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« Is PayPal Worth The Trouble? | Main | eBay Radio This Week »

February 05, 2005

Saving Money On PayPal Fees

Hi Gang!

Is it really possible to save money on your PayPal fees?  Of course.  But not many people know about it because PayPal keeps this information hidden.  Unlike some companies who reward you automatically for your achievements, PayPal would rather keep you guessing.

If you log into your PayPal account, at the very bottom of the page you will see a bunch of links to things like "mobile", "mass pay", and "money market".  You will also see a link for "fees".  The default discount rate that you pay for a transaction through PayPal is 2.9% + $.30 US Dollars.  However, if you are doing any volume at all using PayPal, you can slice those fees by as much as 1%.  This can add up to being a nice savings to you and your eBay business.

If your PayPal transactions total between $3,001.01 - $10,000.00 US, then your rate could be reduced to 2.5%.  If your PayPal transactions total between $10,000.01-$100,000.00 US, then your rate could be reduced to 2.2%.  If your PayPal transactions are over $100,000 each month then your rate could be reduced to 1.9%.  I keep using the phrase "could be reduced" because PayPal isn't going to do it for you automatically.  You have to follow the link in the fee structure page and apply for those lower rates.

Your overall savings probably won't add up to a whole lot unless you are moving quite a bit of merchandise each month, but why give away money that you don't have to give away?  If you are determined to let profits leak from your coffers, please contact me immediately.  I'll set you up on recurring billing so you can leak that money to me.  I'll even send you an email once or twice a month telling you thanks!  That's more than you'll ever get from PayPal, that's for sure.

Tiger Todd

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I do not believe this

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