PayPal and Visa Enter Partnership to Extend Consumer Payment Choice

Companies Collaborate to Accelerate the Adoption of Digital Payments

SAN JOSE, Calif. & SAN FRANCISCO–(BUSINESS WIRE)–Jul. 21, 2016– PayPal(NASDAQ:PYPL) and Visa (NYSE:V) today announced a U.S. strategic partnership that will result in an improved and more seamless payment experience for Visa cardholders and will offer greater choice in how consumers pay with the PayPaland Venmo wallets.

The partnership puts PayPal and Visa on a new path, with the companies working more collaboratively to accelerate the adoption of safe, reliable and convenient digital payments for consumers and merchants. Further, the arrangement is designed to carry significant benefits for issuing financial institutions, acquirers, and merchants. For issuing institutions, these include a better customer experience, more spending volume on their credit and debit cards, lower operational costs, and improved security. Merchants will also benefit from the improved customer experience, efficiency, and security, which together will help drive increased sales.

Details of this agreement include:

  • Enhanced Consumer Choice and Improved Experience for Visa Cardholders: PayPal will make it easier for new and existing customers to choose to pay with their Visa cards and ensure a more seamless experience:
    • Visa cards will be presented as a clear and equal payment option during enrollment and subsequent payments, with an easy ability for consumers to set as their preferred payment method
    • Visa digital card images will be incorporated into payment flows
    • PayPal will not encourage Visa cardholders to link to a bank account via ACH
    • PayPal will also support and work with issuers to identify consumers who choose to migrate existing ACH payment flows to their Visa cards
  • PayPal will Join the Visa Digital Enablement Program (VDEP) to Expand Point of Sale Acceptance: PayPal will join VDEP, a commercial framework for Visa partners to access Visa’s token services and other digital capabilities in the United States. This will enhance transaction security and expand acceptance for PayPal’s digital wallet to all physical retail locations where Visa contactless transactions are enabled. Consistent with VDEP, issuers will be able to choose whether to participate and retailers can expect to pay fees that are consistent with other contactless transactions they accept today.
  • Instant Withdrawal of Money: Consumers will be able to instantly withdraw and move money from their PayPal and Venmo accounts to their bank account via their Visa debit cards leveraging Visa Direct – providing an experience that offers speed, security and convenience.
  • Enhanced Data Quality: PayPal will ensure that data provided to issuers and their cardholders for Visa-funded transactions will be consistent with the information that is received with traditional Visa card transactions. This will ensure a better consumer experience, reduce cardholder confusion, ensure proper application of rewards, and reduce costly and time-consuming disputes.
  • Economic Incentives: The agreement affords PayPal certain economic incentives, including Visa incentives for increased volume, and greater long-term Visa fee certainty.

“Giving consumers choice in how and where they pay is essential to our goal of being a customer champion and we welcome the opportunity to work with more partners like Visa who share our vision,” said Dan Schulman, president and chief executive officer, PayPal. “This agreement opens new avenues for PayPal to collaborate with Visa, financial institutions, and others in the payments ecosystem to deliver greater value, more choice, and new experiences for our joint customers wherever they transact – online, in-app or in-store.”

“We are excited to begin a new chapter with PayPal. Our agreement provides a framework for our companies to work together collaboratively,” said Charlie Scharf, chief executive officer, Visa. “PayPal has built industry leading capabilities which complement those of Visa and our clients, and working together, we will be able to deliver better solutions for consumers and merchants. At Visa, we are focused on growth by providing our issuer and acquirer clients – and their clients, merchants and consumers – with the best way to pay and be paid everywhere and this agreement supports this approach.”

About PayPal

At PayPal (Nasdaq: PYPL), we put people at the center of everything we do. Founded in 1998, we continue to be at the forefront of the digital payments revolution. PayPal gives people better ways to manage and move their money, offering them choice and flexibility in how they are able to send money, pay or get paid. We operate an open, secure and technology agnostic payments platform that businesses use to securely transact with their customers online, in stores and increasingly on mobile devices. In 2015, 28% of the 4.9 billion payments we processed were made on a mobile device. PayPal is a truly global payments platform that is available to people in more than 200 markets, allowing customers to get paid in more than 100 currencies, withdraw funds to their bank accounts in 56 currencies and hold balances in their PayPal accounts in 25 currencies. For more information on PayPal, visit For PYPL financial information, visit

About Visa Inc.

Visa Inc. (NYSE:V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world’s most advanced processing networks — VisaNet — that is capable of handling more than 65,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, pay ahead of time with prepaid or pay later with credit products. For more information, visit, and @VisaNews.

Paypal Rates Increase October 2015

Effective October 1, 2015, Paypal will remove the tiered merchant rates for US domestic and international Purchase Payments. The changes don’t apply to PayPal Payments Pro users and Virtual Terminal. PayPal Payments Standard and PayPal Express Checkout users will have a rate hike.

The new rate will be the standard rate of 2.9% + $0.30 USD for domestic transactions and 3.9% + fixed fee** for international transactions.  Card-processing rates on PayPal Payments Pro and Virtual Terminal are not changing.

Paypal rates October 1, 2015:

Standard 2.9% + $0.30
Mobile In-Store Payments rate 2.7% + $0.30
Nonprofit rate 2.2% + $0.30

Paypal international rates October 1, 2015:

Standard 3.9% + fixed fee
Mobile In-Store Payments rate 3.7%  + fixed fee**
Nonprofit rate  (under $100k/mth) 3.2% + fixed fee**
Nonprofit rate  (over $100k/mth) 2.9% + fixed fee**

Paypal current tiered rates:

PayPal Rates:
Domestic Purchase Payments transactions in U.S. Dollars
Prior month’s sales volume    Fee per transaction
$0 to $3,000    2.9% + $0.30
$3,000.01 to $10,000    2.5% + $0.30
$10,000.01 or greater    2.2% + $0.30

International Purchase Payments transactions
Prior month’s sales volume    Fee per transaction
$0 to $3,000    3.9% + fixed fee**
$3,000.01 to $10,000    3.5% + fixed fee**
$10,000.01 or greater    3.2% + fixed fee**

*Sections 8.2 (b) and 8.4 (c) of the PayPal User Agreement
**Section 8.4 (d) of the PayPal User Agreement. Click here to see Paypal International Fixed fees vary by country.

Paypal Pro fees:

These are the fees posted on Paypal web site now.

  • $30 monthly fee
  • 2.9% + $0.30 per transaction
  • 3.1% + $0.30 per domestic transaction; additional 1% for cross-border transactions

Paypal Pricing for Add-On Services

Recurring Payments: $30 monthly
Advanced Fraud Management Filters: $20 monthly + $0.05* per transaction
Account Monitoring: $29.95 setup + $19.95 monthly

Paypal Additional Fees

  • International Sales: The pricing table above applies to domestic payments in US dollars. There’s an additional 2.5% charge for any currency conversion and a 1% charge to receive payments from another country
  • Chargeback Fee: $20
  • Uncaptured Authorization: after a successful authorization, you’ll be charged if you do not complete the sale using PayPal Payments Pro: $0.30 per uncaptured authorization
  • Card Verification Transactions: used to verify that a cardholder’s account is in good standing without processing a purchase transaction: $0.30 per submission
  • Refund Fee: Fixed fee portion of the original transaction fee (for example, the refund fee is $0.30 for domestic payments)
  • American Express® card usage fees: 3.5% per transaction on PayPal Payments Pro, PayPal Payments Advanced and Virtual Terminal

Click here for the official Paypal rates and fees.


Accept Payments Online Merchant Checklist

accept payments onlineBe wary of sites that list the top 10 best solutions to accept payments online, 10 best payment gateways etc. These sites solicit payment gateway vendors to get on the list. Those who pay the fee get on the list, regardless of whether they’re the best of anything. The vendor checklist below will help businesses that process more than $500,000 annually across all sales channels.

First make a list of needs, then compare to vendor options listed. Because a payment gateway is required for online payments, all questions are specifically for the gateway, regardless of whether the vendor also offers merchant services or check processing.

Circle immediate needs and write F next to potential future needs.

Where does your business want to accept payments now and in the future?

Make a list of all sales channels. The merchant industry impacts complexity of solutions needed. For example, a distributor might payments online, at a distribution outlet, via ecommerce, and ebilling; a law firm might accept payments online, but not in person. A non-profit may need to accept payments online and at events.

  • online payments
  • retail swipe
  • mobile swipe
  • ecommerce
  • einvoice
  • kiosk

Do you need level III processing?

  • Yes
  • No

Qualified merchants with at least a portion of business to business (B2B) or business to government (B2G) customers should require level III processing across all sales channels where payments are accepted. Manufacturers, distributors, and services that are generally business to business usually qualify.

How will the solution help automate interchange management, the bulk of processing fees?

  • Yes, has ‘automated interchange management system’
  • No, does not have ‘automated interchange management system’

If a company offers it, they’ll advertise it because it’s a competitive edge. Probably fewer than 10% offer it. There are many complexities and comparing may be a challenge. For example, if the authorization and settlement amount differ, the transaction will result in additional fees, Unless the solution resolves this difference by obtaining a new authorization. This item can be difficult for merchants to compare from solution to solution, so ask open ended questions.

Do you need online payments for credit cards, ACH or both?

  • credit cards
  • ACH
  • both credit cards and ACH

I once had a software company tell me their vendor had promised for years to provide online ACH. They’re still waiting. Shortlist only providers that process what you need now. Custom online payment forms are easy; Certifications for check or credit card processing is not as simple.

How does merchant know when a payment is received?

  • Email
  • Integrate to accounting or other software (Quickbooks, ERP etc)
  • Online report
  • Other

How does merchant differentiate between online payments and payments key entered by employee or other source?

  • Each payment identifies user that made it
  • Multiple accounts or deposits
  • None
  • Other

Can customers store credit card data?

  • Yes
  • No

Can customers store ACH data?

  • Yes
  • No
  • N/A

Are expiring cards managed proactively? Are customers notified in advance to self update?

  • Yes, proactive
  • No, no advance notice and ability to self update

Can tokens, which replace sensitive card data, be used across all sales channels and or company divisions needed?

  • Yes
  • No
  • N/A

Does the transaction occur on merchant server does user click to hosted payment page?

  • Hosted pay page
  • Merchant web page with iframe
  • Both options

Does it support multi currency processing?

  • Yes
  • No
  • N/A


What are customer service communication methods? circle all that apply

  • Phone 24/7 or limited hours
  • email 24/7 or limited hours
  • chat 24/7 or limited hours
  • Designated relationship manager


Other questions

  • What reports are available?
  • How long are they available?
  • Can reports be exported?
  • How can reports be shared?
  • How will solution help reduce PCI Compliance burden across all sales channels?

Online Payment Solutions:

  • CenPOS, a processor neutral omnichannel super payment gateway, available globally including United States, Canada, United Kingdom, Europe, Australia, Latin America, South Africa, Asia Pacific, and more. Supports all merchant sales channels, multi currency processing, and level III processing all sales channels. Industry specialties: Automotive, manufacturer, distributor, private duty healthcare, non-profit, education. Free online pay page html5 available.
  • First Data Global Gateway e4, for First Data Merchants only.  Supports all merchant sales channels, level III processing in some sales channels. Industry specialties: Automotive, manufacturer, distributor, private duty healthcare, non-profit, education. Online pay page html available.

  •, a Cybersource/ Visa company, compatible with most processors. The gateway is available in United States, Canada, United Kingdom, Europe, Australia. Online pay page html available.
  • PayPal Pro, requires Paypal payment processing. This is included because of the simplicity and longevity for online payments, however, Paypal differs significantly from all others; payments must be manually transferred to the bank, increasing time to deposit, and fees are netted from every transaction, making reconciliation more challenging.

This list does not include solutions from companies that are registered ISO of Wells Fargo Bank, N.A., because those are First Data resellers. (The text is found on the bottom of many web sites.)