PayPal said Friday it was increasing the fees for some of its new products “to better align our prices with the value provided by our products and services.” according to a blog post by First Vice-President Dan Leberman. The changes will affect the amount PayPal merchants pay per transaction and take effect on August 2.
âPayPal has become more than just a button or payment processor to be a comprehensive commerce platform capable of driving business growth,â according to the blog. âConsumers are almost three times more likely to complete their purchase when PayPal is available at checkout. ”
In the past, PayPal has had a flat rate for sellers processing payments, charging 2.9% of the transaction price, plus a 30-cent fee. The new, higher rates will apply to the company’s new products, such as PayPal Checkout and Pay with Venmo. According to his first quarter results report (pdf), PayPal has 392 million active accounts.
Here is how the new price list breaks down:
- For PayPal digital payments with PayPal Checkout, Pay with Venmo, PayPal Credit, Pay in 4, PayPal Pay with Rewards, and Checkout with crypto, the new rate for online transactions will be 3.49% plus $ 0.491 per transaction.
- For in-person payments with PayPal and Venmo QR code transactions greater than $ 10, the rate will be 1.90% plus 10 cents, and for transactions of $ 10 and less, the rate will be 2.40% more 5 cents. For some in-person debit and credit transactions, the rate will be 2.29% plus 9 cents.
- The rate for online credit and debit card transactions will be 2.59% plus $ 0.491 per transaction without its chargeback protection, and with chargeback protection, the rate will be 2.99% plus 49 cents.
- Charitable transaction fees will be 1.99 percent plus 49 cents.
- For US merchants who have custom and non-standard prices, the rates will remain unchanged