Accepting PayPal for a domain sale? Get ready to pay a larger transaction fee.
You’d think that increased competition in the FinTech space, particularly with payments, would drive costs down.
But PayPal is increasing rates next month for digital payments. Businesses previously paid a 2.9% fee (plus 30 cents) per transaction. This will increase to 3.49% plus 49 cents on August 2.
This applies to digital payments, such as when a domain name seller accepts PayPal for a domain transaction.
The company is lowering its fee slightly for online credit and debit card transactions if merchants don’t want chargeback protection.
PayPal has an added advantage over other payment processors such as Stripe. In many cases, people are paying from funds already in their PayPal account. This is simply a database transaction that doesn’t require going over a merchant network, but PayPal still keeps 3.49% per transaction.
I have been unpleasant with PayPal’s fee and wanting a widely used alternative. If people who have the same feeling about the fee could be united, the situation would be totally different.
This is just absurd. I already make pittance from my small freelance business as it is and now PayPal is going to make their fat cats richer by leeching off of my work even more. There has GOT to be a way to take them down. I’ll definitely be encouraging my clients to use other payment methods as long as these rates stay this bad.