Why is the PayPal fee so expensive? Is there a cap?

Domestic sellers doing cross-border e-commerce business need to prepare a collection account and a payment account. Common payment methods include pingpong, paypal and Lianlian Pay. Some friends asked, why is the paypal fee so expensive?

1. Why is the PayPal fee so expensive?

There are thousands of credit card payment channels on the market, but PAYPAL is the only international e-wallet with such a high market share.

In the independent website industry in the cross-border e-commerce field, PayPal is basically a necessary payment method, and there is a trend of monopoly.

Moreover, PayPal has done a good job in market education and has a very high penetration rate. For merchants, the usage habits of buyers in the European and American markets are something you must consider.

PayPal's overall charges are high because the threshold for using it is extremely low, its international penetration rate is extremely high, and consumers' payment habits are extremely well educated, making it the number one international e-wallet payment system.

Although PayPal has many shortcomings, it is undeniable that it is the leader in international e-wallet payments.

2. Is there a cap on PayPal fees?

have.

1. Standard handling fee

For transactions of $3,000 or less, PayPal charges: 4.4% + $0.30

3,000 to 10,000 USD, PayPal charges: 3.9% + 0.30 USD

10,000 to 100,000 USD, PayPal charges: 3.7% + 0.30 USD

For amounts above 100,000 USD, PayPal charges: 3.4% + 0.30 USD

2. Currency conversion fee

PayPal supports the exchange of multiple currencies. When users collect, withdraw or transfer money, if it involves the exchange of different currencies, PayPal will charge: the current exchange rate plus 2.5% currency exchange fee

3. Withdrawal Fee

Telegraphic transfer to a bank account in mainland China, the withdrawal currency is US dollars, and a handling fee of US$35 is charged for each transaction.

Withdraw to a bank account in Hong Kong in Hong Kong Dollar. Withdrawal is free for amounts above HKD 1,000; a handling fee of HKD 3.50 will be charged for each withdrawal below HKD 1,000.

Withdraw to a U.S. bank account in USD, with a handling fee of USD 35 per transaction.

For withdrawals via check, the withdrawal currency is US dollars and a handling fee of US$5 is charged for each transaction.

In general, the reason why PayPal's fees are so expensive is that it has a low threshold and a high penetration rate, and it has a tendency to monopolize. Therefore, in the absence of competitors, the fees are so expensive.