Paypal is one of the best known options for all new and small startup companies with low sales volumes. Key benefit is the quick setup, brand trust and multicurrency options.
Setup fee: Nill
Transaction fee: 3.4% + 45 cents
Paypal is understood and trusted by the majority of international customers, and they now support 10 new currencies including NZ$ and AU$.
Many customers may have a Paypal balance already, and may wish to use that to pay you.
The transaction fees are low starting at 3.4% + 45 cents (discounted after $5000 turnover) and the setup fees are almost non existant. However there is a small fee for making withdrawals to your bank account of less than $150, and an additional 2.5% on any currency conversions.
The process to setup paypal can be completed within a few minutes of registering on their website. All you need to do is to load your paypal email address into our shopping cart setup page.
One anoyance of Paypal is that you have to specifically login to their system to withdraw you funds. Where as most other payment gateways or merchant accounts will deposit your funds into your bank account overnight (or within a few days)
Another anoyance, you don't officially have a merchant account, and Paypal tends to preference the card holder in any fraudulent transactions... This means you could have a refund forced upon you after shipping goods, with a difficult process to hold those funds.
Premier/Business Account Rates
|Monthly Sales||Price Per Transaction|
|$0.00 NZD - $5,000.00 NZD||3.4% + $0.45 NZD|
|$5,000.01 NZD - $15,000.00 NZD||2.9% + $0.45 NZD|
|$15,000.01 NZD - $150,000.00 NZD||2.7% + $0.45 NZD|
|> $150,000.00 NZD||2.4% + $0.45 NZD|
|Flat fee will be charged as follows: $0.45 NZD for payments in New Zealand Dollars.
If your transaction involves a currency conversion, it will be completed at a retail foreign exchange rate determined by PayPal, which is adjusted regularly based on market conditions. This exchange rate includes a 2.5% spread above the wholesale exchange rate at which PayPal obtains foreign currency, and the spread is retained by PayPal. The specific exchange rate that applies to your multiple currency transaction will be displayed at the time of the transaction