If you are processing payments that are less than $12.00, PayPal MicroPayments accounts have a different fee structure that can save you thousands!

In this article we will quickly discuss what PayPal Micropayments are and how they work.  You will gain an understanding of how you can utilize this feature for yourself or your clients who may be selling low dollar items.

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What are PayPal MicroPayments?

A micropayment in general is a low dollar transaction.  For example, maybe you are selling $1.00 MP3 downloads on your website.  This could be considered a micropayment.

Payment fee structures, including PayPal’s, do not work well with micropayments because they often include a one-time transaction fee that is a large percentage of such a small payment.