Paypal Virtual Terminal fees increasing April 2012 buried in Paypal here announcement

For Paypal Virtual Terminal and Paypal Payments Pro users it may be time to change vendors. According to Paypal, key entered fees will be increasing to 3.5% April 15. Ecommerce fees will be the same. The only time 2.7% applies is for swiped transactions.

I stand by my earlier comments here http://tinyurl.com/6np9tac . ACH, check, credit all good. So here are some of the negatives regarding the Paypal here release for non-SOHO.
1. Fees. Anyone with sizable volume (let’s just use $1M annually for convenient $ amt) has an effective rate far less than 2.7% all in, even for card NOT present, and we’re talking about retail swipe with this.
2. It’s not actually ready yet. Get on the list.
3. Funding- Paypal transfer to your bank account is currently an inconvenient manual process that takes 3 business days, plus fees are netted per transaction; up to 6 days for checks. Compare to standard merchant account with 1-2 days automatic ACH deposit and fees paid monthly.

No information yet on how this will impact non-profits.

For businesses over $1M in annual processing, contact us for alternative solutions.