PayPal fees will change on August 1st

The standard fees for Paypal transactions will be more expensive. On the other hand, the payment service provider lowers the fee elsewhere, for example in international transactions. […]

As of August 1, 2022, PayPal is changing its fees. The standard fee for online payments with PayPal products such as PayPal Checkout or Express Checkout is then 2.99 percent of the shopping cart amount plus 0.39 euros per transaction. So far, a transaction costs 2.49 percent plus 0.35 euros.

Dynamic micropayments

The costs for micropayments, on the other hand, are falling from the previous 10 percent plus 0.10 euros to 4.99 percent plus 0.09 euros. This is especially important for merchants with low average shopping carts.

In addition, PayPal introduces dynamic micropayment fees: transactions are automatically billed either as a micropayment or with the standard fee – depending on which tariff is cheaper for the respective transaction. Merchants who are already registered for micro-fees are automatically switched to the dynamic billing procedure. Merchants who have previously been billed according to the standard fees can apply for the dynamic micropayments if they are interested.

International transactions will be significantly simplified and, in some cases, cheaper. The previous market groupings are reduced to three groups: there is no additional fee for the European Economic Area (EEA), transactions from the UK cost 1.29 percent extra. For international transactions from all other countries, PayPal reduces the additional fee to a uniform 1.99 percent.

Merchants who have agreed individual conditions for all or individual PayPal products are not affected by the fee adjustment – unless they use other products that are not covered by the individual conditions. The updated standard fees will then also apply to these.

Exception for PayPal Checkout users

PayPal has a special bonus for existing merchants who have switched to PayPal checkout since March or are doing so by July 22, 2022. PayPal will fix the current fees for you by the end of July 2023. A switch to PayPal Checkout applies if at least one other payment method is activated in addition to PayPal as a payment method and at least three successful PayPal checkout transactions are carried out before the deadline in July.

The payment service provider justifies the price adjustment with the increased added value of the products and services for merchants in recent years.

PayPal has developed from a payment method to a comprehensive payment service provider. In the course of this, for example, offers such as PayPal Checkout have been introduced, through which merchants have been able to integrate various, including international payment methods via Paypal with only one integration since March 2022. As further examples, the company cites the optimized invoice purchase via the partner Ratepay, the PayPal QR code and the Buy now, pay later offers such as “Pay after 30 days” and the PayPalBusiness credit.

*Christiane Fröhlich has been observing the trends, hypes and flops the payment industry produces every year for the INTERNET WORLD since 2009. In addition, articles on the technical aspects of web presences are created at your desk: solutions around the webshop, usability, monitoring, logistics or hosting are the topics.

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