How to Reduce Paypal Fees

Paypal fees are quite irritating. Not only do you receive fees for receiving money, you can also get a fee for withdrawing money to your bank account. If you need to refund someone's money for any reason, you better tack on several cents to cover the receiver's fees as well. Although Paypal provides a safe and secure way to purchase goods online, the fees are annoying. This article will help you reduce those Paypal fees and possibly even eliminate them.

Difficulty: Moderately Easy

Instructions

1. Ask for payments in bulk. Most people already have a Paypal account, so this article will start with that existing account. If you receive payment every week from someone, request money every two weeks or once a month. Not only does Paypal get a one-time fee for every transaction, they also get a percentage of your received money. This gets rid of some of the one time fees.

2. Request money to be directly deposited by electronic transfer to your bank account. There are certain methods to withdraw money that cost nothing. There are others that come with a fee. For example, asking for a paper check comes with a fee. Electronic transfers have no Paypal fees.

3. Apply for a Paypal debit card to receive instant cash for no fee. Electronic transfers are great, but the money does take about three days to arrive in your account. If you want money immediately, without the fees, get a Paypal debit card.

4. Set up a new account without upgrading to a business or premier account. If you still can't stand the receiving money fees, set up a brand new Paypal account. This time, don't upgrade to a premiere. Although it states that your withdrawal limit is $500.00 per month, you can contact customer support and have that limit removed.

5. Use your personal account to receive money, and your premier account for sending money. If you still want to use your old account, use it to only send money to others. Your new personal account can receive money for you with no fees.

Tips & Warnings

• If you don't currently have a Paypal account, begin with a personal account and never set up a premiere.
• Don't discount small fees. Over time, those small fees add up to big numbers.

[tdecker81]

on 11/11/2009 gr8pop - Currently paypal will give you 1% cash back on all debit card purchases run as credit at the checkout.

Source: http://www.associatedcontent.com/article/2358400/how_to_reduce_your_paypal_fees.html?cat=46

[gr8pop]

on 11/10/2008 Hi, I have a question about "Step 3". Can you please explain how having a PayPal debit card enables receiving cash without fees. I'm a Premier Account holder, and I have the PayPal debit card. Thank you!!

John