Signed up for PayPal Micropayments

I just signed up for PayPal’s new Micropayments.  PayPal seems to be rolling this out slowly as you have to sign-up and then you will be notified in 2 days if you are accepted or not.  In theory it should save us a couple pennies every-time we sell a copy of Mini-Compressor.  The fixed cost per transaction is reduced from $0.30 to $0.05 but the percentage cost goes up from 2.9% to 5%.

If we are accepted I’ll post the before and after fees.  Actually, why don’t I tell you the current fees now.  For each copy of Mini-Compressor sold $0.52 to $0.59 goes to PayPal.  The amount changes depending if the customer has to pay GST (i.e. lives in Canada), the location of the customer (non USA and Canadian customers have a cross-boarder fee), and a possible currency conversion fee.  You can see a list of PayPal fees here.  Micropayments, as far as I can tell, still has all the fees listed above but with different rates.

So currently about 7% of each sale goes to PayPal.  With Micropayments this will hopefully drop to about 5.5% which is about $0.43.  It’s only a savings of ten cents or so but over time that can add up.

This entry was posted in Business Side and tagged , , . Bookmark the permalink.