An In-Depth Look at the Fees for WePay vs. PayPal
Apr 18, 2023 By Kelly Walker

If you're an online business looking for a payment gateway to process customer transactions, it can be difficult to choose between two of the most common options: WePay vs. PayPal. Both offer easy setup and convenient integrations that make them ideal for a variety of e-commerce platforms. But which one is better in terms of fees? In this blog post, we'll take an in-depth look at the processing fees for both WePay and PayPal so you can have a better understanding of which one is more suitable for your business needs. Read on to find out what sets these two payment gateways apart and get valuable insight into choosing between them!

Overview of WePay and PayPal

WePay and PayPal are two of the most popular payment gateways available today. WePay is a specialized payment processor, tailored specifically to small businesses and nonprofits, while PayPal is one the largest online payment services in world. Both offer easy setup and integrations with various ecommerce platforms (such as Shopify, BigCommerce, and WooCommerce), making them ideal solutions for business owners looking to accept payments quickly and securely.

Comparing the Fees for WePay vs. PayPal

When it comes to fees, WePay and PayPal don't offer identical pricing structures. WePay charges a flat fee of 2.9% + $0.30 per transaction for US-based customers, while PayPal charges a variable rate depending on the country you're located in and the type of payment being processed (e.g., credit card or ACH).

For example, if you're based in the US and processing credit cards with PayPal, the fee charged is 2.9% + $0.30 per transaction (the same as WePay). However, if you choose to process ACH payments via PayPal, then the fee charged is 1%. As such, when selecting between WePay vs. PayPal fees, it's important to consider the type of payment you're processing and where your customers are located.

How to Calculate Transaction Fees with WePay and PayPal?

Calculating the fees charged by WePay and PayPal is a straightforward process. With both payment gateways, you can simply take the value of your transaction and multiply it by their respective processing rates. For instance, if you're processing a $100 transaction with WePay, then the fee charged would be 2.9% + $0.30 – which works out to be $3.20 in total. Similarly, if you're processing the same amount via PayPal, then the fee charged would also be $3.20 (assuming you're located in the US and processing credit card payments).

Exploring Additional Fees with Both Platforms

In addition to the processing fees, both WePay and PayPal also charge additional fees for certain services. For example, WePay charges a $20 fee for setting up an account, while PayPal charges users a $30 monthly maintenance fee. Additionally, PayPal also charges currency conversion fees when customers make purchases in currencies different from the one associated with the payment gateway's merchant account.

Understanding Payment Processing Timeframes for Both Companies

WePay and PayPal also differ in terms of payment processing timeframes. WePay typically takes one to two business days for payments to be processed, whereas PayPal processes payments faster – usually within minutes. This can be a major advantage for businesses that need funds quickly and don't want to wait for long periods of time before receiving money from customers.

Pros and Cons of Using Each Platform

Taking into consideration all of the above-mentioned factors, it's important to weigh the pros and cons associated with each platform.

  • WePay offers lower fees for US-based customers (2.9% + $0.30 per transaction) as well as reliable customer service
  • PayPal charges variable rates depending on the country you're located in and the type of payment being processed.
  • PayPal has a more established reputation than WePay, making it a popular choice for online businesses looking to accept payments quickly and securely.

Ultimately, when deciding between WePay vs. PayPal fees, it's important to consider your business needs and determine which payment gateway best meets those requirements. Whether you choose to go with one or both platforms depends on your specific requirements and preferences.

Both WePay and PayPal offer reliable payment processing solutions for businesses of all sizes, making them ideal platforms for accepting payments quickly and securely. With competitive fees, fast payment processing times, and comprehensive customer support, these two companies are well-equipped to help businesses succeed in the online space.

How Can You Save Money on Payments with WePay vs. PayPal?

When comes to saving money on payments, businesses should be sure to take advantage of the various discounts and promotions offered by WePay and PayPal. For example, WePay offers discounted rates for nonprofit organizations, while PayPal has a range of cashback programs that can help reduce the cost of processing fees. Additionally, both companies also offer volume discounts for businesses that process large volumes of transactions each month.

By taking advantage of these promotions and discounts, businesses can save up to 40% or more on payment processing costs – making it easier and more affordable to accept payments online.

Conclusion

WePay vs. PayPal fees is an important consideration when selecting a payment gateway for your business. By understanding the differences between their pricing structures, processing times, and additional features, businesses can make an informed decision on which platform is best suited to their needs. Additionally, taking advantage of discounts, promotions, and cashback programs can help further reduce processing costs – making it easier and more affordable to accept payments online.

FAQs

How does WePay compare to PayPal?

WePay and PayPal are both reliable payment processing solutions for businesses of all sizes. However, there are some important differences between them. WePay typically charges lower fees than PayPal, but also has a slower payment processing time. Additionally, WePay offers discounts for nonprofit organizations, while PayPal has a range of cashback programs that can help reduce the cost of fees.

Which is cheaper: WePay or PayPal?

It depends on your specific business needs. Generally speaking, WePay tends to be cheaper than PayPal because it charges lower transaction fees (2.9% + $0.30 per transaction). However, when taking into consideration additional features and services offered by each platform – such as discounts and cashback programs – the total cost of processing payments can vary significantly.