PayPal is one of the most used and effective online payment platforms with the help of which people all over the world conduct common, shopping and freelance transactions. However, its fees make PayPal one of the platforms that charge high costs to their clients. In terms of usability, PayPal is rather simple, although, it contains different fees based on the kind of dealing. If you want to know How Avoid PayPal Fees than read this article complete.
1. Use PayPal Friends and Family for Personal Transactions
The best ways of avoiding fees charged by PayPal include; When sending money, use the ‘Friends and Family’ payment method. This is convenient for the personal transfer for instance in transferring a some amount of money to a friend or a family member. If you select this option, the recipient of the payment is not charged any fees by PayPal. Friends and Family option should not be used for business or near commercial transactions.
2. Avoid Funding Payments with a Credit Card
That is, PayPal charges an additional cost any time you use your credit card to fund a payment. This fee is usually on average 2.9 % plus a fixed fee fee which really mounts up. And if you do not wish to incur these fees, it is better to use either your linked bank account, or your balance in your PayPal account. It costs nothing to accept payments for funding using Bank Transfer or PayPal Balance.
3. Use PayPal for Business Transactions and Offer Direct Bank Transfers
It may not be possible for a business owner to use PayPal to receive payments, but there are ways of going about it without having to pay those charges. It is better to propose your customers to pay using other forms of payment which are not connected to PayPal invoice, for instance, users might pay directly through bank transfer.
5. Consider Upgrading to a PayPal Business Account
If you are an active account holder who often transacts through PayPal, you might consider changing to a PayPal Business Account. Despite these fees, some of which include fees for business transactions, you may be able to get reduced fees based on the amount of business you are conducting. There is also much more PayPal provides for businesses inclusive of invoice features and processing of credit card without engaging merchant account.
Conclusion
The PayPal is one of the easiest methods to make the payment via internet, but the charges applicable are high. When and if you are able to learn how these fees are charged and how to avoid them you can easily save on your transactions. For personal payments, use only the Friends and Family option, try not to use credit cards to fund your transaction, and consider the other options when paying for someone located overseas. In this blog we have explained How to Avoid PayPal Fees.
