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As a loyal PayPal customer for almost 10 years, I was very disheartened to find out that they intend to abolish the Merchant Rate and up US transactions from 1% to 2%, along side the 20p to 30p increase in flat fee. This will add a considerable amount more to our bill given 60% of our business is international, and they already bolt us up 2.5% on conversion fees because they won't allow USD withdrawals unless its with specific US banks.
While going through the terms, I noticed various mentions of a new product called "Custom Card Fields" - it seems to stipulate the fees will be a lot cheaper than right now. However the terms are ambiguous, does this rate only apply to domestic transactions? Does it apply to cross-border transactions using this new platform? It seems to show that using Custom Card Fields costs 1.2% versus the 2.9%, so if our US transactions using this new system cost 1.2% + 2% = 3.4% it'll actually be the same amount as we pay right now, so it won't hit us as harshly.
Additionally, it doesn't really indicate if Custom Card Fields also applies to PayPal Account Holder transactions. All in all, its very confusing, more so that these fees seem to massively change if you're using a product there is zero information online about.
I need to figure out if I should move to a more competitive company, such as Stripe, or whether we can remain loyal to PayPal which would be my preference. Paying 4.9% on our US transactions, plus a 2.5% conversion fee, is untenable for us, especially where others who provide similar services are offering it at just 2.9% and will deposit to our US bank account without a problem.