I just requested a payout to PayPal and was hit with a 19% payment processor fee. I've sent and received money via PayPal before and the fee has never been anywhere near this much. Can I reduce it by choosing a different payment method?
Okay I just found this:
[QUOTE]A payment processor’s fee is typically comprised of a fixed amount around 30 cents and a percentage amount around 2.9%. Due to the fixed fee, the total percentage of the entire transaction the fee represents changes depending on the price of your product.
For example 30 cents of a 1 dollar payment is 30%, 30 cents of a 2 dollar payment is 15%, etc. You can avoid high payment processor fees by selling your work for a higher price.[/QUOTE]
I interpret that to mean that even though I request a bulk payout, the 30 cents fee is being tacked onto each payment individually? I don't understand why that would be, since PayPal shouldn't care how many smaller transactions my payout consists of. Unless they do?
Paypal change their payment process fee: https://www.fool.com/investing/2021/06/24/why-paypal-raised-processing-fees-coul...
Doing the math, you got charge 5.5 times which lead to the 19% + $2.6 in new paypal fees instead of the 15% + $1.65 in old paypal fees. A 4% + $1 difference in earnings. So yes paypal is individually counting the bulk request.