For years, PayPal was my go-to for receiving international payments as a Virtual Assistant. 

It’s widely used, convenient, and trusted by clients worldwide. But what many freelancers don’t realize until they see their earnings slowly chipping away is how much transaction fees can eat into their income.

My $2,000 Mistake (From Just One Client!)

Let’s talk numbers. Over the span of four years, I lost approximately $1,800 to $2,000 USD in PayPal fees, and that was just from one client. 

Imagine how much more I lost overall!

That’s money I could have reinvested in my business, saved, or spent on something meaningful. But instead, it quietly disappeared into transaction costs.

Was it PayPal’s fault? No. Partly, it was mine.

The Hard Lesson: Set Clear Payment Terms

One major mistake I made was not clarifying with clients who should cover PayPal fees. Many freelancers assume the amount they invoice is the amount they’ll receive, only to be shocked when PayPal deducts a chunk from every payment.

Lesson learned: When discussing rates with clients, be upfront about fees. Either:

• • Factor PayPal fees into your rate or
  • Ensure the client agrees to cover the PayPal transaction costs upfront

A simple conversation can save you thousands in the long run.

Switching to Wise: A Better Alternative

After years of frustration, I finally made the switch to Wise (formerly TransferWise) and it was a game-changer.

Here’s why Wise is a better option for international transactions:

• • Lower Fees – Wise charges significantly lower transfer fees compared to PayPal
  • Better Exchange Rates – Unlike PayPal, which often inflates exchange rates, Wise gives you real market rates
  • Fast Transfers – Payments arrive quickly, sometimes within minutes or hours
  • Multi-Currency Account – You can hold and receive payments in different currencies, avoiding conversion fees
  • Transparent Costs – Wise shows you exactly what fees you’ll pay upfront, no hidden surprises

Choose Wisely

While PayPal remains popular, it’s important to weigh the convenience against the cost. If you’re a Virtual Assistant or freelancer handling international clients, Wise can help you keep more of your hard-earned money.

If you’re still using PayPal and losing money on fees, take a moment to review your options. Switching to Wise (or at least negotiating fees with clients) could save you hundreds, if not thousands of dollars in the long run.

Have you had a similar experience with PayPal fees? What payment method works best for you? Let’s talk in the comments!