paypal credit card surcharge

Discussion in 'After Hours Lounge (Off Topic)' started by Jay H, Mar 23, 2006.

  1. Jay H

    Jay H Producer

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    What is the current credit card surchage for paypal these days? 3%. I am selling an item on dbsforums and have a guy wanting to do paypal...

    Jay
     
  2. Patrick Sun

    Patrick Sun Moderator
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  3. Jay H

    Jay H Producer

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    Maybe I'm blind but I don't see the percentage. I am not a big ebay or paypal user so the last time I sold something, and the buyer paid by credit card, I noticed that paypal chopped a % off the agreed price. Now I want to see another item but I don't want to get ripped off again so I want to add this percentage to my deal, but don't know how much. I don't want to add more than what's right though... I don't see that listed on the link or I must have missed something...

    Jay
     
  4. Linda Thompson

    Linda Thompson Supporting Actor

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    If you do this, be sure to build the amount of the surcharge into the asking price for the item, and do NOT announce it.

    To charge your buyer a surcharge outright for paying via PayPal is against eBay policy:

    http://pages.ebay.com/help/policies/...urcharges.html
     
  5. Jay H

    Jay H Producer

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    This is a private deal and not via Ebay, so when I exchange data with the buyer, I of course, will mention that any credit card purchases via paypal will incur x% of surcharge... Anybody know what it is? I was pissed when I found out that they deducted a small % last time I used it... I had no idea.
    Jay
     
  6. DaveHo

    DaveHo Supporting Actor

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    The fee is listed right on that Paypal link Patrick gave you. Look at the Premier-Receive Funds entry in their matrix. Fee depends on the price.

    That being said, just anticipate that people will pay with their credit card through Paypal and build that into the asking price. Nothing more annoying than being told after the fact that I'm going to be charged extra to buy something using Paypal. Just the principle of it all.

    -Dave
     
  7. Jeff Ulmer

    Jeff Ulmer Producer

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    I'm not sure of the rate (I pay 3% in Canada, but that sems to change depending on where the seller is located), but as Linda mentions, you want to build it into the price, otherwise the seller protection policy is void.

    While having to pay a fee isn't fun, if it allows you to sell something, it's better than having to get a merchant account, which would cost you at least 3%. The old credit card service I used before PayPal could process cards cost 9% of every transaction.

    I don't want to scare you, but you should also read PayPal's policy on chargebacks. If the buyer pays with a credit card and does a chargeback, it could take months for your funds to clear, and from those I've spoken to, PayPal doesn't have a good record for winning. If this is a big ticket item, and you don't know the buyer, be careful.
     
  8. Linda Thompson

    Linda Thompson Supporting Actor

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  9. Jay H

    Jay H Producer

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    Oh, I thought I have a personal account so it says "free" The item is a DishNetwork DVR so it's not more than $3000!

    Jay
     
  10. Linda Thompson

    Linda Thompson Supporting Actor

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    Personal accounts cannot accept credit card payments.
     
  11. Jeff Ulmer

    Jeff Ulmer Producer

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    Like Linda points out, you can't accept credit cards through the "free" service. If someone sends you a credit card payment, you will be invited to upgrade your account to a business account, and forever after be dinged 3% or more every time you get a payment.

    $3K from someone you don't know through PayPal is a big risk IMO. If the buyer disputes the purchase - which if they pay by credit card could take up to 4 months - the funds will be frozen or withdrawn from your bank account. PayPal does not have a good history with disputing chargebacks, and if you charge a fee for PayPal, or sell to a nonverified member or don't ship a confirmed address you have NO protection as a seller. $3K is probably above the limits for seller protection anyway.

    Two words: wire transfer.

    Funding that wood insert are we? [​IMG]
     
  12. Jay H

    Jay H Producer

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    I think I am understanding this now more. I actually do have a "premier account" as it says that in my overview and I just susccessfully completely a transaction of my selling price + 4% with the seller so I'm all good.

    You can tell how often I use paypal!! Or rather don't.

    Speaking of the wood insert, perhaps I can set up a sponsorship, go sponser a brick or stone in my fireplace!

    $25 per stone, advertise on Jay's fireplace!!!


    Jay
     
  13. Philip_G

    Philip_G Producer

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    ANd you better believe that if the auction says you accept paypal, you'll be accepting paypal and absorbing the fees, or you'll be relisting the item.
     

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