i signed a contract with paypal in September 2019 at a rate of 1.4% but a few mts later they changed it to 2.9% and I did not realise until now, we process nearly 1 million a year with them I complained but they want me to move my card payments to them also to get a reduced rate, but I don't want to do that so for the moment, I have turned the Paypal option off so how much do you pay? i am interested to find out if any one else is getting a reduced rate
LOL. Below is bottom part of 2 paypal transactions today. Please, tell me how I'm overpaying and how the standard rate is only 2.9% plus 30p. A business owner can choose whether to be on standard rate or micropay rate. For some of us its far cheaper - to the tune of better part of a grand a year - to use micropay rates. We don't all benefit from a 30p fixed rate charge. Gross amount £2.99 GBP PayPal fee -£0.20 GBP Net amount £2.79 GBP Gross amount £2.70 GBP PayPal fee -£0.19 GBP Net amount £2.51 GBP
If you process a million a year, i.e. around £80k+ a month, you should be paying 1.4%+30p. https://tamebay.com/2019/06/paypal-tiered-rate-replaces-paypal-merchant-rate.html And Mr. D is paying the micropayment rate.
If you sell to USA customers in USD you'll pay 2.9% + 2% foreign fee + 3% currency exchange fee. Totally 7.75%. Stripe charges 2.9% with no currency conversion (if you add a USA bank account).
And then pay what fees to transfer dollars into pounds? All well and good Stripe not charging a fee for something it isn't doing. Usually someone is going to charge to convert currencies.
Transferwise would charge 0.43% to convert USD to GBP. If you have expenses in USD then you would save even more, as you wouldn't need to convert GBP to USD to pay those. Paypal used to enable to withdraw USD to a US bank account with no fees. Now they charge 3% to withdraw USD to a US bank account (if you have this option).
We pay 2.9% + 30p What really bugs me abut Paypal is if you take payments in USD the not only do you pay this fee but t transfer the money back to GBP they charge about 4-5% from mid on the FX. In addition they won't even let you transfer the USD out to a USD bank account because you can only have one bank account associated with your Paypal account and that's our GBP one. In effect then, we end up paying about 8-9% to take a USD payment. Separate to that we run USD web sales via Stripe and into our TransferWise USD bank account. We tried Revolut as they transfer FX exactly at the mid but because they hold their USD, EUR etc accounts in London, Amazon won't allow you pay money in there so it wasn't an option. Plus I had the Revolut account open for about a month before I discovered this and found their customer service very poor so decided they weren't for us. TransferWise charge about 0.5% from mid for FX transactions and that's pretty good plus the support is good with connecting to Xero etc available. Every time I look at the balance of USD in our Paypal it makes me wince. If anyone knows a way to get it out without incurring Paypal fees, let me know. None of our suppliers take Paypal as payment.
I'm not sure you can do that. Two reasons: 1) USD Paypal accounts are for US registered entities only 2) Each registered entity can only have one Paypal account At least, this is what I've always thought - am I mistaken? Have you got both a GBP and USD Paypal account for the same UK-based entity (a LTD)?
If it's cost effective then a us registered entity can work. Or else use a non US payment method that does not cost too much. I do not have currently a USD PayPal account. Looked into one back in 2015 when we only had the 2 PayPal accounts and were looking to shift multiple pallets a week to the US. Setting up a US business as an admin point only was one of the options we went through with the accountant and the CPA. eBay at the time required PayPal as a payment method. Amazon of course paid in USD anyway so a bank could have worked well.
Yes, just some do not like to factor the costs into their prices. Instead they absorb the extra costs themselves thereby reducing profits. Nice of them to help poor foreigners out that way.
Yes, I already do. The issue here is you can only take OUT one currency per account and in my case that's GBP so any USD I receive have to be transferred to GBP at an extortionate rate set by Paypal.
Yup. This is the nub of the issue. Paypal screw you no matter what. Anyway, apologies to the OP for the tangent I've inadvertently led this thread on.
We put a fair amount of business through PayPal (will be about 4m this year). I am seeing what rate I can get.
So we're now on 1.4% + 30p which they will review after 3 months and should then come down to 1.3% + 30p. I owe someone a beer as we've just saved a significant amount of money! Edit - thank you @Jonsam - I just called up their help line, they went through our account details and then sent over a new contract with these fee proposals. We put £2.25m through PayPal last year, so it's a bit sickening knowing that we could have saved £35k but more importantly this year it will bring our fees down by a huge amount.
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