PayPal fees usually don't seem like a big deal when you pay them. After all, these fees may only be a few dollars. If you're paying these fees over and over again, however, you're going to wind up spending quite a bit.
Fees are how PayPal makes its money, which means they aren't going away. With that said, you'll be able to save with these tips on reducing PayPal fees.
Track Your Fees Carefully
Can you say how much you're spending on PayPal fees each year? How about each month? If you have no idea what your fees are, you'll want to start keeping track of them.
There are types of financial software that can integrate with PayPal, making tracking fees a breeze. If you'd prefer not to invest in software, but you'd still like to track your fees, you can start tracking them in a spreadsheet. Once you get in the habit of tracking your fees, it will feel second nature to you.
Start Deducting PayPal Fees on Your Taxes
If you do keep track of your fees, you'll have more options for recouping those costs. As an example, you could claim your PayPal fees on your taxes. These fees are a business expense, which means there's no reason not to claim them.
If you're a small business owner, tax season might be tough on you. However, if you're able to add to your total deductions, you can reduce what you owe.
Include PayPal Fees In Your Prices
Another benefit of tracking PayPal fee is that it will give you the information you need to include them in your average prices. Since PayPal fees aren't prohibitively expensive, this won't lead to significantly higher costs for your customers. However, since you won't have to pay these fees time and time again, you'll be spending a lot more.
Likely, some of your competitors are already including PayPal fees in their prices. It will be easier for you to keep up with your competitors if you do the same thing. When you're setting your prices, you should keep PayPal fees in mind.
Use a Fee Calculator
If you'd like to get a better sense of what PayPal fees will be ahead of time and find ways to avoid PayPal international fees, a fee calculator can be a handy tool. With a calculator like this, you can see what your fees are likely to be before you have to pay them.
A fee calculator is great if you're charging a client for something that doesn't have a set price. You can use the calculator to figure out the fee and include it in your price. You can also use a calculator like this to decide if it's worthwhile to use PayPal Friends and Family.
Use Friends and Family With Caution
If you don't want to pay PayPal fees at all, Friends and Family may seem like an appealing option. With that said, you're giving up a lot of protection if you choose Friends and Family for a transaction.
If you're working with someone you trust, there will be minimal risk to using Friends and Family, which means you can take full advantage of it without having to worry. If you're working with a client, you don't know well. However, Friends and Family is better for both of you.
Be Smarter When You're Transferring Funds
There are fees associated withinternationally transferring funds on PayPal, but these fees aren't mandatory in many cases. If you're paying fees to transfer money to your bank account -- or PayPal -- you should try to change that.
An instant transfer is necessary in some cases, but most of the time, you can wait for funds to transfer normally. If you have a PayPal cash card, it will be even easier for you to avoid the instant transfer options that PayPal offers. You'll be able to get the money you need when you need it, and you won't have to pay fees.
Make sure that PayPal fees aren't costing you too much. Once you have a better sense of how much you're spending on fees, you can search for ways to bring your total costs down. If PayPal fees hurt your bottom line, it's time for you to make a few changes.