I would like to know how does PayPal calculate business transations fees exactly? I mean I know it goes like this:
2.9% + $0.30 USD
But how is this exactly applied? Let's say I get paid $100, then 100 * 2.9, and then the 0.30 is out what? The remainder of the $100? The 2.9? I appreciate a detailed explanation of the calculation process.
I believe the 30 cents is a fixed transaction fee no matter the size of the transaction. So, in your example of $100, the fee would be $3.20 in total ($2.90 from the 2.9% rate plus 30 cents fixed). Similarly, if your transaction was $10, the fee would be 59 cents (29 cents from the 2.9% rate plus 30 cents fixed). Obviously, for small transactions, that 30 cents can be somewhat significant. For larger transactions, it's the 2.9% rate that carries the weight.
