Paypal´s move to raise transaction fees causes panic
The payment processor´s move could mean the end for many smaller businesses.

Small business owners will struggle with their payments as online transaction platforms Paypal Holdings Inc (NASDAQ: PYPL) and Venmo decided to increase their transaction fees. These new changes will take effect on July 20th. So it is now up to the small businesses to think about whether they can handle the increase or whether they are going to take a terrible blow. Online transactions have taken control of the business world. Customers and companies use this for payment processing. Small businesses hope so too. In addition, these platforms connect people all over the world. At the end of this month, PayPal's transaction fee will be 3.49% and 49 cents. And for Venmo it will be 1.9% and 10 cents. So to make it clearer, if a transaction is made for $ 500, PayPal will charge the seller about $ 18, and with Venmo's fees, the seller will have to pay a little under $ 10. The increase in transaction fees is becoming a massive headache for small and local businesses as most of their payments depend on these platforms. Now they have to pay more out of their pocket to meet the new changes from PayPal and Venmo. Elevated Customs Inc owner Caridad Marrero said that taking the loss will not be a problem for these business owners. But it will force them to raise their selling prices, which they don't want. The small business owners want to offer services at low prices with unique quality. Marrero added that her store also uses PayPal and Venmo as payment options for her customers. Here is the comparison between PayPal, Venmo and other providers. Wallethub charges around 1.5% to 3.5% for a transaction. Merchants pay a specific price based on numerous factors such as the payment processor and the card issuer. Once these transaction fees go into effect on July 20th, small businesses will decide how to deal with this issue without incurring a loss or harming customers.





