What Paypal Won’t Tell You

Posted by Scott on 7th May, 2008 |    68 comments

There is a very well-hidden setting in Paypal that can save you a lot of money in Paypal fees depending upon the volume of Paypal payments that you receive. This is particularly important for merchants selling goods, or big sites that accept subscriptions, but it’s important for ebay sellers and anyone selling more than $3k/mo via Paypal. It’s called Merchant Rate pricing, and it’s something you have to opt-in to, on this page at Paypal (must be logged into Paypal, then visit that link - yes it’s a real Paypal link and no I’m not a phisher).

When I decided to write this post, it took me half an hour to find that page so don’t bother to look for it, they’ve hidden it well. No doubt, their requirement to opt-in to qualify for the discounted tiered pricing is probably buried in some legal agreement, too.

If you earn more than $3,000/mo in Paypal payments, the Merchant Rate switches your transaction fees from 2.9% to 2.5%, and again to 2.2% (>$10k/mo) and 1.9% ($100k/mo) saving you potentially hundreds or even thousands per month. I just assumed that Paypal’s tiered fees adjusted automatically to take my order volume into account but not so, you have to manually choose the lower tier if your sales volume qualifies.

Popularity: 68%

Wednesday, May 7th, 2008 at 6:43 pm and is filed under Web Business. If you like this post why not subscribe to my full text RSS feed. You can leave a response, or trackback from your own site.

RSS feed | Trackback URI

68 Comments »

Comment by Austin Subscribed to comments via email
2008-05-07 19:01:45

Dude, you rock. We process tens of thousands of dollars each month in subscription fees via PayPal and never knew this. Thanks!

Comment by Scott
2008-05-07 19:08:29

Awesome, you’re welcome - glad to help out. I think it’s slimy for them to publish the tiered rate charts and not make it clear that the lower priced tiers are opt-in (like who wouldn’t opt in anyway?)

Comment by Hustle Strategy Subscribed to comments via email
2008-05-27 13:40:57

the only reason i wouldn’t opt in is if there was a stiff penalty coming down a level and I was hovering around $3,000 a month (which there shouldn’t be, but with sleazy companies who knows).

(Comments wont nest below this level)
 
 
 
Comment by Steven
2008-05-07 20:16:56

Is this something that goes away if you don’t maintain the $3k/month of incoming payments or is it a lifetime once it’s applied?

Comment by Scott
2008-05-07 20:19:27

I think it goes away but I don’t know what the timeline is like i.e. how long it lasts from the time sales drop below $3k.

 
 
Comment by Frederic
2008-05-08 00:00:09

thank you so much for that tip! Damn paypal are so sneaky….you’d think they would offer it to anyone that meets the criteria….more people need to know about this

 
Comment by Carl
2008-05-08 11:51:19

That’s a very nice tip Scott. I don’t earn enough each month through PayPal but I’m sure a lot of people will save a lot of money.

Best Wishes
Carl

 
Comment by BlogTalks
2008-05-09 04:46:10

Thanks for the tip. Playing devils advocate for a minute why would PayPal want to advertise the fact and lose revenue.

 
2008-05-23 18:40:30

[…] to Scott Wainer for his excellent post on PayPal’s secret merchant rate for this […]

 
Comment by Warenwirtschaft
2008-05-26 16:08:38

Its methods like this why i dont like paypal. They are big, they are sneaky, they are ugly.

Comment by Wanda
2008-11-03 15:47:19

I agree and am looking into changing my CC processor. They don’t seem to know how to answer questions, either, except their canned responses which rarely apply.
Wanda

 
 
Comment by Asia'h Epperson
2008-06-04 08:44:07

Everything in paypal is hidden. Even a simple process of canceling a subscription takes me a minimum of 4 clicks to get to the page. Talk about designing the site to be user friendly.

 
Comment by Asia'h Epperson
2008-06-04 08:56:15

Paypal sure makes you run round hoops to change, cancel or edit anything. And this in a day when every designer takes about user experience.

 
2008-06-14 11:35:47

Good tip. Ill put this to use once i make more money :)

 
Comment by Make Money Talks
2008-06-14 12:07:52

Useful Paypal info, thanks! I hope i can get such $ale numbers one day ;)

 
2008-06-17 20:27:15

[…] use paypal, and a few may be making quite a bit of dough, this is something they may like to know. What Paypal Won’t Tell You | W Revenue dot Com Basically it says how you can get lower fees due to the tier system, but instead of upgrading […]

 
Comment by Vampire Bats Subscribed to comments via email
2008-06-19 12:58:08

this is very useful info indeed i would have never known :O

 
Comment by Dakbid Directory
2008-06-20 21:09:20

If only I was making a lot from paypal I could put this to good use

 
Comment by Rich Tubbs
2008-07-05 00:57:39

Great tip. But when I went to Paypal to opt-in I found that I was already receiving the Merchant Rate without any sign-up on my part. So, apparently Paypal has some sort of automatic process here.

Comment by Scott
2008-07-05 01:00:46

That’s good to hear, but it wasn’t the case for me or for others who I’ve heard from, so it’s good to double check.

 
Comment by right
2009-04-28 17:20:27

I applied for it 7 days ago. But I didn’t get any response yet.

 
 
2008-07-11 14:12:34

Would be nice to take $3000/month!

 
Comment by zaggededge
2008-07-12 20:33:58

hey thanks for the heads up on paypal! i’d like to model my blog after yours

 
2008-07-15 22:11:20

I guess this isn’t a problem for most paypal users

Comment by Scott
2008-07-15 22:57:49

$3k/mo isn’t actually that much for people who sell things on ebay for a living - $3k/mo is a very small 1 person kind of business.

 
 
Comment by Chip
2008-07-23 15:57:34

Thank you for these tips, I will check out my Paypal settings and modify them accordingly.

 
2008-08-05 08:18:38

[…] The PayPal secret opt in for reduced fees found by Scott at W Revenue. […]

 
Comment by SondraW
2008-08-19 09:59:01

Thanks for the tip!!

 
Comment by Frank Richard
2008-09-19 04:58:42

Gosh, thanks for telling!

 
Comment by Home Security Safes
2008-10-01 16:54:25

This is great advice, never knew this. Thanks for this useful tip.

 
Comment by Mark
2008-10-14 06:57:51

That was a great news. I ve been paying them. I use to close my account for $5000 and more a month

 
Comment by Ryan G
2008-10-26 06:53:15

Definately worth knowing about PayPal. I didn’t have a clue.

 
Comment by Gaia layouts
2008-11-01 02:40:36

Wish I know that before…

 
Comment by Jenn
2008-11-01 18:48:20

Thank you very much for posting this! This will drop my fees and nothing is better than that. It’s also good news that PayPal automatically accepts your application. I’m ‘ready to go’ now!

You’re awesome for finding that hidden page :)

Comment by Scott
2008-11-01 19:07:59

Excellent, you’re welcome!

 
 
Comment by Nate Moller Subscribed to comments via email
2008-11-03 00:38:28

Thanks for the great tip - I found your article via StumbleUpon and am glad I did.

Here’s the quick way to find it:

1. Login to your paypal account

2. In the top right corner there is a search bar, type this in: fees-rate-about

3. You’ll come to the page - apply and SAVE MONEY!

Thanks for the great post and money saving tip!

 
2008-11-08 11:09:38

[…] How to save money - Paypal won’t tell you this […]

 
Comment by Me Debt Free
2008-11-08 19:47:30

Never knew this - great advice. Thanks for the useful tip.

 
Comment by Tom_L
2008-11-16 18:03:44

Great information, thanks for these tips.I´m not yet at the $3k mark, but once I get there I sure will use this money saving tip.

 
Comment by Creative Solutions
2008-12-10 07:37:30

I am too follower of Tom but I suggested this to some of clients :) they are happy with the information :) wow wow wow

 
2009-01-06 11:56:49

Very good to know. I thought that it automatically changed based on your volume. Good to know you have to manually switch it over. Thanks for the info!

 
Comment by GURUmicro
2009-01-14 14:11:21

I came across your site after stumbling across the “Merchant Rate” info in Virtual Terminal. After being approved, I still couldn’t find any info on what my new rate actually will be. It was 3.1%. If it goes down even .5% it will translate to a $25.00 per month savings to me. Just about covers the virtual terminal fee of $30.00 Though the card processing rate seems quite high to me at 3.1% for merchant services as it is!! PayPal is not impressing me with their (raised) $30.00 per month service charge, then charging 3.1% on transactions. You’d think they would offer a free USB card swipe device for your cash register at these rates!!! This is not much less than a banks rates with a card terminal included!

 
Comment by SEO Tips
2009-01-21 15:02:27

That is excellent, can I ask how you came across that? That will save a lot of people so much money.

Comment by Scott
2009-01-21 16:36:27

Stumbled upon it by chance when looking at my own account.

 
 
Comment by Amar Damani
2009-02-20 05:33:46

Thanks! you made my day, we will save a lot of money & the credit doesn’t goes to PayPal , it goes to you & only you..

 
2009-02-23 13:03:28

Paypal does not work in my part of the planet, Pakistan. I cannot even register an account. Any ideas of any ways around it??

I miss on a LOT of transactions because of this reason because most people ONLY accept paypal for online transactions.

John

 
2009-03-02 13:13:24

[…] What Paypal Won’t Tell You […]

 
2009-04-02 00:14:50

[…] holder and have a good standing with PayPal you can apply for merchant rates. Merchant rates attracts lower fee than normal premier/business accounts rates. To qualify for merchant rates you should have received […]

 
2009-04-06 00:39:25

[…] holder and have a good standing with PayPal you can apply for merchant rates. Merchant rates attracts lower fee than normal premier/business accounts rates. To qualify for merchant rates you should have received […]

 
Comment by Accept Payments
2009-04-27 19:55:46

Even at the low fees PayPal is still ripping off the merchant. Its sooooo much cheaper to get a regular merchant account. Paypal is great for very low volume merchants, but when you really need payment processing you need to get a merchant account.

Comment by Scott
2009-04-27 20:49:43

Very true, but consumers love how easy paypal is, so unfortunately you’re throwing away money if you don’t accept it. Making it easy and quick to pay will make the difference between closing a sale and not — it all depends on how badly the consumer wants the product.. If they are indifferent, then the thought of getting up to get their wallet, putting in their address and all their info for several minutes, can deter the sale.

 
 
2009-05-24 20:18:44

[…] How to save money - Paypal won’t tell you this […]

 
2009-05-30 04:15:24

[…] holder and have a good standing with PayPal you can apply for merchant rates. Merchant rates attracts lower fee than normal premier/business accounts rates. To qualify for merchant rates you should have received […]

 
Comment by Town Websites Subscribed to comments via email
2009-06-23 10:55:09

Another interesting item, if someone pays by E-CHECK, the maximum fee charged will be $5 for a transaction.

E-checks behave like checks - the funds have to clear before they show up as completed on your merchant account - so not the best for goods you ship unless you hold the order till the PENDING status clears. But if you do something like take funds for a service that will be delivered later, bingo.

You have to educate your customers about how to use E-Check - they have to opt in from a similarly difficult to find payment option just before they approve a payment.

Savings in fees on a $1000 payment - about $24.30 out of $29.30, even if your account hasn’t been approved for merchant fee reductions.

 
Comment by Conversion Vans
2009-07-03 22:19:02

I’m so tired of big businesses ripping off the little guy because they don’t have law degrees. This mentality of gouging customers because of ignorance is a big part of why the economy is in such disarray. Seriously… what is ethical about making customers “opt in” … it’s called doing the right thing. It should be automatic. I hate paypal but I have to use it. Sad that one has to find out about these things from other people because Paypal won’t just do the right thing. Good post!

 
Comment by Melody
2009-07-03 22:31:01

Great info, thanks.

 
Comment by GT
2009-07-14 09:33:52

PayPal is evil

 
Comment by Edward
2009-08-04 01:41:02

THIS IS A SCAM. He wont tell you how to find the Paypal link, but he wants you to login to his fake Paypal link.

BEWARE!

Comment by Scott
2009-08-04 09:26:03

The link goes to paypal.com genius. Go to paypal.com, login, then go to the link if you want. I am not a scammer and if you knew anything about anything, or had been around web business for the past 15 years, or had read any of the articles about me in Forbes, the Wall Street Journal, Inc mag, PC World, PC Magazine, Smartmoney, etc etc you’d know that.

 
 
Comment by Marcus Subscribed to comments via email
2009-08-17 14:09:44

Thanks for the tip. Approved with 2.2 rate instantly! Cool! Not a bogus link, Einstein.

 
Comment by Buy PSP Go
2009-09-04 02:09:47

Thanks for this, I’m not up to that level yet but when I do I’ll make sure that I take advantage of it!

 
Comment by danny monham
2009-09-06 10:41:42

great artcle

 
Comment by Amiga
2009-09-28 16:11:57

Paypal won;t tell you that they can ban easily your account or even take back cash from your bank account. I prefer to use some other systems than PayPal.

 
Comment by Airyn
2009-10-09 00:17:58

I love you Scott. You just saved me a TON of $.

PayPal will pay for it’s deceitfulness… Trust me.

 
2009-12-03 05:34:42

I will definitely keept his in mind and spread the news! Quite a few of my customers use PayPal, and while few of them are really huge, there definitely are a couple who stand to save some money.

 
Comment by emergency cash
2009-12-06 12:24:41

You just saved some business owners a lot of cash. What a great resource you site is.

 
Comment by naruto
2009-12-07 04:43:18

Its methods like this why i dont like paypal. They are big, they are sneaky, they are ugly.

 
Comment by Sözlük
2009-12-12 05:31:24

thanks great artcle

 
Name (required)
E-mail (required - never shown publicly)
URI
Subscribe to comments via email
Your Comment (smaller size | larger size)
You may use <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong> in your comment.
  • links

  • recent readers

Join Community

  • my businesses

Copyright 2007 All Enthusiast, Inc. All Rights Reserved
ear pain drug zithromax herpes medications to buy vitamin a normal blood pressure acetazolamide cialis without prescriptions buy water pills buy precose infection lung price for tramadol alternative cholesterol treatment buy vitamins buy phentermine cialis prescription online pain dr bust enlarge paxil side effects herpes medications to buy drugs soma zyprexa 5mg ambien overdose aciphex pregnancy body acne treatment zyban online from canada herbal pain remedies virus vomiting depression pills effective over the counter strength supplements celexa buy birth control pills cheap weight loss supplement buy prevacid hypertension medicines help to stop smoking tretinoin retin a buy viagra online without prescription treatment for lung cancer hydrochlorothiazide 25mg hair loss after pregnancy natural hair loss remedies effexor side effects lasix side effects what is valium used for prozac on line cialis 50mg free xanax online celecoxib depression medicine anti depression medicine chronic lower back pain diet pill rx parkinson disease medicine natural longer erection the new flu bronchitis remedy purchase meds without prescription diabetes type 2 cheap pfizer viagra buy didronel diarrhea women weight loss food left side pain osteoporosis treatment benign prostatic hyperplasia anti depression alpha-blockers blood pressure loss weight weight loss ideas jellys sildenafil female body building program bupropion 150mg depression pills ipratropium inhaler health med zoloft order acne skin treatmen breast enhancing drug valium children cheapest place to buy phentermine soma no prescription cure treat itch itching reminyl zyvox natural arthritis cures immune system strengthen purchase cialis overactive bladder in men xanax overnight delivery lowering high blood pressure weight loss cures generic klonopin buy levothroid buy phentermine without prescription natural acne products weight loss after pregnancy phentermine no rx viagra generic cheap dog anxiety weight loss for kids cures for hair loss pain in left side phentermine without perscription online pain medicine doctors cats health edema treatment cipro side effects pain relief product side effects prednisone drug discount codes carisoprodol price what is an antibiotic sleep disorder treatment new anti depression drugs most effective weight loss products depression self help kamagra generic allergies and asthma treatment for herpes plan b prednisone online what is diazepam diovan fast antibiotics cure chlamydia online kamagra glucophage online pharmacy fda tamiflu Where To Buy Cialis canada pharmacy drug perscription ambien in canada drugs for energy ativan order kamagra effects of ultram medication avapro buy cheap viagra hair loss treatment uk hiv treatment weight loss meds on line online viagra in the us prescription drugs on line treating chlamydia sertraline tablets acne face medication myasthenia gravis medical treatment for diabetes treating prostate cancer protonix dose back pain muscle menopause products purchase viagra on line Online Viagra hydrochlorothiazide 25mg buy cialis delived next day free online weight loss program pet health care information cialis approval where can i buy viagra treatment for blood clots evening primrose oil dosage purchase birth control online cialis compare viagra dogs health problems elderly bone health ampicillin amoxicillin prevention of diabetes treatment for menopause weight loss for children congested heart failure lisinopril prinivil loss weight ramipril capsules glipizide diabetes list new cancer drugs how to relieve back pain buy flagyl cheap drug pharmacies reminyl fluoxetine side effects blood pressure drug viagra superactive online weight loss program vitamins store treatment hypertension elevated uric acid natural weight loss buy flagyl buy imuran cheap cialis yeast infection medication ampicillin amoxicillin new birth control no prescription needed phentermine buy pilocarpine hypnosis to stop smoking white teeth cialis cialis information viagra buy nortriptyline order allegra celebrex information lilly cialis cialis without a prescription discount hiv medications gout relief health information bone health general keep erections longer cheap beta blockers how to buy viagra online signs of herpes online viagra prescription dog health info clomid no prescription man health ultram dosage zithromax phentermine buy without a perscription somas medical discount international drug flomax generic penis enlargers gonorrhea antibiotic leflunomide sleeping aids back pain medications help sleeping voltaren 100mg buy xanax online without a prescription itching skin severe prices of drugs how to lower high blood pressure compare viagra cialis levitra insomnia pills effects of folic acid tooth whitening gel antibiotics uses bone loss treatment cetirizine effects sleep problem breast cancer drug treatment phentermine no perscription flu vaccines generic depakote high blood pressure symptom cialis viagra buy online viagra where order gasex medical chlamydia otc sleep aids xenical pill natural teeth whitening dementia treatment minocin online hair loss products for women mojo maxx klonopin dose vpxl pill rhinocort spray getting pain relief safely cheap phentermine online spironolactone effects buy erexin v treatments for diarrhea scabies treatments meloxicam drug buy cabergoline relieve joint pain valium maximum dosage sex enhancing drugs for wome prilosec 20 diabetes order zoloft dosages how to give up smoking dosage digoxin little penis valium cialis 50mg buy weight loss product skin care tips metoclopramide pediatric herbs for impotence benicar generic cheap viagra without prescription weight loss programs online treatment of insomnia what causes throat infection diabetes blood sugar levels astelin generic prednisone 10mg zantac dose alcoholism new treatment levitra pro buy inderal tramadol florida pain relief product viagra cialis compare discount erectile dysfunction medications order valtrex teeth whitening dental ranitidine interaction discount vitamins supplements muscle and bone pain cure snoring help body building women parkinson's drugs canadian drug pharmacy treating sleep disorders information on ambien i want to give up smoking generic for actos prevacid online how to stop hair loss h1n1 flu compare cialis viagra how to cure snoring general health and medical itching skin severe online imitrex ambien cost weight loss after preganancy how to naturally lower cholesterol penis enhancers Levitra Super lamictal drug us levitra cheap xanax without prescription natural longer erection buy water pills flonase small dog products general health Where Can I Get Viagra increase female sex drive online cozaar vytorin generic latest cure for aids list of medication used for diabetes depression self help generic zyrtec new products for hair loss acne medication online tooth whitening dentist drugs for edema malaria cures viagra in britain weight loss products order buy viagra cheap online medication claritin pain reliever order zyrtec pills what are the effects of klonopin treating hair loss clonazepam .5mg treatment for infertility cialis from us pharmacy buy medicine prostatic hyperplasia ativan information treatment for hiv buy erectile dysfunction online buy prescription drugs on line online imitrex increasing a womans sex drive stomach pain disopyramide pet care stress pills relief from constipation healthcare pharmacy buy alcoholism medications help stop smoking cialis 50mg cialis softgel online viagra without prescription dog tooth infection zantac dosing professional viagra antibiotics chlamydia dog separation anxiety cat anxiety medicine help for edema naturally increase breast size no prescription klonopin relafen cheap lamisil buy cheap paxil online discount ambien can i buy erectile dysfunction medication medication for anxiety buy zovirax medical treatment for diabetes prescribed water pills ear infections remedy valium 2mg medication for herpes increase muscle strength dog products hair loss in children cheap xanax next day delivery viagra rx female enhancer prescription lipitor cetirizine drug wellbutrin cymbalta benefits hyaluronic acid cheap celadrin discount medicine withdrawal symptoms lorazepam online cheap soma bacterial diarrhea where to buy viagra online treatment for lung cancer order viagra cialis help to give up smoking hair loss information cialis cheap no prescription diflucan pharmacy medication shingles natural antibiotic anti-biotic bug viagra online sex with levitra buying ambien what is heart failure prescription online viagra alternative hair loss cures flu vaccine medicine for insomnia help with stop smoking natural acne remedy latest treatment for heart attack list of weight loss programs trazodone 100mg bayer levitra cheapest price online pharmacy discount drug viagra where to buy phentermine without prescription gonorrhea women symptoms new anxiety drugs buy pain pills on line tramadol cheap levitra online treatment hepatitis c cost of levitra how to prevent strokes discount anxiety drugs viagra online store buying ambien treatment for itching sleep disorders remedy weight loss and fitness viagra to canada