If we’ve approved your PayPal account for Dynamic Micropayments (also known as Dynamic Pricing), then we automatically apply either the Micropayments rate or the applicable higher value transaction rate to each transaction processed through your account. This is based on whichever rate results in the lowest fees to you for that transaction. Eligible Micropayment transactions consist of PayPal Checkout, Donations, Standard Credit and Debit Card Payments, and Goods and Services Payments. Not all payment types are eligible for Micropayments pricing. 

For more information on PayPal's Micropayments rates, please visit our Fees page.

Example of how Dynamic Micropayment pricing works:

What is the benefit of dynamic micropayments pricing?

Once enrolled for dynamic micropayments pricing, you’ll receive either the Micropayments rate or the applicable higher value transaction rate for eligible payment types based on whichever is the most favorable rate for the transaction amount. The calculation happens instantly at the time of the transaction. Generally, merchants who have frequent smaller transactions ($26.67 USD or lower for commercial transactions, and $19.05 USD for donations transactions) would benefit from dynamic micropayments.

How will I know if you’ve turned on dynamic micropayments pricing for my PayPal Business Account?

Your enrollment request will take up to 2 business days. Once you start to receive payments, you can check the Activity Download report (available online) and review the fee information. Not all payment types are eligible for micropayments pricing.

Which merchants are eligible for dynamic micropayment pricing?

Merchants who signed up for a business account directly with PayPal are eligible for dynamic micropayments pricing. This excludes business accounts created through a third-party platform and Personal accounts. In addition, merchants already on custom pricing can’t enroll for dynamic micropayments.