Actually its not misleading. That 1.9% interchange fee is a blended average of the interchange fees that an online business is likely to encounter, including d

Actually its not misleading. That 1.9% interchange fee is a blended average of the interchange fees that an online business is likely to encounter, including debit (which is less than 1.9%), standard credit (less than 1.9%) and rewards (more than 1.9%) and business (more than 1.9%). Its a reliable estimate based on a huge database of transaction history. In the "More info" we give you the ability to modify the assumptions and see the result. Amex is a non-issue since it costs online businesses the same 3.5% whether you use paypal or not (note - this is new as of next week, previously Paypal always gave you the ordinary 2.2% rate for Amex and lost money doing it). Paypal is a very competitively priced product, for a lot of transaction profiles it is cheaper than a traditional merchant account + gateway. If you get a shitty deal on your merchant account then Paypal will always be cheaper.