PayPal fees going up...

Starting August 2, 2021 the PayPal fee is going up from 2.90% (plus $0.30 flat transaction fee) to 3.49% (plus $0.49 flat transaction fee).

Another cost of doing business? Will it backfire? Will we all just accept it and move on?

https://www.fool.com/investing/2021/06/24/why-paypal-raised-processing-fees-could-backfire/

 

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+.49.........was that really necessary?

 

Man, costs are rapidly increasing in every area right now. I am sure that EBay did what every other business entity has had to do this year.

 

Out and out greed.........

 

The $0.19 increase per transaction can really add up. One source I found says they processed about 3.74 billion transactions in the first quarter of 2021. That $0.19 increase would represent about $710,000,000 more in revenue each quarter!

 

Costs are certainly up across the board.
eBay already had an increase under managed payments after most categories went up 0.2% starting April 1, 2021. I would not be surprised to see more eBay fee increases as well.

 

In addition to many businesses trying to now quickly recover the money they didn't make in 2020, all the free money is driving up prices. I suspect for many businesses the logic and company line is "don't blame me, blame it on inflation." Seems now more and more businesses want to get rich quick rather than merely make a profit.

 

There may very well be some of those. The vast overwhelming majority of business owners are more like me and simply want to keep the doors opened so our staff can continue to provide for their families.

 

Both inflation and the rising cost of doing business

 

Yeah, I'm expecting other companies and items we all buy to go up in price as well. With as much fiat currency that was printed up by our great country us little people will have to pay for it. The US dollar used to be King Shizzle and still is today but unfortunately China is coming up in a big way and they would love to be King Shizzle so it makes you wonder. Did they leak the Coronavirus intentionally? They lost a few thousand lives only and look at how many lives we lost??!!

 

More like their attempt to make up for losing eBay knowing their transaction volume is likely to take a significant hit if they cant grow it elsewhere

 

I think that with the pandemic, PayPal’s business went UP tremendously, as people were buying everything in sight online. A lot of people, myself included, have a separate bank account so as to minimize online sensitive data exposure. PayPal is a great alternative to directly using a credit card or main bank account directly, where the risk of exposure is increased. That being said, raising their fees was gratuitously unnecessary. They have been making lots of money for years, and this will definitely hurt sellers quite a bit, as they have the largest fee profiles to PayPal. Buyers will care less, as the fee impact will be far less, proportionally. Still, I think PayPal’s raising of fees is unnecessary.

 

absolutely was unnecessary, there’s also no reason there should be a flat per transaction fee on top of the percentage either other than because they can.

 

I tried to cancel my PayPal account last week and got the message if canceled I would not be allowed to open another in the future and would have to call them to verify my identity before they would cancel it.

 

@Randy Abercrombie I agree that many places are just trying to survive after over a year of being prevented from running their businesses. It's the favored companies that were never impacted (allowed to stay open and in fact gain business at the expense of those shut down) that stick out and give us a sour feeling. Someone like PayPal saw one of their best years ever and are likely to continue doing very well, yet they still increase fees.

https://www.zdnet.com/article/paypa...al-2020-ends-as-its-strongest-year-on-record/

 

Part of the flat fee must be to disincentivize small transactions. They might not want to dedicate a lot of volume to the small dollar sales. Of course the main reason is that they can and it's an easy source of revenue.

 

Their computers can handle those no issue. They just want maximum revenue

 

Some of the older methods could make a comeback but there are still plenty of obstacles there. With the USPS still being inconsistent, mailing a check or a money order has become more of an issue. Then you have bank accounts that don't even offer checks or make you pay a fee to order them (which might not be worth it for many). You also have a younger generation of buyers/sellers (particularly on Instagram, where I have been active the last few years) who have little knowledge of checks (maybe it's time for them to learn from their parents or grandparents).

There are other options, including Zelle, which allow you to send money directly from one account to another (but there are dollar limits to that service).