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 Paypal Micropayments - Reduced Paypal Fees!! 
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Post Paypal Micropayments - Reduced Paypal Fees!!
Still looking into this, but there is a function on Paypal that gives lower transaction fees for sellers with low-value transactions..

Quote:
PayPal offers support for Micropayments to merchants for US to US, GB to GB, AU to AU, and EU to EU transactions for Business and Premier accounts. This feature is offered at a special rate of 5% + $0.05 per transaction.

Merchants who wish to use PayPal's micropayments pricing need to open a new PayPal account through this account registration page.

Merchants who receive both macro and micro payments should maintain two separate accounts:

An account to apply their standard rate to macropayments.

An account to apply the micropayments rate to their micropayments.

Each PayPal account is associated with only one merchant processing rate. That rate determines the fee that's applied to funds received into that account (additional information on PayPal's Standard Fees is available here). For example: if your Premier/Business account rate for receiving funds is 2.9% + $0.30, using PayPal's 5% + $0.05 micropayments rate would reduce the total transaction fee charged to payments received below the value of $12 (per payment). However, if you accept payments that are greater than $12, you would pay a lower processing charge by accepting the payment into the account set with the 2.9% + $0.30 rate.


https://www.paypal.co.uk/IntegrationCen ... ments.html

As I see it, if you sell a lot of low value items then the funds will process at a lower rate, whereas higher value items process at the regular rate.

I'm off to sign up - I'll keep you posted!

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Mon Aug 13, 2007 10:05 pm
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think i will have a go at that,

but you must need a new email address to then do you ?

and what about the bank, it only lets me set up one bank account full stop, i have two accounts at the mo, but it only lets the bank acocunt on one of them.



im currently using an account for promoting sites, here, and another one.. so im selling 99p links, this lower fee could be good to me,

on a 99p payment, paypal are taking 23p of it... alto im not in it for the money, just the hits to the sites, lower fees would be welcomed, to offset the listing fees.

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Mon Aug 13, 2007 10:14 pm
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It's a nightmare to set up so far - it's one for a clear head and a bit of time, but I have found more information..

Quote:
PAYPAL MICROPAYMENTS

No Seller can afford to turn down the prospect of an increase in profit. If you have a UK /USA/EU/Au Paypal account you can and will save money in Paypal fees by opening a Paypal Micro payments account for sales less than £9.50 (including postage).

Paypal have, by allowing Micro payment accounts , given some concession in their fees for low -value auctions.

How a Paypal Micro Payments Account Works.

Say for a Sale of £3.10 (sale price including postage).

Paypal Micropayments Account. Fees are 5% plus 5p per transaction .
21p. (£3.10 x 5% + £0.05 )

Paypal Premier Account (Macro). Fees are 3.4% plus 20p per transaction.
31p (£3.10 x 3.4% + £0.20)

So for a Sale (or Paypal receipt) of £3.10 you'll save 10p per transaction.

The break-even amount is approximately £9.50 . Any sale below that and you will profit by having a Micro Account. The smaller the sale (including postage ) amount the more you will save in Paypal fees.

(See below for the break even amounts for Merchant Accounts.)

Paypal convert your existing account (if you only have one ) to a Micro payments account and suggest that you open another Paypal account (Macro) for 'other' sales over £9.50 ; all you need is another unique Bank account and email address.

You can choose to direct all Paypal payments to your Micro account but you may incur higher fees on some transactions.

Payments to the value of £9.50 and above directed to a Micro account will incur higher fees than had they gone to your Macro account.

When you list an item enter the appropriate Paypal payment email address (either Micro or Macro ) - It can be found on page 4 of the Sell Your Item form (the Payment & Postage section), or if you're using Turbo Lister the box for the email address is in the Payment Methods section.

Don't forget it is the total amount of the transaction to include both the final high bid AND postage.

Guessing which auctions will achieve more than £9.50 is almost impossible unless you use Buy-It-Now , but as a very rough guide , direct auctions with a higher postal charge nearing the borderline amount to the Macro account.

Swings and Roundabouts. Some you win ,some you lose but overall ,if the majority of your items including postage sell for less than £9.50, you will save money in Paypal fees by having a Micro Payments account.

(For those with Merchant Accounts at 1.9% plus the 20p transation rate then the cut off break-even transaction amount is £3.99)

Cross Border Sales :- e.g for USA/EU/Au to UK Paypal account.
Any foreign transaction incurs the usual Macro account fee regardless of value.

email : micropayments@paypal.com (not co.uk) to request a Micro payments account


Source

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Mon Aug 13, 2007 10:24 pm
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so do we have to email them to change an account over then ?

it does say something there about they recomend opening a new one but can change an excisting one (i have 2 accounts and dont want a third really.)

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Mon Aug 13, 2007 10:29 pm
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This might be helpful: There's some useful information here.

Basically you need to open a new account link through the PayPal link on this me page (think that's where the quote comes from above:

http://cgi3.ebay.co.uk/ws/eBayISAPI.dll?ViewUserPage&userid=vallombrosa2

In order to withdraw (and verify) the Micropayments account, you will need a second bank account - a savings account with your existing bank will do) and if you need to add a credit card, another card as well.

Regards AJ


Fri Oct 05, 2007 7:48 pm
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Hi

I've written a Guide on How to Get the Best From PayPal

http://reviews.ebay.co.uk/How-To-Make-PayPal-Work-for-You-UK_W0QQugidZ10000000004571603

I would advise that if you want a Micropayments account to open a NEW Micro account and LEAVE your Macro account as it is.

Have a Personal account for buying and fund with your [reward] credit card.

You will need at least 2 bank accounts (often a savings account will do as long as it can accept a DDI).

More details in the Guide.

AJ


Sat Nov 03, 2007 2:15 pm
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Just had a look at this guide, and it is very clear and extensive.

Well worth a read and a vote!

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Tue Nov 06, 2007 11:25 am
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Nearly one year on from this post, Paypal have now properly rolled out Micropayments, and created an easy to use page on signing up to it.

https://micropayments.paypal-labs.com/

Click the Sign Up link, select your country, and log in to your Paypal account from the page. You will be asked to confirm your decision, and it will take a few days to process.

Once accepted, ensure that all your low value BIN listings are directed to the Micro account to make the most of the savings.

Image

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Fri Oct 24, 2008 11:33 pm
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Thanks for the info Steve :)

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