PayPal Merchant Fees and How to Reduce Them


There Are Many Ways to Cut Down on PayPal Merchant Account Fees that are Charged to Your Business

 

PayPal is an online payment system that has revolutionized e-commerce, banking, and the financial world.

 

PayPal is one of the most popular and widely used payment systems online. It’s very easy for people to pay for products and services online, transfer money to friends and family, get paid as a freelancer, etc.

 

However, there are various fees that PayPal charges for its services and you should be aware of them and also in what ways you can cut them down.

 

1. Standard PayPal Transaction Fees

 

It is a good fit for business owners who are working online as it is one of the most popular ways to get funds via PayPal.

 

Here is how you can cut down the fee:

 

●       Every online transaction that is coming from within the USA is charged a fee of 2.9% of the transaction amount. Not only this but there is a fixed fee of 30 cents also.

●       On the other hand, when an online transaction of funds is coming from outside the USA it is charged 4.4% of the transaction amount. There is also a fixed fee on the currency.

●       You can accept payments through PayPal itself or from any other credit card. There is absolutely no fee to create an account or to delete it.

 

2. Going Pro with PayPal

 

There are no start-up costs or termination costs with PayPal Payments Pro. But there is a monthly fee of $30 to turn your computer or any other device into a virtual credit card terminal.

 

You can consider this an advantage because it makes it easier for people to pay, and for you to take payments online. You also get to keep your customer on your website during the checkout process, but with standard PayPal, your customers are sent to PayPal’s website.

 

An Easy Way to Save on PayPal Merchant Account Fees

 

Many online business owners have missed this way to lower their PayPal merchant account fees. You reduce your fee amount to 1.9% from 2.9% per transaction that PayPal charges. It may not be much today, but it will add up over time.

 

To do so, you need to go through the PayPal website, log in to your account, go to Profile and Settings, then My Money, and then click on Merchant Fees and fill out the application, and apply for the “Merchant Rate”.

 

In general, each month you’ll be doing $3,000 worth of business. And if your monthly sales decrease below this amount, then your merchant rate status can be taken away.

 

The Bottom Line

 

PayPal is an industry-standard online payment system. Yes, the PayPal merchant account fees can lower your profits, but it’s also widely used by consumers.

 

Make sure you don’t miss out on potential sales.

 

There are many ways to reduce your PayPal merchant account fees, and it’s always good to keep other payment options open for your customers.

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