Paypal Fees

[Vertigo]

Seems a bit more common in the audio world than elsewhere in the trading universe. I'm against it because if paypal catches you (read: if you get reported) they'll warn you, then shutdown your account, as it's against the Paypal terms of service to charge extra to accept it. Discuss

[grawk]

Of course it's against paypal's TOS, it encourages people to use something other than paypal. Who cares. If you don't want to buy something at the given price, offer them what you'll pay them.

[ayt999]

now my post makes no sense since someone moved the thread out of FS. \

[grawk]

ok, I'll move your post back to the fs thread

[elnero]

One thing I don't understand is people always want to charge when using Paypal but as far as I know it's only applicable on credit card transactions, if the money is coming straight out of your Paypal account or from your bank account there's no charge.

[grawk]

Once you've hit the limit for personal accounts, you start paying the fee on all paypal transactions if you want to be able to receive credit card payments ever...

[Aliacha]

On personal accounts, I think you can only accept ~600 a month without fees, and you also can't accept credit card payments. Otherwise most people switch over to the business/premier accounts, which let you accept credit and have no limit to how much you recieve, though you do start to pay the .03%

You could always just include the fees to the item you're selling.

[ayt999]

ok, I'll move your post back to the fs thread

but now my reply to the post you moved doesn't make sense since it's lost the post it's referring to.

this will never end will it?

[ayt999]

Otherwise most people switch over to the business/premier accounts, which let you accept credit and have no limit to how much you recieve, though you do start to pay the .03%

I wish it were that low... but unfortunately it's more like 2% to 4% depending on the transaction.

plus the like to charge a 2.5% fee for currency conversions between accounts using different funds.

[tiberian]

I wish it were that low... but unfortunately it's more like 2% to 4% depending on the transaction.

plus the like to charge a 2.5% fee for currency conversions between accounts using different funds.

the 3% fee is just plain annoying, but paypal is faster and more reliable than money order.

[Dusty Chalk]

I think PayPal should change their ToS so that it's okay to pass along the cost of using PayPal to the customer. The whole point is to bring the ability to use credit cards to the masses, but if you're crossing that line from "masses" to "business" -- just obtain the ability to charge credit cards yourself!

I won't use PayPal to receive money.

[hirsch]

I have two Paypal accounts. One is a personal account (no fees and no credit cards). The other is a Premier account, which has a 3% (or higher) fee on all transactions. If someone wants to use Paypal, and can send to my personal account, there are no fees (at least domestically). The limit on amounts that can be withdrawn from personal accounts can be raised, so throughput to my bank is not an issue. If someone wants to use a credit card, they can use my Premier account and pay the fee (although I eat the fees myself most of the time, rather than hassle with the 3%).

Alternatively, I could simply close the personal account, and price everything I sell higher, so that the fees are built into my asking price whether somebody wants to use Paypal or not. Not all that viable to me, as I don't see a reason to overcharge for fees that can be avoided if the buyer so chooses.

[Vertigo]

Well, do most places (gas stations and fast food joints notwithstanding) charge more if you use credit vs cash?

[grawk]

A lot of small operations offer a cash discount, especially low margin operations.

[n_maher]

This is a multi-edged sword in my opinion. On the one hand as a seller I'm trying to make the transaction as secure and convenient as possible for the buyer and myself by using Paypal (I've never had issues with it, knock on wood) but at the same time I'm not willing to necessarily take the 3% hit on the price of the item to do so. So I don't feel at all bad asking the buyer to pay the fee, it's just the cost of doing business. And I no longer advertise anything as including Paypal fees, I just say "any applicable transaction fees". I don't think they could get me for that. As a buyer I have no issue with someone asking me to pay the fee or asking me to pay in bank-funds so that they can accept the Paypal payment without having to have a Premier account.

To me it's like if I was asking $100 shipped for an item and someone offered to come pick it up, I'm certainly going to adjust the price to reflect the fact that I don't have to ship it. So if someone wants to suggest a method of payment other than Paypal I'll adjust the price accordingly.

I don't think the gas station analogy applies to the type of transactions we do here as I'm sure for large businesses it is a matter of whether or not a customer would use your service if you didn't allow for the use of a CC (or whatever).

Finally, for what it's worth the formula for figuring the total payment required to net the asking price = (price + $.30)/.971 - at least that's what works for my premier account.

Nate

[Dusty Chalk]

Well, do most places (gas stations and fast food joints notwithstanding) charge more if you use credit vs cash?

But that's different -- those are businesses. They want your business, and in order to get your business, they're offering you the convenience of paying by credit card. For that convenience, they have to work that in to their overhead. (Notice I do not say that they eat the cost -- businesses never eat the cost, otherwise they wouldn't be a business -- businesses pass costs to the customer.) As the occasional seller of goods, I don't care how I get the money, so I'll stick with money orders, myself.

The limit on amounts that can be withdrawn from personal accounts can be raised, so throughput to my bank is not an issue.

It's up to PayPal to raise those limits, though, not you. So though it may not be an issue with you, it is an issue with the infrequent user who occasionally goes over his limit. Have they ever raised your limit? I didn't think so. I've never heard of them raising their limit for anyone.

(And if they did raise your limit, I'm curious how you went about doing that, because that would be the exception, not the rule, from everyone I've heard.)

[jjcha]

Passing the fee to the buyer gives them the option of having the additional payment method. Otherwise, I am indifferent as to cash, check or money order.

Best regards,

-Jason

[Kameleon]

I like Paypal, it's far more secure for both parties than any other common Internet option. As such, I always have and always will absorb Paypal fees, it's not a great deal of money and it's just easier for everyone concerned. I'm not bothered about it, so it's not a problem

[hirsch]

Have they ever raised your limit? I didn't think so. I've never heard of them raising their limit for anyone.

(And if they did raise your limit, I'm curious how you went about doing that, because that would be the exception, not the rule, from everyone I've heard.)

Actually yes. There is a simple procedure to remove the limit from a personal account. When you withdraw money from a personal account, you will be given the options to raise your limits. Once you have done two of the three possible options, they remove the withdrawal limit. My personal account now has unlimited withdrawal.

Vertigo, I do not add on the Paypal charge when I sell gas or fast food

[Dusty Chalk]

Actually yes. There is a simple procedure to remove the limit from a personal account. When you withdraw money from a personal account, you will be given the options to raise your limits. Once you have done two of the three possible options, they remove the withdrawal limit. My personal account now has unlimited withdrawal.

Okay, we're talking about different limits. I'll have to go back and check, but I think there's also a limit on the amount of money you can accept...as in, without getting your account frozen, or automatically turned into a commercial account.