This message is to inform you that as of May 10, 2025 Draft2Digital will implement a small fee for PayPal and Checks.
Draft2Digital is committed to offering authors a wide range of convenient payment options, which currently include Direct Deposit (domestic and international), Payoneer, PayPal and Check. This message is to inform you that starting May 10, 2025, D2D will implement a small fee for PayPal and Checks.
Why is this change happening?
We are implementing the new PayPal and Check fees to offset costs to D2D. Although less than 30% of author payments are made via PayPal, PayPal fees are over 90% of author payment related costs. Similarly, when it comes to paper Checks, costs such as supplies, manual labor and postage incur significant annual costs.
What does Draft2Digital recommend?
If your current payment method is PayPal or Check, we recommend that you take a moment now to switch your payment selection to the free Direct Deposit option, the most popular option among D2D authors. For US authors, Direct Deposit does not carry any fees, and for authors outside the US, Direct Deposit (international) has better foreign exchange fees than PayPal.
You also have the option of choosing our free Payoneer option. While D2D does not charge a fee for using Payoneer, keep in mind that Payoneer does charge account holders a fee.
What are the new fees for PayPal and Checks?
There will be a 2.5% fee on royalties paid to authors using the PayPal payment option. The maximum fee for authors with accounts using a US address will not exceed $1.50 per payment. For authors who use PayPal and have an address outside the US, the maximum fee will not exceed $25.00 per payment.
Stated succinctly, the fee for PayPal will be 2.5% of royalties paid, not to exceed a maximum fee of $1.50 for US-based authors and $25 for authors outside the US.
For authors who prefer receiving a paper Check, you’ll see a flat fee of $2.50 per payment if your account has a US address, and $4.00 per payment made if your account has a non-US address.
The table below provides an illustration of payment method fees before and after these changes go into effect.
What's next?
The new payment fees for PayPal and Checks go into effect May 10, 2025. If your current payment method is either PayPal or Check and you wish to avoid the new fees, log into your D2D account and click on Payment Options to select your new payment method prior to May 10. There is no action needed if you wish to keep your current payment method.
