PayPal Braintree payments Review. What are the fees and how does it work?

When operating an online store one of the most important questions you need to answer is who you’re going to use as your online payments partner.

In this article we’re going to have a look at PayPal Braintree and what it can do for Australian businesses, including the features, payment options and fees.

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Who is Braintree in Australia

Braintree is a global commerce tool that helps businesses to accept payments in multiple currencies.¹ It was founded in 2007 and became part of the PayPal brand in 2015. By 2017 it was processing over 1 billion transactions per quarter.

What is PayPal Braintree payments and how does it work?

PayPal Braintree is an all-in-one payment solution that integrates into your site and provides all the tools you need to sell products to customers online.² It accepts a range of payment methods and is optimised for web and mobile use.

When a customer starts the check-out process on your site a transaction is created. PayPal Braintree completes any fraud checks that have been enabled then vaults the data before successfully processing the transaction. Once that’s done, you get paid.

What are the main benefits of using PayPal Braintree payments for your business?

Here’s some of the benefits for using PayPal Braintree to manage the payments side of your business.²

• It’s an international payment provider giving you global reach
• Accepts many popular payment methods for greater customer convenience
• Built to scale as your business grows and is easy to integrate into your site
• Can securely store customer payment information for recurring payments

Paypal Braintree is a Level 1 PCI DSS (Payment Card Industry Data Security Standards) compliant provider meaning it meets the highest industry standards and guidelines for data security. It also offers fraud prevention tools including 3D Secure, helping to protect your customers and business from the fallout of a fraudulent transaction.

What are the fees and charges to use PayPal Braintree Payments?

In Australia there are two pricing structures for PayPal Braintree, the standard pricing and a custom pricing option.

Standard Pricing

Within the standard pricing structure these are some of the main fees PayPal Braintree apply.³

Action	Fee³
Card and digital wallet payments in AUD	1.75% + $0.30 AUD per transaction
Card and digital wallet payments in a different currency than your home currency (AUD)	3.9% + $0.30 AUD per transaction
Chargebacks	$25.00 AUD
PayPay payments	Rates are predetermined by PayPal so you need to contact them directly

Keep in mind that if your business is processing over $100,000 AUD per month you can be eligible for discounted pricing.

Custom Pricing

If you meet the eligibility criteria, PayPal Braintree offers the option to develop a custom pricing plan based on your business model and volume.³ To do this you need to reach out to their staff and provide the requested information. They will then assess whether you’re eligible for custom pricing and what the most appropriate plan would be.

PayPal Braintree Payments exchange rates

With an Australian PayPal Braintree account you can transact in 48 currencies.⁴ Those funds can then be deposited into your Australian bank account in any of these 9 currencies.

• AUD
• CAD
• EUR
• GBP
• HKD
• JPY
• NZD
• SGD
• USD

When foreign currency settlements or transactions take place in a different currency from your merchant account, PayPal Braintree automatically converts it using what they say is the best available market rates. They don’t charge any additional foreign exchange or cross-border fees, but the transaction processing fee is higher for payments not made in AUD.

Supported payment methods you can accept with Braintree

One of the advantages of PayPal Braintree was the vast range of payment methods it supports. Here’s a selection of the card, digital wallet and bank direct payment methods customers can use.⁵

Cards

• American Express
• Mastercard
• Visa
• UnionPay

Digital Wallets

• PayPal
• Venmo (in the US)
• Apple Pay
• Google Pay
• Samsung Pay

Bank Direct

• Bancontact
• BLIK
• iDeal
• MyBank
• Sofort
• Trustly

Which services can you integrate PayPal Braintree Payments with?

Depending on your needs PayPay Braintree has an extensive list of services that it can integrate with.⁶

These partner integrations come with Braintree built-in and give you the support of a dedicated team at PayPal who can assist with account management and support.

• 3dcart
• BigCommerce
• WooCommerce
• Yodle
• Primer

PayPal Braintree also has plug-ins that support the integration of its system with other enterprise partners. Here’s a complete list of compatible partners at the time of writing.

• Demandware
• IBM Sterling Commerce
• Magento
• NetSuite
• Oracle E-Business
• Oracle ATG Commerce
• Salesforce
• SAP
• SAP Hybris

There are also a range of other services that are compatible with Braintree covering everything from virtual shopping carts to online forms and metrics. Here are just a few.

• ShopSite
• Spree
• Chargify
• Metricso
• Wallee
• Elorus
• BTMetrics
• JotForm
• FlexBooker

How do disputed transactions work with Braintree Payments?

How a disputed transaction is handled by Braintree Payments depends on the payment method used.⁴ If the customer paid by PayPal then their dispute would go through the PayPal Resolution Center.

Other disputes are handled through the card chargeback process which can be automated through the integration of certain API’s.

Is Braintree Payments safe?

As mentioned earlier Paypal Braintree is a Level 1 PCI DSS compliant provider that offers fraud prevention tools to its clients. These are some of the tools on offer.

• Address verification service (AVS)
• Card verification value (CVV)
• Customised filters
• 3D Secure 2

You can also integrate Braintree’s Fraud Protection or Fraud Protection Advanced, which are specialised fraud tools that provide greater customisation of your protection.

How to contact Braintree Payments

The Australian office of Braintree is located in Sydney, New South Wales. You can call them on 8045 6492 or submit a contact form on the PayPal Braintree website.

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Sources:

1. Braintree - About Braintree
2. Braintree - Accept and process payments online
3. Braintree - Pricing
4. Braintree - FAQ
5. Braintree - Payment Methods
6. Braintree - Third-Party Integrations
7. Braintree - Game-changing fraud protection

Sources checked on: 26 February 2024