How important is PayPal to you?

Paypal is increasing their fees to 3.49% in August.   Often I work on low margins and PayPal is getting a big chunk of that for just handling the transaction. 

I wonder how many of you would be upset if I decided to delete Paypal as a payment method? 

Comments on this post (3)

  • Sep 26, 2021

    The buyer never really see’s the paypal fees since the price is the same regardless of payment method used at checkout.

    But the math is simple – If I sell an item that costs me $80 for $100 then Paypal will take $3.25 or 3.25/20 *100 = 16% of my gross profit. Since I have expenses to cover Paypal’s cut is actually a lot higher percentage of my net profit. If the buyer uses credit card then the cut is only 10% or 6% less.

    — Eric

  • Aug 16, 2021

    Do you or would you take ApplePay?

    — Pieter de Koninck

  • Aug 16, 2021

    Paypal is a convenient service for the buyer. But 3.25% is getting up there.

    I suppose the answer depends on what other options are available. First time buyers may not be comfortable without a service that provides buyer protection such as Paypal.

    As an economic incentive to such services:
    Online sellers should charge a fee that, depending on the payment service selected by the buyer, is proportional to the difference between the service fee charged by that service and the minimum of fees among those services available in the checkout. Assuming that can be programmed into the checkout software.

    Gives the buyer options anyway.

    I know that unless I was buying a new Hy6 and four lenses, I probably would not be too concerned about an extra 1.5% to my purchase.

    — Peter H

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