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Paypal micro payments could save you money

by WhamSoft
3 replies
Hi,

I was just going through paypal when I noticed something called micro payments, in short it changes your paypal fee structure from
2.9% +$0.30 per transaction to 5% + $0.05

It could save you a bunch of money if you do smaller value transactions of around $10 or less

Fee breakdown:

Merchant Rate Micropayments Vs Regular

5% + $0.05 Vs 2.9% +$0.30
Payment size $2 Vs $2
Cost to receive payment $0.15 Vs $0.36
Total cost to receive 100 payments $15 Vs $36

You can read all the details about micro payments here:
https://www.paypal-business.co.uk/ta...ypal/index.htm

Hope it helps

Lee Price
#micro #micropayments #money #payments #paypal #save
  • Profile picture of the author Ben Kendall
    Interestingly enough, I bought something off of Warrior recently and the seller had it as a subscription that ended after 3 smaller payments. I wonder if they had this in mind?

    As I am posting I realize I need a spreadsheet to see where it becomes profitable to do this. I do see your example and it makes sense but my head is spinning w/o excel.

    You may be on to something here!
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  • Profile picture of the author tecHead
    You'll save about 4¢ for every $10 transaction.

    Also, take into account that changing any account over to MicroPayments will stick that rate to that account, permanently. You can have it switched back; but, its an either or situation, (for that account).

    Here's a spreadsheet that you can use to see the differences. Its also set up to suggest a price based on transaction fees.

    HTH
    PLP,
    tecHead
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    • Profile picture of the author JoshuaG
      No Canada Allowed.
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