PayPal Payout Fees?

[Jay18]

Greetings all,

I am a new host and trying to determine my payput method. PayPal is convenient for me, but wondered if any fees are subtracted from the final payout amount.

As an example, say I have a $100 balance due me from airbnb.com after their fee, host fee, etc.

Should I expect the net $100 to be deposited to my PayPal account, or would there be some deduction(s) and I would receive something less than $100?

Thanks in advance,

Jay

[Nikolaos20]

Oh this is perfect i change now the pay method to paypal! thank you very much for your time and your fast answers! have a nice day! 🙂

[Rahul44]

I have no idea what's what. But I did not have any misfortune with Airbnb payments. I have been hosting for over a year. Airbnb calculates the payout amount at their end for each booking, and I get that exact same amount on my personal PayPal amount. Never has PayPal skimmed out anything, so far. Ignorance (without misfortune) was bliss. 

Now, today I just had my first eBay sale using the same PayPal account. And on top of eBay's 10% fees (which are billed as a monthly statement to be paid at a later time), the payout sent by eBay to PayPal was reduced by  2.9%+$0.30 as "PayPal fees". All this plus shipping is costing me upwards of $21 on a $102 sale. **bleep**. How the hell are people managing to sell competitively on eBay? 

I'm looking at this eBay payment, side-by-side with my last Airbib payment, and they are both very similar transactions. Dangerously similar. I had gotten so comfortable with everything on the Airbnb payment front, that I had even stopped checking the PayPal items if they matched Airbnb payout amounts. Now I am afraid. 

Personal payments on PayPal are free of fee. I'm guessing "Airbnb Payments Inc." (the PayPal account that sends us the hosting payout) may be of that nature. I can't explain why else PayPal isn't skimming on the side like they are doing with eBay.

Then again the stucture of the transaction isn't like a personal payment which reads "Money receved". The Aibnb payment reads "Payment received", which is similar to the eBay payment. So my best guess is Airbnb & PayPal cut some sort of a deal. Some amounts from the "3% Airbnb host fees" might be allocated to pay a lumpsum to PayPal, periodically. This eliminates frustration at the host's end, and also a 3% revenue for Airbnb for the hosts who do not use PayPal. As long as they fairly charge every host the 3%, both Airbnb and PayPal benefit. This is the best explanation. 

[William29]

Ebay is a ripoff.  Stay away.  Use facebook marketplace or Craigslist.

Regarding Paypal fees for accepting Airbnb cash payouts...There are no paypal fees for it.  

[Yvonne319 · Accepted solution]

Paypal will NOT deduct fees for payouts from Airbnb to your PERSONAL Paypal account. Your business Paypal account will incur a fee, however. Additionally, fees are applied to any paypal accounts which require a currency conversion. 

Not business, no currency conversion = NO FEE!

Businnes account with Paypal= fee,

Currency conversion with Paypal = fee

[Resort-Vacation-Rentals0]

Please stop copying and pasting this falsehood.  PayPal does not deduct any transaction fees paid out to either a personal or business PayPal account at least in the U.S. as they have a bulk agreement with PayPal, as do other OTA's like TripAdvisor.

[Resort-Vacation-Rentals0]

NOTE:  The response given by Yvonne319 is NOT entirely correct

PayPal will not deduct any fees from payments made to your PayPal account from any big OTA like AirBnB or TripAdvisor -- regardless if paid out to a personal or business PayPal account -- because those companies have bulk agreements with PayPal.  Smaller companies may incur a few meaning you will not get the full amount.

If that response is marked as the CORRECT answer it will be misleading to readers.

[Nicolas618]

Paypal will NOT deduct fees for payouts from Airbnb to your PERSONAL Paypal account. Your business Paypal account will incur a fee, however. Additionally, fees are applied to any paypal accounts which require a currency conversion, even personal accounts. 

USA/UK = No fee

Not business (personal), no currency conversion = NO FEE!

Businnes account with Paypal= fee,

Currency conversion with Paypal = fee

BUT... a fee may incur dpending on your bank & type of account you have linked to your Paypal account which is required, which you need to check with your bank- hence "fees may be incurred"

[Suzanne463]

I am new to hosting-just began this past Wednesday and it was rented the first night!-exciting....okay back to business.

I have read a lot of these posts and had decided to go with PayPal because it seems no fee is charged and I have always been happy with transactions with PayPal over the years. I have 2 questions though:

The main one is; if the money is deposited into PayPal and then I am going to have to move it to my bank in order to use it, what's the point of not putting it directly into my bank account in the first place? Is there a reason I am missing that putting the money into PayPal before sending it to my bank account makes sense? I saw that PayPal is a quicker transfer but then adding the time to transfer to bank afterwards seems to negate that timing.

Second question related: I made a separate email just for my airbnb and it's different from the one with my PayPal account-will this create confusion? Or is there a way to have Airbnb $ sent to a different email than the one related to my PayPal account?

Thanks -this community is sooooo helpful!!!

Suzanne

[Mathew38]

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@Suzanne463 wrote:

I am new to hosting-just began this past Wednesday and it was rented the first night!-exciting....okay back to business.

I have read a lot of these posts and had decided to go with PayPal because it seems no fee is charged and I have always been happy with transactions with PayPal over the years. I have 2 questions though:

The main one is; if the money is deposited into PayPal and then I am going to have to move it to my bank in order to use it, what's the point of not putting it directly into my bank account in the first place? Is there a reason I am missing that putting the money into PayPal before sending it to my bank account makes sense? I saw that PayPal is a quicker transfer but then adding the time to transfer to bank afterwards seems to negate that timing.

Second question related: I made a separate email just for my airbnb and it's different from the one with my PayPal account-will this create confusion? Or is there a way to have Airbnb $ sent to a different email than the one related to my PayPal account?

Thanks -this community is sooooo helpful!!!

Suzanne

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1) paypal = instant. bank = not instant. paypal also charges fees their end, you need to login, click help, and type in "fees" in the search. this will give you the answer you need, not this forum. if movement to your paypal then movement to your bank is both free and instant then sounds like a good deal.

2) no.

i really dunno if this community is "sooooo helpful". lots of stubborn people, including lots on this thread that think that because it's one way in (insert one country) then it has to be that way in (insert other country that's overseas). you need to consult the paypal website yourself to determine the fees. these fees are not universal between nation to nation. if i went off this forum instead of contacting paypal directly i would have been dinged $18.50 per $500 for transfers paid in usd for my canadian flat to my canadian paypal. just contact paypal directly, do not go off strangers on an airbnb forum, particularly with comments from 3 years ago.

bear in mind paypal releases payments to hosts as "goods and services". huge fee implications there.

do note that

[Resort-Vacation-Rentals0]

WARNING:  The response given by a few other users (and even marked "Correct" by some) is NOT entirely correct...

PayPal will not deduct any fees from payments made to your PayPal account from any big OTA like AirBnB or TripAdvisor -- regardless if paid out to a personal or business PayPal account -- because those companies have bulk agreements with PayPal.  Smaller companies may incur a few meaning you will not get the full amount.

We suspect some of the responses here are coming from users who are making assumptions based on the general PayPal business account rules and/or which they have experienced for normal payments made to their business accounts, not bulk payouts.  If they are telling you this then they obviously do not have their payouts going thru PayPal and are making assumptions, in which case seems rather irresponsible to pass on publicly as fact.  We can assure you that after receiving payouts from AirBnB & TripAdvisor to our PayPal business account for well over ten years our answer is correct.

*NOTE:  If you are receiving payouts that involve a currency conversion to a currency or nation other than the one in which you do business with AirBnB that may differ, but not if AirBnB's bulk payout account applies to international payments too.  But you will definitely  not be charged a fee just because they are paying out to a business account as you would normally with individual payments from those without a bulk payment agreement.

To answer your second question, your email address used for your PayPal account does not have to be the same one you use with PayPal.

[Abelkader0]

Hi they took today 260 $ from amount of 1340 euros. they claim that 3,4 % is their commission fee. it is not correct, robbery I describe it. that s why I m stopping Airbnb and closing Pay Pal. Far more expensive than booking.com and far from honest than booking.com.

[Resort-Vacation-Rentals0]

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@Abelkader0 wrote:

Hi they took today 260 $ from amount of 1340 euros. they claim that 3,4 % is their commission fee. it is not correct, robbery I describe it. that s why I m stopping Airbnb and closing Pay Pal. Far more expensive than booking.com and far from honest than booking.com.

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Booking.com charges 15-18% commission, and Expedia even more.  How is AirBnB more expensive??

[Travis151]

On a similar note but slightly different, if I do the Airbnb offered payout option to my bank, thus my USD that I charged is converted to MXN Pesos, do I get a good exchange rate? The PayPal (USD) to Bank (MXN) exchange rate is horrible. How is the one given by Airbnb to my (MXN) bank?

[Ryan2292]

Just got my first payment through PayPal. No Pay Pal fees were deducted. Just a 1 to 3 day hold on transferring funds to my account was stated.  This is a personal PayPal account so not sure if different for a business account. Also notable- have had this PayPal account for years, not heavy use IMO, but right after getting notified of the funds- PayPal wanted me to verify my SS# for IRS purposes. After reading why- they state that anyone receiving over $20k a year, over 200 payments will be 1099’d. No biggie for me, but thought I’d share. 

[Resort-Vacation-Rentals0]

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@Ryan2292 wrote:

Just got my first payment through PayPal. No Pay Pal fees were deducted. Just a 1 to 3 day hold on transferring funds to my account was stated.  This is a personal PayPal account so not sure if different for a business account. Also notable- have had this PayPal account for years, not heavy use IMO, but right after getting notified of the funds- PayPal wanted me to verify my SS# for IRS purposes. After reading why- they state that anyone receiving over $20k a year, over 200 payments will be 1099’d. No biggie for me, but thought I’d share. 

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Yes, see our post above regarding the old and new government threshold for 1099K's.