PayPal To Increase Fees for International Transactions in March 2017
Effective March 29th 2017, Paypal will increase the payment fee for international payments from 3.9% to 4.4%.
The official statement from the Paypal policy update page is:
We are changing the standard transaction fee for sellers selling goods or services online to buyers outside the U.S. from 3.9% to 4.4% plus the existing fixed fee based on the currency.
Whilst not a massive change, it’s still a 12% rise from the original percentage. Fee hikes like this are something that have been pushing customers to better priced competitors for a while now, so this certainly will not help their cause.
Stripe currently offers international payments for 2.9% + 30¢ for example.
eCommerce companies that ship internationally whilst using services like Ebay to sell products, are often pushed in profit margins due to shipping costs. A 12% cost increase of accepting payments from international customers is something that surely isn’t going to welcomed.
Secondly, Paypal are increasing the currency conversion fee from 2.5% to 3.0%. The official wording from the Paypal policy update page is:
We are changing the currency conversion spread charged when we perform a currency conversion for you from charging an additional 2.5% over the exchange rate set by our bank to charging an additional 3.0% over the exchange rate set by our bank.
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