PayPal's fee for tiny donations :(

22 replies
Hey everyone,

I created a weekly ecourse that only costs $1.90 a week if you "donate" $1.90

However, PayPal charges $.46. That's practically 25% commission going to PayPal, and I just know that PayPal just sits there while I do all the work getting people to convert.

Shouldn't PayPal charge less than 30 cents per transaction (plus the 2.2%) I don't mind the 2.2%, but I do not like the 30 cents fee for such a cheaply priced item.

Why does PayPal reward people who sell things for a high cost. I just want a tiny bit of money for the work I've done and I practically get punished.

Is anyone else upset by this? I know this is the cost of selling things online, but it seems like a large fee for something so small.

I'm not trying to use this as my ranting board, but I guess I am... sorry bout that...

Any thoughts?

Who wants to go on strike with me?

It's for a good cause!

#donations #fee #paypal #tiny
  • Profile picture of the author onegoodman
    There is a micropayment option on PayPal that you can apply to (if all the payments you receiving are less than $12 on average).

    If you go with that option PayPal will cut your fees to .5 + 5% only per transaction.

    You log to your paypal account and go to this link and apply. Will take 2 - 3 business days for them to review your account and see if it fits.

    https://micropayments.paypal-labs.com/
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    • Profile picture of the author Karson
      Interesting, I didn't know that!

      That will come in handy later.

      Thanks for the info.
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    • Profile picture of the author Winson Ng
      Originally Posted by onegoodman View Post

      There is a micropayment option on PayPal that you can apply to (if all the payments you receiving are less than $12 on average).

      If you go with that option PayPal will cut your fees to .5 + 5% only per transaction.

      You log to your paypal account and go to this link and apply. Will take 2 - 3 business days for them to review your account and see if it fits.

      https://micropayments.paypal-labs.com/
      Thats a great info ! Many thanks ! =)

      Cheers!
      thinkmaverick.com
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      Winson NG
      CEO/Founder of http://thinkmaverick.com
      Online Business & Entrepreneurship News, Advice, Strategy Think Maverick
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    • Profile picture of the author Lisha5684
      Thanks OneGoodMan! Your name fits you! I am so glad I posted this thread, or I never would have known this! I love Warrior Forum!! woohoo!
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    • Profile picture of the author Lisha5684
      Originally Posted by onegoodman View Post

      There is a micropayment option on PayPal that you can apply to (if all the payments you receiving are less than $12 on average).

      If you go with that option PayPal will cut your fees to .5 + 5% only per transaction.

      You log to your paypal account and go to this link and apply. Will take 2 - 3 business days for them to review your account and see if it fits.

      https://micropayments.paypal-labs.com/


      Did you mean $.05 (as in 5 cents) + 5%?

      Just checking. I'm guessing that's what you meant.
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    • Profile picture of the author Ewan1998
      Banned
      Originally Posted by onegoodman View Post

      There is a micropayment option on PayPal that you can apply to (if all the payments you receiving are less than $12 on average).

      If you go with that option PayPal will cut your fees to .5 + 5% only per transaction.

      You log to your paypal account and go to this link and apply. Will take 2 - 3 business days for them to review your account and see if it fits.

      https://micropayments.paypal-labs.com/
      Really?!

      Thanks, never knew about this. Probably wont need it but may come in handy some time.
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    • Profile picture of the author payment proof
      Originally Posted by onegoodman View Post

      There is a micropayment option on PayPal that you can apply to (if all the payments you receiving are less than $12 on average).

      If you go with that option PayPal will cut your fees to .5 + 5% only per transaction.

      You log to your paypal account and go to this link and apply. Will take 2 - 3 business days for them to review your account and see if it fits.

      https://micropayments.paypal-labs.com/
      I never knew about this option either.

      PayPal does not go out of its way to save you money, lol.
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    • Profile picture of the author YasirYar
      Originally Posted by onegoodman View Post

      There is a micropayment option on PayPal that you can apply to (if all the payments you receiving are less than $12 on average).

      If you go with that option PayPal will cut your fees to .5 + 5% only per transaction.

      You log to your paypal account and go to this link and apply. Will take 2 - 3 business days for them to review your account and see if it fits.

      https://micropayments.paypal-labs.com/
      Thanks for sharing. That's a very cool thing to know about and it could help lots of people. I think I may do a blog post about it.
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  • Profile picture of the author onegoodman
    yes Lisha5684, it is 5 cent + 5%

    you can click and the paypal link and check it out.

    They released a month few months ago but for some reason isn't main page. I guess they don't think business are interested in the offer.

    I am glad i could help
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  • Profile picture of the author Lisha5684
    You can't signup for micropayments pro through the link above.

    Here is the link where you can sign up for PayPal Micropayments pro:

    https://www.paypalobjects.com/Integr...opayments.html

    That is how to sign up for paypal micropayments pro.

    Just click on the link that says account registration page.

    You may have to create a new account with another email address in order to do it, for some reason.
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  • Profile picture of the author Lisha5684
    In order to be able to use micropayments pro, you need to create a new business account by going to https://www.paypalobjects.com/Integr...opayments.html and then clicking the link that says "account registration page".

    Then, once you have your business account you still need to set up that you want to use micropayment pricing fees.

    In order to do this, you must follow these directions carefully because it is extremely hard to find the page to sign up for micropayments.

    1. Log in to you paypal account.

    2. In the search form at the top right of the page, input "sign up for micropayment pricing"

    3. Click on the link that says "Online Payments, Merchant Account - PayPal"

    Then at the bottom of that page you will be able to click "Agree and Sign Up"

    Yay! Now you have smaller fees when you sell things that are under $12!

    Hope this helps!
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  • Profile picture of the author TheJustWarrior
    On a side note, just a heads up about using donation buttons for commercial gain on paypal.

    Paypal closed us down last year without any explanation at all.

    After a day, one of my VA's contacted me that she had done some research online and it was because one of our experimental sites used a paypal donation button to accept payments for commercial gain.

    We immediately acted to close that site down and called paypal again and this time there was no problem and they reinstated the account. Apparently donation buttons are just for charities and other organizations.

    Interestingly, on initially calling them they were completely tight lipped about why. Its as if they wanted me to know why. Weird.
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    • Profile picture of the author Lisha5684
      Thanks TheJustWarrior. PayPal does seem weird with some things and they seem like they don't want you to know certain things (for instance, why is it SO SO HARD to find the micropayments pro instructions and sign up page???) With all my research I had to figure it out on my own. (instructions above).

      I nixed the donations idea and now I'm just using micropayments pro for smaller fees for lower priced items

      ~Lisha
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  • Profile picture of the author Lisha5684
    Wanted to update everyone on this Micropayments Pro thing because the instructions are a bit different now.

    Here is how you sign up for Micropayments Pro:


    The regular fee when someone buys something from you is 2.9%+$0.30. If you’re selling things for $10 or less, you can sign up for Micropayments Pro so you will be charged a smaller fee (5%+$0.05).

    In order to be able to use micropayments pro, you need to create a new business account by going to https://www.paypalobjects.com/Integr...opayments.html and then clicking the link that says "account registration page".

    Then, once you have your business account you still need to set up that you want to use micropayment pricing fees. You must have a business account set up before you can sign up for Micropayments.

    To sign up for Micropayments, you must follow these directions carefully because it is extremely hard to find the page to sign up for micropayments.

    1. Log in to your paypal account.

    2. In the search form at the top right of the page, input "sign up for micropayment pricing" and click “Search.”

    3. Below “More results,” click on the link that says "Sign up for micropayment pricing - PayPal"

    Then at the bottom of that page you will be able to click "Agree and Sign Up"
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  • Profile picture of the author MyCogitate
    Good News...
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    • Profile picture of the author GarrieWilson
      Originally Posted by MyCogitate View Post

      Good News...
      What's good news? An extra post for your count??

      To others...

      If you do the micro account, make sure you only use it for transactions under $12.

      PayPal let's you have a micro and a macro account.

      Garrie
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      • Profile picture of the author Lisha5684
        Originally Posted by GarrieWilson View Post

        What's good news? An extra post for your count??

        To others...

        If you do the micro account, make sure you only use it for transactions under $12.

        PayPal let's you have a micro and a macro account.

        Garrie
        Garrie, you're awesome. I wanted to mention that I PMed Garrie and he helped me out with a micropayments/macropayments account question I had. I sell some things for less than $12 and some things for more than $12, so I need to have micro and macro pricing to have the smallest fees possible. Here is a link to his blog post about having a micropayment account and a macropayment account:

        Reduce Your PayPal Fees | garriewilson.com

        Thanks Garrie! You rock!
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  • Profile picture of the author Ben Gordon
    PayPal themselves don't like "small" transactions which is my guess to their fee policy. Anyways, you can't do anything about it other than sign up for the micro-payments service because...well...it's PayPal. You should try creating a slightly more expensive ecourse, perhaps at $4.95 which will allow you to reduce the fee percentage per sale.
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  • Profile picture of the author Lisha5684
    It now turns out that my instructions to find the PayPal micropayments is obsolete. It seems that PayPal must have changed their search results to make it not pop up the same way. Now when you follow my above directions, the proper page does not pop up.

    PayPal needs to make this easier for people who are selling inexpensive products. This is ridiculous.

    Does anyone know the secret to get micropayments set up?

    Since PayPal seems to change their search results, it's like it's different every month, so no one can keep up. I tried to help someone else get set up with micropayments and it was not even possible.

    PayPal makes me very mad sometimes...
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  • Profile picture of the author creativesnaps
    What a pain who wants to open another account lol
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  • Profile picture of the author Komang2007
    Originally Posted by Lisha5684 View Post

    Hey everyone,

    I created a weekly ecourse that only costs $1.90 a week if you "donate" $1.90

    However, PayPal charges $.46. That's practically 25% commission going to PayPal, and I just know that PayPal just sits there while I do all the work getting people to convert.

    Shouldn't PayPal charge less than 30 cents per transaction (plus the 2.2%) I don't mind the 2.2%, but I do not like the 30 cents fee for such a cheaply priced item.

    Why does PayPal reward people who sell things for a high cost. I just want a tiny bit of money for the work I've done and I practically get punished.

    Is anyone else upset by this? I know this is the cost of selling things online, but it seems like a large fee for something so small.

    I'm not trying to use this as my ranting board, but I guess I am... sorry bout that...

    Any thoughts?

    Who wants to go on strike with me?

    It's for a good cause!

    Hiii.. Warriors,

    Honestly, i don't know about that.. but i think paypal should had their own commision, right..
    I'm very sure, nothing is really free if you related to making money.. We may call it as a COST.

    anyway, good luck.. friends

    Thank's
    -------
    akustika-indonesia
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