05-31-2007

How to Reduce Your PayPal Fees.

Want to reduce your PayPal fees?

Great! Here are two methods.

Method 1: Request a lower rate

If you have enough volume, I think $3,000 a month minimum, PayPal will lower your rate BUT it returns to normal if your previous month goes below the threshold. To request the lower rate simply…

  1. Login your PayPal account
  2. Scroll to he bottom and click fees
  3. Click any of the underlined fee percents
  4. Click “Merchant Rate Criteria” near the bottom
  5. Click the apply now link

Pretty simply.

Method 2: Micropayments

If you sell products for under $12, this is the account for you as it will charge less overall fees BUT if you accept a payment for $12 or more you will pay more than a standard PayPal account.

Solution? Use both. I recently opened a new PayPal account to sell my lower priced items with.

Note: You can have a macro, standard, and a micro account without breaking the PayPal TOS. Actually, a standard account is required.

To get it verified, you will need a different checking account or apply for the PayPal credit card. However, if your SS# is linked to your other account, you will not be able to apply for the card.

If you don’t want to open a new checking account and can’t apply for the credit card, you could use a savings account. That’s what I did. Then if you want to transfer money to your checking account, you could withdraw to your savings then transfer to your checking, get a check from PayPal OR use mass pay and pay your other account. (Mass pay only charges 2% with a $1 max for each person so it’s cheaper then a check and faster than multiple transfers.)

Rant: PayPal should just make standard accounts use the micro fees on transactions under $12 automatically instead of making people keep multiple accounts and checking accounts, etc.

Anyway, if you would like to know more about micropayments, visit:

https://www.paypal.com/IntegrationCenter/ic_micropayments.html

Garrie

Posted by Garrie in General

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