Good day, @gonetravellingpr.
I'd be glad to share insights on how we can categorise transferred transactions in QuickBooks Online (QBO). Normally, we can simply match a transfer in your Banking feeds if the downloaded transactions are having the same amounts.
Since your downloaded transactions don't have the same value, we can perform a series of steps to match them in both accounts.
To start, let's record the transferred payment using the Transfer feature in QuickBooks. Here's how:
- Click +New and select Transfer.
- In the Transfer Funds From drop-down list, select your PayPal account.
- In the Transfer Funds To drop-down menu, choose an Undeposited Funds account. We need to use this account since the payment from PayPal to the receiving bank is still in progress.
- Enter the amount.
- Make sure to select the correct Date.
Select Save and close.
Once done, create a Bank deposit. Check the box of the transferred transaction in the Select the payments included in this deposit section. In the Add funds to this deposit area, create a fee account and record the fee from this column. (Please reach out to your accountant if you need help in creating an account to track fees in QuickBooks.)

Once done, you can now match each transaction to your PayPal and personal accounts in QuickBooks. With regards to the downloaded fee in your PayPal account, I'd suggest excluding this since the fee was actually deducted from your personal bank.
You can always add your reply to this thread if you need further help in handling your downloaded transactions. Have a good one.