New PayPal Fee Structure

PayPal has announced that, beginning in August, a new fee structure will be in place. The new structure is based on monthly volumes and is designed to lower fees for higher-volume sellers while retaining the current rates for lower-volume (average) users. These new rates will apply to you if:
1) you are currently a "merchant" with PayPal (hold a verified business rather than a personal account) and
2) you do a comparatively high volume of selling.

Fee structure will be based on previous month's sales, but if you rarely (or never) do more than $3,000 (USD) in sales in one month, you have nothing to worry about: your fees are not changing (Standard Rate with PayPal is 2.9%).

If you do more than that, though, you'll want to be aware that your rates will drop according to how high your volume is.

The tiers are simple: Over $3,000 USD lowers your rate to 2.5%, over $10,000 lowers your rate to 2.2%, and over $100,000 lowers your rate to 1.9% - a full percentage point down, which is huge when you consider that 1% of $100,001 is $1,000.01 in potential savings. The standard thirty cents per transaction fee applies in all cases, of course.

These rates are for domestic (in-country) transfers. If you do multi-national money changing, you'll want to see the new fee structures for that, which drop as low as 2.9 per cent.

For higher-volume sellers, these new rates are exciting. They mean an overall cost savings for you and bring PayPal in line with any of the most competitive credit card merchants available.

by Aaron Turpen of Aaronz WebWorkz
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Aaron is the proprietor of Aaronz WebWorkz, a full service company providing a range of services to online businesses. Aaron specializes in small and home-based business consulting and site development. http://www.AaronzWebWorkz.com

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