PayPal is extremely popular, period. Many of your customers would request to pay with PayPal, but PayPal fees are nowhere near friendly to online businesses regardless of size. PayPal charges some percentage plus a currency-based fixed fee, which is not pleasant, but the huge demand has had merchants stick to it like a must-have.

Table of Contents

1- Pros and Cons of PayPal

2- PayPal Fees For Online Transactions

3- How To Cut Down On PayPal Fees

4- Saving Up To 1% PayPal Fees With CorpAgent Global

5- CorpAgent Exclusives: Other PayPal Services

1. Pros and Cons of PayPal

PayPal is one of the most used payment solutions in the world, full of merits but not without cons.

Advantages of PayPal

1. Convenience: PayPal is easy to use and widely accepted by many merchants and online stores.
2. Security: PayPal offers a high level of security and protection for buyers and sellers, including fraud protection and encryption.
3. Speed: Transactions through PayPal are typically fast and can be completed within minutes.
4. International: PayPal is available in many countries around the world and supports multiple currencies, making it a convenient option for international transactions.
5. Multiple funding sources: Users can link PayPal to their bank accounts, credit cards, and debit cards, giving them flexibility in how they choose to pay.

Disadvantages of PayPal

1. Fees: PayPal charges fees for certain transactions, including currency conversions and withdrawing funds to a bank account.
2. Limited customer service: PayPal’s customer service can be difficult to reach and may not always resolve issues to the satisfaction of users.
3. Account freezes: In some cases, PayPal may freeze user accounts due to suspicious activity, which can be inconvenient for users.
4. Delayed transfers: PayPal may hold funds for several days before releasing them, which can be frustrating for users who need the money immediately.
5. Limited control: PayPal’s policies and procedures are set by the company and users have limited control over how the platform operates.

2. PayPal Fees For Online Transactions

PayPal Online Card Payment Services

The fees for receiving payments through PayPal vary depending on the country you’re in, the type of transaction you’re conducting, and the currency you’re using. Generally, the fees for receiving payments in the US are 2.9% plus $0.30 per transaction for domestic transactions.

View PayPal Fee Tables Here

3. How To Cut Down On PayPal Fees

Despite having a black and white, published fee table, PayPal fees are quite elastic. Merchants don’t necessarily stick to the fees they are assigned. In many cases, they may use alternatives to avoid the percentage, but in many other cases, a little negotiation can do them some favor.

Have Your Customers Pay The Fees

One of the reasons why customers love PayPal is that it is free of charge except for currency conversion. The fees are charged to the merchants, technically, but merchants can pass a portion of the fees onto the client side, by including a small percentage fee onto the invoices. Since PayPal is worldwide famous thus many clients demanding for this payment method, in many cases clients would be happy “splitting the bill” with the merchant.

Offer Alternative Payment Methods

ACH, Wire Transfers or Direct Deposits are popular alternatives to credit card payment. There are also alternative payment gateways that offer cheaper solutions compared to PayPal.

Get PayPal Business Discounts

Merchants can apply to reduce PayPal fees by using PayPal’s Apply For Preferred Rate. This program offers discounted fees to merchants who process a high volume of transactions or meet other eligibility criteria. The eligibility requirements for the program may vary by country and region, and more strictly, case by case, so merchants should check the program details specific to their location, or consult their PayPal agent. It’s also important to note that even if a merchant doesn’t qualify for PayPal’s Merchant Fees Program, they may still be able to negotiate lower fees with PayPal by contacting their Account Manager or Support Team.

4. Saving Up To 1% PayPal Fees With CorpAgent Global

Technically, merchants can negotiate for better rates with PayPal without help, but the chance of success is non-disclosed.

CorpAgent is a professional corporate service provider that is specialized in incorporation services and international payment gateways. We have been helping hundreds of online businesses gain access to the support they need from PayPal, which includes helping them negotiate for discounted PayPal fee rates.

5. CorpAgent Exclusives: Other PayPal Services

PayPal Payments Pro: PayPal Underwriting Services

What Is PayPal Underwriting?

PayPal Underwriting is a set of procedures in which PayPal reviews the operations of a business account to decide whether the account meets PayPal’s requirements. In doing this, PayPal may request for additional business and financial documents from the merchant. On rare occasions, they may set aside a pool of money as reserve in your PayPal account to help ensure that you’re able to meet the liabilities incurred from chargebacks, claims or reversals. Underwriting is a complicated process, and it does not come with a 100% success rate. However, successful underwriting is rewarding.

Successful merchants will enjoy the following benefits from having PayPal Payments Pro integrated:

• Approved accounts are granted lower fee per transaction. Business with high transaction count will benefit greatly from this.
• Approved accounts are less likely faced with sudden account limitation or account suspense. Every dropshipping business knows the nuisance of getting their account slammed.
• Approved accounts gain access to PayPal’s other advanced services including PayPal Pro, Reference Transaction, etc., which are useful for businesses to optimize their checkout process. PayPal Payments Pro can only be issued to approved accounts, which have passed the underwriting procedures.
• Having access to PayPal Payments Pro and PayPal’s other add-ons such as PayPal’s Mass Payments helps increase efficiency and create a professional image.

CorpAgent Global offers a PayPal Payments Pro Underwriting service for sellers that may not have the perfect access to PayPal Payments Pro service. They are either merchants that are based in countries where PayPal Payments Pro is not available, or high-risk businesses that may suffer a lower rate of passing the underwriting process.

Underwriting Services Fee

Technically, a PayPal Business account owner can apply for underwriting on their own, but CorpAgent Global will help the underwriting process go more smoothly. The success rate of the PayPal Underwriting process depends on the business specifics of the merchant’s business. CorpAgent will charge somewhere between US$199 to US$1,500 for the underwriting service depending on the specific associated risks.

PayPal Mass Payments (PayPal Payouts) Registration

“PayPal Mass Payments”, or PayPal Payouts, is a contemporary PayPal solution that allows users to send payments to an unlimited number of recipients in a way that is convenient for both sides. Such transfer systems enable the sending of many payments at the same time. You may use the service to upload data on recipients in the form of tables. This saves time on data entering by hand. If the quantity of money does not fluctuate over time, you can send a mass payment manually or set up monthly payments.

The only downside of PayPal Mass Payments, or PayPal Payouts, is that it is not accessible to everyone. If you want to increase your chance of being granted this sought-after feature, reach out to us.

Read more: 5 Benefits of PayPal Mass Payments

High-risk PayPal Account Management

Dropshipping is a high-risk business because quality control may be neglected. PayPal sees that as risks but we are not going to blame them. Sometimes merchants need to explain their fraud or violation allegations (which for example results in high chargeback ratios), but they don’t always have the luxury of being able to do so, due to the lack of access to an “Account Manager” from Paypal, or simply a lack of ground to defend themselves. CorpAgent Global offers support to dropshippers in need. Write to us at admin@corpagent.asia for inquiries.

Read More: How To Not Be Banned By PayPal In 2023

CorpAgent is a long-standing corporate services provider that are specialized in incorporation services, bank account opening, accounting services, international payment gateways, and relevant matters in various jurisdictions including Singapore, Hong Kong, the United Kingdom, the United States, Dubai, BVI, Cayman Island, Panama, and many more. CorpAgent has more than 10 years in the business and a strong bond with PayPal SEA & Hong Kong. We have helped thousands of foreign businesses start with PayPal Business and PayPal Payments Pro, and we look forward to helping more. We are confident that our service quality is unmatched.

*Disclaimer: CorpAgent has been doing everything within our reach to convey the most accurate information, but the information provided in this website is strictly for reference purpose only and should not be used as legal advice. For the most authorized legal advice, contact us at admin@corpagent.asia