PayPal is a fast growing e-commerce business in numerous countries across the globe. Online payments can be made in a matter of seconds using a PayPal account. However, for each incoming transaction, PayPal users are required to pay a certain amount of fee. Moreover, you will be charged by PayPal if you withdraw cash from your PayPal account. However, you are not charged any fees by PayPal for transactions you make in order to pay for an item that you bought online.
- PayPal account
Go to the official PayPal website and sign in to your PayPal account with your username and password. When you are redirected to your PayPal account webpage, click the link labelled ‘History’. This is where all the details regarding the transactions you ever made using your PayPal account can be found.
Each time a deposit is made into your account, PayPal automatically deducts a pre-determined fee. Information related to this deduction is listed against each transaction listing on the History page of your PayPal account. Since the money deducted by PayPal is an operating expense, you might want to determine PayPal fees for tax purposes.
Take into account other fees that PayPal might have charged. For instance, each time you withdraw money from an ATM using your PayPal account, both the bank that owns the ATM and PayPal charge a certain fee. Moreover, any cheques that you receive from PayPal come at a cost. Make a note of all such fees while determining the total amount of PayPal fees over a given period of time.
If you are receiving payments through PayPal from customers who buy something from you on eBay, it is best to sign up for the eBay auction Seller's Report. It a free of charge service by eBay which will help you keep track of your eBay as well as PayPal fees for a given month.
For people who do online business through their personal website or any website but eBay, it is best to keep a personal record of PayPal fees and then determine what the fees add up to at the end of a given month.