I am the only employee of my business, and my team members all work as independent contractors. I also put this feature to use when paying my team. You can see what a massive difference this flat-fee rate makes! And even if you’re invoicing clients for a $100 blog post, it all adds up. What’s 2.9 percent of $10,000? $290! For just one client, we could pay nearly $300 in fees each month.įor invoices of $1,000, PayPal’s standard fee would mean $29 less in our bank account. Socialexis, my blog-management company, invoices clients monthly for payments up to $10,000 (that’s PayPal’s limit, by the way). I’ve used PayPal Business Payments for years, and it has saved my company - no exaggeration here - thousands of dollars. My own experience with PayPal Business Payments It looks like ZoHo offers the 50-cent option, but Quickbooks - a popular accounting software - does not in fact, Quickbooks doesn’t offer PayPal payment at all. You’d assume PayPal offers the feature to people who use their invoicing service, but on their invoicing signup site they only reference their fee of 2.9% + 30 cents per transaction, and there’s no mention of the flat-fee option on their fees page. But I can’t seem to find any information from PayPal itself on the feature, nor a comprehensive list of invoicing services that offer it. Freshbooks explains this is a pilot program that began in 2011, and Harvest says it’s only available for invoices with U.S. For the last year or so, I’ve been sending freelancers to Carrie Smith’s post on the 5o-cent flat-fee option.įreshbooks has a good explainer about how to set up PayPal Business Payments in their system, and Harvest has some information on their site about it as well. Shockingly - or perhaps not-too-shockingly, since PayPal wants you to pay high fees - it’s difficult to find much information online about how PayPal Business Payments work. Either because you’ve been paying high fees all along and you’re now calculating just how much money you’ve lost, or because you’ve long used this feature and can’t believe any freelancer would be able to live without it. If you select this option when invoicing clients through Freshbooks or Harvest, you will pay only a flat 50-cent fee for each transaction, rather than the typical 2 or 3 percent. PayPal’s fees have a way of emptying freelancers’ pockets.
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