Paypal - Blended vs Interchange Fees

[max99]

https://www.paypal.com/businessexp/fees/interchange-fees

We've all got to make a decision before the 8th June on whether to use Blended or Interchange fees

Any advice?

 

[tan_lan]

Based on the language and button design PayPal clearly want people to continue to use blended.

I cant really figure out whats best....

 

[deniser]

I couldn't see the difference as the figures for Interchange included the interbank fees but the total percentages looked the same - but I didn't look at it that closely and just clicked on Blended!

 

[SamStones]

Based on the language and button design PayPal clearly want people to continue to use blended.

I cant really figure out whats best....

I got the same vibe, so I'm guessing the interchange fees are going to work out cheaper for a lot of people - I'm yet to look through it properly , but will watch out here to see if anyone publishes a no-nonsense explanation of the differences

 

[Nacha]

It's a blag: https://www.paypal.com/uk/webapps/mpp/ua/upcoming-policies-full

 

[SamStones]

It's a blag: https://www.paypal.com/uk/webapps/mpp/ua/upcoming-policies-full

Go on, how so? What's your take on it? It looks to me like we take the gamble on the average interchange fee being less than 0.5% across the board or not.

ie :
If the interchange fee is less than 0.5% (average) then we go with interchange
If the interchange fee is more than 0.5% (average) then we go with Blended

This is based on monthly volumes of £15k+

Does anyone have the text of the original email ? I can't seem to find it now, but I know it mentioned something about the speed at which you can withdraw the money from paypal?

 

[deniser]

This is odd. I am sure the numbers on the page in the link from the email are different to those I saw when I logged into my account,,,,

 

[andygambles]

The Interchange fees can vary wildly and depend on the type of cards you customers use.

For commercial cards the fees can be as high as 1.5% but for consumer debit cards as little as 0.20%. Also depends on the cardholder country. The advantage of blended is you now exactly how much the fees are and can calculate margins easier. With interchange you might have to take worse case scenario into account.

For example of EEA Europe Visa Interchange fees see here: https://www.visaeurope.com/media/images/intra visa europe eea_09122015-73-17763.pdf

Fees for non EEA countries in Europe are different again.

Full interchange Visa fee price lists: https://www.visaeurope.com/about-us/interchange/fees-and-interchange