Paypal Micropayments Account vs Regular Account

PayPal offers support for Micropayments to merchants for US to US, GB to GB, AU to AU, and EU to EU transactions for Business and Premier accounts. This feature is offered at a special rate of 5% + $0.05 per transaction.Merchants who wish to use PayPal’s micropayments pricing need to open a new PayPal account through this account registration page.Merchants who receive both macro and micro payments should maintain two separate accounts: 1. An account to apply their standard rate to macropayments. 2. An account to apply the micropayments rate to their micropayments.

via Micropayments.

You can have one eBay account but specify different Paypal e-mail addresses for each listing.

Your break even point depends on which merchant rate you get from Paypal.

If you are receiving 2.9% + $0.30 from Paypal, your break even dollar value is $12. This means if you receive a payment $12 or less, micro merchant is the better deal.

If you are receiving 2.2% + $0.30 from Paypal, your break even dollar value is $9.

Remember, since cross border fees add 1% to your processing rate, the break even value changes.

Also, if you offer multiple quantities or use calculated shipping, its hard to know which account type is financially best since you won’t know the order total.

When I sell something for $1.99 with free shipping to someone in the USA, micromerchant is the best value. If that same buyer purchases qty 10 ($19.99 total), then micromerchant no longer becomes the better value.

I know this is complicated, but these are all factors you have to consider.