How To Lower PayPay Fees
How To Lower Your PayPal Credit Card Processing Fees
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A little while back I had a side hustle where I sold more than $250,000.00 worth of stuff on eBay.

There was one mistake that I made that ended up costing me money and I don’t like silly mistakes that eat into profits.

The worst part is that it could have been avoided by doing less than five minutes worth of “work”.

I usually don’t spend too much time trying to figure out how to save 0.7% on things because cost savings isn’t worth it. But when we’re talking about 0.7% of a quarter of a million dollars, it’s worth spending the five minutes to save the money.

The savings would have come from a discounted credit card processing fee from PayPal due to sales volume.

As I mentioned, back in 2011, my eBay side hustling was paying off and I grossed over a quarter million. Every single one of those dollars were accepted through PayPal and subject to their merchant processing fees.

Side hustling selling on ebay

A screenshot of my PayPal account from January 2011

One thing I kept looking for each month was for my PayPal fees to go down due to my sales volume but they never did. I kept paying the standard rate of 2.9% + $0.30 per transaction until I finally reached out to PayPal asking them why, since I was grossing more than $12,000.00/month, I was still paying the normal rate?

They told me that I had not started receiving the discounted credit card processing fees because I had not applied for the program yet.


One thing that many PayPal sellers don’t know is that if you sell $3,000.01 or more per month per month you can receive a volume discount on your payment processing fees.

How to lower your credit card processing fees in PayPal

Volume Discount Available on PayPal Credit Card Processing Fees

The savings are small but they do add up and you might as well be taking advantage of these lower fees because it only takes a few minutes to get yourself setup to enjoy the volume discount.

What I didn’t know at the time was that you had to apply for the volume discount. I found this rather annoying because it felt like PayPal has added this simple “application” so they get to collect their normal fees from seller who don’t know that they have to apply first. I bet there are sellers who have been missing out on this savings for years!

The application process is very quick and I’m pretty sure that everyone who meets the sales volume minimums get approved.

If you’re selling on eBay and are grossing more than three grand per month, I’d recommend you visit, scroll down, click on “see discounts”, then click on “apply for volume discount” and finally apply for the discount.

You could put the money you save towards your 2015 weekly savings goal that can fund your next vacation, building your emergency fund or go towards that rental property you’ve always wanted to buy.

If you’re selling anything on eBay, click hereto get a free copy of my eBay checklist that’s based on 15+ years of selling on eBay.

Photo Credit: Ryan Ozawa

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