PayPal's new adjustment will increase seller fees

PayPal will increase seller fees starting August 2. The rate change applies to some US sellers and provides chargeback protection.

The main adjustments are as follows:

PayPal Online Payments : For PayPal payment products, including Seller Protection for eligible transactions, the rate for online transactions will be adjusted to 3.49% + $0.491 per transaction (currently 2.9% + $0.30)

Face-to-face payments: For PayPal and Venmo QR code transactions over $10, the fee is 1.9% + $0.1, and for $10 and below, the fee is 2.40% + $0.05. For certain face-to-face debit and credit transactions, the fee is 2.29% + $0.09.

Credit and Debit Card Payments: Online credit and debit card transactions without chargeback protection are 2.59% + $0.491 per transaction , and with chargeback protection are 2.99% + $0.49.

Charitable Transactions: Charitable transaction fee of 1.99% + $0.49 for confirmed charities (application and pre-approval required).

Non-standard pricing: For US merchants with custom non-standard pricing, the rates for these services will remain the same as agreed upon.

Under this clause, low-priced goods will undoubtedly be more affected, and many sellers said that they would transfer this part of the cost to buyers. Some sellers are also worried that PayPal's move will cause other payment methods to follow suit, after all, it is the sellers who suffer losses in the end.

The adjustment also reflects the importance of PayPal in online transactions, especially during the epidemic, when active users grew to 377 million. PayPal also believes that it is not only a payment tool, but also a complete e-commerce platform that can promote the development of enterprises.

PayPal has its own reasons for this move :

Consumers who choose PayPal as a payment method are 60% more likely to pay.

When PayPal is available at checkout, consumers are nearly three times more likely to complete a purchase.

The recently launched buy now, pay later payment solution has increased the company’s payment volume by 15%.

In addition, PayPal has also added chargeback protection. Merchants can register by clicking "Manage Risk" and selecting chargeback protection. After successful registration, if a chargeback occurs, PayPal will refund the eligible disputed amount (extra fees apply).

At present, PayPal has launched services such as "buy now, pay later", "points reward payment", and "encrypted checkout". It also stated that it will continue to innovate in the future to provide customers with more payment options and continuously enhance the payment experience.

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