PayPal Micropayments

Posted on September 1, 2005, 11:55 pm by E-junkieChef under E-commerce

PayPal announced new Micropayments rate of 5% + $0.05 per transaction.

The rate is available for US to US, GB to GB, AU to AU, and EU to EU transactions for Business and Premier accounts., when PayPal is the sole payment solution offered to customers for micropayments transactions.

Merchants who wish to use PayPal’s micropayments pricing will need to open a new PayPal account through the account registration link at the bottom of this post.

Merchants who receive both “macro” and “micro” payments should maintain two separate accounts:

1. To apply their standard rate to “macro” payments.
2. To apply the “micro” payments rate to their micropayments.

Each PayPal account is associated with only one merchant processing rate. That rate determines the fee that’s applied to funds received into that account (additional information on PayPal’s Standard Fees is available here). For example: if your Premier/Business Account rate for receiving funds is 2.9% + $0.30, using PayPal’s 5% + $0.05 micropayments rate would reduce the total transaction fee charged to payments received below the value of $12 (per payment). However, if you accept payments that are greater than $12, you would pay a lower processing charge by accepting the payment into the account set with the 2.9% + $0.30 rate.

If you wish to leverage PayPal’s micropayments pricing, please click here to open your new PayPal account with micropayments pricing of 5% + $0.05.