What are micro payments?
Merchants disliked micro payments before PayPal payments made them a better option. Credit card merchants offer businesses accounts to process their credit card payments. There is a fee for this service, which is high for small payments. If you charge a few dollars on a credit card, for example, the fee for processing wipes out much of that charge, leaving you with little profit. High fees make life difficult for low-value-transaction businesses. This is where micro payments PayPal come in. You receive a better merchant rate through PayPal for any transaction below $10 when you use the micro payments service, which you use with your digital download service, like PayLoadz.
How Do the Payments Differ?
Micro payments PayPal differ regarding the percentage rate and fee. The rate for micro payments is 5 percent plus 5 cents. The regular rate is 2.9 percent plus 30 cents. The percentage rate is higher, but the rate is lower. When you look at the payment size, you can see the true difference. If you have a payment size of $2, your cost to receive that payment will be 15 cents with micro payments and 36 cents with regular payments. If you receive 100 payments, you’ll be charged $15 and $36 respectively. This fee option works with all types of micro payments PayPal solutions, including express checkout, “buy now” buttons, website payments pro, and to send or request money.
Key Benefits of Micro Payments PayPal
The key features of micro payments PayPal are the same as you would find with the typical merchant PayPal account. If you sell digital goods, PayPal can be the answer for you. You still benefit from increased conversion rates, and it allows a seamless transition between digital goods purchases and the final sale. PayPal can also increase your profitability similar to the way micro payments work. You earn more from lower transaction payments. PayPal security is also often better. PayPal is like a bank, so there are regulations it must follow to ensure there is no fraud. Your payments account can also work with international markets, helping you gain a global following for your digital goods.
Micro Payments Through Other Alternatives
Payments can be made with other programs on the Internet, and other micro payments solutions exist other than PayPal. But you won’t find an alternative that has a bigger consumer following. PayPal works well for all types of payments, not only ones linking directly with your site, but also ones going into the PayPal account directly to make or receive payments for digital goods.