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Post by wiwingti on Jun 21, 2010 16:30:00 GMT
hey guys,
i've seen since the last few weeks people asking 4% for paypal. have had some manufacturers charging me 4% too.
what is the deal guys?
paypal have changed their fees and i didn't know? tought it was 3%
Marc
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Post by shadowhowler on Jun 21, 2010 16:41:54 GMT
hey guys, i've seen since the last few weeks people asking 4% for paypal. have had some manufacturers charging me 4% too. what is the deal guys? paypal have changed their fees and i didn't know? tought it was 3% Marc I have seen some people ask for 5%. I think some people try to Milk it. For me, when I sell used weapons I always list a set price... and I take the fees into consideration and eat them. When I was a retail manager, I got a look 'behind the curtain' as it were with credit cards... stores get charged to accept credit cards, some cards ask for more then others. For instance... American Express asks for the most... which is why it is accepted less then Visa and MasterCard... and is on the decline now as well, more and more places are choosing not to take it. The only place I have seen charge extra to use a credit card is Truck Stop Gas stations... often they will have a list price for diesel fuel for cash and one about 5-7 cents more per gallon for credit card. Everyone else just eats the fees... tho many places have a minimum purchase amount if your going to use the credit card. Its just part of the cost of doing business.
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Post by Deleted on Jun 21, 2010 17:49:43 GMT
Absolutely set a price that includes any added fees to the seller and then offer a discount for other payment options that save the seller money. Someone openly charging an additional fee for a Paypal transaction may well find themselves in trouble. Someone asking an additional Paypal fee on Ebay will likely find both accounts in trouble. www.myarmoury.com/talk/viewtopic.php?t=19528cms.paypal.com/us/cgi-bin/?&cmd=_render-content&content_ID=ua/UserAgreement_full&locale.x=en_USThis has been mentioned on several boards and may even have been repeated here. I have never begrudged a vendor for asking an additional fee for CC or Paypal transactions but it seems to me easier all around to simply take the cost of business into consideration when setting a price. Whatever, I guess.
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Post by Deleted on Jun 21, 2010 22:45:20 GMT
Let's not forget that using PayPal is a convenience for the seller too! No waiting for a money order in the mail, or a personal check that may or may not be good. I personally would never buy from someone charging extra to use it.
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Post by Deleted on Jun 21, 2010 23:28:19 GMT
I just logged in to Paypal and looked it up and they are still charging 2.9%. I can't believe people would gouge you for using something that's as convenient to them as it is to you. Also, this: Let's not forget that using PayPal is a convenience for the seller too! No waiting for a money order in the mail, or a personal check that may or may not be good. I personally would never buy from someone charging extra to use it.
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Post by stromloswordsusa on Jun 21, 2010 23:41:38 GMT
I just suck up the fee's and try not to look at the monthly bill's too hard (squinting at the numbers helps!). It sure is convinient, and before they came along how did we ever manage international micro-transactions like buying a book on ebay from the other side of the world from individuals? Amazing stuff in my opinion.
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Post by randomnobody on Jun 21, 2010 23:56:09 GMT
Doesn't the fee only apply to credit card transactions? I thought there was no fee if money is sent directly from one's checking account? At least, the few times I have sent money via PayPal, that seemed to be the case... The only time I personally worry about it is when sending money to individuals I know. For instance, a group of friends usually pools money into a PayPal account set up for our yearly activities (Otakon, mainly; an expensive trip, that) and when sending our dues, if we're using a credit card we have to do the math to make sure the exact total arrives, after fees. I always pay from checking and have never had a fee, though. It does, though, amuse me when people try to counteract the fees by simply adding the percentage charged. They forget that the fee applies to the entire total sent, and that even adding the 2.9 or 3 percent, they still aren't getting the full amount owed. For instance...to send $100, they'll say add 3%, so send $103...but PayPal will deduct 3% from the $103 which leaves the recipient nine cents short. (103x.03=3.09; 103-3.09=99.91) Minor, sure, but when it comes to larger amounts...it adds up just the same. Thus, when somebody tells me to send them $100, and I only have it available on a credit card...I send $103.10. Granted, I lose $.007.
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Post by shadowhowler on Jun 22, 2010 0:48:25 GMT
There are a couple ways to send money via paypal... as a buissness transaction, and a personal one. As far as I understand, all buissness transactions, be they credit card or Checking account, charge a fee to someone. Personal transactions do not... but personal transactions also do not have any insurance to them if you get screwed, so they are best researved for people you know and trust.
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Post by Deleted on Jun 22, 2010 1:27:48 GMT
Yeah, paypal fees can be ridiculous, but it is a convenience. You just have to work the fees into the cost of the product (that's what I usually do) that way, the customer is just paying extra for shipping and handling. Now with some of the other guys out there they have set pricing with little or no margin to adjust. This may be a way of making sure all the fees are covered, that way the vendor/manufacturer is not losing money on a transaction.
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Post by Deleted on Jun 22, 2010 5:38:55 GMT
Doesn't the fee only apply to credit card transactions? I thought there was no fee if money is sent directly from one's checking account? At least, the few times I have sent money via PayPal, that seemed to be the case... The only time I personally worry about it is when sending money to individuals I know. For instance, a group of friends usually pools money into a PayPal account set up for our yearly activities (Otakon, mainly; an expensive trip, that) and when sending our dues, if we're using a credit card we have to do the math to make sure the exact total arrives, after fees. I always pay from checking and have never had a fee, though. It does, though, amuse me when people try to counteract the fees by simply adding the percentage charged. They forget that the fee applies to the entire total sent, and that even adding the 2.9 or 3 percent, they still aren't getting the full amount owed. For instance...to send $100, they'll say add 3%, so send $103...but PayPal will deduct 3% from the $103 which leaves the recipient nine cents short. (103x.03=3.09; 103-3.09=99.91) Minor, sure, but when it comes to larger amounts...it adds up just the same. Thus, when somebody tells me to send them $100, and I only have it available on a credit card...I send $103.10. Granted, I lose $.007. Random, part of the problem here is that is with being a "seller" accepting paypal payments you have a constant fee for paypal providing a service to you, for allowing you to accept money from your customer. This is the same as the aforementioned fees for accepting credit cards. The credit card company charges the vendor a fee for the ABILITY to accept a particular card, usually from $0.25 to 2% of the transaction, whichever is greater. This is the reason for your "minimum charges" - as a seller you have to make sure your profit from any single transaction is enough to cover the fee. Visa and Mastercard charge between $0.25 and $0.50 for a DOMESTIC transaction in the US up to a certain dollar amount at which point they charge a percentage. Inernational transaction are, of course, subject to much higher fees. Discover charges a percentage, and American Express charges upwards of $0.50 a transaction - hence why they are not as widely accepted. Paypal's 2.9% is reasonable, especially because it does not have to be set up through a business bank account, and most of us suck it up as a normal cost of doing business but it is a cost in our books, and cuts into what are often very low profit margins. Generally low enough that most of us who vend any good whatsoever also need day jobs to make ends meet in our personal lives. There's the whole dirty story.
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Post by randomnobody on Jun 22, 2010 6:15:56 GMT
Ah, I'm not sure I was aware of the business accounts as I've never had one and never sent money to one...every "business" I paid via PayPal was apparently actually some guy's personal account tied in as the business' account...but hearing it that way makes sense. I generally avoid using PayPal, anyway. Heck, one of my favorite online stores started accepting PayPal, and had to stop selling a significant portion of its merchandise to international buyers as a result. I'm slowly weening myself off that site...but it's still got the best prices on anything else, and luckily still accepts credit.
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Post by Deleted on Jun 22, 2010 10:03:11 GMT
I have a business account and all transactions have the fee assessed. It's not a big deal on $100 or $200, but when you do large transactions, it hurts. I did a $9000 transaction last year and got hit for damn near $300.
I have seen some eBay sellers asking for as high as 7% before. They explain this as trying to cover their lising price, fee evaluation, and Paypal fee. It's against the Paypal user agreement, but people just seem to ignore that.
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Post by brotherbanzai on Jun 22, 2010 16:29:27 GMT
Paypal has been a real boon to small scale internet transactions. The convenience is certainly worth something. Though I've never had a problem with taking a money order or a check. If I want to get more than $500 a month out of my paypal account, I have to have paypal send me a check anyway.
The fees can be higher for overseas transactions as well. Paypal charges an additional fee for currency conversion. On larger purchases, it can be cheaper to do a bank wire transfer that charges a set amount rather than a percentage.
Also please keep in mind that there are a lot of little costs that small time sellers are already eating. I might charge someone actual postage for shipping but that doesn't include the time it takes to source an appropriately sized box, securely package it up, fill out a customs form, drive it to the post office and wait in line. The time a seller spends on line or on the phone answering questions also gets absorbed.
I recall talking to someone who was in the States from another country and she was annoyed that the prices in our stores don't include taxes as they did in her country. "Here," she says," you look at the price, make you selection and go to pay for it and then have to add another 7%. That's ridiculous!"
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Post by Deleted on Jun 22, 2010 17:38:17 GMT
Well, ya see, most merchants like to make things convenient for their customers. That's why most stores accept credit cards nowadays. The credit card banks charge a fee to the store for every transaction, but I've never heard of a store charging a cusomer extra because they used a credit card to pay. If they did, I would never shop at that store either. It's a cost of doing business. Besides, it's illegal. If you can't deal with it then don't accept PayPal.
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Post by shadowhowler on Jun 22, 2010 18:25:20 GMT
but I've never heard of a store charging a cusomer extra because they used a credit card to pay. Check out some truck stop gas stations... they do exactly that. They will show a price for cash, and one thats about 5-8 cents a gallon more expensive for credit cards.
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Post by Deleted on Jun 22, 2010 20:04:35 GMT
Mogur, many stores and gas stations used to charge more for credit cards. It's just not "common" practice anymore.
It is not illegal to have an "upcharge" for some business transaction as long as that fact is stated clearly and plainly beforehand.
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Post by YlliwCir on Jun 22, 2010 20:46:43 GMT
Personally, whenever I see "add such and such percent for Paypal" I look elsewhere (as a general rule, I might make exception but I don't recall doing so).
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Post by wiwingti on Jun 22, 2010 20:49:13 GMT
Personally, whenever I see "add such and such percent for Paypal" I look elsewhere (as a general rule, I might make exception but I don't recall doing so). ha ha ha just what i do , was wondering when someone would have had the guts to say it .
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Post by Deleted on Jun 23, 2010 3:37:01 GMT
Alright ya got me. I forgot about gas stations. Even then though they usually state it as a "discount" for using cash rather than a surcharge for using a card.
Oh, and from the PayPal User Agreement:
4.5 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.
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Post by wiwingti on Jun 23, 2010 16:20:53 GMT
you are wrong man because myself, when i am paid via bank transfer wire, there are charges in my account for that and depending of the amount , simetimes, it cost as much as paypal lol
and the same via western union. if i ask 210.00 i will receive around 202.00
and by the way, if i ask 210.00 and you pây 210.00,to western union ,, what ever way you will pay it will still be 210.00 no? it doesn't cost you more with paypal or cash or with check it is still 210.00
and some customers of mine if they read this will confirm you man, i don't know for else where but here, in canada, i receive less than what you pay what ever way you use.
and there is a diference saying i sell that for 100.00 and 3% paypal fees,
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i sell that for 100.00 and 5% fees no?
on the second one (then) you make 2% on the $emprini of the guy who purchase since we all know it is 3%, this was the subject.
did you ever see a dealer ask for paypal fees in the forum? i don't think so man, if so, it is because they were offering free service and asked people to pay fees just to be even.
Marc
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