What are the PayPal Transaction Fees?
PayPal provides a very handy payment gateway which can be used to accommodate a large number of customers. If you have the PayPal payment gateway on your eCommerce website, customers can pay with their credit or debit cards, their own PayPal accounts and via several other means too. It's important to have something like this, because you stand the risk of losing a customer if they are unable to pay via their preferred payment method.
But something which is important to take into consideration with PayPal is the fact that they charge transaction fees. This is perfectly reasonable since they offer a free service to so many people and they are a business so they need to make money somehow, but this is just something you should be conscious of (and something which some people don't think of right away). The standard transaction fee is 3.4% plus an additional 20p, which isn't too much, but it is something to keep in mind when pricing your products! These rates are a little different for any micropayments (if you have any micropayments on your website) where the rate is a larger 5% but with only an additional 5p (rather than 20p). There are a few other variations and things are certainly different for international transactions, so if you want to find out more you can head over to PayPal's page about the transaction fees. Generally, however, I've given you all the information you're going to need for your eCommerce website.
As I said, make sure you keep these transaction fees in mind when pricing your goods (it'd be a shame to forget and then be losing money when you sold things) but other than that, you should be all fine with PayPal. Though, of course, they aren't the only payment gateway available to you and you should look around and make sure you're going for one which best suits you and your business. If you've not even began to put your eCommerce website together yet, sign up to Sellr and do so right now! It is completely free.
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