The standard fees for PayPal transactions are becoming more expensive. Elsewhere, the payment service provider lowers the fee, for example for international transactions. […]
As of August 1, 2022, PayPal will change its fees. The standard fee for online payments with PayPal products such as PayPal Checkout or Express Checkout is then 2.99 percent of the shopping cart total plus EUR 0.39 per transaction. So far, a transaction costs 2.49 percent plus 0.35 euros.
Dynamic micropayments
The costs for micropayments, on the other hand, will drop from 10 percent plus 0.10 euros to 4.99 percent plus 0.09 euros. This is especially important for merchants with low average shopping carts.
PayPal is also introducing dynamic micropayment fees: transactions are automatically billed either as micropayments or with the standard fee – depending on which tariff is cheaper for the respective transaction. Merchants who are already registered for micro fees will be automatically switched to the dynamic billing process. Merchants who were previously billed according to the standard fees can apply for the dynamic micropayments if they are interested.
International transactions are becoming significantly easier and sometimes cheaper. The previous market groupings are reduced to three groups: For the European Economic Area (EEA) there is no additional fee, transactions from Great Britain cost 1.29 percent extra. For international transactions from all other countries, PayPal reduces the additional fee to a uniform 1.99 percent.
Merchants who have agreed individual conditions for all or individual PayPal products are not affected by the fee adjustment – unless they use other products that are not covered by the individual conditions. The updated standard fees then also apply to these.
Exception for PayPal Checkout users
PayPal has a special treat for existing merchants who have switched to PayPal Checkout since March or will do so by July 22, 2022. PayPal has fixed the current fees for them until the end of July 2023. A change to PayPal Checkout is considered to be when at least one other payment method is activated in addition to PayPal as a payment method and at least three successful PayPal Checkout transactions are carried out before the deadline in July.
The payment service provider justifies the price adjustment with the increased added value of the products and services for the merchants in recent years.
*Christiane Fröhlich has been observing the annual trends, hypes and flops that the payment industry produces for INTERNET WORLD since 2009. Articles on the technical aspects of web presences are also created at her desk: solutions for everything to do with the web shop, usability, monitoring, logistics and hosting are the topics.
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