Could PayPal Micropayments save you money on fees?

On Monday, I posted about the PayPal Merchant Rate which is a fairly well kept secret on PayPal whereby the bigger the volumes the lower the percentage fee paid (the 20p standard stays the same.)

And, as is always the way on Tamebay, I was reminded of another option that’s available to sellers. Paypal Micropayments. Find out all about them here.

In basic terms, here’s how PayPal micropayments work. You can opt for a higher percentage charge from PayPal but a lower fixed cost for taking money. This means that if you’re usually selling low cost items (let’s say under a tenner), this can be the more cost effective option open to you.

As always, it really depends on your business and you’re best advice to crunch the numbers before taking the leap. But it’s an idea worth considering, especially if you tend to sell lower cost items.