Paypal’s default fee rate is 2.9% + 30 cents per transaction. It is possible to lower this rate by applying for Paypal’s “merchant rate” if you have sales that exceed $3,000 over the last 30 days and an account in good standing. The downside is that you will have to provide Paypal with your Social Security number if you have not already done so. Also, if you fall below the $3,000 sales mark Paypal will automatically downgrade you back to the “Standard Rate.” There is no need to reapply as Paypal will automatically adjust your fees.
To “apply” for the merchant rate do the following.
1. Log in to your account.
2. Click the “fees” button at the bottom of “My Account Overview.”
3. Click one of the blue highlighted “1.9% to 2.9% + $0.30 USD” buttons
4. Click the “Merchant Rate Criteria” button at the very bottom of the page
5. Click “Apply Now” and fill out the application. It is an automatic process and there is no person that will review it. If you qualify Paypal will tell you immediately.
If you sell $10,000 a month enabling the merchant rate would save you $70 a month or $840 a year. Of course Paypal does not publish this or make it at all obvious.