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Thread: Paypal rate changes?

  1. #1

    Paypal rate changes?

    Did anyone else get the email today regarding Paypal "simplifying" their pricing structure? Tiered merchant rates are going away and everything is going up to 2.8% (4.3% for International!). For me this is a significant amount of money lost for the convenience of them simplifying. Does anyone else in the US have a better processor they can recommend? I used to use Authorize.Net, and while it worked, setting it up was a pain. It's disappointing as the Paypal integration works so well for us that I would hate to change.

    Brian

  2. #2
    We used Authorize.net and have been using PayPal for all credit card processing for over two years. I don't recall seeing any "simplification" adjustments, but I wouldn't be surprised. Frankly, its still easier for us to have everything under one umbrella rather than dealing with AMEX and VISA/Mastercard separately, so the additional increase wouldn't be that much of a burden for us. The problem is when everyone starts increasing costs (Constant Contact, eBay, PayPal, USPS, etc.) does so all in one year, then it does hurt the bottom line. My only choice is to raise prices on higher demand lines, look for shipping savings, etc. to offset these hikes until the economy picks up a bit.

    Marc

  3. #3
    Here's the email:



    Hello xxxxxxx,

    We are simplifying the prices we charge for PayPal transactions and have removed tiered merchant rates on US domestic and international payments. If you are currently receiving a merchant volume discount, this will result in an increase to your rate. Your new rate will be 2.8% + $0.30 USD for domestic transactions and 4.3% + fixed fee* for international transactions, effective March 29, 2017. Please note that your current card-processing rates on PayPal Payments Pro and Virtual Terminal** will not change at this time.

    If your account qualifies as a 501(c)(3) charity, please refer to this link https://www.paypal.com/charities/ to determine if you are eligible for our discounted charity rate.

    If you have any questions, or want to understand these changes in more detail, please give us a call at (888) 221-1161 or visit our Help Center. This email is for your information only. The changes described above will apply automatically; there is nothing you need to do.

    We value our partnership with you, and are committed to delivering value to you in many forms. PayPal Seller Protection and our fraud detection capabilities help shield you from losses so that you can sell with more confidence. We help you drive improved customer conversions and order value by offering One TouchTM and PayPal Credit. PayPal Working Capital lets you easily apply for loans that can help grow your business. And, to drive your customer base growth, you have access to sales tools for cross border selling, making it easier to sell internationally.

    Thank you for being a PayPal customer. We appreciate your business.

    Regards,

    PayPal

    * PayPal User Agreement: Refer to Selling and Accepting Payments-Transaction Fees
    ** Rates where an American Express Card is used are also not changing.

  4. #4
    we called and they verified these rates are indeed going into effect. if you process over 1.2M per year you are eligible for a manual review, otherwise you get these rates.

  5. #5
    Quote Originally Posted by bpanders View Post
    Please note that your current card-processing rates on PayPal Payments Pro and Virtual Terminal** will not change at this time.
    Maybe I'm misunderstanding this, but it looks like it is for Paypal transactions only, not credit card processing rates. Am I missing something?


    Shannon Powell

  6. #6
    Quote Originally Posted by tsrpowell View Post
    Maybe I'm misunderstanding this, but it looks like it is for Paypal transactions only, not credit card processing rates. Am I missing something?
    When we called them on the phone they indicated that a) this email was rolling out in groups to all customers, and b) yes, indeed it applies to credit card processing. We were very clear that we were going to have to switch to another processor if this was the case and they did not falter, so either it was a really poor customer service rep, or it's the truth. I guess we'll find out on that first payment processed on 3/29.

  7. #7
    I haven't received the email yet. Not happy about this at all.

  8. #8
    Quote Originally Posted by Lightning2000 View Post
    We used Authorize.net and have been using PayPal for all credit card processing for over two years. I don't recall seeing any "simplification" adjustments, but I wouldn't be surprised. Frankly, its still easier for us to have everything under one umbrella rather than dealing with AMEX and VISA/Mastercard separately, so the additional increase wouldn't be that much of a burden for us. The problem is when everyone starts increasing costs (Constant Contact, eBay, PayPal, USPS, etc.) does so all in one year, then it does hurt the bottom line. My only choice is to raise prices on higher demand lines, look for shipping savings, etc. to offset these hikes until the economy picks up a bit.

    Marc
    The USPS increase pains me every time we ship across the country. Can't believe small boxes are now $7. Ouch.

  9. #9
    I would ask for the manual review even if you are doing less than $1.2 million.
    They usually will do things for long term customers.
    Thankfully I do over $1.2 and don't have to worry about this. Sorry to everyone else, that sucks.

  10. #10
    I never received a notification, but was concerned about the rate hike. I checked transactions today and we are still at our old rate. Knock on wood.

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