Have you heard of Paypal Micropayments?



Go To Great Panes, Kathryn Maloney ©2010
This post is copyrighted–you do not have permission to repost this content elsewhere but you are welcome to link to it if you’d like to share the information.

Most online sellers are aware of the business, premier and personal types of Paypal accounts but not so many know about the micro payment account where lower per-transaction fees are charged with a higher percentage fee. (I know this type of account is available to US sellers, but I don’t know about other countries.)

Micro payment accounts are useful for low dollar amount transactions because of the lower transaction fee (and less useful for larger transactions because of the higher percentage fees), but if most of your transaction totals are under $12.14 it might be a savings for you to use a micro account.

Types of Paypal accounts for selling items
(amounts are in USD)

Premier:
$0.30 per transaction plus 2.9%
one user–an individual

Business:
$0.30 per transaction plus 2.9%
same as the Premier account but you can accept money under your business name and have multiple log-ins (not just one user)

Micro-Payment:
$0.05 per transaction plus 5%
same as regular business account

How many Paypal accounts can I have?

Paypal tells you here that you are allowed “one Personal account and one Premier or Business account”, but they specify on the following Paypal page that you should have a micro payment account in addition to your regular business account if you want to receive both macro and micro payments.

See here for more on Paypal’s Micro Account & how to get one:

paypalobjects.com/IntegrationCenter/ic_micropayments.html

I hope this info saves some sellers a few bucks!

Go To Great Panes, Kathryn Maloney ©2010
This post is copyrighted–you do not have permission to repost this content elsewhere but you are welcome to link to it if you’d like to share the information.

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