According to a blog post by PayPal senior vice president Dan Leberman, the company is hiking fees for some of its newer products “to better align our pricing with the value that our products and services provide.” The adjustments, which go into effect on August 2nd, will alter how much PayPal merchants pay per transaction.
According to the blog post, “PayPal has evolved from a simple button or payment processor to a full commerce platform capable of driving business growth.” “When PayPal is available at the checkout, customers are nearly three times more likely to finish their purchase.” you can now use this method to transfer funds from Chime to Paypal.
In the past, PayPal charged a fixed rate of 2.9 percent of the transaction amount plus a 30-cent fee to sellers processing payments. The new, higher fees will apply to PayPal’s newest offerings, such as PayPal Checkout and Venmo Pay. PayPal has 392 million active accounts, according to its first-quarter financial report (pdf).
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Here’s how the new cost structure works:
1 The new rate for online transactions for PayPal digital payments with PayPal Checkout, Pay with Venmo, PayPal Credit, Pay in 4, PayPal Pay with Rewards, and Checkout with crypto will be 3.49 percent + $0.491 per transaction.
2 The rate for in-person PayPal and Venmo QR code transactions over $10 will be 1.90 percent plus 10 cents, while the rate for transactions under $10 will be 2.40 percent plus 5 cents. The charge will be 2.29 percent plus 9 cents for certain in-person debit and credit transactions.
3 Without chargeback protection, the rate for online credit and debit card transactions will be 2.59 percent plus $0.491, and with chargeback protection, the fee would be 2.99 percent plus 49 cents.
4 There will be a fee of 1.99 percent plus 49 cents for charitable transactions.
5 Rates for US retailers with custom, non-standard pricing will not change.