4 ms·

PayPal already has micropayments, 5c+5% https://www.paypal.com/us/smarthelp/article/what-are-micropayments-faq664 https://www.paypal.com/us/smarthelp/article/w

by cft 6y ago

PayPal already has micropayments, 5c+5% https://www.paypal.com/us/smarthelp/article/what-are-micropayments-faq664 https://www.paypal.com/us/smarthelp/article/what-are-micropa... https://www.paypal.com/us/webapps/mpp/merchant-fees#fixed-fees-micropayment https://www.paypal.com/us/webapps/mpp/merchant-fees#fixed-fe... Without this, my bootstrapped company that employed over 15 people would not have been possible.

owenversteeg 6y ago
Huh, so either you have the micropayments rate on for all payments or none. Interesting! 0.05x + 0.05 = 0.029x + 0.30 : x=$11.90 Fees would be: $0.10 vs $0.33 on $1 $0.15 vs $0.36 on $2 $0.30 vs $0.45 on $5 $0.55 vs $0.59 on $10 $1.55 vs $1.17 on $30
- redis_mlc 6y ago
  I think you're describing payments, not micropayments.
  - owenversteeg 6y ago
    PayPal US micropayments rate is on the left, payments rate is on the right :)
    - redis_mlc 6y ago
      Again, I think you're describing payments, not micropayments. $1.55 is not a micropayment.
      - Talanes 6y ago
        I think you're misreading the chart, as $1.55 is a fee on it. They're showing how Paypal's Microtransaction rate becomes more expensive for large transactions.
- PaulDavisThe1st 6y ago
  Nope, you have two paypal accounts, and route your payment processing according to whether the amount is < US$12. Been doing that for around a decade. Make a substantial fraction of my income from US$1 payments.
  - owenversteeg 6y ago
    Huh, does Paypal not get upset at that? Given the stories with PayPal freezing everything on a hair trigger I'd be very worried. Or is it officially allowed?
    - PaulDavisThe1st 6y ago
      When I first did this, I ran into problems because PayPal didn't automatically allow more than one of their accounts to be "linked" to the same external bank account. I got written approval for that. Recently I had to update my information with them (after a long-distance relocation), and they were entirely fine with the two account state. The stories about PayPal freezing everything on a hair trigger are indeed worrying, but after using PayPal to collect the majority of my income for 12-15 years, my attitude is that these stories are just another example of how the internet magnifies the bad/abnormal and buries the normal. There's no doubt that they happen, but in the context of the total amount of activity that PayPal is involved in, my sense is that they are a tiny, tiny fraction.
Tade0 6y ago
Out of curiosity, what's your company doing?
PaulDavisThe1st 6y ago
Myself also (we don't employ that many people). I live in daily (well, OK, monthly) fear that PayPal will remove this option at some point. I do not see how they manage to continue it (though I am glad they do, so far).
- dannyw 6y ago
  PayPal doesn't like micropayment competitors because the easiest way to do micropayments is to force users to load larger denominations in advance onto a wallet. This is bad, because this directly competes with PayPal's core offerings, and is an area where competitors can drive merchant adoption with vastly lower fees. In the macropayment land, a competitor could come in and offer 45c to process $10 instead of PayPal's 60c. No big deal. In the micropayment land, a competitor could come in and offer 10c to process $1 instead of PayPal's 33c. MUCH bigger deal.
  - PaulDavisThe1st 6y ago
    PayPal's micropayment fee for a $1 transaction is already 10c

by cft 6y ago

owenversteeg 6y ago

Huh, so either you have the micropayments rate on for all payments or none. Interesting! 0.05x + 0.05 = 0.029x + 0.30 : x=$11.90 Fees would be: $0.10 vs $0.33 on $1 $0.15 vs $0.36 on $2 $0.30 vs $0.45 on $5 $0.55 vs $0.59 on $10 $1.55 vs $1.17 on $30

redis_mlc 6y ago
I think you're describing payments, not micropayments.
- owenversteeg 6y ago
  PayPal US micropayments rate is on the left, payments rate is on the right :)
  - redis_mlc 6y ago
    Again, I think you're describing payments, not micropayments. $1.55 is not a micropayment.
    - Talanes 6y ago
      I think you're misreading the chart, as $1.55 is a fee on it. They're showing how Paypal's Microtransaction rate becomes more expensive for large transactions.
PaulDavisThe1st 6y ago
Nope, you have two paypal accounts, and route your payment processing according to whether the amount is < US$12. Been doing that for around a decade. Make a substantial fraction of my income from US$1 payments.
- owenversteeg 6y ago
  Huh, does Paypal not get upset at that? Given the stories with PayPal freezing everything on a hair trigger I'd be very worried. Or is it officially allowed?
  - PaulDavisThe1st 6y ago
    When I first did this, I ran into problems because PayPal didn't automatically allow more than one of their accounts to be "linked" to the same external bank account. I got written approval for that. Recently I had to update my information with them (after a long-distance relocation), and they were entirely fine with the two account state. The stories about PayPal freezing everything on a hair trigger are indeed worrying, but after using PayPal to collect the majority of my income for 12-15 years, my attitude is that these stories are just another example of how the internet magnifies the bad/abnormal and buries the normal. There's no doubt that they happen, but in the context of the total amount of activity that PayPal is involved in, my sense is that they are a tiny, tiny fraction.

Tade0 6y ago

Out of curiosity, what's your company doing?

PaulDavisThe1st 6y ago

Myself also (we don't employ that many people). I live in daily (well, OK, monthly) fear that PayPal will remove this option at some point. I do not see how they manage to continue it (though I am glad they do, so far).

dannyw 6y ago
PayPal doesn't like micropayment competitors because the easiest way to do micropayments is to force users to load larger denominations in advance onto a wallet. This is bad, because this directly competes with PayPal's core offerings, and is an area where competitors can drive merchant adoption with vastly lower fees. In the macropayment land, a competitor could come in and offer 45c to process $10 instead of PayPal's 60c. No big deal. In the micropayment land, a competitor could come in and offer 10c to process $1 instead of PayPal's 33c. MUCH bigger deal.
- PaulDavisThe1st 6y ago
  PayPal's micropayment fee for a $1 transaction is already 10c