PayPal Fees

SSonnentag

SSonnentag

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I'm curious... Why do people charge 3.5% and 4% extra to cover PayPal fees when selling items when PayPal doesn't charge that much? As you can see below, for the vast majority of transactions made online, the fee is 2.9% plus 30 cents. On an $800 knife, the seller should only charge $24.20 to cover the fees, not $28 (3.5%) or $32 (4%). Charging a flat 3% fee would net the seller $799.80, which is really close to the asking price and is simple to figure.

Anyway, I was just curious about where people pull these numbers from.


$0.00 USD - $3,000.00 USD 2.9% + $0.30 USD
$3,000.01 USD - $10,000.00 USD 2.5% + $0.30 USD
$10,000.01 USD - $100,000.00 USD 2.2% + $0.30 USD
> $100,000.00 USD 1.9% + $0.30 USD
 
I often wonder the same thing.

I will not even consider buying a knife from anyone charging extra for Paypal fees. I don't charge extra, but if the buyer wants to kick in 3%, then I do appreciate it.

However, if they plainly state it in their for sale post and the buyer agrees to pay it, then that is between them.
 
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I'm wondering why this is in Community! :confused: ;)

Off to Feedback.
 
Ken C. said:
I'm wondering why this is in Community! :confused: ;)

Off to Feedback.
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Well, it's a cinch it doesn't belong in the "Good, Bad & Ugly" forum. Duh!

Community: "non-knife related discussion, announcements of get-togethers, knife show listings, humor, and everyday life"

I think any rational being would see that this thread fits the description of the Community forums much better than where it has been moved to. :D

Oh, that right. Many people aren't rational beings.
 
Another reason is that you are actually paying the 2.9% +.30 fee on the addional fees.

Example: Your sale is $100 plus your charge of 3%. Your customer pays $103 ($100 + 3%) PayPal charges you fees on $103 which is $3.29 So on your $100 sale you recieve $99.71
That's why some people charge the additional 1/2%

Another scenario is if your customer is not in the US (or the same country), in this case PayPal also charges an additional "currency exchange" fee. Usually 1% but I've been told by others that they were charged more than 1%.
 
What's interesting to me is that PayPal very clearly states it is against their rules to charge more to accept PP, or to give a discount for cash. I'm surprised they don't charge an 'evasion' fee for people who do that. I also wonder why they don't look into all those strangers on BF giving each other cash 'gifts'.

Hmmm...I almost never accept PP, but if I tell people to use the gift option then I might start since:

1) No fees taken out of 'gifts'
2) Buyers don't get to run SNAD scams, since they told PP it was a 'gift' and not a purchase.

No wonder so many sellers tell people to use the gift option. Wonder how many PP users realize they are forfeiting their buyer protection when they pay using the gift option?
 
The fees aren't the buyer's fees. When I sell on eBay I have to pay the fees.
Why the people selling outside of eBay ever got the idea the buyer should pay THEIR fees I can't understand. I think people that charge the buyer are petty and tight. I'd never buy anything from them.
 
elkins45 said:
What's interesting to me is that PayPal very clearly states it is against their rules to charge more to accept PP, or to give a discount for cash.
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Ding ding, we have a winner. Some folks (sellers) SCREAM about a fee that's clearly outlined, yet have no problem signing up for PP, then going out of their way to charge buyers a penalty for using PP. That, friends, is baloney sausage.

PP charges a modest fee to sellers for using their services. They are a business, not a charity, folks. Compare that to the cost of opening a credit-card merchant account or dealing with the hassles/costs of only accepting MO's, waiting for personal checks to clear, etc.

Either way, shop around for the way that works best for you (the seller) and consider how many potential buyers can use it conveniently. Average it out, add the cost of processing to your general shipping/handling fees and quit whining about a percent here or there like it's going to shut you down.
 
People offer free shipping, free handling, discounted wares.

Who am I to begrude them an insignificant fee amount when it is MY choice to use the PP payment service?
 
bigmark408 said:
You guys are the kind that whine when someone gives you a free beer.
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But PayPal isn't free beer. Are you feeling okay?


elkins45 said:
1) No fees taken out of 'gifts'
2) Buyers don't get to run SNAD scams, since they told PP it was a 'gift' and not a purchase.
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Wrong. I will tolerate fees because some people want to list them, in my head it's just a total price. People that insist on the gift option I refuse to deal with. Mainly because fees are still taken out on my end and because I have no recourse if the seller flakes. It's just a gift, right? How about I send you your gift payment after you send me my gift knife?


GrinderMcgee said:
People offer free shipping, free handling, discounted wares.

Who am I to begrude them an insignificant fee amount when it is MY choice to use the PP payment service?
Click to expand...

Because it is their choice to accept PayPal. Do stores charge you more to use a credit card when the CC company is going to charge them ~3% on the sale?
 
GrinderMcgee said:
People offer free shipping, free handling, discounted wares.

Who am I to begrude them an insignificant fee amount when it is MY choice to use the PP payment service?
Click to expand...

The real answer is that it isn't about you as the buyer---the seller is the one who is clearly violating a service agreement they voluntarily signed.

Personally I agree with you: PP is only an advantage to the buyer. The only 'benefits' the seller gets are paying the vig and the ever-present possibility they will pull the payment if the buyer decides to run a scam.

As I have said a whole bunch of times, I'll happily use PP as a buyer but as a seller I would much rather have a good old fashioned postal money order.
 
When I first signed up for PP I was unaware that it was against their policy to charge for their fees. It was only though reading here on BF that I found out you shouldn't. Granted it's probable I didn't read all the info in sign up completely enough. Regardless since becoming aware I have never done it again, nor do I utilize the gift option. I have made a lot of money through PP at times and appreciate the service.

When I first started selling a few of my knives here it just seemed like an established and ingrained custom. I assume it is probable that some of the sellers out there are unaware like I once was. Others are, and will always be, trying to sidestep the fees.
Cheers,
Patrick
 
Josh K said:
Wrong. I will tolerate fees because some people want to list them, in my head it's just a total price. People that insist on the gift option I refuse to deal with. Mainly because fees are still taken out on my end and because I have no recourse if the seller flakes. It's just a gift, right? How about I send you your gift payment after you send me my gift knife?
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Huh? I thought the gift option meant the recipient didn't have to pay the fees. Does the sender pay a fee? If I send someone a $100 'gift' does it cost me $103?

I agree about not using the gift option. PP is so strongly biased in favor of the buyer it doesn't make any sense to give up that protection. Besides, it really is cheating--love or hate them, PP is providing a service people seem to want and they deserve to make as much of a profit as they see fit.

Don't like them? Don't use them...but don't condemn them for making a profit. They ARE a business.
 
elkins45 said:
Huh? I thought the gift option meant the recipient didn't have to pay the fees. Does the sender pay a fee? If I send someone a $100 'gift' does it cost me $103?

I agree about not using the gift option. PP is so strongly biased in favor of the buyer it doesn't make any sense to give up that protection. Besides, it really is cheating--love or hate them, PP is providing a service people seem to want and they deserve to make as much of a profit as they see fit.

Don't like them? Don't use them...but don't condemn them for making a profit. They ARE a business.
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The gift option still charges fees, but the buyer has an option to pay them.
 
If there was ever a subject that comes up way to often here, then this it it.

Very simple. If you don't want to pay the fee's then don't buy it.
 
Josh K said:
The gift option still charges fees, but the buyer has an option to pay them.
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Here's how the "Personal" option works regarding fees.

There are no fees to sent funds as a personal payment--Gift, Money Owed, which ever option you choose as long as it's on the "Personal" tab.

If you have the funds in your PP account or send the funds from a checking account that's linked to your PP account, there are no fees for either party.

If you make your "Personal" payment using a credit card, then PP charges a fee for processing the credit card payment.
Sometimes that fee is even more than 3%. I've heard from others that they were charged close to 5%. I don't know how PP determines that fee but it does seem to vary.
 
I guess when it comes down to it, some people seem to think that a Service provider should not be compensated for a convenient service. I do not doubt that if the roles were reversed, these same people would not be to happy about others circumventing paying fees owed to them. Sometimes it seems that the standards we hold our selves too, vaporize when money is involved, and somehow they can rationalize breaking an agreement which they voluntarily entered into. Kind of sad really.....
 
I quit listing the fees as such because people get so worked up about them and because it's against the PayPal TOS. However, it's money out of my pocket, and it's significant on a $500+ knife, so I just tack on 3.5% in the total price. When the rare individual tells me s/he would like to pay via USPS MO, s/he gets a nice little surprise discount.
 
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