Paypal Micropayments Integration

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Original Post

I don't know how many of you know this (they kind of keep it hidden), but Paypal's regular fees of 2.9% + $.30 are not the only fees you can choose for your account. They also have an account called Paypal Micropayments, which has a fee of 5 cents + 5%. This is to allow users to sell very low priced items without half of the profit going into fees. Micropayments is cheaper for purchases under $12.

For example, if you sell a $1 item, normally your fees would be 33 cents. That's a third of the price! With Paypal Micropayments, the fee would be only 10 cents. Huge difference! However, you can't have Micropayment and Regular pricing on the same account, so you have to use two Paypal accounts to do this. Learn more here:

It would be overwhelmingly beneficial for Etsy to allow us to enter both a Micropayment email and a Regular email when setting up our Paypal integration. Then Etsy's backend can send orders under $12 to the micropayment account, and orders above that to our regular account.

I know this is possible, as I have seen some other online shop communities offer this. It would be a wonderful way to save Etsy sellers a huge amount of money, which we could then put into listing more items! ;)

Posted at 10:09 am May 7, 2010 EDT



Posted at 10:13 am May 7, 2010 EDT

I don't think this would be difficult to integrate, so hopefully Etsy takes a look at least!

Posted at 10:19 am May 7, 2010 EDT

it doesnt need to be integrated. that is something you have to do in your paypal acct. you have to change your acct to a micro-payment acct. do be aware that it does change the fees for all payments you receive, so if you receive a $50 payment, the fees will then be higher in $'s

Posted at 10:54 am May 7, 2010 EDT

and paypal doesnt allow you to have a regular and micro acct. , I dont think. you are only allowed one type of selling acct

Posted at 10:55 am May 7, 2010 EDT

oh, i guess they do allow 2 accts, if one is that micro. once they integrate the express checkout, then it may be possible

but, somehow, I dont think it is possible

Posted at 10:57 am May 7, 2010 EDT

see, the paypal TOU's do say you are only allowed 1 premier or business acct., so that page telling you to maintain 2 accts, conflicts with their TOU

2.2 Personal, Premier and Business Accounts. We offer three different types of Accounts: Personal, Premier and Business Accounts. You may only hold one Personal Account and either one Premier or one Business Account.

Posted at 11:09 am May 7, 2010 EDT

It's fine to have two accounts. The official micropayment page says so. I already have a micropayment and regular paypal account, linked through a parent-child relationship (you have to go through some hoops, but it's definitely do-able)

All Etsy would need to do is allow users to specify *both* their paypal accounts in Etsy setup, and include code to direct the payment to the correct account based on purchase price.

I know it can be done, as I'm doing it on my shop off of Etsy. :)

Posted at 11:28 am May 7, 2010 EDT

From the official Paypal Micropayments blog article:

"Therefore, if you sell items at both higher and lower values than $12, we recommend having two accounts – one set up with micropayments pricing for items less than $12, and one with PayPal’s regular merchant rate."

Posted at 11:30 am May 7, 2010 EDT

yes, but your off etsy site is just 1 business and it sounds like you may have an integrated cart. etsy does not, they only use paypal buttons.

and yes, i read that clip from the article. but, it conflicts with the paypal TOU. i would ask paypal to be sure

Posted at 11:33 am May 7, 2010 EDT

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