Include PayPal fees in your payment request Ask your customers to pay a larger sum in a longer interval instead of frequent small amounts. Since PayPal charges a fixed fee per transaction, consolidating your payments will cost you less. Note that the fixed fee is based on the transaction currency, which might be higher or lower than the 30 cents charged for AUD. The formula is Currency conversion fee = (Total transaction amount – (Total transaction amount * Variable fee) – Fixed fee) * 0.03 Besides the additional cost, you might also lose out on lousy currency exchange rates. Receiving payments in currencies other than your default one will incur a currency conversion fee of 3% after all of PayPal’s fees. That’s a 30% reduction in fees, so using Micropayments will earn you heaps in the long run. Although the rate for Micropayments is 5%, its fixed fee is only 5 cents.įor a typical transaction, if a customer paid $5, PayPal will take ($5 x 0.026) + $0.30 = $0.43, and you will receive $5 – $0.43 = $4.57 after fees.įor a micropayment payment, the PayPal fee is only ($5 x 0.05) + $0.05 = $0.30, and you will get $5 – $0.30 = $4.70. If most of your payments are under $10, you should apply for Micropayments. Just by getting a merchant account, you have started the first step to saving more money. How do you avoid PayPal fees? For merchants Sending and receiving money within Australia is free too. If a customer pays $100 for an order, PayPal will take ($100 x 0.026) + $0.30 = $2.90, and the merchant will receive $100 – $2.90 = $97.10įor a domestic charity transaction, PayPal will take a lower cut-off ($100 x 0.011) + $0.30 = $1.40 and the nonprofit will receive $100 – $1.40 = $98.60įor PayPal consumers, buying something is free if you use the same currency (AUD for AUD, etc.).
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