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PayPal increasing fees for online transactions from August 2nd
Just received an email update from them:
PayPal is increasing rates next month (August 2nd, 2021) 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.
Rates have declined F you do not want chargeback protection.
But for small domain traders & SEO freelancers like me the digital payments fees have increased to 3.49% plus 49 cents. 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.
time to find a better globally-accepted alternative for small freelancers!
Comments
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As if the billions they are making aren't enough... Their APIs are garbage compared to Stripe's (as a developer) so long-term they won't do too well. They really seem to be trying to milk this cow as far as possible.
Indeed.
They're so rich that they once sent me $30 for asking a question.
EDIT: This was 4 years ago by the way.
lucky guy you!
I can remember when they first started they weren't going to charge any service fees and generate revenue on the interest on the money that they held; one can only speculate as to whether or not this was corpoorate bs, or if they actually meant what they said.
In anycase, it is time to make a concerted effort to build some competition.
It was just an marketing-gimmick from them as slowly they created monopoly in digital payment market backed by Ebay. Millions of people use(d) Ebay and so created PayPal accounts. Then came the digitalization trend, buying-selling digital goods, domains, paying freelancers, etc and they just thought... let's mint the money until the competition crushes them. Unfortunately there is not a single global competitor for them. Yes, there are strong regional competitors who have eaten their meal in US (stripe), Adyen (Europe), Paytm, Razorpay, Instamojo (India) and likewise in other local markets. But these are not yet globally accepted players. You see "buy with paypal" buttons more on any random online store, than you see any other payment provider buttons! And until this remains, they're gonna rip-off small freelancers and digital goods suppliers.
No need to complain, just stop using them. We did about 4 years ago, overnight we saved £xxx/month and nobody minded using a regular CC gateway. My UK and US cards come with lots of fraud protection so I'm not liable if my CC numbers get stolen.
whats your current cc payment gateway now ?
I am just lazy as fuck, keep offering PayPal and just charge me some extra. I won't enter my CC data, especially not for 10$ transactions. I mean, in the end all the higher fees are paid by the customer anyway, right?
A lot of online banks nowadays offer virtual "recycle" creditcards so this is not a problem anymore.
You either pay your bank or PayPal. They'll demand something for this in the end.
Were using Worldpay then more recently we moved most of our customers to bank transfer so there's no cost. Now we have a problem where some of our customers need a lot of chasing to pay so we're about to roll out a 5% discount for signing up for Direct Debit or a 2% discount to sign up for card auto-pay, for the customers who regularly pay late.
Paypal doesnt allow for there to be differences when paying using them than others...
I'm happy because they gave me chance to close my account 2 months ago when someone paid for a service on my website and I've tried to give a full refund.
They told me that to give a full refund I have to attach a CC to pay from my wallet paypal fees because they are not refundable anymore.
Thank you PayPal to open my eyes before being too late.
We can all bark on paypal,but it is market leader and #1 choice for most customers. Buyer protection with paypal is unmatched. Easy and effortless chargeback in case fraud/scam.
Buyer protection doesn't work properly, unfortunatelly.
If a group of friends buy services in 6 months from u and then all of them ask for refund on a short interval, PayPal algorithm will instantly accept their refund request and also that paypal will be forever closed, without having right to escalate to paypal support.
From buyer perspective this is perfect.
There are plenty of services I mind giving my card details to. That includes, for example, every provider on LET. In fact, it is only by having a PayPal option that I will use some services.
If you have a group of "friends" that all look for a refund at the same time after 6 months - you have many, many more issues than just Paypal closing your account.
Sadly, there isn't a universally accepted alternative to PayPal and there very likely won't be. They're a monopoly with an almost unchallengeable position.
PayPal has (whether it is deserved or not is a different story) the trust of a lot of people and is a very safe method for buyers. The businesses I've worked with in the past have generally always seen an increase in sales when they have enabled PayPal.
Generally, European cards are very safe now and people should probably be less worried about their card details going walkies (and much more now that there a few bank-supported VCC services). But the old days of being carded if you used your card anywhere mildly dodgy is burnt in to a lot of minds.
agree, lot of countries have enabled 2FA or OTP before the merchant can debit any amount from customers' card, credit card or debit card, both. So even if people share their CC with merchants the fraud of debiting any money without customer's authorization is now-a-days quite less happening.
This is what a monopoly looks like. PayPal is a nightmare.
@jbiloh - monopoly? Seriously? There is stripe, fastspring, 2 checkout, regular merchant accounts. If you think they have a monopoly on accepting credit/debit payments - you are sorely mistaken
Privacy.com is awesome for when you don't want to provide your own card.
None of the names you listed are a 1:1 comparison with the feature set, volume and function of PayPal. Suggesting that a merchant account is the same as PayPal is sort of silly.
Consider the size of the operation - PayPal is processing per quarter what others process in a year (or 100 years).
https://www.statista.com/statistics/277841/paypals-total-payment-volume/
Still doesnt make them a monopoly. @jbiloh - see https://backlinko.com/stripe-users Stripe did 250 billion in transactions in 2020. If paypal was a monopoly - Stripe couldnt do 250 billion in transactions and have a 20% market share
PayPal is a monopoly, in their market segment of "pay without giving my card details to some random site".
Stripe isn't really a direct competitor to PayPal's core buisiness.
Sites that use stripe don't store card details
@chammy you dont know if its paypal either - it could be a dummy page
I stopped using PayPal couple of years back because of their fees. They are just making the most profit from these commissions.
The real question is why didn't we all invest in PayPal? We all knew they were only going up. I gotta stop leaving money on the table.