Formula for factoring PayPal fees (as seller or buyer)

[NYCfixie]

If you want to factor PayPal fees so you get the actual money you requested after fees (or you need to factor them as a buyer), this formula will work up to $592 (after that you may loose a penny or two as a seller or need to add a penny or two as a buyer). You can break it apart to use in Excel:

A - Seller Requested
B - Add PayPal fees = ((A*0.029)+0.30))
C - Subtotal = (A + B)
D - Add onto PayPal fees = ((((C *0.029)+0.30))-B)+0.01)
E - Buyer Sends = (C + D)

To any seller I shorted a few pennies on past purchases, I am sorry.

[dustyrider]

Maybe as a community we could list purchase prices that we will be satisfied with rather than pushing this math down the buyer’s throat. I know I’ve messed it up before... and I believe PayPal has a rule against such things too.

[AngryScientist]

https://www.shopify.com/tools/paypal-fee-calculator

[happycampyer]

nvm

[NYCfixie]

Originally Posted by dustyrider

Maybe as a community we could list purchase prices that we will be satisfied with rather than pushing this math down the buyer’s throat. I know I’ve messed it up before... and I believe PayPal has a rule against such things too.

I agree. I am sharing this as a "buyer" because it appears most sellers want PayPal fees added. I think it is silly. Just post the damn price and factor shipping for the buyer. Work a few dollars into your price for fees. In another thread, a person mentioned that when people just add PP fees on top of what a seller requested, the seller does not get the actual amount they requested. This makes the issue only sillier because we are talking about pennies even on large transactions.

An example:
If a seller requested $20.
The buyer would factor the PayPal fee which would equal 0.88 so the buyer sends $20.88.
The issue is that PayPal charges the fee on the $20.88 so the seller actually only gets $19.97.
The buyer would need to send $20.91 for the seller to actually receive $20.00 after fees.

Originally Posted by AngryScientist

https://www.shopify.com/tools/paypal-fee-calculator

That does not solve the problem outlined above. The formula in my original post does up to $592. I could add if/then statements to the formula so it would work for any amount but I do not have the time today. I thought this would help with most transactions.

[AngryScientist]

Originally Posted by NYCfixie

An example:
If a seller requested $20.
The buyer would factor the PayPal fee which would equal 0.88 so the buyer sends $20.88.
The issue is that PayPal charges the fee on the $20.88 so the seller actually only gets $19.97.
The buyer would need to send $20.91 for the seller to actually receive $20.00 after fees.




That does not solve the problem outlined above.

yes it does. quite clearly too.

[NYCfixie]

Sorry, missed that for some reason.

Still think the whole idea of adding fees is silly. Just add it into your price.

[Ralph]

Just ask what you want for item with free shipping to continental USA. Shipping, paypal, etc.....that's part of price. When an ad says add paypal fees, shipping, etc....I don't even read it. Paypal is the only way I will sell stuff, unless local cash, so it's not really an addition....its part of the deal. Just post your shipped price IMHO.

[JAGI410]

Originally Posted by Ralph

Just ask what you want for item with free shipping to continental USA. Shipping, paypal, etc.....that's part of price. When an ad says add paypal fees, shipping, etc....I don't even read it. Paypal is the only way I will sell stuff, unless local cash, so it's not really an addition....its part of the deal. Just post your shipped price IMHO.

Agreed. If you’re asking me to cover PP fees, I’m not buying your stuff.

[oldpotatoe]

Originally Posted by NYCfixie

Sorry, missed that for some reason.

Still think the whole idea of adding fees is silly. Just add it into your price.

Agree, I just add 3%....to total.

[Jaybee]

Am I the only person who prefers friends + family for both purchases and sales? You avoid the tax issue (see recent 6 page thread on this) and give your friends/forum-mates a couple more bucks. Admittedly, I've been dealing exclusively in items that are <200 USD, so I'm not too worried about the protections afforded by the goods and services channel.

Is this gauche? Would people prefer to use G+S vs F+F?

[huck*this]

Purchasing: I use FF on anything under $100. If I know the person, a frequent flyer here, and worked with them before FF. If I don't know you and the screen name doesn't ring a bell I pay the 3% fee in order to protect the investment. It's not a slap in the face or I think you are a bad guy. Its just risk. Why not be at least a little protected? Been burned a few times. Not here... but it happens.

As for selling I always include the shipping cost in the sale. Then when its time to pay your can pay either FF or include the or a 3% fee. If I loose a couple bucks because the fee doesn't coincide with whats in my pocket oh well.

I believe it is the buyers call on whether they want to add the 3% or not. I mean after all they are the one paying for the item.

[Gummee]

Originally Posted by Jaybee

Am I the only person who prefers friends + family for both purchases and sales? You avoid the tax issue (see recent 6 page thread on this) and give your friends/forum-mates a couple more bucks. Admittedly, I've been dealing exclusively in items that are <200 USD, so I'm not too worried about the protections afforded by the goods and services channel.

Is this gauche? Would people prefer to use G+S vs F+F?

The problem with buying stuff via friends and family is you lose the buyer's protection. Here and a few other spots, it seems OK. Elsewhere? I'm not so sure that the person I'm dealing with is on the up and up

M

[NYCfixie]

Originally Posted by Jaybee

Am I the only person who prefers friends + family for both purchases and sales? You avoid the tax issue (see recent 6 page thread on this) and give your friends/forum-mates a couple more bucks. Admittedly, I've been dealing exclusively in items that are <200 USD, so I'm not too worried about the protections afforded by the goods and services channel.

Is this gauche? Would people prefer to use G+S vs F+F?

***** And, I did not mean to start a flame war about the issue, I just find it interesting that sellers here ask for PP fees to be added.***** When you go into a store, does the merchant ask you to add the credit card fees to your final price you are about to pay? No, because they are not supposed to. They usually just work the fees into their product prices.

I am not sure I believe PayPal is going to exclude F/F payments on the 1099-K because how do they know if F/F is being used for transactions like it is here on Paceline rather than just as means to send F/F money.


For me:
- As a buyer, if a seller has a decent reputation here and the item is < $100, I might just do F/F otherwise G/S. But I also do not care about spending an extra $1-$3 to give myself protection for those items that are < $100.
- As a seller, I like G/S because it protects both me and the buyer but may not make sense for items < $50. I am still new here (sold 1 frame in-person and 1 set of wheels headed out today to a friend of a forum member) so I usually forward people to my eBay feedback which is very high until I have more feedback here.

To each thier own I guess.

[Mzilliox]

it makes me sad that this post had to even be created...