Quick answer
PayPal Zettle is PayPal's app, card reader and Terminal for in-person sales, and PayPal Zettle is now PayPal Point of Sale. There are no monthly fees, startup fees, or long-term commitments, and a card tapped, dipped or swiped on the reader costs 2.29% + $0.09 per transaction. Sales settle directly into your PayPal business account, and a standard transfer from there to your bank has No Fee.
Nation, an AI store builder, publishes this page. It is pre-launch, with a waitlist on withnation.ai, so it is not in the fee comparison. See where Nation fits.
What PayPal Zettle is
PayPal Zettle is the point of sale system PayPal sells for taking payments in person: a free app for a phone or tablet, a card reader that pairs with it, and a standalone Terminal with the app built in. PayPal has renamed it, and PayPal Zettle is now PayPal Point of Sale. PayPal says the POS still operates the same way, and that an existing account will not undergo any changes.
The app is free to download. There are no monthly fees, startup fees, or long-term commitments, so your costs are the hardware you buy once and a fee on each sale. A card tapped, dipped or swiped costs 2.29% + $0.09 per transaction. You need a PayPal business account to use it, and the money from each sale lands in that account before you move it to your bank.
The app takes major credit and debit cards, contactless payments, mobile wallets, and PayPal and Venmo QR codes. In the app you can Build a product library, apply discounts, get low-stock alerts, and access detailed reports. You can also Set up staff accounts and sync with QuickBooks, Xero, and Shopify.
It suits sellers who already take PayPal online and now sell at markets, pop-ups, fairs or a small shop, because online and in-person sales end up in one PayPal balance.
PayPal Zettle fees for each way a buyer pays
PayPal Zettle fees depend on how the buyer pays, not on a plan. The table lists each rate as PayPal's Point of Sale pricing page and US merchant fees page state it for a US business. Most rates are a percentage of the sale plus a fixed amount per transaction.
Manual entry, payment links and invoices cost more than a card on the reader. If the buyer is standing in front of you, a tap, a chip or a QR code is the cheaper way to take the payment.
PayPal's Tap to Pay page states its rate without a fixed part, while the merchant fees page lists card-present sales at 2.29% + 0.09 USD. Check the fee on your first few sales in your PayPal activity to see which one applies to you.
PayPal Zettle card reader and Terminal prices
You can take QR code payments with the app alone, and Tap to Pay turns a compatible phone into a contactless reader. To take chip cards you need the Card Reader or the Terminal, which you buy at the prices below.
The Card Reader and Terminal both accept chip and PIN cards, contactless (NFC) cards, and digital wallets, including Apple Pay, Google Pay, Samsung Pay. PayPal says its POS system only works with the PayPal payment infrastructure, so the reader and Terminal are tied to PayPal as your payment processor.
How to work out the fee on one $30 card sale
Example: one $30 item sold at a weekend market, paid by a US card tapped on the PayPal Card Reader, with no tip and no sales tax.
Find the rate for the payment type
A tapped card is a card-present transaction, which PayPal charges at 2.29% + $0.09 per transaction.
Apply the rate to the sale
The percentage is charged on the sale amount and the fixed part is added once. On this sale the fee comes to $0.78.
See where the rest goes
The rest of the sale lands in your PayPal Business account, where PayPal says you can reach it in minutes through your PayPal balance.
Move it to your bank
A standard transfer to a linked bank account has No Fee. An instant transfer costs 1.50% of amount transferred, with a minimum of 0.50 USD.
Count the hardware once
You pay for the reader when you buy it, before the first sale: $29 for your first Card Reader. Spread over many sales it adds little to each one.
PayPal Zettle fees compared with other card readers
The same $30 card-present sale on PayPal Zettle and on three other card readers a small seller is likely to consider, using each company's own published in-person rate on its free or pay-as-you-go option.
- PayPal Zettle baseline $0.78 no monthly fee, reader $29 for your first Card Reader Card present 2.29% + $0.09 $0.78
- Stripe Terminal $0.86 pay as you go, reader $59.00 In person 2.7% + 5¢ $0.86
- SumUp $0.88 no monthly minimums, reader $99 Card present 2.6% + 10¢ $0.88
- Square $0.93 Square Free, no monthly fee In person 2.6% + 15¢ $0.93
Assumes a $30 sale, a US card tapped or dipped in person, no tip, no tax and no currency conversion. Square uses its Square Free in-person rate, and Stripe uses its Terminal rate for domestic cards.
How PayPal Zettle payouts reach your PayPal Business account
PayPal Zettle does not pay card sales straight into a bank account. Sales taken in the app settle directly into your PayPal business account, and PayPal's pricing page says you can reach the money in minutes through your PayPal balance. The same page adds a condition: Transactions are subject to review and may be held or delayed.
From the PayPal balance you move the money out yourself. These are the ways to move it to a bank, as PayPal's US merchant fees page and Tap to Pay page describe them.
- Standard transfer: No Fee to an eligible linked bank account or debit card, when no currency conversion is involved.
- Automatic transfer: PayPal offers free automatic transfers for next-day access, so you do not have to start each transfer yourself.
- Instant transfer: 1.50% of amount transferred to a bank account or eligible debit card, with a minimum fee of 0.50 USD.
Card sales can be reversed. If a buyer's card issuer reverses a card payment, PayPal charges a chargeback fee of 20.00 USD. Disputes on payments made through a buyer's PayPal account, such as a PayPal QR code payment, carry a dispute fee of 15.00 USD.
How to start taking payments with PayPal Zettle
Open a PayPal Business account
The app needs a PayPal business account, and sales are paid into it. If you do not have one, you can sign up for free directly in the app.
Download the app
The PayPal POS app is free to download. Add your products and prices so checkout is one tap per item, and set up staff accounts if someone else will sell for you.
Choose your hardware
The first Card Reader is $29 for your first Card Reader and needs a smartphone or tablet running iOS 14 or higher, or Android 8.0 or higher. Without a reader you can take QR code payments, use Tap to Pay on a compatible phone, or type cards in at 3.49% + $0.09.
Pair the reader and run a small test
Pair the reader with the app over Bluetooth, then take a small payment on your own card and refund it, so you know the flow before your first market day.
Link a bank account and set transfers
Link and confirm a bank account in PayPal. Then decide between moving money yourself and PayPal's free automatic transfers for next-day access.
When PayPal Zettle fits and when it does not
PayPal Zettle fits a seller who already has a PayPal Business account, sells online through PayPal and wants in-person sales in the same balance. It also fits markets where buyers like to pay with PayPal or Venmo, since the QR code rate is the same as a tapped card.
Look at other readers if you want card money paid straight into a bank account with no PayPal balance in between, or if you want to keep the option of changing processors without buying new hardware. In either case, compare the in-person rates in the chart above with what each provider includes.
Where Nation fits
Nation
Category: an AI store builder
Nation says one description of what you make builds the store, then agents handle orders, customers and delivery and run ads, content and social posts, with you approving the work. Because pricing is not announced yet, it is not in the fee comparison.
Limits today
- Status: pre-launch, with a waitlist on withnation.ai.
- Pricing and fees: not announced yet.
- Shopper marketplace: no shopper marketplace has been announced.
- Track record: no independent reviews or public stores yet.
Nation publishes this page. Nation is not in the fee comparison until signup is public and pricing is published.
Describe what you makeQuestions about PayPal Zettle
What is PayPal Zettle?
PayPal Zettle is PayPal's point of sale system for in-person sales: a free app, a card reader and a standalone Terminal. PayPal Zettle is now PayPal Point of Sale, and PayPal says the POS still operates the same way. Sales are paid into your PayPal Business account, and there are no monthly fees, startup fees, or long-term commitments.
What are PayPal Zettle fees?
PayPal Zettle fees are 2.29% + $0.09 for a card tapped, dipped or swiped in person, and 2.29% + $0.09 for a PayPal or Venmo QR code. Typing a card in costs 3.49% + $0.09. There is no monthly fee, so you pay only when you make a sale.
Are Zettle fees lower than PayPal's online fees?
Zettle fees for a card used in person are lower than PayPal's online rates. A tapped or dipped card costs 2.29% + $0.09, while an online PayPal Checkout payment costs 3.49% + $0.49 per transaction and a standard online card payment costs 2.99% + $0.49 per transaction. Payment links and invoices sent from the app use the higher rates.
Does PayPal Zettle charge a monthly fee?
PayPal Zettle does not charge a monthly fee. PayPal's pricing page states No monthly or setup fees, and the app is free to download. You pay a fee on each sale, plus the price of any hardware you buy, such as $29 for your first Card Reader.
How much is the PayPal Zettle card reader?
The PayPal Zettle card reader is $29 for your first Card Reader for a new business user, and the standard price is $79 for each reader after that. The Terminal, which works without a phone, is $199 for Terminal only. PayPal lists these as purchase prices, with no monthly fee for the app.
How do I move PayPal Zettle sales to my bank?
PayPal Zettle sales land in your PayPal Business account, and you withdraw them from there. A standard transfer to a linked bank account has No Fee when no currency conversion is involved, and PayPal offers free automatic transfers for next-day access. An instant transfer costs 1.50% of amount transferred.