PayPal Pricing Change Effective October 1, 2015

Paypal LogoUsing PayPal?  Here’s an email I received yesterday indicating a price increase effective October 1, 2015. . .details below.

“Hello Sandy Martini,

At PayPal, we work hard to ensure your payments are simple, secure and fast. We innovate and invest carefully to deliver services beyond payment processing, including fraud protection and seller protection, to help keep our merchants secure. We drive improved customer conversions and extend credit to both merchants and their customers to help businesses grow. We also aim to make it as clear as possible how these products work, how they are priced, and how much value they deliver to you.

In that spirit, we are simplifying the prices we charge for PayPal transactions. Effective October 1, 2015, we will remove the tiered merchant rates for US domestic and international Purchase Payments*. This means your rate will increase if you are currently receiving a merchant volume discount. Your new rate will be the standard rate of 2.9% + $0.30 USD for domestic transactions and 3.9% + fixed fee** for international transactions. Please note that card-processing rates on PayPal Payments Pro and Virtual Terminal are not changing.

We value our partnership with you, and we commit to investing in new capabilities to help you grow. At a time when the ecommerce industry is affected by unprecedented levels of fraud due to stolen cards, PayPal has expanded our seller protection to help keep you safe from fraud so that you can sell with more confidence. PayPal Working Capital delivers more than $2 million of new loans to small businesses every single day. To drive international growth of your customer base, we continue to build overseas to make it easy to get paid from millions of customers outside of the U.S. Our investment in new product features such as One TouchTM have been proven to increase consumer conversion. These few examples are just the beginning of our long-term commitment to help you grow your business.

This email is for your information only; there’s nothing you need to do. You can review the updates that will go into effect on October 1, 2015 by visiting this page after August 27th.

Thank you for being a PayPal customer. We appreciate your business.



Many business owners promote PayPal’s “6 months financing” offer.  Will this pricing change affect how you use/promote PayPal to your clients?  Please share below in the comments.