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.