PayPal offers support for Micropayments to merchants for US to US, GB to GB, AU to AU, and EU to EU transactions for Business and Premier accounts. This feature is offered at a special rate of 5% + $0.05 per transaction.
Merchants who wish to use PayPal's micropayments pricing need to open a new PayPal account through this account registration page.
Merchants who receive both macro and micro payments should maintain two separate accounts:
- An account to apply their standard rate to macropayments.
- An account to apply the micropayments rate to their micropayments.
Each PayPal account is associated with only one merchant processing rate. That rate determines the fee that's applied to funds received into that account (additional information on PayPal's Standard Fees is available here). For example: if your Premier/Business account rate for receiving funds is 2.9% + $0.30, using PayPal's 5% + $0.05 micropayments rate would reduce the total transaction fee charged to payments received below the value of $12 (per payment). However, if you accept payments that are greater than $12, you would pay a lower processing charge by accepting the payment into the account set with the 2.9% + $0.30 rate.