Paypal hikes Commercial Payment Fees
Paypal has sent out notices to account holders informing them of the new rates for commercial transactions starting September 10, 2013.
The existing rates for Paypal users in the Philippines are between 2.4% – 3.4% and a fixed fee of Php15 per domestic transaction and 2.9% – 3.9% plus a fixed fee of Php15 for cross-border (buyer is outside the Philippines) transactions.
Starting September 10, 2013, these are the new rates imposed by Paypal.
The new rates represents a 0.5% increase for both domestic and international transactions (or a 15% change). To translate this in real-world scenarios, if you’re paying Php10,000 via Paypal, the usual fees would be Php15 + 3.4% * Php10k or Php355 (domestic). With the new rate, the total fee is Php405.
For international transactions, that’s from Php405 to Php455 for the same transaction amount as above.
Paypal explains that the increase in merchant fees will help the company improve its services, increase risk avoidance and better customer service.
Merchants in the following countries are affected: China, Hong Kong, Taiwan, Philippines, Vietnam, Indonesia, Thailand, Malaysia, Singapore and India.