How to avoid PayPal fees

PayPal charges a fee for accepting payments, but there is a loophole for avoiding the fee, as shown in this chart.

Give these instructions to the person sending you money:

1. Log in and click on "Send Money". 
2. Enter the recipient email and amount, then choose "Personal". 
3. Select "Payment owed", then click "Continue". 
4. Choose your bank account or PayPal balance as the funding source. DO NOT pay with a credit card! The "Your fee" section should say "$0.00". If it has a checkbox that says "I will pay the fee", then you need to change the funding source.

Keep in mind that some people will not follow the instructions and you will be stuck with the fee. Sometimes the best option is to adjust your price to cover the fee and allow people to use any payment method. When selling tickets for an event, I would recommend accepting credit cards, but if you are selling your used cargo pants to an instructor in another state, I would ask them to use these instructions.