How to reduce your PayPal processing fees!

By Melanie Prough on Friday, June 19, 2009
Filed Under: Zen Cart Tips












There is a very well hidden opportunity for reducing your Paypal processing rate that can save you a lot of money in Paypal fees if you are processing more that $3,000 a month. For those of you using Zen Cart and PayPal exclusively, this can really be a money saver. PayPal calls this Merchant Rate pricing and they are not trying to tell you about it. This rate reduction is pretty well hidden and you must initiate it on this page at Paypal (must be logged into Paypal). The process is pretty self explanatory, but again PayPal is NOT going to offer this to you…. YOU must initiate it to save the money.

If you are processing more than $3,000 monthly in Paypal, the Merchant Rate reduces your transaction rate (%) from 2.9% to 2.5%. Imagine the saving you can rack up using this rate reduction. See the PayPal Merchant Criteria and application link below.

PayPal merchant rate approval criteria

Merchant rate pricing approval is reserved for members in good standing (whose accounts are not currently under investigation) who meet the following criteria:

  • Received more than $3,000.00 USD in PayPal payments in the previous calendar month

Maintaining your merchant rate

After qualifying for Merchant rate pricing, all members are expected to:

  • Keep their PayPal account in good standing. Members may be downgraded to the Standard rate if a payment volume of more than $3,000.00 USD is not maintained in the previous calendar month, or if they have unresolved charge backs.

Note: Members do not need to reapply for merchant rate pricing if payment volume drops below $3,000.00 USD, unless their account is downgraded or if there are unresolved charge backs.

PayPal Merchant Rate Application

Members interested in receiving the merchant rate should apply via our online application form. This is a one-time application (exception in Note above)

If you qualify for the merchant rate, apply now

Now, go forth and save money!

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