View Full Version : The PayPal + 4% thing
The standard fee for a basic transaction is:
3.4% + £0.20
So for example if you purchase an item costing £300 the actual fees charged to the seller are £10.20 plus £0.20, if you pay 4% as most people charge the seller gets £12.00, therefore you are charged £1.60 too much, this is enough to buy an egg sandwich and a drink from Asda!
If the seller is registered with Paypal as a merchant the fees are as follows:
Monthly Received Payment of £1,500.01 - £6,000.00 - 2.9% + £0.20
Monthly Received Payment of £6,000.01 - £15,000.00 - 2.4% + £0.20
Monthly Received Payment of £15,000.01 - £55,000.00 - 1.9% + £0.20
Monthly Received Payment above £55,000.00 - 1.4% + £0.20
Bye now.
didn't know that, but then I only usually buy small things via ebay (less than £100) so I probably wouldn't be able to buy an egg sandwich (I'd probably go with a chicken and bacon anyway).
sellers on ebay arnt allowed to charge for paypal anymore, obviously other traders will if they feel it necesary!
I disagree with your figures Michael. As you know I was selling the user manuals at £54 and, if paying by paypal, asked the buyers for the 4% extra. I then received £56.16 and paypal took £2.11.
I'm just quoting the info from the Paypal site CJ - your problem is that you are being charged 3.4% plus £0.20 on the cost of the item plus the 4% rather than just the £54.
£54 would have resulted in you being charged £1.84 plus £0.20 - £2.04
£54 plus 4% is £56.16 so the charges on this are £1.91 plus £0.20 which gets you to £2.11.
Buyers should have been sending you £56.03 to cover the 3.4% plus 20p on the £54 but then by doing this they bump the money up so the charges are higher - you can't really win but Paypal do :)
By charging the 4% you end up giving Paypal more money in fees but aren't £2.04 out of pocket which is probably better than the 7p extra :)
4% works out as being the fair amount to ask to ensure you don't end up selling for charity prices and end up out of pocket, this thread isn't an complaint aimed at anyone who asks for that bit extra, it's just me being bored.
Totally rip off percentages, especially when it comes to the crunch they hardly ever cover you for your transaction.
Anyone had a successful claim?
Totally rip off percentages, especially when it comes to the crunch they hardly ever cover you for your transaction.
Agreed, even more so now that it's eBay that own them, anyone selling on eBay and accepting Paypal is getting shafted from all directions... but it's popular.
Anyone had a successful claim?
I got £15 back on a £68 item that someone never sent... woo!
sellers on ebay arnt allowed to charge for paypal anymore They still do though! Some of them even charge 5% - cheeky bastards.
MONKEYmark
01-04-06, 18:45
aint you allowed up to 3 claims in a year.suppose if you selling your old crap online it may be worth paypall fees.you reach a huge audience.there must be ways round all the charges.
my mate used to sell memory and he emailed all people who lost and arranged with them to buy memory outside ebay.
is it illegal to ask the buyer to pay the 4% i got told you could not do that?
is it illegal to ask the buyer to pay the 4% i got told you could not do that?Not illegal to ask for the 4%, it's just against eBay rules.
This guy isn't asking for 4% though :
http://cgi.ebay.co.uk/Land-Rover-109-Safari-Roof-with-side-windows_W0QQitemZ4625076764
Hang on. We haven't established the important facts here.
The egg sandwich I can understand but the so-called 'drink' is a bit ambiguous.
The egg sandwich I can understand but the so-called 'drink' is a bit ambiguous.
I left it open to give the buyer an choice, water, can of refreshing carbonated muck, juiced materials...
registered ebay traders (the high volume ones) CAN charge for paypal...but it is done using discounts.
IE everything is £5, if you pay cash you get a £1 discount, same with cheque BUT if you pay with paypal .....no discount.
*Bump* people are annoying me with this again.
Totally rip off percentages, especially when it comes to the crunch they hardly ever cover you for your transaction.
Anyone had a successful claim?
I had a successful claim for an item won on ebay that never turned up, providing the seller in question has funds in their paypal account and paypal find them guilty they will just take the money and refund you :)
I also use them for the cart system on my store.
*Bump* people are annoying me with this again.
Any of these?
http://www.mkivsupra.net/vbb/showthread.php?t=91573&highlight=paypal
http://www.mkivsupra.net/vbb/showthread.php?t=89019&highlight=paypal
http://www.mkivsupra.net/vbb/showthread.php?t=56872&highlight=paypal
http://www.mkivsupra.net/vbb/showthread.php?t=78032&highlight=paypal
If I'm selling anything expensive, then I make sure i've covered the local freeads etc first.
Totally free to advertise, and if it does sell, chances are it will sell for a hell of a lot more than I'd get on ebay.
If that doesnt work, I do things by direct bank transfer or personal cheque only. Or you've always got Nochex, although its not as good or safe (i think)
Only real reason I use paypal is to PAY OTHERS. Doesn't cost me anything then, as I don't usually buy if seller charges extra.
One thing that has been forgotten here - If the amount in your paypal account is less than £50, and u want to transfer it to your BANK account, then theres another fee there too!
Any of these?
http://www.mkivsupra.net/vbb/showthread.php?t=91573&highlight=paypal
http://www.mkivsupra.net/vbb/showthread.php?t=89019&highlight=paypal
http://www.mkivsupra.net/vbb/showthread.php?t=56872&highlight=paypal
http://www.mkivsupra.net/vbb/showthread.php?t=78032&highlight=paypal
Of course not.
Of course not.
I'll better keep looking then.
*Bump* people are annoying me with this again.
Why should we not charge for making us use a substandard service?
We dont WANT to take paypal, but in this day and age we almost have to. They side with the consumer most of the time with little or no proof. The 4% is as much of a deterrant as it is trying to ensure we see some money back.
The 4% is as much of a deterrant as it is trying to ensure we see some money back.
It's a fair point. I hate taking Paypal too. Trust the buggers as far as I can throw them.
Why should we not charge for making us use a substandard service?
I'm not saying you can't charge, it's your business at the end of the day. What I'm still saying is that Paypal don't charge 4%, therefore when people say "plus the 4% Paypal fees" they are hiding a bit extra for themselves. If you want to charge 4% to cover the costs incurred from using this service then advertise it as being your charge, otherwise it's 3.4% plus 20p.
We dont WANT to take paypal, but in this day and age we almost have to. They side with the consumer most of the time with little or no proof. The 4% is as much of a deterrant as it is trying to ensure we see some money back.
If you don't want the customers don't accept Paypal, if you do want them charge the right fees or advertise the charges as being your own.
I'm shocked to hear you've had any issues that might end up with Paypal resolution to be honest, you always come across as being so efficient :innocent:
It's a fair point. I hate taking Paypal too. Trust the buggers as far as I can throw them.
So don't take it :rolleyes:
I'm not saying you can't charge, it's your business at the end of the day. What I'm still saying is that Paypal don't charge 4%, therefore when people say "plus the 4% Paypal fees" they are hiding a bit extra for themselves. If you want to charge 4% to cover the costs incurred from using this service then advertise it as being your charge, otherwise it's 3.4% plus 20p.
It's good to see that you are being reasonable today Michael. I hate it when you come across as being pedantic :innocent: :d
It's good to see that you are being reasonable today Michael. I hate it when you come across as being pedantic :innocent: :d
The word is "honest" both in comments made and deals done ;)
I'm not saying you can't charge, it's your business at the end of the day. What I'm still saying is that Paypal don't charge 4%, therefore when people say "plus the 4% Paypal fees" they are hiding a bit extra for themselves. If you want to charge 4% to cover the costs incurred from using this service then advertise it as being your charge, otherwise it's 3.4% plus 20p.
If you don't want the customers don't accept Paypal, if you do want them charge the right fees or advertise the charges as being your own.
I'm shocked to hear you've had any issues that might end up with Paypal resolution to be honest, you always come across as being so efficient :innocent:
Efficiency has nothing to do with it, its Paypal and they way they opperate.
Just agree to disagree I think.
Just agree to disagree I think.
Hell no, I have a week off and nothing to do... :D
A serious question:
Does the rule of 3.4% + 0.20p apply to all transactions? I was led to believe it is different for verified as opposed to non verified etc.
Luckily for me, I only have to take paypal on personal sales and therefore rarely get to use it much.
A serious question:
Does the rule of 3.4% + 0.20p apply to all transactions? I was led to believe it is different for verified as opposed to non verified etc.
Luckily for me, I only have to take paypal on personal sales and therefore rarely get to use it much.
https://www.paypal.com/uk/cgi-bin/webscr?cmd=_display-fees-outside
As you can see, a trader doing enough business through Paypal can actually reduce the fee to 1.4% plus 20p.
Out of interest how much does it cost to take visa payments through a card machine?
https://www.paypal.com/uk/cgi-bin/webscr?cmd=_display-fees-outside
As you can see, a trader doing enough business through Paypal can actually reduce the fee to 1.4% plus 20p.
Out of interest how much does it cost to take visa payments through a card machine?
True - but they would have to be some kind of business to generate sales through paypal of £55000 per month! :)
IIRC, it used to cost around 3% - but i may be wrong. I usually am!
So don't take it :rolleyes:
But if that's the only way people want to pay you then it's better not to turn away the trade.
Doesn't mean I can't moan about it. :p
I'd rather not have to charge 4% pay pal fee, but I have to cover the cost somehow. I don't include in the price of the product, because it would not be fair to those customers who pay by bank transfer instead. This is the reason I give customers the option of either paying by pay pal or bank transfer.
For smaller amounts, pay pal works out cheaper than paying bank fees to transfer money here, for larger amounts bank transfer is cheaper.
Pay Pal not only make their percentage on each transfer, but when paying overseas they also give much lower exchange rates compared to banks. So in reality 4% does not cover my loss from the lower exchange rate.
In the end though, Pay Pal is the simplest, most convenient and quickest way of paying for goods from overseas.
As a side note, lots of shops in HK actually charge you 4% extra if you use your credit card to purchase a product also.
therefore you are charged £1.60 too much, this is enough to buy an egg sandwich and a drink from Asda!
:rlol:
What about Tesco ?
:rlol:
What about Tesco ?
Not a chance, Tesco is for the rich kids.
:rlol:
What about Tesco ?
Egg sandwich and a packet of crisps.
Egg sandwich and a packet of crisps.
YUM YUM - What type of crips? The ones that you pop and cant stop :D
YUM YUM - What type of crips? The ones that you pop and cant stop :D
Tescos own from the "You asked for it, so we made it" range, moist gusset flavour.
Actually...think if enough of us asked for that, they would make it?
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