PayPal fees went up?

[shooger]

I didn't see another recent thread about this so I started one.

PayPal fees went up the other day (August 23rd, I think) for users who previously qualified for the lower "merchant rate" but no longer do. It's quite convoluted to find out what percentage you're actually paying (they make finding out very hard, but it seems to be 2.9% for most payments received, depending I think on the country the money came from).

I guess this is part vent, part information for those who didn't know, and part request for advice. Can anything be done? Is there a way around the fees? Has anyone tried sending a $3000 payment from one account (say a business partner or something) once per month, and refunding it again the next month (to avoid paying any fees on it)... thereby qualifying for the merchant rate? 😛

My most recent transaction was for $139 US.

Total Fee: -$5.75 USD
Fee Type: Payment Received
Basic Fee: -$4.35 USD
Cross Border Fee: -$1.40 USD

Ouch. Makes me glad I quit eBay (yes, I only have a couple items up for sale now... eBay fees have gone from $500 US a month to $50 US a month and my website is doing quite well). Now my only fees are $20 a month to keep my website up, and these new unfortunate PayPal fees. Cross Border Fee.... 😞 I guess I have to raise my prices. I'm not sure I can justify charging my buyers a couple extra dollars for living outside of Canada... doubt they'd go for that.

[shooger]

Hmmm, I just logged into PayPal to re-apply for the new merchant rate (I don't think I qualify, but as far as I know it doesn't hurt to apply). I can't find anywhere to apply for it. There used to be an obvious link from the "fees" page.

I tried the help system and the answer was:

Q: How can I apply for Merchant Rate pricing?

A: If you do not currently receive the Merchant rate, but meet the Merchant rate criteria, you may access the Merchant Rate application from the Fees page. The Fees page can be found in the footer of every PayPal page.

The "fees" page has a link to merchant account info, but all that says is:

Merchant Rate pricing approval is reserved for members in good standing (whose accounts are not currently under investigation) who meet the following criteria:
Received more than $3,000.00 CAD in PayPal payments in the previous calendar month

Can anyone tell me how to apply? My guess is they want to make it as hard as possible to find the application button. 😕

[zarzuella]

You may only get an application button if you processed >$3000 last month.

[shooger]

If that's the case, it's new, because even when I was a smalltime PayPal user, there was that button. But perhaps they made it so it was only possible to "apply" if you're pre-approved.

Which begs the question - why not just grant it automatically to those who apply.

(answer: because at least half the sellers that qualify don't know about it and end up paying the full fees)

[shooger]

To those who QUALIFY, I mean.

[imagi.nation]

Not sure if this is in your PayPal account, but this is how I applied:

On the "Fees" page, click the link that says "1.9% + $0.55 CAD to 2.9% + $0.55 CAD" (In the chart, on the line that says "Receive Funds".

Then, on the page that comes up, click "Merchant Rate Criteria".

Then, on the page that comes up, scroll down to the Application Section and click "Apply Now".

Intuitive? Nope. It's the PayPal Way!

Cheers,
Ernie.

[montrealmaps]

My last PayPal transaction - .... (4%)

Total Amount: $885.00 USD
Fee Amount: -$34.82 USD
Net Amount: $850.18 USD

It's more reasonable to wait one week for a money order... and save 35 USD.

Greetings to all

Andrew

[shooger]

No wonder I couldn't find the application... I just tried again, and now it's telling me I'm already receiving Merchant Rate.

How then was my above example ($5.75 on a $139 payment) possible? That's more than 4% in fees!

[myjames007]

hi mate,

The merchant rate for non Canadian/American payment is:

2.9% + $0.30 USD

PLUS

1% Cross board fee

So that's

Basic Fee: 139*0.029+0.30=4.331
Cross Board Fee: 139*0.01=1.39

Probably paypal thinks you won't mind donating another cents, so paypal charges you USD 4.35 and USD 1.40, that's USD 5.75 in total

[myjames007]

eh, 2.9% is a standard rate, my mistake.

[ellenskdesign]

The $3k payment / $3k refund trick you're thinking about might work. They don't count refunded payments toward your monthly total as far as qualifying for Merchant Rates, but if you managed to always stay a day or two ahead of them, I can see it working.

Still, if you're not receiving 3k/mo in legitimate payments, is it worth it to constantly tie up $3000 to save something less than $30/mo? I clean my PayPal account dry as fast as possible. I can't imagine having to deal with their customer service people to try to get access to MY money if THEY screw something up. Plus if you've got a balance in there and want to pay for something - no CC protection as they insist on drawing down from your balance.

Clever, but no thanks.

[zarzuella]

I just checked to see what rate I was being charged, and here's what Paypal's website says:

PayPal's Merchant Rate

------------------------------------------------------------------------


You are currently receiving Merchant Rate pricing.

Merchant Rate Approval Criteria
Merchant Rate pricing approval is reserved for members in good standing (whose accounts are not currently under investigation) who meet the following criteria:


* Received more than $3,000.00 CAD in PayPal payments in the previous calendar month

When I check my actual transactions, however, I am paying 2.9%. Any suggestions? I will not see a Paypal invoice until mid-month, so I cannot confirm my August processing totals, but I thought I should be over $3000.

Ann

[pierrelebel]

Andrew

"It's more reasonable to wait one week for a money order... and save 35 USD."

Maybe... maybe not.

Many buyers would not purchase a US$885.00 item without the perceived protection of their credit card issuer through PayPal.

Your decision to offer PayPal brings buyers who would not otherwise look at your products. Waiting a week for the payment or not waiting a week is not really a factor. The decision is ultimately made by buyers, not sellers.