OT: Help me understand PayPal fee for receiving money

[sbornia]

I think some of you are pretty experienced in all matters PayPal, so maybe you can give me a clue before they do. I've read the PayPal fees page a few times, and just can't figure it out. Here's the deal:

- I have a basic Personal Account, since I only do a few transactions a year.
- I'm going to request money from a buyer outside the United States, who has agreed to cover the PayPal fees associated with our transaction.
- The net amount I want to receive from the buyer is US$1,400.
- Is there a way to request this amount such that the buyer covers any fees associated with me receiving it? Or do I need to mark up the amount I request in order to cover the portion that PayPal will deduct from my account once I accept the payment?

FWIW, I'm not sure if the buyer has funds in his PayPal account or will use a credit card. That seems to make a difference in some transactions, not sure if it applies here.

Thanks for any insights you can offer!

SB

[handsomerob]

Credit card will ding you for about 3%.

An eCheck might require a 5 day wait but the fee is only $5.

[DarrenCT]

Credit card will ding you for about 3%.

An eCheck might require a 5 day wait but the fee is only $5.

how do u use this echeck thing?

thnx rob

[keno]

To give my answer to your question first, I think that marking up the net amount is the way to go.

My understanding of relevant PayPal rules is:

1. If you are entitled to PAY through PP with a credit card, money you RECEIVE will be subject to a fee. You ARE NOT charged a fee when you PAY, which seems counterintuitive to me.

2. If you are not entitled to pay through PP with a credit card, you cannot be paid by someone using a credit card; they must pay from balances in their PP account.

3. International transactions are subject to an additional fee for the account of the recipient, as I recall.

My comments are the result of having paid fees in various transactions. I will work very hard to work around their rules requiring money orders, checks, ACH, or costless bank transfer, as payment. Incidentally, PP is a subsidiary of ebay, I believe, and a great money maker, I'm sure. I consider PP fees to be onerous, particularly as they are levied on electronic transactions that are the same whether the amount is small or large. When time comes for me to pay for a PP transaction, I always use a credit card, if possible. They have screens that come up to dissuade the use of credit cards for payment, but I never give in.

keno

[handsomerob]

how do u use this echeck thing?

thnx rob

It is money paid directly from a buyer's checking account. It works like an EFT so there is a capped fee of no more than $5. This is a great option for higher ticket items. For instance, I sold an $1100 bike and was paid like this, so the paypal fee deducted was only $5 (the ebay fee was still about 3%). If that person had paid by credit/debit card, the fee would have been about $33.

As far as PayPal charging about 3% (actually 2.9% for most transactions, but the % decreases as the amount increases) fee for credit card transactions, I can't say I blame them. They are getting charged between 1.4-2.25% from the credit card companies as a transaction fee (like any other retailer) so they are only "pocketing" around 1% of the transaction amount. That seems reasonable for the service they are providing.

[97CSI]

Rules of thumb: 4% for USA transactions. 6% for international transactions. Not worth the hassle trying to get it to come out to the penny or dollar.

[shinomaster]

I thought paypal was free when I signed up six years ago.

[sbornia]

Rules of thumb: 4% for USA transactions. 6% for international transactions.

Thanks everyone. I had a feeling that intl. was more than domestic.

[Polyglot]

If you have a basic personal account, you pay no fees whatsoever, BUT AND THERE IS A BUT, you can only accept a limited amount per calendar month (I believe it is $500 per month) and you are limited to only a limited number of payments funded by either a credit or debit card. Ergo, you would not be able to accept a payment of $1400 without upgrading to a business or premium personal account. Once you have a premium account, you pay fees for every payment that you receive, regardless of how it is funded. You are however allowed to upgrade and downgrade once...

Also be aware that if the foreign buyer were to put a stop payment on the paypal transaction payment through a credit card, Paypal will put not only the money on hold, but your whole account.