Guest Post: Exactly how much does PayPal screw the average small business owner out of?

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The proliferation of PayPal continues to amaze me. This company makes banker scum look like choir boys. The fees they charge are nothing short of astronomical and the initial merchant fees you pay are just the tip of the ice berg. You might ask me why I even use PayPal; well it’s certainly not by choice. The standard merchant accounts have all rejected my “high risk” product, cosmetics, as if I were selling high capacity magazines and assault rifles; but that’s a topic for a whole other article.

So what does an average transaction look for me before I see cash in hand? Let me walk you thorough it, but first I need to explain why I can’t just withdraw directly to my bank account (PayPal’s many lucrative side scams). Even though PayPal’s user interface would suggest that I could link up any European bank account with an IBAN, the EU country where my bank happens to be located isn’t allowed for completely unknown and unexplained reasons (just try getting a straight answer out of PayPal’s retarded Indian call centers). So to add insult to injury I must withdraw to a debit card which entails even more fees and a maximum transaction limit of 500 EUR.

So let’s get back to that example transaction:

  1. I sell 500 EUR worth of product.
  2. Right off the bat PayPal rams it right up my ass for 23.25 EUR or 4.65%, an outrageous sum for a merchant fee. A fair rate for a merchant account is around 2.5%-3.0% (Stripe charges 2.9% flat, for example).
  3. Now I have to withdraw to my card, a 2.50 EUR flat fee applies which amounts to another 0.5% if you max out the transaction at 500 EUR
  4. Now my bank fucks me out of an addition 4.60 EUR (0.92%) because I’ve been forced to withdraw through a card instead of a direct deposit which would be free.
  5. In the end the PayPal ass-widening amounts to 30.35 EUR or a whopping 6.07% of the total. I see less than 470 EUR of my 500 EUR sale.

If PayPal isn’t a criminal asshole company I don’t know who is. But there are other creative ways they fuck their “customers” as well. For example an astronomical 3.36% conversion fee to convert USD to EUR while at the same I could do this easily in any bank or store front currency exchange for 1% or less. Or my favorite, a 0.5% fee to send a PayPal balance to another PayPal account (no currency conversion, no withdrawal). Literally no transaction has even taken place here, just some ones and zeroes shuffled around on some far away PayPal server and these subhuman cockroaches are skimming off 0.5% for that.

The moral of the story here is do not use PayPal ever if you have any other option. Take every opportunity to spread the word about how badly this company screws consumers. You may be thinking “I don’t care I’m just a buyer,” but don’t use retarded liberal #FightFor15 logic, if the seller incurs costs whether they are high fees from PayPal or high “minimum wages” you can be sure they are included in the price of any product you buy. Remember every time you purchase something from a seller that accepts PayPal that 4.65% of your purchase (or more) goes directly to the scumbags at PayPal rather than to pay for the products you’re buying. 4.5% adds up, imagine if every purchase you made went through PayPal. What do you spend in a year? 25,000 EUR? That would be 1,125 EUR wasted on PayPal.

Let’s all help put these motherfuckers out of business by using more fairly priced alternatives, whenever and wherever possible.

Editor’s note:

This article probably should have also documented PayPal’s habit of randomly locking accounts “for your security.” There are thousands of documented cases of this on sites like What this means in English, of course, is helping themselves to an interest free loan from your money or perhaps even stealing it outright. The honest thing to do if there was a true question of security would be to reject the incoming payment and credit it back to the bank account or credit card that it came from. They often do not do that but instead lock the funds up for months. Fuck PayPal!

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