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Could PayPal Micropayments save you money on fees?

By Dan Wilson January 7, 2014 - 7:40 pm

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.

  • Sarj
    4 years ago

    You can only apply for micropayments if your average transaction is less then £5.

    It’s 5% commission + 5p

  • JD
    4 years ago

    ‘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’

    To crunch the numbers you should use order (payment) value rather than the cost of items.

  • Maciej Wiankowski
    4 years ago

    Can one have two separate PayPal accounts to accept payments?

    If yes, that could be useful for all kind of sellers – as long as portion of transactions is < £5 and moving this transactions to different account won't affect their merchant rate on main account.

    • 4 years ago

      I am sure you can have two Paypal Accounts and this means this will affect your main account merchant rate.

  • 4 years ago

    Thanks Dan. This is very useful info indeed !

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