US based selling in Italy. What fees should I expect?

[jacobacro]

I am an acrobatics teacher and I want to use my PayPal business account to use as my payment processor. I am nervous because I have never used paypal business to collect money for an event before. I want to know what to expect. 1. What will the fees be? I read that I should expect a 4.4 percent paypal merchant fee. I sell tickets to an event for 200 USD each so paypal should take 8.8 USD. Is that right? 2. How should I do the currency conversion so I pay the least in fees? Should I charge them in USD and do the conversion for each person as they pay, or should I let a few thousand in euros build up and then convert to USD all at once at the end? 3. I did some tests where I had a friend in Italy pay me one euro. I expected there to be a refund button but I didn’t see one? Why is this. I am pretty sure I have seen refund options before. 4. Is there anything else I should know about collecting money in Euros from Italy. Any international tax stuff? 5. When someone from Italy pays me and euros and I convert it to USD does PayPal charge me separate charges for the merchant fee and the currency conversion? Thank you for your help. -Jacob

[sharpiemarker · Accepted solution]

@jacobacro 

The cross-border rate is 4.4% + 30 cents.

There is a variable % rate and a flat rate portion that make up the entire PayPal fee.

I find it is most easy just charging in USD and receive the amount wanted in USD currency and let the conversion be dealt with on the buyer's end.

The reason why there was no refund button is likely because the money was sent as a friends and family payment, not as a goods and services payment.

When someone from Italy pays you in euros and you convert it to USD, PayPal will do the currency conversion (exchange rate and conversion fees apply), plus the PayPal fee of 4.4% + 30 cents per transaction.

You can also open a EUR currency balance in your PayPal balance to accept EURO currency as is and then convert to USD when you want to withdraw or keep it as EUR to spend or refund money as EUR. 

[jacobacro]

Thanks that helps a lot. You said it’s possible for someone to pay me friends and family even to my business account. Is that right? If someone pays me with euros from Italy is there a difference in paypal fees between “business” and “friends and family?