Apply for the PayPal Merchant Rate for cheaper fees

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Do you take more than £1500 a month in payments via PayPal?

It’s one of those little secrets that a surprising number of eBay and ecommerce sellers who use PayPal don’t know. Basically, if you sell a lot and take a lot of payments via PayPal then you’re eligible for lower fees.

You have to apply, needless to say and they don’t shout about it. Every time we mention the scheme on Tamebay (and we do it periodically), an old hand seller will write to say Thanks. “This will save me x hundreds/thousands of pounds a year,” they often say.

So visit the page for the Merchant Rates here. Find the rate card below.

paypal merchant rate

And, don’t forget, if you take a lot of payments via PayPal that are for small amounts then there is the eBay Micropayments scheme too. Check it out too.

7 Responses

  1. Though of course be careful about using micropayments if you get quite a few multi-item purchases, we ended up costing ourselves more!

  2. Thanks for the info, I have not checked the fees scale since I signed up and assumed it would be automatically applied. Just filled in a few bits about the business and the new rate has been applied.

  3. Re: Micropayments
    You can only have one or the other.
    I was thinking that my normal rate would apply to “normal” payments and micropayments would then apply to small payments under £5.00
    But that’s not the case. You have to choose “normal” or micropayments and then your choice is applied to ALL your future received payments.
    Just thought I’d throw that in there in case any one was thinking of making a phone call to PayPal (like I did) to ask them to switch on micropayments for my small payments only.

  4. When a friend told me about these discounted merchant rates, I found out that I had lost out on these rated for 6 years+ running into approx 5 figures (in excess)…So I applied to PayPal for the rates and my application got supposedly “lost”…After chasing the matter up with telephone support, they finally applied the new rates., I asked the PayPal representative why the process within the website is hidden and why they did not notify me that I was paying more than I should have for years, they replied….”we are a business, its not in our best interest”….The discounted rated should be automatically applied when you reach the thresholds!!!


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