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.

  1. PayPal Payment Standards
  2. 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.

  1. Stripe
  2. Transferwise
  3. Google Wallet
  4. Apple Pay

 


 

 

 

 

 

 

 

 

Comments