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Fed ruling may cut Paypal fees for sellers by over 95%
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Frank Provasek
May 10, 2011, 2:20:38 PM5/10/11
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The Federal Reserve is considering classifying Paypal transactions
funded from a Paypal balance as debit card transactions, limiting the
Paypal fees to 12 cents per transaction. It's been a long time sore
point for sellers that while in the real world, accepting a CREDIT
card results in a 2.2% to 2.9% merchant fee, a DEBIT card sale costs
the seller a flat rate of under 15 cents. Paypal charges credit card
fee rates on Paypal balance transactions, making $2.50 to $3.20 per
$100 when 12 cents is what bank debit cards can charge for the same
transaction.
funded from a Paypal balance as debit card transactions, limiting the
Paypal fees to 12 cents per transaction. It's been a long time sore
point for sellers that while in the real world, accepting a CREDIT
card results in a 2.2% to 2.9% merchant fee, a DEBIT card sale costs
the seller a flat rate of under 15 cents. Paypal charges credit card
fee rates on Paypal balance transactions, making $2.50 to $3.20 per
$100 when 12 cents is what bank debit cards can charge for the same
transaction.
Paypal is trying to argue that they are not a "payment network" and
Paypal balance transfers should not be classified as debit card
transactions. The fact that they issue Master Card branded debit cards
tied to Paypal balances, and required sellers with their own merchant
credit card account to "use the Paypal gateway" pretty much
contradicts their argument.
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Frank Provasek Rare Coins www.frankcoins.com
http://shop.ebay.com/merchant/frankcoins Texas Auction License
11259, Board member of Texas Coin Dealers Association,
Member TNA, ANA, PCGS, NGC, ICTA - Full Time Since 1991
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