PayPal is one of the most renowned digital transaction platforms around the world. In a recent blog post on the PayPal Newsroom, Senior Vice President Dan Leberman mentions that the digital payment system is now raising up its standard merchant processing fees in the US. It was mentioned that this new feature will roll out to a few merchant users from August 2. Then it is expected to take a little time before it completely applies to all the merchants. According to the blog, “PayPal is raising its fees for some of its newer products to better align our pricing with the value that our products and services provide”. It also added, “PayPal has become more than just a button or a payment processor to be a full commerce platform capable of driving growth for businesses. Consumers are nearly three times more likely to complete their purchase when PayPal is available at checkout”.
PayPal’s first-quarter earnings report was published and according to it, there are about 392 million active PayPal accounts. With such exponential growth rates, the company has now decided to raise its fee for its newer services like PayPal checkout, PayPal Credit, and Pay with Venmo. As of now, PayPal charges a flat rate of 2.9 percentage of the transaction price and an additional fee of 30 cents to all sellers processing payments. However, according to the new post from Friday, this rate is altered, and it may depend upon the type of payment they use. The new fee schedule is as follows –
- Digital Payments – Including those made by PayPal Checkout, Pay with Venmo, PayPal Credit, Pay in 4, PayPal Pay with Rewards, and checkout with crypto will require a transaction fee of 3.49 percent of the transaction price, along with an additional fee of $0.491 per transaction (this includes Seller Protection on eligible transactions).
- For in-person payments made with PayPal and Venmo QR code transactions greater than $10, a rate of 1.90 percent of the transaction plus 10 cents is charged. If the transaction is lesser than $10, it demands a charge of 2.40 percent with an additional fee of 5 cents.
- For some in-person debit and credit transactions, the new rate will be 2.29 percent of the transaction price and an additional fee of 9 cents.
- For other online credit and debit card transactions, the rate will be 2.59 percent of the transaction price with an additional fee of $0.491 per transaction (without chargeback protection). If you use the chargeback protection feature, the charge would be 2.99 percent of the transaction price plus 49 cents.
- Charity transactions will charge 1.99 percent of the transaction price and an extra fee of 49 cents for confirmed charities. However, it is subject to application and pre-approval by PayPal.
- US merchants who have custom and non-standard pricing can enjoy PayPal services with the existing rates.