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WePay vs. PayPal Fees: An Overview

PayPal and WePay are both online and mobile ways of making digital payments. PayPal was founded in 1998 as an alternative to traditional paper-based banking. The company’s main focus is facilitating payments and enabling money transfers between businesses and people across different locations, currencies, and languages. WePay was founded in 2008 as a way to collect money from various sources in a hassle-free manner. In 2011, the company began focusing on accepting credit card payments for small businesses. JPMorgan Chase & Co. acquired WePay in 2017. WePay’s three main services integrate with Chase bank.

This article compares the two payment gateways PayPal and WePay. We look at the pros and cons in terms of the fees that they charge and the services that they offer. Lastly, we explain which of the two payment providers is the best option depending on the context.

Key Takeaways

  • PayPal is an online payment systems company that facilitates money transfers and serves as an alternative to traditional paper payment methods.
  • WePay is an online payment systems company that provides integrated payment solutions to crowdfunding and SaaS platforms.
  • WePay offers three tiers of service—Link, Clear, and Core—which integrate into WePay’s parent company, Chase.
  • Paypal offers a variety of service options for merchants, for example, there are options for charitable organizations or businesses that require an integrated API.
  • Fees and restrictions vary between PayPal and WePay, making one more attractive than the other for some merchants.

WePay Fees

WePay, which is a JPMorgan Chase company, is an online payment system that provides integrated payment solutions primarily to SaaS and crowdfunding platforms. It is a bit different from PayPal. For starters, merchants integrate the payment system into their website to make the shopping experience seamless. WePay has three distinct services: Link, Clear, and Core.


Link is a way for merchants to conduct transactions through Chase’s integrated payment service while earnings fees, which can be automatically deposited into Chase bank accounts. The merchant’s customers pay 2.9% + $0.30 for each transaction.


The second service WePay offers is known as Clear and is a white label payment approach that allows merchants to set their own pricing. The service also enables merchants to integrate the payment data into their applications and then control how users experience the process. In short, Clear is a way for companies to leverage WePay’s technology to offer online payment using their own brand.


Lastly, Core lets companies fully integrate into Chase’s infrastructure for payment processing and cash management. It gives the merchant control of the user experience and transaction life cycle. Core is the choice for companies that do a lot of transactions, want to become full-fledged payment facilitators, and hope to achieve economies of scale.

WePay Fees Pros and Cons

WePay is a predominantly web-based credit card processor built for online use, and it does not process payments at brick-and-mortar locations. Although the fee structure is favorable and the processing costs are low, according to, it does not provide full-fledged merchant accounts, and WePay has been know to freeze accounts.


  • Sending invoices is free.

  • The cost to accept credit card payments is relatively cheap at 2.9% + 30¢.

  • The cost of processing ACH payments is 1% + $0.30.

  • There are no setup fees or monthly fees.


  • WePay‘s support is only
    available by email.

  • No dedicated merchant accounts, so WePay may not be the
    best fit for large businesses.

PayPal Fees

PayPal is known and trusted by millions of people. The company uses this trustworthiness in its marketing strategies—an overview of their website encourages businesses to use PayPal and display the PayPal logo as a sign that the merchant is serious about business.

429 million

The number of accounts PayPal held worldwide as of March 2022. PayPal is available in 201 countries and 25 currencies.

PayPal transactions are completed within minutes, and the company promises that the money will be available for deposit or withdrawal to a bank account immediately. Money is secure, privacy is protected, and since the customer base is so large, transactions are faster than traditional methods where customers enter their shipping information and payment details on the merchant site. PayPal’s website can be confusing for merchants because there are so many different packages and services available.

PayPal Merchant Account

Businesses can sign up for merchant accounts. Merchant account fees for online transactions are 2.9% + $0.30 per transaction in the United States. Fees for doing business outside of the United States are 1.5% + a fixed fee, depending on the country. These fees are modified for merchants whose average sale is less than $10 (micropayment transaction fees are lower, depending on the country).

PayPal offers different fees for charitable merchant accounts. The fees for domestic transactions for charitable organizations are 2.89% + a fixed fee. The fees for receiving international charitable transactions are 1.5% plus an additional percentage-based fee depending on the originating country.

Finally, some merchants either don’t want to send their customers to PayPal’s website to finalize payment or want phone and fax payment support or virtual terminals for their brick-and-mortar business. PayPal has solutions for those merchants and offers packages with monthly fees and (sometimes) lower transaction fees.

PayPal Fees Pros and Cons


  • Some banks require a transaction fee when you transfer funds
    from your PayPal account to your bank account.

  • Fees increase for international transactions depending on
    the country.

  • PayPal can freeze accounts without warning—which can be
    disastrous for a business.

Key Differences

WePay offers “white-label” payments, which means platforms have their own, self-branded payment solution when they partner with WePay without having to become a payment facilitator themselves. PayPal has a similar option called PayPal Payments Pro, but it is pricey.

With respect to chargebacks, WePay charges $15.00 per chargeback (in addition to the amount of the chargeback); $15.00 per ACH return (in addition to the amount of the return); and a $25.00 research fee. PayPal charges a nonrefundable $20 fee whenever a buyer files a chargeback.

WePay’s website shows a long list of prohibited activities, for example, adult sites, gambling, auctions, debt, drugs, and many more. PayPal is less restrictive.

What Is WePay?

WePay is an online payment service provider based in the United States and controlled by JPMorgan & Chase. It is a digital solution that provides integrated and customizable payment processing APIs to platform businesses such as crowdfunding sites, marketplaces, and small business software companies. PayPal is among its competitors.

Is WePay the Same as PayPal?

WePay is a payment provider for independent software vendors and software platforms. WePay offers “White Label” payments, which is an API that is integrated into a website so that customers don’t have to leave the site. If If you want access to an API with PayPal, you need to use PayPal Payments Pro, which throws in a $30 monthly fee of 2.9% + $0.30 per transaction. PayPal cannot process Apple Pay or ACH. Conversely, WePay cannot process PayPal payments.

Who Uses WePay?

Users of WePay include crowdfunding sites, such as GoFundMe; event management, such as ConstantContact; accounting and invoicing platforms, such as FreshBooks; and eCommerce sites.

How Do I Get My Money From WePay?

In most instances, a payment is a simple transaction using a credit or debit card. Every payment transaction involves at least three players, but as many as five or six other entities can be involved. This complex sequence is intended to protect all parties and make sure that funds are properly transferred for real and valid transactions and to identify and block fraudulent transactions.

With every credit transaction, a sequence of queries and instructions takes place behind the scenes along two paths. First, card and transaction data are passed to the card-issuing bank to get payment approval and notification of that approval is passed back. Second, when approval is granted, a new process to transmit money is started. Finally, the money is transferred with fees deducted from the payment by participants in the process. The funds will appear in the receiver’s WePay account.

Is WePay Safe to Use?

WePay claims to provide 100% coverage of a platform’s payments-related risk, which means the company will cover fraud losses and chargebacks. WePay secures payment and customer information and maintains compliance with payment card industry safety standards.

The Bottom Line

WePay specializes in white-label payments where platforms have their own, self-branded payment solution. If all you want is the ability to process debit, credit, and ACH payments, WePay is a good way to go in the digital payments space. However, if you intend to build an e-commerce business, PayPal might be the better option because it provides more support. However, that support comes in the form of higher fees.

WePay gives you access to their API that integrates their payments into your website. Customers don’t have to leave your site, and the entire experience can be seamless. This can be bad, however, if you don’t have any coding experience or developer resources.

In terms of pricing and fees, PayPal costs the same for businesses processing less than $3,000 per month. Past that, you may need a merchant account, which is likely to increase your monthly costs. Both WePay and PayPal could do better on the customer service front, and it can prove difficult to contact the customer service department of either group.

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