How can I reduce PayPal transaction fees?

This is how you, as a seller, reduce your PayPal costs

Reading time: 2 minutes

PayPal is a subsidiary of eBay and is used very often in connection with the online auction house. It is an online payment system that is used for money transactions on the Internet
can be used. In June 2014, the number of registered member accounts was more than 230 million, making it the market leader among payment systems.

There are no costs for the buyer when paying with PayPal

PayPal is repeatedly criticized for various promotions. For example, the company has for a while frozen accounts of users who have traded in Cuban products such as rum and cigars, which is not allowed in the US due to the trade embargo. However, this embargo does not apply to EU law, which is why the American group was heavily criticized for it.

In principle, PayPal is free. Having a PayPal account is free, as is paying with PayPal as a buyer. A PayPal account is also free of charge for a seller. The transaction costs a fee as a seller as well as a general recipient of money. The PayPal costs in Germany consist of a basic fee of 0.35 euros and 1.9% of sales.

How to reduce your PayPal costs as a merchant

If you are a merchant who receives his money with the help of PayPal, you can register with PayPal in order to receive individual merchant conditions. Depending on the trading volume, you can benefit from cheaper fees in this way, for example by reducing the variable fee rate of 1.9%.

However, the possibility of using this option is linked to various conditions that PayPal will check individually. For example, your sales volume per month must exceed a certain value, PayPal must be used for at least 90 days, the size of the shopping cart must always have a certain value and the PayPal account must be used without complaints or complaints.

Dealer conditions depending on the sales volume

In addition, all goods that are sold must comply with PayPal's terms and conditions. The dealer conditions can be as follows, if all conditions are met:

  • With a constant basic fee of 0.35 euros, the percentage is reduced to 1.7% with a monthly sales volume of 5,001 euros to 25,000 euros
  • With a constant basic fee of 0.35 euros, the percentage is reduced to 1.5% for a monthly sales volume of more than 25,000 euros

Other costs that are due when receiving money via PayPal

However, you as the recipient of the money also incur fees for further transactions. If you collect donations, the fee per transaction is 1.2% plus the basic amount of 0.35 euros.

For micropayments that are processed via PayPal, such as paying for music files from the Internet or for a bottle of beer, the fee for the seller is EUR 0.10 plus 10% of the amount. Micro payments are all amounts between EUR 0.01 and EUR 5.00.

Read more about PayPal costs here!

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