PayPal is a highly effective and efficient tool for processing payments online. Unfortunately, if you use PayPal regularly, the fees associated with it can be a big problem. If you’ve struggled with the PayPal fees structure in the past, and you’re looking for a solution, these are a few effective tips that you’ll want to keep in mind.
When Possible, Choose to Be Paid Less Frequently
If you’re paying fees every time you receive a payment on PayPal, you’ll want to try to change your payment schedule if you can. If it’s possible for you to combine several payments into one, you should do exactly that. It can reduce the number of fees you’ll pay overall, which can save you money. Using an online PayPal calculator can help you to cut down on these fees.
Many people assume that the total amount they’ll spend on fees will be the same regardless of the number of payments they receive. However, that isn’t actually the case. You can calculate PayPal fees at PPCurrencyConverter.com to know the total amount you will be spending and you’ll find that fees will be much lower if you’re able to bundle several payments into one.
Request Friends and Family Payments
Asking for a Friends and Family payment won’t always be an option. This payment method doesn’t provide the same kind of protection that other types of payments do, which means that people won’t use this method in many cases.
However, if you’re requesting payment from someone that you work with regularly, and if you’ve managed to build a trusting relationship, the two of you may agree to Friends and Family payments. This allows you to skip the fees entirely, which can save you a great deal.
Find the Best Way to Remove Funds from PayPal
What method are you using when removing funds from your PayPal account? The method you’re using may be causing you to pay extra fees. Ideally, you’ll want to use one of two methods when funds are being withdrawn from your PayPal account.
One option worth considering is to transfer these funds to your bank account. Typically, the funds will appear in your account in 1-3 business days. Alternatively, you can request a PayPal Cash Card. This card will work like a debit card, and you can use it to spend the money in your PayPal account.
Take Advantage of Accounting Software
The right accounting software could help you to use PayPal more effectively. Because PayPal is so widely used, it’s easy to find software that will help you assess how you are using PayPal and make changes as necessary. Using software could save you time and money.
If you’re not using accounting software right now, you’ll likely find it to be a worthwhile investment. Learn more about the types of software available to you. Look for highly-rated software that includes options for PayPal users.
Include Fees In Your Prices
If fees are really adding up with you, why not just add them to your prices? Increasing your prices slightly isn’t likely to have a massive impact on your total sales, and it can reduce the impact that fees have on your finances.
Figure out what fees you’re paying when you receive payments. From there, alter your prices slightly to include these fees. You’ll still be paying fees to PayPal, but this time, your customers are going to be the ones covering the cost, not you.
Deduct PayPal Fees On Your Taxes
If you keep track of your PayPal fees throughout the year, you may actually be able to claim them on your taxes. If these fees are for payments you’re receiving for your business, then the fees can be classified as a business expense.
Many freelancers wind up owing a great deal of money on their taxes, which is why being able to claim expenses on their taxes can be extremely valuable. Track all of your fees throughout the year so that you’ll be able to claim these expenses on your tax return later on.
Explore Other Options
It’s important to remember that PayPal isn’t the only option that’s available to you. There are also several other sites that can be used to process payments, and you may find that some of these other sites have more reasonable fees than PayPal.
This doesn’t necessarily mean that you should abandon PayPal. It’s one of the most popular tools for payment processing in the world, and avoiding it entirely could put you at a disadvantage. You should learn more about the various options available to you and see if you could be better off using other payment processing tools in some circumstances.
If you’re struggling to deal with the PayPal fees structure, you’ll want to make sure you keep all of these tips in mind. PayPal is popular for a good reason, but the fees can be a source of stress. With this advice, you’ll find them easier to manage.