Softwr

Accounting · head to head

Avalara vs PayPal

Avalara logo

Avalara

Accounting

Tax compliance done right

From
$29/month
Rated
-
Full reviewWebsite
PayPal logo

PayPal

Personal Finance

The simpler, safer way to pay and get paid

From
$29/month
Rated
-
Full reviewWebsite

The short version

  • Each has a real cost: Avalara pricing varies significantly based on products, integrations, transaction volume, and jurisdictions; PayPal currency conversion on international purchases and sends carries a 4.00 percent fee, and 3.00 percent in other conversion scenarios
  • They diverge on capability: Avalara covers Tax calculation, PayPal covers Payment processing.

Where they differ

Only the attributes on which Avalara and PayPal actually diverge.

Attributes where Avalara and PayPal differ
AttributeAvalaraPayPal
Pricing modelsubscriptionusage-based
PlatformsWeb, ApiWeb, Ios, Android, Api
CategoryAccountingPersonal Finance
Founded20041998

Identical on both: starting price ($29/month), free tier (No), user rating (Not yet rated).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in Avalara

  • Tax calculation
  • Returns filing
  • Exemption management
  • Document management
  • Real-time rates
  • QuickBooks
  • NetSuite
  • Magento

Only in PayPal

  • Payment processing
  • PayPal Checkout
  • Invoicing
  • Business debit card
  • Working capital loans
  • WooCommerce
  • BigCommerce
  • PCI DSS

Both cover

  • Shopify
  • Web support
  • Api support

What people use each for

The jobs each tool is most often brought in to do.

Avalara

  • Real-time sales tax calculation at checkoutnot PayPal
  • Multi-state and multi-jurisdiction tax determinationnot PayPal
  • VAT, lodging, communications and excise tax calculationnot PayPal
  • Feeding tax results into an ERP or ecommerce platform through the APInot PayPal

PayPal

  • Paying online merchants without sharing card detailsnot Avalara
  • Sending money to friends and family domestically and internationallynot Avalara
  • Holding balances in multiple currencies for cross border purchasesnot Avalara

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

Avalara

  • Pricing varies significantly based on products, integrations, transaction volume, and jurisdictions
  • No free tier or trial period published
  • Enterprise sales model requires contacting sales specialists for customized quotes

PayPal

  • Currency conversion on international purchases and sends carries a 4.00 percent fee, and 3.00 percent in other conversion scenarios
  • Instant transfer to a bank or debit card costs 1.75 percent of the amount, with a minimum of 0.25 USD and a maximum of 25.00 USD
  • International personal transactions carry a 5.00 percent fee regardless of payment method, with a minimum of 0.99 USD and a maximum of 4.99 USD
  • Sending domestic personal payments funded by a credit card costs 2.90 percent plus a fixed fee of 0.49 USD
  • Instant transfers are capped at 25,000.00 USD per transaction

Pricing, plan by plan

Avalara

$29/month
  • AvaTax$50/month
    • Tax calculation
    • Exemption certificates
    • Returns filing

PayPal

$29/month
  • Standard$2.99/transaction
    • Card payments
    • PayPal checkout
    • Invoice payments

Which should you pick?

Choose Avalara if

  • You need tax calculation.
  • You work on Web, Api.
  • You also want returns filing.
Avalara review

Choose PayPal if

  • You need payment processing.
  • You work on Web, Ios, Android, Api.
  • You also want paypal checkout.
PayPal review

Questions people ask

Is Avalara or PayPal better?
Neither clearly leads. Avalara starts at $29/month and PayPal at $29/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Avalara or PayPal?
Avalara starts at $29/month and PayPal at $29/month.
Does Avalara or PayPal run on more platforms?
Avalara runs on Web, Api. PayPal runs on Web, Ios, Android, Api.
What is Avalara best used for?
Avalara is most often used for real-time sales tax calculation at checkout, multi-state and multi-jurisdiction tax determination, vat, lodging, communications and excise tax calculation, feeding tax results into an erp or ecommerce platform through the api. Of those, real-time sales tax calculation at checkout and multi-state and multi-jurisdiction tax determination are not what PayPal is typically brought in for.
What can Avalara do that PayPal cannot?
Avalara covers Tax calculation, Returns filing, Exemption management, Document management. PayPal covers Payment processing, PayPal Checkout, Invoicing, Business debit card. Both handle Shopify, Web support, Api support.

Answered from the vendors’ own pages

Avalara: What are the starting prices for Avalara services?

Avalara Tax Calculation and Returns Compliance Package starts at $699. License Guidance is available for as low as $119. Sales Tax Registration costs $403 per location.

Source
PayPal: Does PayPal charge fees and when do they apply?

PayPal states that fees apply when converting currency and sending money to accounts in another country. Specific fee amounts are not disclosed on the homepage but are referenced in their published fee schedule.

Source
Avalara: How does Avalara's pricing scale?

Avalara uses volume-based pricing that varies based on the number of integrated business applications, volume of monthly sales transactions, number of states or jurisdictions for tax collection, and Streamlined Sales Tax enrollment. Pricing scales with business growth and transaction volume.

Source
PayPal: Is there a subscription cost to use PayPal's basic services?

No subscription fees are mentioned on the homepage. PayPal operates on a transaction-based fee structure for money transfers and payments rather than recurring charges.

Source
PayPal: Are there restrictions on when I can use buyer protection?

PayPal offers buyer protection for eligible purchases, but coverage limitations exist. A user agreement sets the specific conditions for protection eligibility.

Source
PayPal: What payment methods can I link to PayPal?

PayPal's digital wallet allows storage of multiple payment methods and can be used for secure money transfers, payment requests, and checkout at major retailers.

Source
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