Payment notification increase set for aug 2021

Not a question but Sellers who use Paypal need to know (just read this on eCommerceBytes) that Paypal transaction fees going up in August 2021.

Sellers currently pay 2.9% plus 30 cents per transaction to process a payment through PayPal. The company announced last Friday it’s raising rates in August to 3.49% plus 49 cents per transaction.

Unpopular as it is to buyers…Unfortunately looks like I will need to raise my S&H fees AGAIN, and this time it is NOT from the P/O price shipping increases to cover my costs. Those will again be coming later this year when the PO implements their Holiday SURGE price gouge.

BUYERS would do well to do their purchases NOW before Paypal Aug rate increases.

I cant be the only one who wont need to raise prices because of this latest change. My shipping costs charged already are lean as they are, and in some cases, I lose money after all the sell and payments fees are added in already. While it dont sound like a lot, for small ticket items, it is quite a steep cost increase. Sellers, just be forewarned.

Happy Sales to YOU!!!

asked about 1 month ago

1 Comment

originalsbycindy says: June 26, 2021

Geez, we just can’t win. It’s already bad enough to have been eating shipping costs on many items. The lower ticket items are now becoming almost not worth bothering to have listed. It’s a royal pain to constantly have to be changing shipping charges. Thank you so much for posting!!

5 Answers

Most of my customers on my website usually opt for credit card payments (about 65%) which go through Stripe (hope they don’t decide to up fees too), here about a 3rd use stripe and I still get a few through Amazon Pay. I will wait and see the percentage of buyers opt for PP over the next 6 weeks or so and decide then on whether to change prices a little.

Here is the complete summary of changes:

We are making changes to our published rates in the United States to better align our pricing with the value that our products and services provide. Our goal is to be transparent and upfront with our customers about the changes. These rates will apply to a portion of our merchant customers in the U.S. beginning August 2, 2021. We began notifying some customers today, and you can find a notice on our Policy Updates page.

PayPal Digital Payments: For PayPal payment products (such as PayPal Checkout, Pay with Venmo, PayPal Credit, Pay in 4, PayPal Pay with Rewards, Checkout with crypto), which include Seller Protection on eligible transactions, the rate for online transactions will be 3.49% + $0.491 per transaction.

In-person Payments: For PayPal and Venmo QR code transactions over $10, the rate will be 1.90% + $0.10, and for such transactions $10 and under, the rate will be 2.40% + $0.05. For certain in-person debit and credit transactions the rate will be 2.29% + $0.09.

Credit and Debit Card payments: Online credit and debit card transactions will be 2.59% + $0.491 per transaction without Chargeback Protection, or 2.99% + $0.49 with Chargeback Protection.

Charity Transactions: Fees for charity transactions will be 1.99% + $0.49 for confirmed charities (subject to application and pre-approval).

Non-standard Pricing: For U.S. merchants who have custom, non-standard pricing, rates will remain unchanged for those services as agreed.

answered about 1 month ago

ccmom
Reputation: 12619
See ccmom's booth

Yup. Small sellers will take another loss because you can only get so much for certain items and online buyers will always be “shoppers” and looking for the lowest price.

So there’s really no “best” option: You can increase prices and lose the sale, or keep prices as they are and lose profit.

What this tells me personally is to participate in more local flea markets, etc., which is the easiest way to sell many collectibles, larger and unique items. The immediate cash-in-hand, (with NO fees other than a booth fee), is very fulfilling!

answered about 1 month ago

1 Comment

ccmom says: June 22, 2021

exactly…I will probably use the FB groups more also..since it is direct person to person payment also for the lower fee

I rarely use Paypal. I do most of my sales on Mercari or Facebook. And Paypal is simply not an option that I offer. I don’t have anything on this site as of right now.

answered about 1 month ago

Eliray
Reputation: 114
See Eliray's booth

1 Comment

Atomicdiner says: June 26, 2021

I thought Paypal was a required pay method here (as a default) or did that change. Either way, it is a money grab by them at OUR expense.

I thought Paypal is mandatory in bonanza. btw im new here

answered about 1 month ago

The intermediary payment applications in the beginning will always have quite high discounts for promotion and communication, and of course, after a stable operation period, the incentives will no longer exist and that leads to jobs shuffle the small business shops.
https://slitherio.online

answered about 1 month ago

PaP11
Reputation: 14
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