PayPal increases transaction fees – Does away with tiered discounts, and ups international fees

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We just received an email from PayPal, and it’s a sad day for many small businesses like Bitsum. PayPal has now done away with their tiered transaction fees for high volume customers *and* increased their foreign transaction rate by 1%.

That means the new PayPal transaction fees are:

  • 2.9%+$0.30 for all domestic orders
  • 3.9%+fixed fee (approx $0.30) for all international orders
    (plus additional monthly charges for PayPal Pro and other features)

PayPal has been a great friend to us for many years, so I hate to now say that Stripe, a developer friendly alternative to PayPal, is looking more attractive all the time. They developed some javascript that lets web sites process credit cards directly on their site without ever having access to the customer’s credit card. How is this done? Well, javascript is run on the client-side, by the web browser, so *it* is responsible for communicating the credit card data to Stripe’s servers.

We actually do use Stripe on our new web site, simply because the plug-ins we used did not fully support PayPal Pro, and we wanted to keep customers on our site, as opposed to sending them to PayPal and back again, as we do at our legacy site. So far it’s worked very well.

By comparison, Stripe’s rate is set to compete, and now beat, PayPal at a flat 2.9%+$0.30 for *all* transactions, domestic or foreign. Stripe’s transaction fees:

  • 2.9%+$0.30 for all transactions, foreign and domestic
    (no other monthly fees or add-ons)
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PayPal increases transaction fees – Does away with tiered discounts, and ups international fees

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