One of the most used Web-based payment services in the digital world, PayPal, dropped a virtual bombshell on the 'Net community this week with the announcement that sellers (retailers) will soon be seeing increased transaction costs.
For U.S. merchants, the payments company will be changing to a flat rate of 2.9 percent, plus 30 cents for domestic transactions (and 3.9 percent plus a fee that varies by country for international transactions) starting October 1, 2015.
The new structure eliminates discounts-which are frequently as low as 2.2 percent -for businesses with sufficient sales. Many of PayPal's larger customers have existing contracts that won't be affected by the change (at least in the immediate future).
The digital payments business had 169 million users and processed 1.1 billion transactions in Q2 2015, with transaction volume up 27 percent from a year earlier.
There are, of course, plenty of alternatives to PayPal for those displeased with the rate change to consider. Website Magazine has written somewhat extensively on the topic of
Digital marketing executive with proven experience in all aspects of search engine optimization (SEO), performance-based advertising, consumer-generated/social media, email marketing, lead generation, Web design, usability, and analytics. - 20-year Internet marketing veteran, currently serving as the Digital Marketing Campaign Manager at Antenna Group (formerly Chicago Digital). - Former Editor-In-Chief of Website Magazine, and a regular speaker on Web technology digital marketing strategy - Author of several books on digital marketing Including Web 360: The Fundamentals of Web Success; Affiliate 360: The Fundamentals of Performance Marketing; Domains 360: The Fundamentals of Buying & Selling Domain Names, and SEO 360: The Fundamentals of Search Engine Optimization.