Effective March 29, 2017, Paypal has announced some fee changes. You should have received an email yesterday from Paypal explaining the changes.
In a nutshell, Paypal is doing away with tiered merchant volume discounts which will impact many sellers that were doing more than $10,000 in sales per month.
You may have been on 2.5% or 2.2% fee structure, but based on Paypal’s email we received, these will go away and will be replaced with a flat rate of 2.8%.
International fees will rise to a flat rate of 4.3% from a typical 3.9%. And Paypal is changing the currency conversion spread from an additional 2.5% over a wholesale exchange rate to an additional 3.0% over a wholesale exchange rate in situations where you are a sender of money in a PayPal transaction.
The international currency conversion spread remains unchanged at 2.5% over a wholesale exchange rate for all other currency conversions.
The U.S. domestic transaction fee of $0.30 remains the same and the international transaction fee typically around $0.30 (subject to actual currency conversion rate of original currency) also will not change.
Your current card-processing rates on PayPal Payments Pro and Virtual Terminal will not change at this time either.
No amount of lipstick on this pig is going to make this look good. As we stated in yesterday’s eBay 2017 Spring Seller Update article, this is a good time to look at your business and eliminate the low margin, low sales products.
Another option should include to shop around for a credit card merchant account with lower transaction fees and depending on your pain threshold for the occasional chargeback, offer those as an alternative on your website or on some select eBay listings.
We love to hear your feedback on how you think this will impact your business.