PayPal raises rates for direct credit card transactions
Online merchants that accept direct credit card payments through PayPal Inc.’s Website Payments Pro service will pay a 50% higher monthly fee, at $30 up from $20, beginning Sept. 1, PayPal says.
PayPal, a payments subsidiary of eBay Inc., will also introduce on Sept. 1 a 30-cent fee for each credit card transaction authorized through the Website Payments Pro service but not settled with a bank within 29 days. PayPal, which currently charges no fee for such authorization-only transactions, is imposing the new fee to cover its cost of authorizing transactions that don’t incur other post-settlement transaction fees, a spokeswoman says.
PayPal will retain its basic per-transaction fee structure for direct credit card payments at 1.9% to $2.9% of transaction value (based on transaction volume) plus 30 cents.
WebSite Payments Pro is used mostly by e-retailers ranging in size from $250,000 to $5 million in annual revenue, PayPal says.
PayPal has not announced any changes in fee structure for its PayPal brand payment service, which pays merchants through consumer-funded accounts.
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