There are a lot of benefits to using PayPal, but there are also some significant drawbacks. One of the most frustrating things about PayPal is covering the fees. International fees can be costly, especially when you’re paying those fees over and over.
If PayPal international fees have been eating into your profits, you should know that you have options. With these tips, you’ll be able to pay fewer fees while continuing to enjoy the many benefits that PayPal offers.
Invest In Accounting Software
It will be easier for you to find opportunities to save on PayPal if you find out more about paying fees and how much you’re paying. With accounting software, you’ll be able to get a better sense of what these fees are costing you. Once you have that information, you’ll be able to adjust your strategies.
While accounting software will usually require you to make up front purchases, you should recoup the money you spend. There are many options available to you, so you’ll be able to find software that meets your needs. Ideally, it would help if you tried to find software that you can integrate with PayPal. That way, it will be easier for you to track things like fees.
Include PayPal Fees In Your Prices
While there are plenty of ways to avoid PayPal, you may also want to consider strategies that would make these fees more manageable for you. Take the time to calculate your PayPal fees by using a PayPal transaction fees calculator. Once you know what these fees are costing you, you can adjust your prices and pass PayPal fees along to your clients.
Bundling PayPal fees into your prices won’t require you to make significant price increases. In many cases, you’ll only be increasing your fees by a few dollars. However, because PayPal fees can add up fast, passing fees along to clients could lead to significant savings for you. Look into raising your prices and see if this is feasible for you.
Fund Payments From Your PayPal Balance
In some cases, you won’t be able to avoid fees entirely, but you will be able to reduce the fees you pay. If you fund PayPal payments from a credit or debit card, you’ll be subject to higher international payments fees. If you fund payments from your PayPal balance, however, you’ll be able to pay lower fees.
It’s easy to keep money in your PayPal account so that you have money available for payments. You may even want to obtain a PayPal debit card. That way, you’ll be able to treat your PayPal account more like a bank account. If you use PayPal regularly, keeping money in your balance could pay off for you in a big way.
Ask Clients To Combine Payments
If you’re paying fees over and over again, you’re going to wind up spending a lot more in total. That’s why you should try to talk things over with clients to see if payments can be combined. If a client is paying you once a week, for example, you may want to ask them to switch to monthly payments instead. You’ll still be paying PayPal fees, but because fees are often capped, you’ll be spending much less.
Not all clients will be willing to combine payments, but if you have a long-term relationship with a client, you may be able to agree. It would help if you also kept this in mind when you’re taking on new clients. Work to find a payment structure that makes financial sense for you.
Request Friends And Family Payments
If you have a very positive relationship with a long-term client, you may be able to avoid standard PayPal payments entirely. If you opt for friends and family payments, you won’t be subject to the same fees you would normally have to cover on PayPal. This is one of the best tips to avoid PayPal international fees.
When you choose Friends and Family payments, you won’t have the same protections that PayPal normally offers. Because of this, you may not want to use this with all of your clients. You should only use Friends and Family payments with long-term clients that you know you can trust.
Claim PayPal Fees On Your Taxes
In some cases, you may be able to claim PayPal fees on your taxes. This is another effective way to recoup some of the money that you’re spending on PayPal fees. If you find the right accounting software, it will be easy for you to track the PayPal fees you pay throughout the year.
If you’re a business owner, you’ll benefit greatly from reducing the taxes you own. Even if you’re paying PayPal international fees, you’ll be able to save money later on. If you pay your taxes every quarter, it will be even easier for you to recover what you’ve spent.
Use Other Payment Processors For International Payments
If PayPal fees are costing you a lot of money, you may want to explore some of your other options. There are many different payment processors out there, and some have very reasonable fees for international payments. It’s a wise idea to compare some of your options and see which payment processors have the most reasonable fees.
While using more than one payment processor may seem like a hassle, it may not be much of an issue. If you only use the alternate payment processor for international payments, you’ll be able to save money and keep track of payments. Accounting software will make it easier for you to use multiple payment processors for your business.
PayPal international fees can be a big expense, which is why you should look for ways to make those fees more affordable for you. As you can see, you’ll have several options if you want to reduce what you’re spending on PayPal fees. Keep these tips in mind and find the best ways to pay fewer fees on PayPal.