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New Paypal fees in the Philippines


Sellers from the Philippines using Paypal will have to pay higher fees starting today, September 10, 2013. The Policy Update announced by Paypal last month takes effect today, paving the way for an increase in fees affecting commercial payments.


Honestly, the revised fees shown in Paypal’s latest Policy Update seems to be a bit confusing for most users. We’ll try to simplify the table and briefly explain how it will impact Paypal users.

First things first: in cases of “commercial payments”, Paypal fees are charged only to sellers or merchants. Buyers who are using Paypal online purchases will not be deducted any fees. PayPal sellers are the ones charged a fee each time a transaction is completed.

“Personal payments” are charged separately. Scroll down to the latter section of this article for details on “personal payments”.

Paypal Fees in the Philippines — Regular Commercial Transactions

First, let’s talk about Paypal fees for regular commercial transactions. Below is a table summarizing the revised fees charged to Philippine-based sellers.

New Paypal Fees -- Regular Commercial Transactions

DOMESTIC PAYMENTS Paypal Fee
Standard Fee 3.9% + PHP 15.00
eBay Transactions Fee 3.4% + PHP 15.00
   
INTERNATIONAL PAYMENTS  
Standard Fee 4.4% + PHP 15.00
eBay Transactions Fee 3.9% + PHP 15.00

Domestic payments are payments from users within the same country, in this case, the Philippines. International payments are payments from users in another country.

Example of Paypal fees charged to Different Transactions

If you are a Philippine-based merchant selling a product (outside eBay) worth P1,000, you will be charged 3.9%+PHP15.00 or total fees amounting to PHP54.00 — if the buyer is from the Philippines.

Thus, the net amount you will receive from the sale of a P1,000 product is PHP946.00.

Here are the fees charged to other cases of commercial transactions:

  • 3.4%+PHP15.00 for sellers on eBay (eBay owns Paypal, that’s why rates are lower) if buyers are from the Philippines;
  • 4.4%+PHP15.00 if payments are from abroad (international payments).

If the transaction is done on eBay and the buyer is from another country, the international eBay payment fee of 3.9%+PHP15.00 applies.

Here’s an example of an International payment on the eBay website:

A Philippine-based merchant selling a product on eBay worth P2,000 is charged a Paypal fee of 3.9%+PHP15.00 or a total of PHP93.00 — if the buyer is from abroad (outside the Philippines).

Thus, the net amount you will receive from the sale is PHP1,907.00.

Discounted Merchant Rates for Qualified Sellers

Paypal offers discounted rates for qualified merchants. These “Merchant Rates” apply to members in good standing (whose accounts are not currently under investigation) and who received more than PHP150,000.00 in PayPal payments in the previous calendar month.

Qualified users have to apply first in order to be granted the discounted “Merchant Rates”.

Here is the discounted fees table applied to qualified merchants.

New Paypal Fees -- Discounted Merchant Rates

DOMESTIC PAYMENTS Merchant Rate
Merchant Rate From 2.9% to 3.9% + PHP 15.00
Merchant eBay Rate From 2.4% to 3.4% + PHP 15.00
   
INTERNATIONAL PAYMENTS  
Merchant Rate From 3.4% to 4.4% + PHP 15.00
Merchant eBay Rate From 2.9% to 3.9% + PHP 15.00

The increase in Paypal fees also becomes effective today for users in other Asian countries such as China, Hong Kong, India, Indonesia, Malaysia, Singapore, Taiwan, Thailand and Vietnam. The rates are the same as in the tables above. The only difference is the fixed fee charged which varies per country (this is PHP15.00 in the Philippines).

Definition of “Commercial Payments”

The new rates above affect online commercial payments. According to Paypal, “commercial payments” include the following:

  • Payment for the sale of goods or services;
  • Payment received after the Seller has used the “Request Payment” tab on the PayPal website; or
  • Payment sent to, or received by, a business or other commercial or non-profit entity.

Paypal Fees for Personal Payments

Personal payments, on the other hand, are charged 3.4%+PHP15.00 in the Philippines.

Personal payments are payments made mainly to individuals as opposed to businesses, for example, splitting the cost of a birthday gift or paying back a friend for lunch.

The fee may be paid either by the sender or the recipient of the Personal Payment. In most instances, the sender will determine who pays the fee.

Must read these other related, useful articles!


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5 thoughts on “New Paypal fees in the Philippines”

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  3. Carlo Borja says:

    Paypal, albeit convenient definitely has a higher rate than a lot of other payment methods. For freelancers and remote workers who do not want to get charged that much, it’s definitely worth considering other payment methods.

    For example, here are 5 other ways that are cheaper than Paypal:
    http://biz30.timedoctor.com/5-ways-send-money-offshore-workers-cheaper-paypal/

    They might come with more steps (less convenient) but you will get charged less.

    1. Yemcy Gomez says:

      Good point Carlo and I tell you that I actually did try using time doctor’s tracking software like you suggested in this post and my site was having a minor issue with the template so I have to now get a professional site developer to fix it. I heard it was good so once this is fixed i’ll keep you updated on the results.

    2. Carlo Borja says:

      Hi Yemcy. Which template is your site having an issue on? Does it have anything to do with Time Doctor?

      You can go to Time Doctor’s support if that’s the case: http://support.timedoctor.com/support/home

      Let me know. I am also interested in knowing that issue.

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