I have been selling digital sewing patterns since years and never have come across this valuable information until recently. I was surprised that Paypal has this kind of feature so I searched under “fees” and there it was!
Are you ready to start saving some money and start paying lower paypal fees? Let’s do this!
⇓—————- P I N T H I S —————-⇓
Micropayments are payments that are less than $10.00 per transaction.
Paypal offers lower fees if your transactions are less than $10.00 meaning if you sell patterns (and especially digitally patterns where no shipping is involved) that are less than $10.00 in total transaction you can save money that way. How? With Paypal’s “5% plus $0.05” rate.
How Does This Work?
Here’s an example from the paypal site for a business that usually accepts $2.00 payments.
Typically digital patterns range anywhere from $2.00-$9.99 (in the ideal case) and will be eligible for this low rate. If a pattern sells for more than $10.00 then Paypal automatically adjusts the rate to the usual 2.9% + $0.30 per transaction which most of us are (or were) used to anyways.
More information on how to set this up in your paypal account can be found HERE! Note: I hired a web developer through Fiverr.com to help m set this up in my paypal account.
But not only digital patterns are eligible for this discount, basically any merchandise under $10.00! Imagine any website that sells small, low priced items such as
- hair bows
- small sewing supplies
- virtual products such as ebooks
The only thing is that your fees of 5% and 5cents will remain throughout, no matter if a payment will be over $10.00. You will end up paying a bit more fees if that’s the case but if your sales are under $10.00 for the majority then you will save in the long run.
How Do I Apply?
It’s very simple! You call customer service! Let me tell, I had to speak with them on numerous occasions and must say, they are a knowledgeable bunch! All you want to do is log into your Paypal account and scroll down to the bottom of the page.
I usually get a passcode for a quick line and it has always worked great! Just ask for “payments & transactions” and a live person will be with you shortly.
Disclaimer: I am not a web developer nor a Paypal specialist and definite information on switching to lower fees will be solely up to the Paypal representative.