PayPal Raising Merchant Fees On Some Of Its transactions In US
Paypal. the largest payment processor in the world, is raising its fees for some of its newer products.
“We are making changes to our published rates in the United States to better align our pricing with the value that our products and services provide. Our goal is to be transparent and upfront with our customers about the changes. These rates will apply to a portion of our merchant customers in the U.S. beginning August 2, 2021. We began notifying some customers today, and you can find a notice on our Policy Updates page.”Dan Leberman, SVP, SMB and Partners wrote in a blog post.
“PayPal has become more than just a button or payment processor to be a full commerce platform capable of driving growth for businesses,” according to the blog post. “Consumers are nearly three times more likely to complete their purchase when PayPal is available at checkout.”
Here’s how the new fee schedule breaks down:
- PayPal Digital Payments: For PayPal payment products (such as PayPal Checkout, Pay with Venmo, PayPal Credit, Pay in 4, PayPal Pay with Rewards, Checkout with crypto), which include Seller Protection on eligible transactions, the rate for online transactions will be 3.49% + $0.491 per transaction.
- In-person Payments: For PayPal and Venmo QR code transactions over $10, the rate will be 1.90% + $0.10, and for such transactions $10 and under, the rate will be 2.40% + $0.05. For certain in-person debit and credit transactions the rate will be 2.29% + $0.09.
- Credit and Debit Card payments: Online credit and debit card transactions will be 2.59% + $0.491 per transaction without Chargeback Protection, or 2.99% + $0.49 with Chargeback Protection.
- Charity Transactions: Fees for charity transactions will be 1.99% + $0.49 for confirmed charities (subject to application and pre-approval).
- Non-standard Pricing: For U.S. merchants who have custom, non-standard pricing, rates will remain unchanged for those services as agreed.