Optimizing Your PayPal Account for Your Business

If you are a NoteRunner vendor you have already established a valid business PayPal account and provided the email address associated with that account as part of the vendor registration process.  Congratulations!  Here are some  points to consider in setting up your PayPal account in a manner that will be most beneficial to you and your business:

Fees

PayPal's default fee structure associated with your account is usually $.30/transaction + 3% of the total transaction amount.  This is not ideal for transactions < $10.00.  If most of your products will be listed for less than $10.00, we recommend investigating PayPal’s micro payment option.

PayPal micro payments are ideal for products that cost less than $10.00. Processing fees for micropayments are $.05 + 5%.

Below is a table that shows how the standard fee structure compares to the micro payment fee structure that PayPal offers. The breakeven point occurs at a sales price of $12.50. **This table is only an example and does not represent actual fees charged to your account by PayPal. For questions regarding PayPal fees please contact PayPal customer service directly.

Sales Price

Standard ($.30 +3%)

Micro ($.05+5%)

$3.00

$0.39

$0.20

$5.00

$0.45

$0.30

$10.00

$0.60

$0.55

$12.00

$0.66

$0.65

$12.50

$0.68

$0.68

$15.00

$0.75

$0.80

$20.00

$0.90

$1.05

$30.00

$1.20

$1.55

PayPal allows only one fee structure to be associated with a single business account so you’ll need to choose which structure will work best for your business.

If you would like to change to the micro fee structure that PayPal offers you’ll need to call the PayPal customer support line directly to make that request.