Author Topic: A study of PayPal Micro Transaction fees vs Regular Fees  (Read 16993 times)

Scott

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A study of PayPal Micro Transaction fees vs Regular Fees
« on: January 18, 2017, 08:32:44 pm »
Not everyone knows, but there is a separate fee structure for PayPal for "micro transactions".
These fees follow a different rate than the normal rate at:  5% plus $0.05   compared to the standard rate of   2.9% plus $0.30.

What does this mean?
This means that smaller transactions dont have to pay such a large flat rate fee.  Imagine taking in a $0.50 payment when your flat rate fee is $0.30... thats a 60% fee just on the flat rate!

Whats the practical application?
Practically speaking, it means you can pay less fees for any payment received that is less than ~$12

Show me the numbers!
As you can see anything under $11.51 you will pay less fees if you setup a micro transaction account.  The catch is; you can only pick one fee structure per account, so you need to manage two accounts to take advantage of this.  But would you leave money laying on the street??
(SEE INFO-GRAPHIC BELOW)

https://mycostpro.com/images/paypal-fee-types.png
« Last Edit: January 18, 2017, 08:54:55 pm by Scott »