Why PayPal Fees Are So High?

[Good-Guy]

PayPal is one of the greatest payment processors that is used by thousands of people. Despite the fact that PayPal has limited its operations to some countries, it has still managed to remain the best payment processor out there. This is because it is one of the strongest payment processor. However, I have also noticed that many people have been complaining a lot about high fees charges of PayPal. According to the official sources of PayPal, PayPal charges a fees in the following scenarios:-

1) When someone gets money when the customer purchases something using PayPal
2) When someone send or receives money from outside the country
3) When someone send money using credit cards or debit cards
3) When you send money to your bank account through credit cards and debit cards.

In the past, PayPal used to charge around 3 percent fees and an extra $0.30 fees for transaction. However, this also increased around $3.5 and around $0.50 fees when it comes to digital money transfer. According to what I have read, regular payments using PayPal would charge around 1.9 percent fees along with 10 cents extra charges. This means if you send or receive $20, then you would be paying a whooping $0.48 in total as fees! So, why is PayPal so popular despite being so expensive?

 

[btaliat]

People may have different reasons why they stick to PayPal even though it has relatively high charges. I think PayPal is not the highest charged payment gateway. Have you tried Skrill and Neteller? PayPal is one of the forefront of the payment gateways and it endures security of your money and it is always reliable, hence, people expect quality things to be expensive.

 

[Deleted member 28127]

Skrill fees are expensive but not like PayPal one means there is a fixed 0,50 $ + 2.99 % fee for manual transactions like you are depositing the money on microworkers com and they do not have automatic skrill top up but manual.

 

[Caramelle]

PayPal is still popular despite being so 'expensive' because the other options are more expensive and inconvenient. PayPal fees vary depending on the type of account, the nature of transactions, and the location of the account holder, among other criteria. There are ways to lower the transaction fees. One is accumulating your earnings and withdrawing less frequently. Instead of getting paid as a supplier or business owner, you can request the payor to send you money as a friend or family. To save on PayPal fees for transferring your earnings, choose a digital wallet that will allow you to withdraw money locally for free. Payoneer, an alternative, can be very unforgiving when it comes to fees. It costs $3 to transfer from my earning site to my account and another 1% to withdraw the funds.​

 

[Mataracy]

Despite that paypal is very popular and flexible why transacting yet they are some favourable to some country while unfavourable to some other country. I was using it and then I have $30 there but when I wanted to transfer the money in to my account after they had held my money for good 180days yet they still collected $5 from me just for transfer which is too much from me.

 

[goodmoneygoodlife]

I mean Paypal is expensive because it is popular. It's not popular because it's expensive.

If there's mass adoption to a technology, most people don't want to migrate to a new form of payment. Hence, Paypal is expensive. But I challenge you all with this question:

"How can you take advantage of paypal being more expensive?"

One thing comes to mind, which is just to buy PYPL and hold it for the long-term? If PayPal is charging more while keeping expenses the same (you should do your own due diligence on their 10-K's to see if they have lower or same expenses), then they must be more profitable. Ergo, they should have a higher valuation over time.

I'm pretty sure if PayPal is, say, expensive by 20% more and creates 20%+ in net profits, your stock will go up by more than 20% due to EPS being more than 1. Other words: if you're a seller and want to hedge against your fees, just buy PYPL stock. Easy. And you'll make more than enough in the stock to offset the fee increase.

Play both sides.

 

[Good-Guy]

PayPal is still popular despite being so 'expensive' because the other options are more expensive and inconvenient. PayPal fees vary depending on the type of account, the nature of transactions, and the location of the account holder, among other criteria. There are ways to lower the transaction fees. One is accumulating your earnings and withdrawing less frequently. Instead of getting paid as a supplier or business owner, you can request the payor to send you money as a friend or family. To save on PayPal fees for transferring your earnings, choose a digital wallet that will allow you to withdraw money locally for free. Payoneer, an alternative, can be very unforgiving when it comes to fees. It costs $3 to transfer from my earning site to my account and another 1% to withdraw the funds.​

If PayPal is cheaper than many other payment processors, then there are certainly many payment processors that cost a lot less than PayPal. The transaction fees of Cryptocurrencies are definitely much lower than that of PayPal's. Other payment processors such as Payeer and Perfect Money also have a low transaction fees as compared to PayPal. Payeer charges just 0.5 percent fees and perfect Money charges 1.99 percent one-time fees on all the transactions. This is why I consider perfect Money and Payeer much better than PayPal. PayPal is not famous because it is "cheaper" than other payment methods.

I must say that PayPal is popular because it has been dominating the network of online payment industry for a really long time and it has captured the number one spot in such a way that many merchants and online money making sites cannot opt for any other method. I have been an online earner for many years and I have always faced the difficulty of working online, as PayPal is not available in my country. However, it is good to see that many other payment processors such as Payoneer and cryptocurrencies are slowing competing with PayPal and even PayPal has no other option but to accept them.