Avangate eliminates PayPal fees on payments

I recently switched from Plimus to Avangate as my primary order processor, because Avangate has much better support for Japanese.

I receive my payments to my PayPal account, but when I started getting payments from Avangate, I noticed that PayPal was charging me a fee of around 3.9% of the payment. I never had this fee with Plimus, and needless to say an added 3.9% fee made Avangate pretty uncompetitive cost-wise, so I contacted Avangate and asked them what the story was.

After a bit of a delay and some back and forth, including me sending them screen shots of my PayPal page showing the fee for Avangate and no fee for Plimus, Avangate responded that they had changed their payment method to “mass payments,” and will cover the cost of transfer from now on. From their email to me:

We are currently using the PayPal service called „Send Money” to transfer the revenue to our partners and the commission is paied by the person receiving the amount.

Plimus was sending you the money through „Mass payments”, where the transfer fees are lower and they are paied by the sender.

We are willing to use this Mass payments service for your company, so there will be no cost at all for you when the monthly transfers are taking place.

The upshot is that I’ll no longer have the 3.9% PayPal fee charged for my payments from Avangate, and I’m a happy camper again.