Switching to a different gateway could hurt your total payments in that case. If you check how your customers pay, you might find that a lot of your payment volume comes from PayPal credit. You might decide that switching how your online payments are processed isn’t beneficial for your Paid Memberships. The easiest option to reduce reliance on PayPal is to remove the payment gateway for new customers, so future transactions are completed on a different system.

While some of your members may be dedicated fans, you could lose customers who feel the effort isn’t worth it. While that may seem like a great idea to save money, keep in mind that if you want existing customers to pay with a non-PayPal account, they might need to resubscribe. If you are really concerned with the PayPal fee increase, you could attempt to switch your entire customer base to a different payment gateway. You could even look into adding our free WooCommerce plugin to diversify further. Just select PayPal and whichever other gateway you would like to integrate as well. You can opt to have multiple gateways if you want to keep PayPal as an option. Simply go to your Paid Memberships Pro login and select a different gateway for future checkouts. But new customers can be added via Stripe or another platform to prevent further increased PayPal fees. You can opt to keep existing customers with PayPal to keep things easy for them. 1) Add a Different Gateway for New Customers Paid Memberships Pro has a lot of payment gateway options should you want to change. While you can opt to stick with PayPal, Paid Memberships Pro partners with six gateway options that you can choose from to manage your payment methods and business accounts. If the PayPal rate increase’s numbers are a bit higher than you’d like, you do have options.

This could reduce your processing fees but not lose your customers who are loyal to the PayPal checkout. If you have a premium Paid Memberships Pro account, you can take the middle ground by setting up multiple gateways. In that case, your fees would amount to $3,590. Maybe half of them chose PayPal, and the other half used Stripe. If you switch to a different payment gateway, like Stripe, the fees would amount to $3,200 - $780 less than using PayPal.įinally, you could choose to use two gateways to reach more subscribers. If you sell these through PayPal, you will end up paying USD 3,980 in transaction fees to PayPal. Let’s imagine your website sells annual $100 subscriptions, and in one year, you sell 1,000 of them. So what do the new PayPal fees mean for your subscriptions? How the PayPal Rate Increase Affects Your Earnings The PayPal rate increase might drive merchants towards other payment gateways such as Stripe that offer lower fees for U.S. If you use PayPal’s gateway, but a customer pays via credit card or debit card, those fees will be slightly lower at 2.99% + $0.49. will also trigger a different flat rate depending on the currency they pay with. Other fees, such as QR code transactions, will not be affected or will change at a different rate.Ĭustomers outside the U.S. 2, PayPal will increase its merchant fees from 2.9% + $0.30 per transaction to a fixed fee of 3.49% + $0.49 for all U.S.-based online transactions. Final Thoughts: New PayPal Fee Increase and How To Protect Your Business.How the PayPal Rate Increase Affects Your Earnings.You can choose to stay with PayPal or switch to another gateway like Stripe for some or all of your memberships. Paid Memberships Pro has your membership business covered with multiple payment gateways to choose from. While Wall Street might like this news, merchants are less than thrilled. The proposed PayPal fee increase will affect thousands of small businesses that rely on the payment processing giant for their digital payments. On June 18, 2021, PayPal announced it would be raising fees on most of its services, starting Aug.

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