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PayLoadz and Micropayments

You can take advantage of lower Paypal transaction fees if you are selling digital goods at Micropayment levels. If your per transaction revenue is below $8, then you can benefit from the new pricing tier offered by PayPal.

How to use:
Currently, the PayPal system requires that you setup a separate account for Micropayment transactions. This means that you will have to go through the same account verification process at PayPal including having a second bank account. You cannot use the same information for more than one PayPal account. We hope to get this requirement loosened in the future, but as of now, having two sets of information is the only way it can be done.

1.) Once you have a second account setup, you need to enter the Primary PayPal Email address of the new Micropayment account into your PayLoadz Profile under the Micropayment Email field.

2.) If you will be selling items in a shopping cart at your site, then you will also need to activate the PayLoadz Shopping Cart option in your PayLoadz profile as well.

3.) Finally, you are required to use the GoLink codes for your purchase buttons. The GoLink code can be found on the product details page. You can use the GoLink URl with a button image of your choice.

Once the above steps have been completed, the system is ready to use. Our system will determine which of your two PayPal accounts to send payment to based on the value of the items being purchased. If the value of the purchase is greater than $8, then payment will go to your Primary PayPal account, if less than $8, then payment will go to your Micropayment account.

Please let us know if you have any further questions.

On August 31st, 2005, PayPal announced new Micropayments rate of 5% + $0.05 per transaction.

The rate is available now, to U.S. merchants who sell digital content to U.S. customers, when PayPal is the sole payment solution offered to customers for micropayments transactions.

Merchants who wish to use PayPal’s micropayments pricing will need to open a new PayPal account through the account registration link at the bottom of this note.

Each PayPal account is associated with only one merchant processing rate. That rate determines the fee that’s applied to funds received into that account (additional information on PayPal’s Standard Fees is available at: http://www.paypal.com/cgi-bin/webscr?cmd=_display-fees-outside ). For example: if your Premier/Business Account rate for receiving funds is 2.9% + $0.30, using PayPal’s 5% + $0.05 micropayments rate would reduce the total transaction fee charged to payments received below the value of $12 (per payment). However, if you accept payments that are greater than $12, you would pay a lower processing charge by accepting the payment into the account set with the 2.9% + $0.30 rate.

If you wish to leverage PayPal’s micropayments pricing, please open a new browser window and paste the link below into the URL field to open your new PayPal account with micropayments pricing of 5% + $0.05.

http://www.paypal.com/activate_micropayments_5pct_plus_5cents_new_account_pricing

If you have further questions about the micropayments pricing, you can send questions to: micropayments@paypal.com