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PayPal increased their merchant charges by 73% in April 2018 and their fees to merchants like us are now are up to 665% more that the bank charges for credit card purchases, we had to pass some of that on. PayPal charges are now 2.6% plus 30 cents per transaction, if we do a refund via PayPal they keep the 30 cents.

Credit charges to merchants like us by the banks range from 0.34% up to 1.35% with the average charge at around 0.8%. The charges vary mostly if the credit card being used has a rewards package or not. You are told by the banks that they pay the reward but this is not correct with that charge passed on to the merchant but what we don’t agree with is the customer only receives about 1/3 of what we pay and the banks taking the rest with reward packages..

Afterpay have quoted us 6% commission which cannot be passed on as per an agreement. We considered signing up with Afterpay but we would have needed to raise the prices to cover their charges and that would not have been fair to the people that paid by transfer or credit card so we didn’t sign up. Another way we could have dealt with the Afterpay thing was to raise prices by say 5% and then offer a discount if paying with transfer or credit card and less discount if paid with PayPal but it was too complicated and confusing so we didn’t sign with Afterpay.


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