Paypal question

[kierbaudy]

I don't usually sell stuff, but I am thinking of selling something to a board member. He says that paypal fees are paid by the buyer and not the seller. My understanding was the opposite, that sellers have to pay a certain percentage of the amount coming in. And, if the buyer pays by credit card, the seller pays an additional percentage that the credit card charges the seller. Anyone know the answer? Thanks.

[Diesel]

the guy is misinformed... :rolleyes

the fees are paid by the person receiving the payment... hence the seller pays the fees...

[Diesel]

and as far as i know, it's a 3% charge...

i was unaware of an extra fee for a credit card payment... maybe i never looked at it that close though, since i don't sell a whole heck of a lot...

[SamAKALiz]

I think that if you just "send money" to someone and it is not an eBay transaction, it is free. I've done that before and did not pay anything.

[THE WARG BEAST]

Its always the seller that has to pay Paypal fees :bang

The buyer only pays the said amount..nothing more.

WG :boing2

[Migwit]

Agree, as a seller who has paid those damn PayPal fees, it's the seller who's responsible. And I think the fees are closer to 4%, which may not seem like much but if one is selling on eBay AND accepting PayPal, pretty much 10% of the item's sold price goes for fees after listing, final valuation, and PayPal costs. There's a flat PayPal fee (I think it's 2.9%) and then there's another sliding scale % based on the item's price. Or at least that's how I remember it.

PayPal USED to be free if you just wanted to send someone money (not selling goods), but that may have gone away. You can find out by logging on to PayPal before actually using them and read all their FAQ's. :speech :dance

[Migwit]

If the buyer really wants to USE PayPal, you can make it a condition that he DOES pay the "seller's fee" by adding 4% onto the sale price of the item. :speech

[SamAKALiz]

I believe that if you just send money to a personal account and make sure that you pick "Service" it's still free- as long as they are both personal accounts and are using Paypal balances, not credit cards.



Fees
PayPal charges Premier and Business accounts to receive payments. Personal accounts are free, but may not receive debit or credit card payments.

&nbsp &nbsp &nbsp &nbsp Personal Account &nbsp &nbsp &nbsp &nbsp Premier/Business Account
Open an Account Free &nbsp &nbsp &nbsp &nbsp Free
Send Money &nbsp &nbsp &nbsp &nbsp Free &nbsp &nbsp &nbsp &nbsp Free
Withdraw Funds Free for bank accounts in the US
Free for bank accounts in the US

Add Funds &nbsp &nbsp &nbsp &nbsp Free &nbsp &nbsp &nbsp &nbsp Free
Receive Funds &nbsp &nbsp &nbsp &nbsp Free &nbsp &nbsp &nbsp &nbsp 1.9% + $0.30 USD to 2.9% +$0.30 USD
Multiple Currency Transactions &nbsp &nbsp &nbsp &nbsp Exchange rate includes a 2.5% fee* &nbsp &nbsp &nbsp &nbsp Exchange rate includes a 2.5% fee*

These fees apply to U.S. users only. For Canadian fees, click here. For European fees, click here. Otherwise, click here.

[kierbaudy]

Thanks for the quick response guys. :wave I wanted to make sure I wasn't reading the wrong information. If you use paypal only, it is 2.9% + 30 cents, something like that. It's not as much as I thought... Oh well, besides can't use paypal anyway because I had to close my cc account due to the "I told you so" fiasco going on in the AITO forum.

[kierbaudy]

Sam, thanks for clarifying that. It is truly confusing. So, if a buyer and seller both have personal accounts, they can receive money for free and not have to pay the 2.9%?

[Diesel]

i really do not think you can accept any kind of a payment unless you have more than a standard account...

you have to be a Premier account holder to accept any payments... even a direct bank transfer...

things may have changed though, as i've had my Paypal account since '99...

[kierbaudy]

Geez, I'm still a bit confused. According to the graph, it looks like you can accept payments with a personal account and the buyer said that was so. :bang

[fatespadawan]

I've used Pay Pal for years and when two people who have personal accounts simply send money to each other, there's no fees at all. Period. I've done it 176 times (according to my Pay Pal history), both sending and receiving money from other people with a personal accounts, and have never been charged a fee. Just a fact.

"Fees only apply to Business accounts and when using credit cards, as opposed to using bank accounts." Send an e-mail to Pay Pal and they'll tell you just that. That's a quote from them.

:wave

[kierbaudy]

Thanks!!! That is much clearer. Now, to understand how the rest of paypal works.