How To Avoid PayPal Fee--Use PayPal Mass Pay.

how to save money/avoid paypal fee

If an account's monthly sales between $0 USD-$3000 USD, PayPal charges 2.9%+$0.3 per transaction. Assume I purchased $500 supplies from a supplier and his/her rate is 2.9%+$0.3, $14.5 would to to PayPal.

What if PayPal only charges me $1 flat rate and does not charge fee to the suppliers account? Then I can negotiate with the supplier to get $14.5 off which saves me $13.5.

How to avoid PayPal fee? The answer is Use PayPal Mass Pay. Below is the step by step instruction (on Windows XP).

1. Prerequisition.

a) Mass pay can only be sent from Business or Premier accounts. Not personal accounts.

b) Mass pay can only be sent from PayPal balance. Not from credit cards or bank accounts. Your PayPal account must have sufficient funds to cover the Mass Payment and fees.

Also, Paypal does not charge incoming payments from balance to personal accounts, so if you pay someone with personal account just send normal payment, its free.

2. Click "start"--"All Programs"--"Accessories"--" Notepad" to open a new notepad window.

3. Type the following infomation, separated by tabs (use tab key, not spaces).

a) payee's email (i.e. payee's PayPal ID), b) payment amount, c) the three-letter code for the currency in which the payments will be sent:

  • EUR for Euro
  • USD for U.S. Dollar
  • GBP for Pound Sterling
  • CAD for Canadian Dollar
  • JPY for Yen
  • AUD for Australian Dollar
  • NZD for New Zealand Dollar
  • CHF for Swiss Franc
  • HKD for Hong Kong Dollar
  • SGD for Singapore Dollar
  • SEK for Swedish Krona
  • DKK for Danish Krone
  • PLN for Polish Zloty
  • NOK for Norwegian Krone
  • HUF for Hungarian Forint
  • CZK for Czech Koruna
  • MXN for Mexican Peso
  • ILS for Israeli New Shekel

4. Save the text file. Remember where it is saved.

5. Login PayPal. Scroll down to the bottom. Click on "Mass Pay" link.


Then click on "Make a Mass Payment" on next page.


6. Browse you PC, select the mass payment file you saved in step 4. Choose "Email address" in "Recipient Type". Enter Email subject and message. Then click "Continue".

7. This is the screen shot of a real transaction. The fee is $1. Click "Send Money" to send payment.


8. Done. The PayPal recipient has now received payment and it only cost you $1 in fees.



This product was added to our catalog on Monday 23 February, 2009.

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