How to Reduce Your Paypal Fees

[Jeffery]

PayPal Merchant Accounts allows for "Reduced Rates" when you reach a specific amount of sales. The savings can be anywhere between .5% to 1% depending on the country you established your PayPal account.

At this writing, the criteria for the U.S.A is +$3,000.00 and Germany is +€5,000.00. In other words, when your Merchant Account processes those figures you can apply for Volume-Based Merchant Rates.

Here is how to apply and save hundreds of dollars:

1. Log into your paypal account
2. Click on "fees" at the bottom of the page
3. Click on the link that says "1.9% to 2.9% + $0.30 USD"
4. Click on "Merchant Rate Criteria"
5. Apply for a merchant rate by clicking on "apply now"

It is a manual process, but if you meet the criteria you'll instantly be upgraded.

Please note that the actual steps after step #2 may be different in your country.

Jeffery 100% :-)

[The Launch Manager]

Careful of Paypal. My last major launch had
the account frozen twice during the launch.

Then...to add insult to injury...they froze all
the funds for about a month and half...and
then they froze 50% of the funds for another
4 months....despite verifying thousands of
orders being delivered (A physical product).

So...if you're going to take a lot in quickly,
be veeeeerrrrrrrrryyyyyyy careful using
Paypal.

Just my two cents on Paypal

[The Launch Manager]

oh...and also...if you're paying affiliates...if you
use Mass Payment...the fees go from like 2% to
one whole dollar on any payments up to like 10K.

Your affiliates will thank you for it

Cheers,

-David

[Jeffery]

In that case you should have telephoned PayPal "before" the launch and informed them that your account would be processing "Merchant Account High Volumes." They would have asked you a few questions and assigned a representative to your account on a temporary basis.

Jeffery 100% :-)

[Kim Standerline]

Doesn't always work Jeffery

When we launched EMP, we did all that and they still decided to freeze us for a couple of hours until we got it sorted

Cheers
Kim

Originally Posted by Jeffery

In that case you should have telephoned PayPal "before" the launch and informed them that your account would be processing "Merchant Account High Volumes." They would have asked you a few questions and assigned a representative to your account on a temporary basis.

Jeffery 100% :-)

[NormanSP]

Thank you for the info Jeffery. It's a shame that such a large company doesn't automatically adjust their rates when you reach a specific target. They do after all make enough each time they handle a payment.

[Jeffery]

Originally Posted by Kim Standerline

Doesn't always work Jeffery

When we launched EMP, we did all that and they still decided to freeze us for a couple of hours until we got it sorted

Cheers
Kim

What were the problems that needed sorted Kim? I ask because being froze for a couple hours is usually something wrong on the PayPal side or we exceeded our volume limit. One thing I learned is to deposit funds into my accounts before I launch and that makes a real difference with PayPal.

Jeffery 100% :-)

[Jeffery]

Originally Posted by NormanSP

Thank you for the info Jeffery. It's a shame that such a large company doesn't automatically adjust their rates when you reach a specific target. They do after all make enough each time they handle a payment.

Hi Norman,

You are welcome. PayPal is a bank and in the business to make money just as most of us here. It pays to do business with PayPal and learn as much as possible about saving money with any company we do business with on the internet.

Jeffery 100% :-)

[Jeffery]

jimmyjay,

Thanks for the Thanks

Jeffery 100% :-)

[Charles E. White]

Jeffrey, good information! Thanks for the info.

As far as PayPal freezing your account, I have been with them for about 7 years, done tens of thousands of dollars with them and have never had a problem of any kind. I think, if you let them know what's going on before-hand (as in launches) you have a better chance of being problem free.

[Neil Morgan]

There was a thread about this reduction in fees a couple of months ago and many Warriors signed up at the time, including me.

My per-transaction fee was reduced by 24% which adds up to a good chunk of change over a period of time.

Cheers,

Neil

[Jeffery]

Hi Harlin,

Thanks for the Thanks

Jeffery 100% :-)

Originally Posted by Charles E. White

Jeffrey, good information! Thanks for the info.

As far as PayPal freezing your account, I have been with them for about 7 years, done tens of thousands of dollars with them and have never had a problem of any kind. I think, if you let them know what's going on before-hand (as in launches) you have a better chance of being problem free.

Hi Charles,

Agreed. Personally, I had one of mine froze three different times because PayPal suspected (actually knew) that a customer was using a fake email address. Considering that the product was high dollar I appreciated it.

Good to see you again Charles.. been a long time, hope to find you well.

Jeffery 100% :-)

Originally Posted by Neil Morgan

There was a thread about this reduction in fees a couple of months ago and many Warriors signed up at the time, including me.

My per-transaction fee was reduced by 24% which adds up to a good chunk of change over a period of time.

Cheers,

Neil

Hi Neil,

Thanks for the heads up. I will search for it as it may have some nice tips. 24% is a very nice figure! Could add up to thousands over time. Good for you!

Jeffery 100% :-)

[John Ritz]

One thing I learned is to deposit funds into my accounts before I launch and that makes a real difference with PayPal.

That's a nice tip. Never heard that one before. What does that do to help?

And what do you recommend as an amount to transfer into your PP acct in terms of percentage of sales volume you expect to do?

Cheers,

John

[Dana_W]

So is this $3000 lifetime sales or $3000 monthly or within some specific time period?

[Jeffery]

Originally Posted by John Ritz

That's a nice tip. Never heard that one before. What does that do to help?

And what do you recommend as an amount to transfer into your PP acct in terms of percentage of sales volume you expect to do?

Cheers,

John

Hi John,

Glad you like the tip. Existing funds in the account assures PayPal that "volume" is sufficiently protected. I deposited €5,000.00 as that figure is what I expected to transact in the first 24 hours.

Jeffery 100% :-)

Originally Posted by Dana_W

So is this $3000 lifetime sales or $3000 monthly or within some specific time period?

Hi Dana,

Not sure though it was on my checklist to inquire about when I contacted PayPal. They do take the time to examine your account on the telephone and my volume is much higher than $3000 monthly, so I was immediately approved.

Jeffery 100% :-)

[jake9999]

I didn’t know that

[Sheryl Polomka]

Paypal just do whatever they want whenever they want.

Those who have been with Paypal for years and never had a problem count yourselves lucky, there are many horror stories out there of Paypal closing people's account for alleged violations, but they will not even investigate to prove that their allegations are correct.

Be careful depositing money into your account because if they decide to close your account, you will lose the lot. If they close your account you lose everything that is in there.

[Jeffery]

Hi Dana

Thanks for the Thanks
You are always helping Warriors, so it makes me happy when you find something helpful for yourself.

Jeffery 100% :-)

[Jeffery]

Originally Posted by Shezz

Paypal just do whatever they want whenever they want.

Those who have been with Paypal for years and never had a problem count yourselves lucky, there are many horror stories out there of Paypal closing people's account for alleged violations, but they will not even investigate to prove that their allegations are correct.

Be careful depositing money into your account because if they decide to close your account, you will lose the lot. If they close your account you lose everything that is in there.

Yes, I have been reading those horror stories for years. Many of my clients over the years have shared more than a few with me. In most of those cases the individuals unknowningly went against the PayPal rules for lack of a business education.

As I said in a previous post "PayPal is a bank and in the business to make money just as most of us here. It pays to do business with PayPal and learn as much as possible about saving money with any company we do business with on the internet."

Jeffery 100% :-)

[Jeff Henshaw]

You are welcome. PayPal is a bank ...

Just to clarify - PayPal is NOT a bank. It is making application within the EEC and I suspect the USA to become a bank. At the moment however, it is a payment processor and nothing else.

If it ever were to become a bank, then it could not under the international banking codes of practice arbitrarily freeze a clients funds, as it sometimes does now.

The negative side of PayPal becoming a bank (for us in the IM business) is that they would have to adhere to strict banking practices - which would restrict their ability to do business with much of the IM niche.

So their bank status application is a double edged sword for IMrs - unless of course you own your own payment processing business!

Just my (payment processed) 2 cents worth.

Regards,
Jeff Henshaw.

[Sheryl Polomka]

Yes, I have been reading those horror stories for years. Many of my clients over the years have shared more than a few with me. In most of those cases the individuals unknowningly went against the PayPal rules for lack of a business education.

As I said in a previous post "PayPal is a bank and in the business to make money just as most of us here. It pays to do business with PayPal and learn as much as possible about saving money with any company we do business with on the internet."

There are also many, many people who have had their accounts closed/frozen/limited because of alleged violations of Paypals TOS, however these alleged violations often are not true and Paypal refuse to investigate fully to find out.

Paypal account closures are not always as a result of 'lack of business education'. Paypal are OFTEN wrong and close accounts for reasons that don't exist.

Paypal are not a bank, and they do hold the Monopoly for online payment processors and therefore basically just do what they want. If they want to close your account they will and they WILL keep the money you have in there.

[Jeffery]

Jeff and Shezz,

I stand corrected. PayPal is NOT a bank in the USA. PayPal IS a bank in Luxembourg, Europe serving Europe.

Jeffery 100% :-)

[Sheryl Polomka]

Bank status
In the United States, PayPal is licensed as a money transmitter on a state-by-state basis.[15] PayPal is not classified as a bank in the United States, though the company is subject to some of the rules and regulations governing the financial industry including Regulation E consumer protections and the USA PATRIOT Act.[16] On May 15, 2007, PayPal announced that it would move its European operations from the UK to Luxembourg, commencing July 2, 2007 as PayPal (Europe) S.à r.l. & Cie, S.C.A.[17] This would be as a Luxembourg entity regulated as a bank by the Commission de Surveillance du Secteur Financier (CSSF), the Luxembourg equivalent of the FSA.[18] PayPal Luxembourg will then provide the PayPal service throughout the European Union (EU).

From Wikipedia

[Jeff Henshaw]

PayPal IS a bank in Luxembourg, Europe serving Europe.

Sorry, I don't want to labour this (or labor it in the case of my US friends) but PayPal is not a bank - period. Not in Europe nor anywhere else in the world.

It is a payment processor (and a very important one, I admit) throughout the world - but NOT a bank.

As to the reference to Luxembourg, that is where the European HQ of PayPal now resides. It is still however, not a bank - there is a world of difference between a bank when compared to a payment processor such as PayPal.

Ok, i'm going to shut up now and probably not re-visit this thread

Back to you all ...

Regards,
Jeff.