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When in my PayPal account I can go to "Pay and Get Paid -> QR Code", and it shows me that I can generate a QR code for my account. This allows me to create a code where the scanner would then enter an amount they want to pay, and it works nicely in general.
However, based on the published fee structure I should be getting a 1.9% + 10¢ fee rate on transactions greater than $10.00, and this is not occurring. I'm still paying the full rate when payments come in this way.
I also tried creating a PayPal invoice and then creating a QR code associated with that invoice. This is available on the PDF if you print an invoice, and you can also create one with the API.
However, once again, I do not see the 1.9% rate happening when we do this.
Can I get some clarification on this? Should I be getting that low rate no matter which type of QR code we use? Also, why am I not getting the low rate on either of them? Is there something else I need to do in order to activate this rate?
Any information on this would be greatly appreciated. Thanks!
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I hope this helps!
I've been digging into this with my partner manager, and the answer we have gotten is simply that the low rate only applies to the static QR code. It does not apply to QR codes associated with Invoicing.
Okay, but this raises additional questions/comments, and I haven't had any luck getting more feedback, so I figured I'd add it here.
First, as mentioned previously, if this is the case then the documentation really needs to be updated to specify this. It simply says "QR Code" and lists a rate for that without any superscript or * fine print giving the details.
Second, why is that the case?
On PayPal's landing page about QR codes it shows the following points under "Why PayPal QR Codes?"
On other pages like this one we see points about touch-free and and not handling cash or cards.
All of these things are true (except for the low fees) when using a QR code associated with a PayPal Invoice. So why not honor it there, too? The QR code from an invoice does include a "qrcode=true" parameter on the URL, so it seems PayPal is already tracking the fact that the invoice was paid through a QR code. As such, it should be relatively simple to apply the lower fee here.
What exactly is the goal of this from PayPal's perspective? Is it simply to try and get more people installing and using the PayPal app? If that is the goal then I understand why it only provides the low rate on that static code...because it can only be paid through the app.
If the goal is to get more merchants using it for In Person payments with no hardware, and also the added safety/security with touchless payments, then it seems it should be honored for QR codes in Invoicing as well.
All of that said, IMO if the low fee were to apply to all QR codes, then the current public-facing fee info is perfect. If that's not going to happen, though, then the public-facing fee info is not entirely accurate, or at least misleading, and should be adjusted to include this detail.
Any feedback on this would be greatly appreciated. Thanks!