If you’ve used PayPal to receive money online, you’ll know that PayPal charges the transaction fee to the recipient — you. For each transaction that you process through PayPal, it charges you 1.9% to 2.9% of the transaction amount.
Before, I didn’t really think much about how much PayPal charges for every transaction that I process through them. However, after a year or so of doing business online, I realized that I’ve already paid PayPal a few thousand bucks. It’s not that PayPal doesn’t deserve the transaction fee that I am paying them to receive money — it’s just that I’d be happier if I am paying less. If you feel the same, then today is a happy day for both of us because I just found a way to receive money via PayPal for free. It’s called PayPal Mass Payment.
What is Mass Payment?
Mass Payment allows a PayPal account holder to send payments to multiple recipients payments instantly. It’s primarily designed for ‘non-sales’ related payments, such as affiliate commissions, rebates, prizes, and incentives.
What’s so good about Mass Payment?
If you’re the recipient, you pay no fees. That’s right, it’s free. Compare that with the regular PayPal payment method where you — the recipient — has to shoulder the transaction fee.
If the recipient doesn’t pay the transaction fee, who does?
The sender does. The transaction fee is very low for Mass Payment. It’s 2.0% of the payment amount, with a cap (maximum fee) of $1.00.
I bought a domain name for $335 and used Mass Payment to send my payment. Yes, I had to pay $1.00 for transaction fee, but it saved my seller around $13.00, which made him quite happy.
What do I need to use Mass Payment?
If you’re the sender, you need a Premier or Business PayPal account to be able to use Mass Payment. You also need an ounce of patience as sending payment using this method requires some work.
Is there anything else that I need to know?
There’s just one downside to using Mass Payment — no buyer (sender) protection. Unlike the regular payment method in which the buyer can reverse the payment or do a chargeback (after, for example, receiving a faulty product), Mass Payment offers no protection for the sending party. No worries though if you are sending the payment to a trustworthy recipient.
To learn more about the steps for sending Mass Payment, visit the PayPal Web site.
Tags: mass payment, paypal