Receiving Multiple Small Payments

[jitsurugby]

How Does Paypal Handle Receiving Multiple Small Payments of say £1 each time. What charges would I incur each time?

[PayPal_paula]

Hi jitsurugby and welcome to the PayPal community forum. We are glad you could join us. 

PayPal offer a separate fee structure for Verified Business/Premier merchants who only accept small UK to UK payments.

The fees are 5% + 5p per transaction compared to 3.4% + 20p which is the standard rate. 

It is most financially beneficial to you if you accept payments under £9 for accounts with the Micropayment fee structure. For this reason it may be advisable to have a separate account for the small or ‘Micropayments’.

Here’s how you can sign up for micropayment pricing:

1. Go to our micropayments website at https://micropayments.paypal-labs.com
2. Click ‘Signup.’
3. Select the appropriate country.
4. Click ‘Login here.’
5. Enter your PayPal account password and click ‘Log in.’

Allow 2 business days for the micropayment pricing to take effect.

Note:

Micropayment pricing applies to all transactions regardless of the transaction amount. For example, with micropayments pricing, it would cost 25p to receive a £4 payment and it would cost £1.05 to receive a £20 payment. 

I hope you find this information useful and please keep us updated as it may help other members

Paula