PayPal Fees.

Are you being overcharged?

[PCInk]

PayPal have a rate schedule, in the UK it is this:

Purchase payments received (monthly)Fee per transaction
£0.00 GBP – £1,500.00 GBP3.4% + £0.20 GBP
£1,500.00 GBP – £6,000.00 GBP2.9% + £0.20 GBP
£6,000.00 GBP – £15,000.00 GBP2.4% + £0.20 GBP
£15,000.00 GBP – £55,000.00 GBP1.9% + £0.20 GBP
> £55,000.00 GBP1.4% + £0.20 GBP

Did you know you have to actually apply to get those rates? Sell £5,000 per month and you would expect them to charge you 2.9%+20p like the chart says. They will actually charge you 3.4%+20p unless you apply for the discounted rates - it is not automatic!

You may want to check the rates you are actually paying and apply if you are over the threshold.

Does anyone know if you have to apply every month? How it actually works?

[engine]

Wow, I didn't know that, thanks. That's definitely worth checking out as PP has become relatively expensive.

[topr8]

... my advice is if you are turning over any of the higher price bands, get a proper merchant account and gateway ... not only will you save money but much more importantly you will most likely have decent customer support in the case of disputes.

[keyplyr]

I've found PayPal to have excellent dispute support. I also like the fact they comply with GDPR.

[topr8]

ok, that hasn't been my experience. with my card processor (bank) i can telephone them and talk to support straight away if required. which wasn't the case when i last had a customer making a dispute through paypal ... it has maybe changed since then.

[not2easy]

This is a discussion about fees, not quality. I am tempted to post my own bad experiences, but I think it is drifting away from the point a bit.

[PCInk]

There are many sites that have a real merchant account but also offer PayPal to customers as an option. This can mean that their PayPal takings vary a lot depending on how customers choose to pay - even if turnover is similar each month.