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PayPal announces upcoming fee increase

 
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cosmicray



Posts: 7228

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: 2532

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: 255

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: 7228

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: 7228

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: 118

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: 17275

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: 4300

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: 17275

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: 7228

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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dccollectibles



Posts: 2639

PostPosted: Mon Jul 26, 2021 12:50 am    Post subject: Reply with quote

The way I understand it after speaking with Paypal, it's the button transactions that will be given the lower fee. Since we don't have the ability to create callback html or buttons--another change I'd like to see--all stores here using PP (including the PPX checkout) would be assessed the higher fee. Yes, prices will need to be upwardly adjusted.
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lastade-designs
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Posts: 2532

PostPosted: Sat Aug 21, 2021 4:15 am    Post subject: Reply with quote

I received an email this morning from Paypal saying they were changing their name from Paypal Cash Plus account to Paypal Balance. Maybe they needed this extra dough in order to change their name, LOL.

I don't understand why these big companies have to come up with changes that don't have any meaning. Or wanting to implement ideas that really do not help the seller, it just gets the process more complicated.
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cosmicray



Posts: 7228

PostPosted: Sat Aug 21, 2021 6:23 am    Post subject: Reply with quote

cosmicray wrote:
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.

So, and replying to myself ... my own view is that PayPal is trying to make PayPal the preferred destination for a payment. Up until now, the rules seemed to have been that PayPal had to be presented on a level playing field with other payment choices, and not shuffled off to the side.

Something changed about the time that eBay announced they were moving towards Managed Payments. Managed Payments basically means that eBay has inserted themselves between the customer and the seller, in the payment stream. All USA payments to USA sellers are now payments to eBay, who will release the funds to the seller based on their terms. It also means that eBay can negotiate a better rate with PayPal. I will note that a few odd payments to Chinese sellers were still going directly to the seller, and not to eBay. I have no explanation for that.

Back to PayPal ... I believe, when I looked at the fee schedule, that PayPal buttons had an advantageous fee rate. That made me scratch my head as to the why. Those buttons do not introduce any more or less risk to PayPal. They do not make the card interchange fee become more or less. What they do accomplish is to keep the payment processing stream on the PayPal platform, and eliminate the possibility of the web site sending the card payment to one payment platform randomly (or based on a bid scenario) I have never seen anything that said such bidding or fees exist, but I have suspected this for a long time. If the difference between the two seller fees is any indication, those other streams may be significant, to those sites where PayPal has to compete with other payment platforms.

The number of payment platforms, and ways of transferring funds, is growing rapidly. PayPal and Stripe may become one of many not all that far off in the future.
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dccollectibles



Posts: 2639

PostPosted: Sat Aug 21, 2021 6:35 am    Post subject: Reply with quote

Yes you just jogged my memory. That is what the rep said in a.previous contact. If you can manage to keep the transaction on one screen rather than leaving one and going to the other, rate would be lower. Not sure if that is possible for ecrater, but that is the way.
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