Question
******Changes to PayPal Pricing Tiers******
Â* Date: 06/15/04 Â*Â* Time: 08:11:40 AM PDT
Â*
Beginning August 6, 2004, PayPal will change its domestic and cross-border pricing tiers. PayPal’s standard pricing in the US will remain at 2.9% + $0.30 (domestic transactions).
Sellers whose volume qualifies them for the new merchant pricing tiers must successfully complete the merchant pricing application. Once the application is accepted, the seller’s pricing tier will be determined at the beginning of every month and will be based on the seller’s received volume in the previous calendar month.
In addition, as of August 6, 2004, fees will be assessed based on the seller’s country of residence vs. the currency of payment received.
Sellers who are receiving PayPal’s current merchant rate (2.2% + $0.30) as of June 15, 2004 will continue to pay their current rate until August 6, 2005.
Click to view the new domestic and Cross Border pricing tiers.
For more information, read PayPal's Pricing Tier Frequently Asked Questions. For further inquiries, please go to PayPal Help Center .
Regards,
eBay & PayPal
Answer
So for all intents and purposes, this is a paypal fee hike - because I will claim that the vast majority of those receiving the "merchant rate" will fall in the $3,000-$10,000 category.
EDITED: I partially retract the above statement, the current users are grandfathered at current rate until August 2005 (not 2004) and will receive the lower rate if they meet the volume.
So I guess it's not so bad after all from the current user's standpoint. But new users will almost certainly see the higher fee.
Answer
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by WBBell:
So for all intents and purposes, this is a paypal fee hike - because I will claim that the vast majority of those receiving the "merchant rate" will fall in the $3,000-$10,000 category. <HR></BLOCKQUOTE>
Yep, that is what it means. I can't believe all the stuff they are announcing before eBay Live...makes you wonder what's in store for us down at the convention.
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Remember..."ALWAYS FREE"
ROFLMAO...boy, were we suckers!!
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I can't wait for the reports from Ebay Live.
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Here's a screenshot of the new fee structure:
http://members.aol.com/grumpygramphere/PayPalFees.jpg
Answer
Reposting from my post in the Business forum:
Basically, the merchant rate went up by .7% on the first $3000 and .3% on the next $7000. This amounts to a max of $42 extra a month or $504/year.
Did not calculate the potential savings since I am not sure how many merchants will do more than a $100k a month.
This is a rate hike since most will be doing less than $100k a month.
Answer
Here is a repost of the increase on a percentage basis:
It is kind of sneaky how PayPal puts on these fee increases. For those that do less than $3k/month in volume, the fee increase is like 33%.
For those that do less than $10k/month in volume, increase ranges from 33% to 19.09%
A hefty rate hike no matter what.
P.S. I should add % not factoring in the 30 cents per transaction fee. If one factors in the 30 cents, then it is a lower increase percentage.