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PayPal announces upcoming fee increase

 
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cosmicray



Posts: 7179

PostPosted: Sat Jun 19, 2021 6:57 am    Post subject: PayPal announces upcoming fee increase Reply with quote

https://www.reuters.com/article/us-paypal-rates-idUSKCN2DU1V4

> PayPal will charge sellers 3.49% plus 49 cents to process transactions made through its proprietary products, including its button on merchant websites and its digital wallet, according to material the company shared with Reuters.

Love it, or leave it ... bitcoin anyone ?
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lastade-designs
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Posts: 2471

PostPosted: Sat Jun 19, 2021 9:24 am    Post subject: Reply with quote

Terrible news for buyers. We will have to increase our prices.
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MrsDsHandKnits



Posts: 248

PostPosted: Tue Jun 22, 2021 1:02 pm    Post subject: Reply with quote

For now this applies to USA PayPal merchants/sellers, as my communication with PayPal indicates no rate increases for Canadian PayPal merchants/sellers.
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cosmicray



Posts: 7179

PostPosted: Wed Jun 23, 2021 9:21 am    Post subject: Reply with quote

lastade-designs wrote:
Terrible news for buyers. We will have to increase our prices.


Considering that the last US inflation report was 5%, I suspect the buyers already expect that to happen. If you are selling to buyers who are price sensitive, then yes, there is a problem here.
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cosmicray



Posts: 7179

PostPosted: Mon Jun 28, 2021 9:11 am    Post subject: Reply with quote

PayPal sent me a legal notice today about the fee changes, effective August 2, 2021.

It is less than clear exactly how this will effect our payments here. There are a variety (11 by my count) of specific transaction types. The fees vary between 1.90% and 3.50% plus (for most of them) a fixed fee. I'm thinking the most common instances are 2.99% and 3.49%.

I wish someone could read this PDF file, and help to sort out what is what and which is which. It is also possible that only one of the 11 overlaps with Stripe, and that Stripe and PP will both continue to charge 2.9 for that one.
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heritagelaceandtreasuresboutique



Posts: 117

PostPosted: Wed Jun 30, 2021 1:39 pm    Post subject: Paypal Fee Increase Reply with quote

I received an e-mail notice today from Paypal of fee increases.

I am slightly confused but this is my take on the fee increase.

2.59 +.49 no chargeback
2.99 + .49 chargeback

There were other fee changes but does not affect what I sell.

Lets just say, it is just another way of taking more out of our pockets. Where does it end?
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MoonwishesStore
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Posts: 17203

PostPosted: Wed Jun 30, 2021 9:37 pm    Post subject: Reply with quote

I had thrown mine in my delete pile as I didn't figure it would make much difference. The one change is minuscule. The other is more. I haven't read what the chargeback protection would be. With the crazy buyers that always want to keep their stuff and make claims on it, it might be worth it.

@heritage

Currently, we pay .029% plus $.30 The new few will be .0259% plus $.49 So 15 cents more of the stable fee and .040% less for the percentage. Seems like it will work out not too different if not a savings for some sellers. At least this is how I am reading that letter. I would have to look up the other stuff.

Over the years, I have never felt that most of the fees that seem so awful ahead of time, ever turn out to actually be that way. But that is just my opinion.
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SheilaDeesPostcards



Posts: 4271

PostPosted: Thu Jul 01, 2021 8:57 am    Post subject: Reply with quote

I've read all the info PayPal provided and I'm still confused! Actually, I've read it at least 3 times because normally I can figure out the answer and feel confident in the answer. That is not the case this time. What I think is the answer concerns the two different fees, 2.59% + 49¢ vs. 3.49% + 49¢ and when the 2 rates would be applied. It appears that if you are using PayPal on your website as your credit card processor, which would be hidden, then you would pay the lower rate. If you are using a PayPal button and/or PayPal Checkout, then you would pay the higher rate.

On eCrater, the customer does not know who processes their credit card if they simply click on the Checkout button(and the seller has elected to offer Stripe) HOWEVER, if they click on the PayPal Check out button they are taken through the PayPal checkout system (which also allows for PayPal Guest Checkout). It would seem to me that sellers on eCRATER are going to be charged the 3.49% + 49¢ if they offer PayPal and the customer selects PayPal.

In the PayPal information, when they are talking about their new rate of 2.59% + 49¢, they are comparing themselves to Stripe & Authorize.net. Both of these services are credit card processors which is quite different from PayPal Checkout. This would also explain how they could offer the website a slightly higher rate and provide chargeback protection.

On a more positive note, if anyone currently does in-person sales at trade shows and/or flea markets, PayPal is offering an attractive rate compared to Square.
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MoonwishesStore
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Posts: 17203

PostPosted: Thu Jul 01, 2021 10:18 am    Post subject: Reply with quote

I just looked at the PP email and didn't feel like going further into it all as for the most part, it isn't going to affect me, except for what little I will list after my son takes the bulk of our inventory away. Probably next weekend. I thought I had a few more weeks. Anyhow, I will try to find some time to read it and see if I get more confused than Sheila Laughing If she is confused, what hope is there for the rest of us Question

When it comes right down to it, everyone, including the taxing authorities wants to get money out of online sellers as if we are rolling in dollars like Scrooge McDuck. When in reality the best some of us have been doing is keeping ourselves off the welfare rolls. If we didn't have this store for the last couple of years, we could have probably gotten food stamps, etc. which is a whole lot less work than working, but I wasn't raised that way. I was raised to work.

I think the venues, payments companies, shipping companies, and the tax bodies will find that they are getting less and less as more sellers that aren't doing that well in the first place drop out as it just isn't worth it. Such as the craziness of the PO wanting to slow down the mail Exclamation And the circle will just keep going like a snake eating it's tail.
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cosmicray



Posts: 7179

PostPosted: Thu Jul 01, 2021 11:09 am    Post subject: Reply with quote

SheilaDeesPostcards wrote:
On eCrater, the customer does not know who processes their credit card if they simply click on the Checkout button(and the seller has elected to offer Stripe) HOWEVER, if they click on the PayPal Check out button they are taken through the PayPal checkout system (which also allows for PayPal Guest Checkout). It would seem to me that sellers on eCRATER are going to be charged the 3.49% + 49¢ if they offer PayPal and the customer selects PayPal.

Where I'm left in the dust, is that PayPal has a variety of specific names for different paths thru the payment system. We, sellers on eCRATER, do not have clarity about which named path(s) eCRATER is using to invoke payments. Knowing those names would help greatly to sort out what to expect. I am hoping that the transaction screen (on PayPal) will also display those names.
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