PayPal is perhaps one of the largest online payment centers globally, and it is one of the most trusted brands universally. Businesses rely on PayPal for easy and secure payments for goods and services.
While it is a convenient service, the fees that PayPal charges can quickly eat up your profits. However, there are simple ways in which you can avoid the majority of these fees or at least lessen them to an extent.
Today, we will look at some of the more common ways you can begin saving money on PayPal fees starting today!
Some Quick Tips to Avoid PayPal fee
The techniques that you use to prevent PayPal fees from being charged to you vary depending on what kind of account you currently have, so here are some quick tips to help you out.
However, if you run an online e-commerce business or something similar such as a drop-shipping company, then this method will not help you prevent PayPal fees for receiving money for such economic/business activities.
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Only Accept Payment through the Website
The first thing to do when it comes to how to avoid PayPal charges is to make sure you only accept payment through your website. This means that if a customer purchases your product, then the information provided by the customer can be sent directly to your website, and this process is known as a “virtual item.”
The customer cannot enter their credit card details on your website, and the merchant charge does not apply. This means that the charges applied to a virtual item can be much lower than what you pay to have the information entered into your website.
Never Take Cash Payments for Goods/Services
Another thing to remember when trying to learn how to avoid payments from PayPal is to never take cash payments for your goods or services because this is a common way for money online to be stolen. Many online stores and companies have a page where you can pay with your credit card, and once the transaction is complete, they will send you a receipt.
As this is a virtual item, it cannot be returned to your site. You should always pay with a money order or with a wire transfer. Again, this means you cannot take money from your customers’ online wallets or bank accounts; therefore, you will need to use a third party to handle this process.
Use Encryption Technology when Making Payments
The last thing you should remember when learning how to avoid payments from PayPal is always to use encryption technology when making payments online. This is done in the hopes that the company that handles your accounts will have the ability to read your card information and then block unauthorized activity when they see it.
Once you have your data encrypted, you should then move it from one company to another to make sure the company can read your cards if you are sending money online. It would help if you also had all your information protected when using a third party to accept payment.
There are ways to do this by using different passwords or even using another form of encryption software. When you make payments from one company, ensure you keep all your information and passwords secure, and this is done with the same encryption software.
Only Accept Transactions through One Website
One more technique to use when learning how to avoid PayPal fees for receiving money is to make sure that you only accept transactions through one website. Make sure you do not allow customers to check out your products through different websites.
If you find yourself at a point where you can no longer avoid paying out payments from PayPal, you should take the matter into your own hands and look into getting a chargeback protection plan.
This program will allow you to pay the company back any of your payments that were declined and will be less expensive than hiring an attorney. A chargeback policy protects you from paying out overage fees if your account is closed down due to fraud.
Plenty of Payment Companies
When it comes to how to avoid payment processing fees from PayPal when receiving money, you should know that there are plenty of companies out there to help you. However, make sure that you do your research and choose wisely. You must find a company that has a good reputation and is willing to work with you.
Remember, this process is very expensive, and it should be done carefully. Also, keep in mind that PayPal offers huge brand recognition that goes a very long way in trust with your customers. Many people are more than willing to pay with PayPal but not as willing to enter their payment details with another processor.
As you can see, you do not have to keep paying all of these fees to PayPal on a transaction-based period. With a little bit of planning and time, you will find yourself making more profit while keeping the convenience of PayPal.
Of course, there are also other payment processors available that you can look into. However, these other payment processors are not as well known as PayPal and you may lose some trust of your customers.
The best situation is to try to figure out which of the above tips will work best for you in cutting out some of the fees of PayPal. We hope that these tips help you save money by just reducing the amount of PayPal fees in your life and business.