Paypal Question!

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kkim0229

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Dec 6, 2006
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130
Hi,

I'd like to ask a question about Paypal payment options.
When I see the exchange area here, I often see "Paypal + 3.5%".
Is the 3.5% fee credit card processing fee?
But if the buyer add funds to his Paypal account first (which is free) and just sent it to the seller as Paypal balance (which is also free), there would be no processing fee, so everyone gets a little bit of savings. It just came to my mind why when everyone pays via Paypal they have to spend that 3.5% whether the buyer pays it or the seller covers it. Thank you.
 
eBay (PayPal) takes a processing fee for transferring money via its system.

they don't do it for free, as far as I know
 
I could be wrong but they used to only charge a fee when your account allows credit cards, if you didn't allow CC it was still free. But I could not be current.
 
I decided to check over at PayPal, and it seems that the original post is correct:

_______________________

FEES

Receive payments funded by PayPal Balance, PayPal Instant Transfer or PayPal eCheck -- Personal Account: Free

Premier or Business Account: 1.9% to 2.9% + $0.30 USD

_______________________

So I guess the issue is that many of us trading here on BF have
a Premier or Business Account. (?) I know my account is a Premier
Account, and that PayPal encourages you to change from a Personal
Account to a Premier Account.
 
Just opened a PayPal account and when the buyer deposited the money into my account I was hit for 5%.
 
WhitleyStu said:
Just opened a PayPal account and when the buyer deposited the money into my account I was hit for 5%.
Click to expand...

????????

From what I read at the PayPal site, I don't understand
where the 5% figure came from. Wow.

Maybe it's in the "fine print" somewhere...
(the very fine print - the finest ;))
 
moving-van.jpg
 
Thank you for those who replied. I believe this matter needs further clarification (the money matters!). I hope a Paypal expert to settle this down for everyone.

P.S. My guess is, since transferring funds from your bank account to your Paypal balance takes 3-4 business days but just sending funds with your credit card is instant, maybe the buyers are willing to pay the extra and have the product fast?
 
the fee comes out no matter what unless the payment is a bank check.
 
the seller is charged 2.9% no matter what. and 3.9% for outside the USA for a cross boder fee. It doesn't matter how the buyer pays through paypal they always get their money.
 
I'm confused. According to Keith's link, it seems that for personal accounts, adding fund to your Paypal Balance is free, sending fund is free via Paypal Balance and receiving Paypal Balance is free too. What am I missing here?

If I use my common sense, Paypal has to get hands on each transanction and get some money out of it.
 
If you have a regular account and never accept credit card payments, then you will not be charged.

The first time that you accept a credit/debit card, Paypal will force you to change your account to a Business/Premier account and from that point on, you will be charged.

Many people will maintain 2 separate accounts-one for credit/debit cards and another for people transferring Paypal account or bank funds.
 
I sold a knife for $125 yesterday and only $118.57 was put into my account. I guess I need to ask how the buyer is paying from now on...
 
I thought the buyer is free the seller gets the charges in any case, when I buy my charge is what i paid when I sell they take the fee.
 
i've been dinged for 5% by paypal, just like whitleystu, but i've also gotten money without any being taken out. i haven't a clue what the difference is, but that's my experience.
 
The fees seem to vary depending on the dollar amount.

I do know that is is against Paypal's policy for a seller to charge a fee for using the service, much like a merchant can't add a fee for using a credit card. Supposed to be the cost of doing business.

If I pay someone using Paypal, and I'm on good terms (here at BFC for example), I'll voluntarily cover at leat a majority of the fee. However, I won't include the fee if the seller requests it, as it violates Paypal policy.

Paypal user agreement said:
4.6 No Surcharges. You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method. You may charge a handling fee in connection with the sale of goods or services, as long as the handling fee does not operate as a surcharge and is not higher than the handling fee you charge for non-PayPal transactions.
Click to expand...

Be careful when asking for fees associated with using Paypal!
 
If you have a paypal "Basic" account you can receive money free of charge from someones linked checking or savings accounts, deposited paypal funds, and I believe E-checks.
If somebody pays you with a credit or debit card and you accept it (you can deny it, I just did yesterday), you will be charged 4.9% plus .30 cents processing fee. You can accept up to (5) credit/debit payments in a one year time period and get nicked the 4.9 and 30 cents all 5 times, or you can upgrade immediately and just pay 2.9% + for every transaction you ever make again. If you don't upgrade (if thats what you want to call it) and accept the payment, you can still accept 4 more credit/debit payments in that year. And you will get charged 4.9% + until you use your 5 a year up.
After 5 accepted cc/debit payments you are automatically upgraded to paying 2.9% + for the rest of your miserable life ;)

More fine print....A basic account only allows you to accept 500 dollars a month free, and spend 500 dollars a month. You go over that, and once again you get automatically upgraded.

I don't sell things often, and I rarely spend over 500 dollars in a month, so I have managed to keep my account "Basic" for 5 plus years. It hasn't been easy, and I'm sure a few buyers have been ticked because I won't accept their CC/debit payments (I always state in bold type in my auctions that I don't, but some folks read just what they want to read :jerkit: ). You can deny it by clicking deny instead of accept without any penalties to seller or buyer, and try to agree on another less costly (for you) method. As an occasional guy who sells a knife or two, I don't want to have to pass on paypals fees and I sure don't want to eat the cost either.

Paypal is convenient, but to avoid charges you have to really be careful. Wish they had some competition.
 
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