Sellers may be eligible for discounted Paypal Fees depending on the volume of sales.

The standard rates are - 

Monthly Sales  - Transaction Fee
£0.00-£1,500.00 3.4% + £0.20
£1,500.01-£6,000.00 2.9% + £0.20
£6,000.01-£15,000.00 2.4% + £0.20
£15,000.01-£55,000.00 1.9% + £0.20
above £55,000.00   1.4% + £0.20

You have to initially apply for reduced rates, but if you then drop below the threshold, the rates will increase. Application is a one-time occurance, if you subsequently increase sales, the rate will automatically drop again.

Login to Paypal > Select Merchant Services from top menu > Select Transaction Fees from the left hand box titled Resources > Under the table of rates is a section marked "How is Eligibility for Merchant Rates determined?"; click the link to check the "Merchant Rate Criteria" > At the bottom of the page is a link to Apply Now.

You then enter your details in the form and click submit, before you are told if you are accepted or declined.

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