Paypal Cuts 20%. Is It Normal?

Discussion in 'Payment Processing' started by buk, Jan 26, 2015.

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  1. #1
    I am selling some digital goods and i have wanted automatize selling process. Therefore i have put form below into my website. However Paypal cuts 20% on each selling. It seems to me too much. How can i reduce the commission?
    I will be glad for your helps.
     
    buk, Jan 26, 2015 IP
  2. digitalpoint

    digitalpoint Overlord of no one Staff

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    #2
    Set up for Digital Goods pricing on PayPal... it's 5% + $0.05 instead of 2.9% + $0.30.

    In your case, selling a $2 item, the base PayPal fees as a digital good would be $0.15, while it would be $0.36 using their standard pricing.

    https://www.paypal.com/webapps/mpp/digital-goods
     
    digitalpoint, Jan 26, 2015 IP
  3. JEET

    JEET Notable Member

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    #3
    It is because your item is being sold at $2 and paypal uses a flat fee for amounts that small.
    You can add about $0.40 to your $2 amount and let the customers know that it's payment processing fee etc.
     
    JEET, Jan 26, 2015 IP