Recently I wrote about how you can increase the security on your PayPal account.
Here is something else about PayPal that you may not know … how to save money on PayPal fees.
PayPal do not tell you this (surprise!) but you qualify for reduced ‘merchant rate’ fees if you received more than a certain amount in payments in the previous month. In the US this is $3,000 in the last month, in the UK it is £1,500, and it will be some roughly equivalent amount in other currencies.
For non-Americans, even if you receive all of your income in USD, the rate for your own currency seems to apply. When I applied I had earned just under $3,000 the previous month, but I live in the UK and when converted into sterling it came to over £1,500, so I was approved.
It is very easy to apply (see below) and if you qualify, acceptance is automatic. How much of a reduction you get depends on how much you earned … there is a sliding scale. The great thing is that once you apply and are accepted for what they call ‘merchant rates’, they will automatically adjust your fees every month according to what you earned in the previous month. So you don’t have to keep applying every time you qualify for a bigger reduction.
They say that they will apply the lower rate to your account from the beginning of the following month but in fact when I applied it was immediate. I was paying lower fees the same day that I applied. Of course I cannot guarantee any of this – PayPal could change their policies at any time – but that is how it worked for me.
If you think you may qualify, here is how to apply:
- Log in to your PayPal account
- Scroll down to bottom of page and click on Fees link
- Under Purchase, click on the fee rate that you are currently paying
- Scroll down to information about Merchant Rates, click on Merchant Rate Criteria
- Check the criteria in your country and then click on Apply Now.
Even if you are not making much with PayPal right now, it is worth knowing about this in case you use PayPal more in the future. Bookmark this post!
Filed under: Portal Feeder