Canadian PayPal merchants pay 2.99% + C$0.49 for standard PayPal transactions. For PayPal Checkout (the newer branded flow), the rate is 3.49% + C$0.49. Cross-border transactions add 1.5%, and currency conversion adds 3–4% spread on the exchange rate.
PayPal Canada fee examples (CAD)
| Charge | PayPal Standard | PayPal Checkout | Stripe (CA domestic) |
|---|---|---|---|
| C$25 | C$1.24 (5.0%) | C$1.36 (5.4%) | C$1.03 (4.1%) |
| C$100 | C$3.48 (3.5%) | C$3.98 (4.0%) | C$3.20 (3.2%) |
| C$500 | C$15.44 (3.1%) | C$17.94 (3.6%) | C$14.80 (3.0%) |
GST/HST on PayPal fees
PayPal applies GST or HST to processing fees for Canadian businesses based on the province of registration. This is generally recoverable as an input tax credit for registered businesses. PayPal issues a fee statement monthly.
PayPal vs Stripe for Canadian businesses
Stripe is cheaper for standard card processing (2.9% + C$0.30 vs PayPal's 2.99% + C$0.49). The difference compounds at scale: at C$10,000/month, Stripe saves approximately C$24/month over PayPal Standard. Stripe also has better subscription support, webhook reliability, and developer tooling.