There is a very well-hidden setting in Paypal that can save you a lot of money in Paypal fees depending upon the volume of Paypal payments that you receive. This is particularly important for merchants selling goods, or big sites that accept subscriptions, but it’s important for ebay sellers and anyone selling more than $3k/mo via Paypal. It’s called Merchant Rate pricing, and it’s something you have to opt-in to, on this page at Paypal (must be logged into Paypal, then visit that link – yes it’s a real Paypal link and no I’m not a phisher).
When I decided to write this post, it took me half an hour to find that page so don’t bother to look for it, they’ve hidden it well. No doubt, their requirement to opt-in to qualify for the discounted tiered pricing is probably buried in some legal agreement, too.
If you earn more than $3,000/mo in Paypal payments, the Merchant Rate switches your transaction fees from 2.9% to 2.5%, and again to 2.2% (>$10k/mo) and 1.9% ($100k/mo) saving you potentially hundreds or even thousands per month. I just assumed that Paypal’s tiered fees adjusted automatically to take my order volume into account but not so, you have to manually choose the lower tier if your sales volume qualifies.