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How can you Save with Paypal Micropayments ?

How can you save with Paypal Micropayments?

Dan from Tamebay pointed out about Paypal Micropayments. This is something that definitely needed further investigation and here’s list of payment received values along with Paypal Fees:

–         Micro Payment  Fees 5% + 5p

–         Normal  Fees 3.4% + 20p

Paypal Micro Payments List

Please Click to Download the Spreadshee

You will find a column showing difference in fees with two types of fees. You will find PayPal Micropayment profitable with certain values and not with others. The breakeven point is highlighted in yellow. So, if you are receiving anything £9.10 or below go for Micropayment and above go for normal payment. Please take a note of savings and losses to take the correct action. Here’s three situations your business may be in:

SITUATION 1: Receiving £9.10 or less

Go for Micropayment

SITUATION 2: Receiving over £9.10

Go for Normal Paypal

SITUATION 3: Mix of both

Have two PayPal and direct your payment to two different accounts.

Please note this will save you money and maximise your profit if you do the right way and if you are not careful with it and you will lose big time. The spreadsheet is downloadable for you to change values if you like.

Let me know what you think !

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