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Old 01-30-2012, 05:47 PM   #1
sbroome
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Posts: 202
Karma: 1041786
Join Date: Jan 2012
Location: San Diego
Device: kindle
Paypal's Micropayment System

Anyone integrated it yet? I'm looking at putting it into place right now on my website. One thing I don't like is that the sales are only domestic (US > US for example) which will not address my traffic that's from outside the country. For those unfamiliar the micropayment system institutes a much smaller fee for digital goods below the $12.00 threshhold, which is perfect for selling ebooks directly from your own site. at 5% + $.05 per transaction you're talking about keeping 90% for yourself on $.99 ebooks and an even higher percentage on more expensive items. I'm still looking through it to find any other fees associated with having a merchant account.

Edit: Just got off the phone with paypal's customer service, the domestic restrictions are actually based on how much the costs of delivering items to different countries would vary based on country of origin, so they don't have any forthcoming solutions.

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:

1.An account to apply their standard rate to macropayments.
2.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.paypalobjects.com/Integr...opayments.html

Last edited by sbroome; 01-30-2012 at 05:55 PM.
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