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Quick query - Paypal fees to receive payment

post #1 of 15
11/30/07 at 8:12pm
Thread Starter 
Guys, please indulge a selling newbie here.

I am being socked for 4.9 % "fees" by paypal to receive a payment for a pair of shoes I'm selling. But I thought personal a/cs were not charged to receive payments. Can someone please clarify.

Thanks.
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post #2 of 15
11/30/07 at 8:15pm
Is the seller using a credit card to back his/her payment? Is he/she paying from another country, or in another currency?
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post #3 of 15
11/30/07 at 8:16pm
All monetary transactions via PayPal incur a fee.

Use GoogleCheckout (if arrangements can be made w/ buyer) instead.
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post #4 of 15
11/30/07 at 8:22pm
Quote:
Originally Posted by whacked View Post
All monetary transactions via PayPal incur a fee.

Use GoogleCheckout (if arrangements can be made w/ buyer) instead.

My last PayPal transaction incurred a 0% fee.
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post #5 of 15
11/30/07 at 8:37pm
There is no fee to pay or "transfer funds" to someone's account. PayPal typically socks it to you when you receive payment, whether personal business or whatever. That's how Paypal makes money. The percentage above seems about right. So if you sell shoes for $100, expect only to receive about $95. I think that's a lot, but that's what they charge to use the convenience of its service. That's why i HATE paypal. Bastards.

Not too much different I suppose from merchants and stores. They have to pay Visa or MC to accept the card and receive payment, but i don't think the % they have to pay is as high as Paypal charges, but I'm just speculating.
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post #6 of 15
11/30/07 at 8:44pm
isn't there some category of Paypal funds receipt which has no fee? It's been so long for me that I don't remember, but I believe a non-Premier account or something like that?
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post #7 of 15
11/30/07 at 8:49pm
I stand corrected. Here's the fee schedule table
https://www.paypal.com/cgi-bin/webscr?cmd=_display-fees

Apparently it's free for Personal Accounts to receive money funded by PayPal balance, PayPal transfer, or eCheck.
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post #8 of 15
11/30/07 at 8:50pm
Thread Starter 
Yes, it's coming up as a credit card payment. From elsewhere in California!

Quote:
Originally Posted by SirSuturesALot View Post
Is the seller using a credit card to back his/her payment? Is he/she paying from another country, or in another currency?
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post #9 of 15
11/30/07 at 8:51pm
If you go over something like 5 transactions in a year, Paypal forces you to "upgrade" from a Personal account to a Business account, after which, all your receiving transactions incur fees.
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post #10 of 15
11/30/07 at 9:44pm
i still get a fee for receiving e checks.

no matter what the money sent to me,

ive always been charged

2.9% +30 cents for domestic
3.9% +30 cents for international.


paypal are bastards as mentioned above. this is criminal.

visa , mastercard, etc do not charge these exorbitant fees to merchants when customers pay them using the c.c.
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post #11 of 15
11/30/07 at 9:48pm
I agree it's bordering on criminal

I always extract all of my money immediately out of paypal, and I pay via credit card. I know they have to pay at least a small extra fee when I pay via credit card, but they can't charge me for it (probably only due to federal law).
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post #12 of 15
12/1/07 at 1:41am
Quote:
Originally Posted by Tarmac View Post
I agree it's bordering on criminal

I always extract all of my money immediately out of paypal, and I pay via credit card. I know they have to pay at least a small extra fee when I pay via credit card, but they can't charge me for it (probably only due to federal law).
While the original PayPal guys are referred to as the "mafia" in the silicon valley area, I don't think it's criminal with the fees. It sucks of course, but if you were selling through your own website you'd still be incurring about 2-4% fees on payment transactions through all of the other processing companies anyways. This is why many online companies like Amazon have started to encourage people to use direct withdrawals against their bank accounts instead (paypal included )

Quote:
visa , mastercard, etc do not charge these exorbitant fees to merchants when customers pay them using the c.c.
Yes they do... but the whole behind the scenes network is structured very differently with money going to different parties that you've never even heard of.

The plus side of course is Google Checkout. Once they get their issues worked out with their platform, I see paypal lowering their own fees for merchants. More competition is needed in this area though.
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post #13 of 15
12/1/07 at 1:52am
Quote:
Originally Posted by robin View Post
The plus side of course is Google Checkout. Once they get their issues worked out with their platform, I see paypal lowering their own fees for merchants. More competition is needed in this area though.

My understanding is that this only lasts until the end of the year when Google Checkout intends to start charging fees. Still the competition may result in both of their fees being kept in check.
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post #14 of 15
12/1/07 at 1:54am
Quote:
Originally Posted by robin View Post
While the original PayPal guys are referred to as the "mafia" in the silicon valley area, I don't think it's criminal with the fees. It sucks of course, but if you were selling through your own website you'd still be incurring about 2-4% fees on payment transactions through all of the other processing companies anyways. This is why many online companies like Amazon have started to encourage people to use direct withdrawals against their bank accounts instead (paypal included ) Yes they do... but the whole behind the scenes network is structured very differently with money going to different parties that you've never even heard of. The plus side of course is Google Checkout. Once they get their issues worked out with their platform, I see paypal lowering their own fees for merchants. More competition is needed in this area though.
I would like to hope you are right RE: Paypal lowering their fees in response to Google Checkout, but I don't see it happening. I think Ebay will hold tight to their e-payment monopoly as last time I checked it's against Ebay policy to accept Google Checkout. A little while back I had my auctions pulled because I stated in the description that I would accept Google Checkout, and they threatened to suspend/terminate my account if it happened again. I think the cats running Ebay are pretty shook about Google Checkout, and the inevitability that Google will open their own auction site improving on Ebay's model.
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post #15 of 15
12/1/07 at 1:57am
Quote:
Originally Posted by tonylumpkin View Post
My understanding is that this only lasts until the end of the year when Google Checkout intends to start charging fees. Still the competition may result in both of their fees being kept in check.
Yes, after the new year it will be about 2% + .35 cent surcharge (or something close). I think they need to extend it though, as they're not ready to go toe to toe with paypal yet in that their feature set is lacking and that their platform is still buggy.
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