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Old 02-24-2019
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Question Safe to apply for merchant rates?

Hey there,

As there hasn't been a thread about 'merchant rates' in several years, I wanted to take the opportunity to ask around about how it may have changed, in terms of what happens on PayPal's end the moment you click 'Apply'.

The circumstances are that I have already passed an account limitation, with possibly one of the hardest set of questions that brings down most accounts, being:
- Upload a photo ID
- Provide your business information
- Provide proof of fulfillment
- Provide purchase receipt from your supplier

They did actually permanently suspend the account when these documents were submitted, but I managed to overturn this decision after several weeks, as described in my other post. Luck seems to be a dominant factor when it comes to proving virtual services to PayPal.

Back to the point though, having gone through this business-focused limitation already, do you reckon it's safe to apply for merchant rates now? Or more specifically, what will PayPal actually do on their end to make their decision? Is it handled by someone in Account Limitations (where I risk getting banned for good this time) or perhaps someone in Sales (who will just make sure it works in PayPal's interest)?

This is not a stealth account - it's registered to a UK Ltd company, however, we only provide virtual services, which are pretty tough to prove on demand (especially to a third party).

Screenshot of the application attached:



Any advice/experience would be appreciated! Thanks
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Old 04-02-2019
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Default Re: Safe to apply for merchant rates?

Just a follow up to this thread in case it helps anyone.

I realised there was no harm in calling up PayPal and just "enquiring" about Merchant Rates for starters. The agent simply pulled up the sales report for the previous month and stated that our account was more than eligible. He then emailed a link for me to open (while still on the line), which was just the same as applying over the web (by clicking "apply now" from here).

He just said to tick the checkbox (to confirm I'm the owner), then hit "Apply Now". This was immediately followed with a confirmation saying something along the lines of "your application was successful", meaning it was not subject to human review.

The only delay is for the new rates to kick in, being 48 hours.

So in summary, no matter your limitations experience/history (perma-limited in our case), it is indeed safe to apply for Merchant Rates without risk, so long as you qualify. It is an instant, strictly sales-based decision (though I'm sure a high chargeback rate can also get in the way).

Hope this helps!
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Old 04-02-2019
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Default Re: Safe to apply for merchant rates?

you dont have to get it from Paypal,banks and other finance companies may offer a lower rate.
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Old 04-02-2019
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Default Re: Safe to apply for merchant rates?

Quote:
Originally Posted by agent006140 View Post
you dont have to get it from Paypal,banks and other finance companies may offer a lower rate.
This thread was regarding merchant rates, not a merchant account. As an international business, we were paying over 5% in fees on average - I honestly didn't even know 3.4% was the standard rate until I read today that the rest is made up of conversion fees and demographics.

3.4% doesn't even sound too bad for domestic sellers, but for international, merchant rates are a must.
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Old 04-03-2019
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Default Re: Safe to apply for merchant rates?

what is the requirement to apply for merchant rate?
I thought Paypal has a table based on $$volume,you just move to a lower rate if you meet the volume ! or has it been removed?
In US,we pay 30 cents plus 2.9%,cross border transaction ,we pay 30 cents plus 4.4%,most US sellers selling on US site ,accept US $,so conversion fee is on the buyer.
as for -He just said to tick the checkbox (to confirm I'm the owner), then hit "Apply Now". This was immediately followed with a confirmation saying something along the lines of "your application was successful", meaning it was not subject to human review.
your application was successful does not mean you have been approved,it could mean your application has been submitted successfully,aka it has received your application.
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Old 04-03-2019
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Default Re: Safe to apply for merchant rates?

Quote:
Originally Posted by HangInThere View Post
This thread was regarding merchant rates, not a merchant account. As an international business, we were paying over 5% in fees on average - I honestly didn't even know 3.4% was the standard rate until I read today that the rest is made up of conversion fees and demographics.

3.4% doesn't even sound too bad for domestic sellers, but for international, merchant rates are a must.
where do you sell?are you selling outside UK?
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Old 04-03-2019
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Default Re: Safe to apply for merchant rates?

Quote:
Originally Posted by agent006140 View Post
you dont have to get it from Paypal,banks and other finance companies may offer a lower rate.
There is no more merchant accounts on ebay..... They no longer allow it. If you had a merchant account on an ebay, it was disabled because, they no longer allow it.
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Old 04-03-2019
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Default Re: Safe to apply for merchant rates?

I have one,I just used it a few days ago.
could be bot has not found it yet??????
BTW,many brick and mortar stores have merchant account which they use in their store,the reason they use it on Ebay is because their rate is better than Paypal 2.9-4.4% AND their bank requires a minimum $$ requirement per month ,so the more business they give to the bank,the lower rate they enjoy.
This may sound off the topic but
I notice sellers are charging more on domestic shipping,a small trinklet which cost no more than $3 to ship USPS first class,they are now asking $5.5-7.95?

Last edited by agent006140; 04-03-2019 at 10:12 AM.
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Old 04-03-2019
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Default Re: Safe to apply for merchant rates?

Attention Required: An Update to Your Integrated Merchant Credit Card (IMCC) Account on eBay
Sellers have new options for credit card payment acceptance that improve the buyer experience on the eBay website and mobile app.
eBay is implementing changes to payment acceptance options for sellers who use their internet merchant account (or Integrated Merchant Credit Card (IMCC) account) to accept credit cards online at eBay checkout. This is part of our ongoing efforts to improve the buyer experience and better support the seller community.
Beginning March 1, 2019, new listings can only be created using an alternate payment acceptance option. After May 1, 2019, eBay is fully discontinuing support for Integrated Merchant Credit Card accounts as a payment acceptance method, and all existing listings will need to be updated with an alternate option.
In order to continue selling on eBay and offer a better experience to your buyers, eligible sellers can select between two alternate supported payment acceptance options - managed payments by eBay and/or PayPal. Please coordinate with your existing internet current merchant account provider - Payflow, Authorize.Net, CyberSource or other - for support on any refunds, chargebacks, or claim obligations for transactions processed on eBay prior to May 1, 2019.

WARNING EBAY LINK:
https://pages.ebay.com/payment/imcc_overview.html

Last edited by yankee; 04-03-2019 at 10:22 AM.
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Old 04-03-2019
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Default Re: Safe to apply for merchant rates?

No use, yankee... he's too dumb to read. He'll probably reply with something about brick and mortar. Or micro-deposits... or, who the hell knows lol
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Default Re: Safe to apply for merchant rates?

Quote:
Originally Posted by ebaystealth1974 View Post
No use, yankee... he's too dumb to read. He'll probably reply with something about brick and mortar. Or micro-deposits... or, who the hell knows lol
I just thank him,not as rude and dumb as you.
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Default Re: Safe to apply for merchant rates?

is this why shipping fee has gone up?
shipping a trinklet for 6.95 domestic using USPS first class weighing 2 ounces with tracking?
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Default Re: Safe to apply for merchant rates?

Quote:
Originally Posted by agent006140 View Post
I just thank him,not as rude and dumb as you.
micro deposits?
or Paypal micro payment?
6 cents plus 6%
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Old 04-03-2019
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Default Re: Safe to apply for merchant rates?

Quote:
Originally Posted by agent006140 View Post
what is the requirement to apply for merchant rate?
I thought Paypal has a table based on $$volume,you just move to a lower rate if you meet the volume ! or has it been removed?
In US,we pay 30 cents plus 2.9%,cross border transaction ,we pay 30 cents plus 4.4%,most US sellers selling on US site ,accept US $,so conversion fee is on the buyer.
as for -He just said to tick the checkbox (to confirm I'm the owner), then hit "Apply Now". This was immediately followed with a confirmation saying something along the lines of "your application was successful", meaning it was not subject to human review.
your application was successful does not mean you have been approved,it could mean your application has been submitted successfully,aka it has received your application.
Yes, PayPal does have a table to let you know what rate you qualify for based on the previous month's sales, but out of hundreds of businesses in our industry, I've never seen one (to this date) charge a fee less than 5%, which is why I've never tried applying. I could only assume you had to go through a ton of "merchant" verification (like providing company certificates, Ts&Cs, business plan etc) as some other payment processors do, but it turns out not.

Regarding the "instant" nature of the application, I don't think it goes on for further review, as I got an automated email immediately after saying "Your request for special merchant rates has been approved", but you never know. I suppose it does sound weird for PayPal to automatically agree to earn less on fees. I'm still only 24 hours in, so will see what happens tomorrow.

I don't see many posts about this, so it's either a no-brainer step that everyone does or perhaps people fear it out of risking a limitation.
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Old 04-03-2019
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Default Re: Safe to apply for merchant rates?

Quote:
Originally Posted by agent006140 View Post
where do you sell?are you selling outside UK?
Selling to most of the world, and billed in USD, so the $0.30 fixed fee applies as with you. The variable fee is based on the region (e.g. UK, EU, USA) in addition to the domestic variable fee, which is why it always feels like 5% or more. Merchant rates should bring that down once they kick in.

Last edited by HangInThere; 04-03-2019 at 12:09 PM.
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Default Re: Safe to apply for merchant rates?

rates are higher in most countries,US rates are low because most of us use credit cards to pay.
Retailers like WMT probably pay just 1%
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Default Re: Safe to apply for merchant rates?

Quote:
Originally Posted by agent006140 View Post
rates are higher in most countries,US rates are low because most of us use credit cards to pay.
Retailers like WMT probably pay just 1%
WMT= Walmarts?
To my understanding, walmart gets paid on processing payments. They handle enough money daily that someone makes enough on instant investments to pay walmart for the flow of cash.
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Old 04-03-2019
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Default Re: Safe to apply for merchant rates?

if so,then TGT.KR,BBY would alll be in the same boat
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