

  Account customization

4. How can we help you get the most out of using your Singapore PayPal business account?

Global Link Asia Consulting, as your trusted one-stop corporate service provider helping hundreds of business owners start their businesses overseas and manage their companies with success, we can

• Provide advisory services for international monetary transactions, optimizing business cash flow;
• Do PayPal Underwriting to get access to PayPal Pro and advanced features;
• Assist in registering and maintaining VIP accounts with international payment gateways, offering faster processing and lower fees.
• Offer guidance on compliance with payment gateway User Agreements and help resolve disputes.
• Help you create new PayPal Business accounts, crucial for those with prior account issues or high transaction volumes.
• Advise on strategies for increasing transaction limits with PayPal and avoid PayPal limitations and restrictions.

In addition, we offer corporate services for entrepreneurs in PayPal, Stripe non-listed countries wanting to set up their PayPal Business Account:

• Register a company in Singapore; Hong Kong, and the U.S;
• Open a corporate bank account in Singapore with a 99% success rate;
• Choose the right company types for tax optimization in Singapore;
• Apply for business licenses;
• Get an affordable, professional registered office address for business;
• Support to open, authenticate, and manage Stripe Paypal Business in Singapore, Hong Kong, and the U.S;
• Handle all your tax accounting needs, timely annual filings, auditing, and more.

5. FAQs about PayPal Singapore fees for merchants

With over a decade of experience serving as a trusted partner to more than 750 business owners seeking professional development and breakthroughs in the international market, we are an  expert strategic corporate service provider helping you incorporate and operate successfully in 10 different countries

Our areas of expertise include:

• Strategic Consulting and Company formation in over 10 different countries worldwide such as Singapore, Hong Kong, the U.S., Australia, Thailand, Malaysia, and offshore destinations like BVI, Belize, Seychelles, and more.
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With over 10 years of experience and a team of experts with 5 to 25 years of experience (international standard certifications) as well as direct partnerships with institutions such as OCBC, UOB, DBS, PayPal, and Stripe, we are proud to offer professional, legal, transparent, sustainable services with no hidden costs.

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