PayPal said Friday it is raising fees for some of its newer products “to better align our pricing with the value that our products and services provide,” according to a blog post by senior vice president Dan Leberman. The changes will affect how much PayPal merchants pay per transaction, and take effect August 2nd.
“PayPal has become more than just a button or payment processor to be a full commerce platform capable of driving growth for businesses,” according to the blog post. “Consumers are nearly three times more likely to complete their purchase when PayPal is available at checkout.”
In the past, PayPal has had a flat rate for sellers processing payments, charging 2.9 percent of a transaction price, plus a 30-cent fee. The new, higher rates will apply to the company’s newer products, like PayPal Checkout, and Pay with Venmo. According to its first quarter earnings report (pdf), PayPal has 392 million active accounts.
Here’s how the new fee schedule breaks down:
- For PayPal digital payments with its PayPal Checkout, Pay with Venmo, PayPal Credit, Pay in 4, PayPal Pay with Rewards, and Checkout with crypto, the new rate for online transactions will be 3.49 percent plus $0.491 per transaction.
- For in person payments with PayPal and Venmo QR code transactions over $10, the rate will be 1.90 percent plus 10 cents, and for transactions $10 and less, the rate will be 2.40 percent plus 5 cents. For certain in-person debit and credit transactions the rate will be 2.29 percent plus 9 cents.
- The rate for online credit and debit card transactions will be 2.59 percent plus $0.491 per transaction without its chargeback protection, and with chargeback protection the rate will be 2.99 percent plus 49 cents.
- The fee for charity transactions will be 1.99 percent plus 49 cents.
- For US merchants who have custom, non-standard pricing, rates will remain unchanged