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3. Selling with PayPal > 23. Lower Your Seller Fees

Lower Your Seller Fees

Here are five ways to lower the commissions PayPal charges you when you receive money.

Many sellers using PayPal don’t sell enough to really care about an extra 0.7% transaction fee. For them, the convenience of PayPal is enough. With no startup fees, no monthly fees, and no long-term commitment, PayPal is a no-brainer. However, when you start doing $5,000 per month in sales, those fees start to add up. Many merchants don’t realize there are extra steps they can take to reduce or offset their transaction fees.

Apply for the Merchant Rate

The standard rate (known as the discount rate by credit card merchants) for accepting a payment with a PayPal Premier or Business account is 2.9% plus $0.30 per transaction. (This rate applies to transactions between U.S. accounts; fees vary for oversees or international transactions.) You can reduce your rate to 2.5%, 2.2%, or even 1.9% (plus US$0.30 per transaction) by qualifying for the PayPal merchant rate. Table 3-1 illustrates this new tiered fee structure.


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