Did you know you can get lower PayPal fees if you do a lot of business there? (This is for people with a premier or business account only- the types that let you accept credit cards.)
If you did more than $3000 in sales in your PayPal account the last calendar month, you can apply for lower fees. (They don’t lower the fees unless you do this.)
Their standard percentage is 2.9%, but when you go over $3000 a month, you can get it cut to 2.5%, at $10,000 a month, it would go down to 2.2%, and at $100,000 a month, it’s 1.9%.
It’s not easy to find the application in your account, so the easiest way to get to it is to login, then paste the following URL in your browser:
https://www.paypal.com/us/cgi-bin/webscr?cmd=_merchant-app
(I realize people are leery about PayPal phishing tricks, so that is why I’m suggesting copying and pasting that URL, after you log in directly… or feel free to poke around your account and find the screen yourself. Look for “Merchant Rate pricing”.)
The application only takes a minute or so to fill out, so it’s well worth doing if you qualify. Once you’ve done this, your rate will automatically go down when your volume increases. There is no charge to apply for the fee reduction, and this will save you a minimum of $144 a year (based on going from 2.9% down to 2.5% on $3000/month).
After you apply, if your sales drop below the minimum, your fees will go back to the original rate, but when sales increase, the fees will drop… no need to apply again.
If you haven’t reached the $3000 mark yet, don’t apply, and don’t get discouraged. Just save this article for when you do.