PayPal Plans To Increases Merchant Fees On Some Of Its Transaction From 2nd August

PayPal has announced that it is raising fees to a portion of its merchant customers in the U.S. from August 2nd “to better align our pricing with the value that our products and services provide.”

Senior Vice President, Dan Leberman released the statement in a blog post, saying the goal is to be transparent and upfront with customers.

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“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.”

In the past, PayPal has had a flat rate for sellers processing payments, charging 2.9 percent of a transaction price, plus a 30-cent fee. The new, higher rates will apply to the company’s newer products, like PayPal Checkout, and Pay with Venmo. According to its first-quarter earnings report , PayPal has 392 million active accounts.

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.

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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.