Passing the cost of PayPal Mass Pay to recipients

Question

I'm using PayPal mass pay to pay a group of recipients. PayPal currently charges a fee of 2% per mass payment, I would like to pass this fee on to the recipients by reducing the amount I pay them.

If, for example, I am paying 10 recipients $10 each, so $100 in total, how much should I reduce that $100 by in order to take 2% off each recipient?

The reduction has to be done before the mass payment is made so if I simply remove 2% ($2) from the $100 and send $98 dollars to mass pay, I will only be charged 2% of $98 ($1.96) by PayPal and not the $2 I have taken from my recipients.

What formula should I use so that I am only taking the 2% from my recipients that I have to pay to PayPal?

Thanks.

Answer 1

It's 2% up to $1 max. So your recipients would pay only $1 maximum.

I would just add $1 to the transaction and call it good. Or set a floor (i.e. can't withdraw below $100) and invest it (even in a savings acct) to cover your fees.

Answer 2

PayPal MassPay fees are capped. So, your domestic US->US payout via Mass Payment fee will be $1 USD. A different cap applies for US->non US payouts.

To send anything over $50 USD from the US to the US will cost you $1 USD.