When using Paypal, a lot of people like to use the “gift” option to circumvent their fees, and that’s fine, but doing this takes away your ability to make a claim with Paypal. This is one of the best reasons to use them in the first place. There is a problem with calculating the fees, but this post will tell you how to do that easily. When you pay someone with Paypal, it is the seller, not you, who gets charged. You can find the current rates here Paypal fees. Note that the fee is higher for foreign transactions. As of 7/28/12 the fees are 2.9% + 0.30 cents for domestic transactions, and 3.9% + 0.30 cents for foreign transactions. If you want to pay the seller enough money to cover the fee, you can’t simply take the percentage rate and add 30 cents to it however. Because Paypal’s fee will now take the percentage off of the now higher sum. The difference will not be high, but the seller would have every right to be upset over getting short-changed. Especially if they’re selling at cost. That is what this app is for: Paypal fee calculator A lot of what you see you won’t need to bother with. Here is what you do, under options put in your country of origin, the currency that you have and the currency that you want to pay the seller, and in “type of payment” put in either “purchase payment domestic” for transactions in your own country and “purchase payment cross-borders” for everywhere else. Skip the parts called “your monthly sales volume”, that’s for businesses that have a large volume of sales. If you qualified for that, you probably wouldn’t need this thread. Then in the part called “Reverse Paypal fee calculator” in “to receive this amount after fees” put in the amount the seller is asking for. Note that you can do this as a seller in order to come up with the right amount to charge someone in order to get the amount you really want (just make sure the buyer is aware of what your doing and they label the transaction as a purchase in paypal). There you go. An easy way to pay someone with Paypal correctly.