Bring Down Your PayPal Merchant Account Fees
PayPal is an American company that started its business operations in 1998. Today, it has emerged as one of the most popular online payment processing companies. It provides its users the mechanism to pay for the items using a safe internet account. It provides you the option to add your bank account or you can simply enter the credit card or debit card details. It can be used for multi-purpose: to receive payments and to send money.
PayPal
Services
PayPal merchant account has revolutionized the way businesses can accept card payments and that
too in the safest and reliable manner. Businesses regardless of their size can
benefit from this incredible payment processing service, which is fast, safe,
secure, and reliable. PayPal business accounts present you with the option to
pay with the help of the following credit and debit cards.
Credit Cards
- Visa
- MasterCard
- American Express
- Discover
- JCB
- Diner’s club
Debit Cards
- Visa
- Mastercard
PayPal has even
expanded its merchant accounts to suit different requirements of a large range
of businesses. PayPal till today has categorized its business account in the
following categories.
- PayPal Payment Standards
- PayPal Payments Pro
PayPal Merchant
Account Fees
Unfortunately, PayPal
doesn’t offer its valuable services for free. There are fees associated with
the standard transactions and accepted payments online and in the store. If you
are looking for a good understanding of PayPal merchant account fees and the
ways to cut down the costs and fees associated with PayPal merchant account,
then you have landed at the right place. Here you will get to know about every
detail of PayPal merchant account fees and some amazing tips to reduce the
fees. Before we get into the nitty-gritty of the tips to reduce fees, it is
crucial to first familiarize you with the different fees plans.
Standard PayPal
Transaction Fees
It is one of the most
popular methods to receive payment among most online business owners. Given
below is the breakdown of the fees.
- Online transactions, made from the United States, are levied a fee of 2.9% of the transaction amount. An additional fixed fee of
30 Cents is charged per transaction.
- Any online payments made from anywhere outside the US
are levied 4.4% of the transaction amount.
- One interesting fact about the PayPal merchant account service is that you don’t have to pay at the time of sign up. Also, there is no charge or fee to terminate the services of PayPal. You can accept payments through PayPal or from all major credit cards.
PayPal Micropayments
Some business owners
find it unfair to pay huge charges even on small payments. One way to save your
money is to sign up for the micropayments plan. In order to qualify for this
plan, your PayPal business account should have a good credit history, or to put
it simply you should not have any negative balance. Furthermore, you must not
be using PayPal payments pro and you need to submit a simple application form.
The payment structure in this plan is explained below.
- For a US customer paying from an account in the United
States, the fee charged is 5 % per transaction.
- On the other hand, if a payment is made from customers outside the USA, the fee charged is 6.5% per transaction.
PayPal Currency Fees
There are also some fees
that are charged additionally for accepting payments from other countries. The
fee is charged @2.5 % for changing currencies a 1.5% fee for taking payments
from any other country.
Going Pro with PayPal
In this plan, you
won’t be required to pay for any start-up costs or termination fees. However,
you would be required to pay $30 to transform your computer into a virtual
credit card terminal. There are so many advantages or benefits that you can
accrue with the help of this virtual credit card terminal. Given below are some
incredible benefits and advantages of a virtual credit card terminal.
- Easier for people to pay
- Take payments over the phone
- Keep your customers on your website during the checkout process. This feature, however, is not available in the Standard PayPal
plan.
Fees charged per
transaction for different kind of transactions is presented below.
- American Express: The fee charged is 3.5% per transaction.
- U.S. Transactions: The fees charged are 2.9% and an additional 30
cents per transaction.
- International transactions: The fees charged are 4.4 % and an additional fixed fee
depending on the currency per transaction.
- Virtual Terminal: The fees charged are 3.1% and an additional 30
cents for U.S transactions ( Plus 1.5 % for cross border transactions)
Quick Tip to Save on
PayPal Merchant Account Fees
Many business owners
are ignorant of the one brilliant way to bring down their PayPal merchant account fees. Surprisingly, your PayPal merchant account fees can be lowered
from 2.9% (plus 30 cents) to as low as 1.9%. Some may not consider it as a big
achievement, till they realize how much one saves by estimating the accumulated
fees paid for all the transactions. The difference is significant enough to
motivate people to find a way to do it.
It can be done by
applying for the merchant rate through the PayPal site by logging in to your
PayPal account. After that, you can go to the profile setting and click My
money, and then clicking on the merchant fees, and finally filling out the
application form.
Other Ways to Reduce
PayPal Merchant Account Fees
Another way to reduce
PayPal Merchant account fees are to replace PayPal with other payment processing
companies. There are so many great payment processing companies that provide on
Par services and that too at reasonable fees and charges. Here are the top 4
alternatives to PayPal.
- Stripe
- Transferwise
- Google Wallet
- Apple Pay
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