Sending money internationally can sometimes be confusing, especially when it comes to fees. If you’re looking to send money from the USA to the UK using PayPal, you might be wondering about the costs involved. It’s a common misconception that all “friends and family” transfers are free, but this isn’t always the case, particularly for international transactions. Let’s clarify the fee structure when you Send Money To Uk From Usa through PayPal.
PayPal Fees for Sending Money to the UK from the USA
PayPal does charge fees for international money transfers, including when you send money to the UK from the USA. While domestic “friends and family” payments using a PayPal balance or bank account might be free, international transfers are treated differently. A key factor is currency conversion. When you send US dollars to someone in the UK, the money needs to be converted to British Pounds (£), and PayPal includes a fee for this currency conversion. This fee is in addition to any transfer fees that may apply.
It’s important to understand that the 5% fee mentioned in some contexts can be related to “Goods and Services” payments, rather than “Friends and Family” payments. If you are sending money as a “Goods and Services” payment, you will likely encounter fees, regardless of whether it’s domestic or international. This type of payment is designed for business transactions and includes buyer and seller protection, which comes at a cost.
Friends and Family vs. Goods and Services Payments
Choosing the correct payment type is crucial. “Friends and Family” payments are intended for sending money to people you know, like gifts or reimbursements. “Goods and Services” payments are for commercial transactions, like paying for an item online. If your sender mistakenly chose “Goods and Services” when sending a personal payment, or if they sent money to a business PayPal account, fees would be applied. Business accounts, by their nature, are set up to receive “Goods and Services” payments and cannot receive “Friends and Family” payments.
To avoid unexpected fees when you send money to UK from USA, always double-check the payment type and understand the applicable fees before confirming the transaction. If you believe you were incorrectly charged a fee for a personal payment, it’s advisable to contact PayPal customer service directly. They can review the transaction details and assist with any potential refunds if an error occurred. Look out for mentions of buyer or seller protection during the transaction process, as these are indicators of a “Goods and Services” payment.
