A guide to Save Paypal Fee and Make More Money From Paypal

I'm almost done with my 1000th post and wanted to give back something to the community that has given me lot more than just knowledge - Experience !!

PayPal MassPay is a very useful feature, in case you haven’t heard about it, which every paypal user should make use of whenever possible. Most people have wrong assumptions about paypal, that paypal charges the regular 4% fee only if you pay by credit card, but in reality it charges ~ 4% every time one receives money to their premier or business account even if the payment comes from the senders Paypal balance.

“MassPay” feature if used effectively will help you save tons of money over a period of time.

Most newbies would not have heard about or inspected in detail this feature because of which they’ll be loosing tons of money every single day. All experienced folks definitely will be using this feature, and hence this article targeted at the newbies who will surely benefit from this post. Here we go a short and simple guide which will explain:

1>What Paypal MassPay is?
2>Who should use Paypal MassPay?
3>Prerequisites to use Paypal MassPay,
4>How to use Paypal MassPay?

What is Paypal MassPay?
MassPay is a simple tool which lets you send paypal cash to any paypal member for a nominal fee.

In any regular transaction, if you send money to a paypal member who has a premier/business account, the receiver gets the money after a ~ 3.6 - 4% fee cut. This means if you send $100, then the receiver gets approximately a little above $96 and if you send $1000 the receiver gets somewhere around $960 + loosing approximately ~ $40.

If the same amount is sent using Paypal Masspay feature, then the receiver gets the money after a fee cut of 2% or $1 (which ever is lesser). This means if you send $25 then the receiver gets $24.50, for $100 the receiver gets $99, for $1000 the receiver gets $999 and so on.

Who should use Paypal MassPay?
If you are giving pay-to-surf rewards, or paying your affiliates their monthly share, giving your employees bonuses or any plain transaction within your known community, you should use Paypal Masspay.

Prerequisites to use Paypal MassPay:
The sender should have a PayPal Premier or Business account. Make sure the receiver also has a Premier or Business account.

Note : If you are sending funds to a personal account, then send it the normal way as there is no fee involved when it comes to Personal Paypal accounts.

The sender should have enough funds to cover the paypal fee and the amount to be sent. You cannot use funds from credit card for Masspay.

How to use Paypal MassPay?
This link will give enough information about how to use Paypal MassPay:
https://www.paypal.com/uk/cgi-bin/webscr?cmd=_batch-payment-works-outside

Paypal recommends you to use Excel or any similar software. If you are not comfortable using them you can use any plain text/ascii editor.

Type in the following details:

paypal@paypal.com 99 USD MassPayExample

If you are on windows platform then create a new text fie and save the above mentioned data in it. Make sure they are separated by tabs and not spaces. If on linux you can try using the VIM editor. I haven't tested, so you can use it at your own risk.

When you are logged into your account, you'll notice a MassPay link at the bottom of the page. Click on it and you'll end up in a page where you'll find “Make a Mass Payment” button on the left side bar. Clicking on this page will take you to a page where you can upload the file you've stored MassPay information in.

Add remarks if you want and send payment. You are done.

Few things to keep in mind while you are sending the payment:
Here unlike the traditional way, they buyer won't pay the fee, instead the fee has to be calculated by the sender. If you are asking someone to send payment to you, then make sure that you calculate the fee before hand and tell them how much exactly they have to send you. If you are charging $100 for a service, then tell the buyer to send $99, $1 will be automatically deducted from the buyers account hence he'll be charged $100.

If you are sending money to someone then ensure that you know the seller well enough. As the protection offered by MassPay is very minimal. You cannot cancel your payments and as far as I know there is no way of getting your money back once sent.

Safety wise, this seems to be a corner case. If in case you are dealing with a seller for the first time, then you are better off using the regular payment modes rather than risking your money.

I've put in all points I think anyone needs to know. If you know any extra points please do add to the list.

All Success,
/G

PS: I have some images too on the original article for those who understand better with pictures :

How Do I Use Paypal MassPay Feature

 

Good points to note, thanks.
But what is the original intension for Masspay?

 

It's for publishers to make mass payments .

/G

 

Great information.. time to take a look into Masspay

 

Cool one man repped

 

thanks a lot.

 

Great Points. Thanks for share

 

Thanks for the rep and appreciation guys.

/G

 

Thanks for the good information.

 

Nice information. thanks for sharing with us. really helpful.

 

Hey nice...I really appreciate you sharing that info. I never knew about Mass Pay...thank you

 

great sharing, I will try.

 

Thanks guys ...

/G

 

so, does this make paypal non reversable? Like, sometimes i get payments from people using hacked paypal accounts and hacked credit cards, if i tell my buyers to use mass pay, does it make it non reversable? If so, this feature is very very good!


and also, how do we see mass payments we have made? like if i go into account view, will it be among the other transactions and payments i have already made? or can you not view it once you make a mass pay...

 

pifko, I've never had any one requesting the money back. I can send a refund, but I doubt if it is reversible from buyers point of view.

Mass payments received or sent will reflect in your account view.

Yes it will be among the other transactions and payments made.

You can view all the mass payments sent at once in your history view too.

Regards,
/G

 

Even if your sending like 50 bucks using masspay cancels out the fees when recieving the 50 bucks making it so you get the whole 50 instead of like 48.50 or w.e

 

The sender needs to bare the fee .. so if you want to send $50, send $49 and $1 will be added as the fee.

The receiver gets $49.

/G

 

Does mass pay mean you need to need to pay in mass amount?

 

No, it doesn't. The reason why it is called mass pay is that it is supposed to be used by affiliate program owners to pay their massive number of affiliates. It is however not made as an option for you to use to pay sellers one at a time. That is why it is restricted to use by Premier/Business account holders as it is not the conceived method to purchase things through paypal.

The fees are paid for by the sender.

The reason why the sender is charged for Mass Pay is because they are the one who would benefit from the service provided by paypal. The fees are kept low because there is no credit card fees involves since all money are from paypal balances and mainly because paypal makes from volume and thus the reason why it is called 'mass pay'.

The receipient does not pay for fees because they did not earn the money because of paypal as paypal is merely used as a conduit to send the money.

If you plan to abuse the system by having your customer pays you via mass pay, do it with the full knowledge that you are merely sneaking around the loopholes in the system. I supposed if the abuse is widely made known to paypal, they may enact walls to prevent such abuse from happening.

 

Great and must have info. Rep added