PAYPAL Payment Fees

Discussion in 'Archived Threads 2001-2004' started by alan halvorson, Jan 26, 2002.

  1. alan halvorson

    alan halvorson Cinematographer

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    I have always been under the impression that when making a PAYPAL payment with the funding source either your PAYPAL balance or a bank account transfer (EFT), there is no fee to the recipient. I'm pretty certain that this is what PAYPAL said when it started collecting fees payments funded by credit cards, but I can't find anywhere on PAYPAL that actually says this. All payments I have received have come with a fee taken out, so I just assumed most everyone charges their payment to a credit card.

    Is my impression correct or have I been operating under a false assumption?
     
  2. Don Black

    Don Black Screenwriter

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    All payments reflect a fee from PayPal. PayPal highly encourages you to pay for things with bank account funds since it a) reduces their risk for fraud; and b) boosts their profit some 1000%.

    For each credit card transaction, PayPal incurs a charge of $0.18 plus 1.9%. For bank transfers, however, PayPal incurs only a flat ACH debit processing fee of $.03 per transaction.
     
  3. Jesse Leonard

    Jesse Leonard Second Unit

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    PayPal used to not charge for payments made from existing funds. But the middle of last year, they started charging fees for ANY payment, no matter what the source. PayPal once was a pretty good deal, but now it is getting somewhat expensive to accept PayPal payments.
    I have never had a problem using PayPal but many people have. There are many sites out there devoted to "exposing" PayPals flaws. PayPalSucks.com is one site.
     
  4. Patrick Sun

    Patrick Sun Moderator
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    I would avoid allowing any 3rd party to have access to my checking account, just way to inviting for someone to clean out the account.
     
  5. Bill Balcziak

    Bill Balcziak Supporting Actor

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  6. Scott L

    Scott L Producer

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    www.C2it.com run by Citibank doesn't charge for incoming CC payments, as well as bank payments. But I tried to open an account there today, filled out all the info, hit register and the "Operation Timed Out." [​IMG]
    Maybe I'll try again someday...
     
  7. John Besse

    John Besse Supporting Actor

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    Ahh PayPal. How much I hate it and love it at the same time. As far as I know. Everyone is charged a fee for collecting money.
     
  8. alan halvorson

    alan halvorson Cinematographer

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    Well, there's nothing like hard data to answer a question. I PAYPAL'ed a small amount to my brother using instant fund transfer (EFT) and he was not charged a fee. So, it appears that transfers by PAYPAL balance, instant fund transfer and Echeck do not incur a fee on the receiving end.

    Why are so many up in arms about these fees? Does anyone have another way to pay another individual by credit card and not incur a fee? Merchants are always charged; why shouldn't you? PAYPAL, and BILLPOINT too, are incredible boons to the individual. Yes, I know that PAYPAL was once free but a company has the right to change its business model to stay in business. Would you prefer that BILLPOINT be without competition? What would BILLPOINT fees be without it?

    Please, let's keep the discussion about fees and not use this for PAYPAL rants.
     
  9. Don Black

    Don Black Screenwriter

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    IFTs and eChecks do indeed incur fees. Why you were not charged is odd. At issue isn't PayPal's business model. Rather, it's their price gouging tactics and poor customer service. eBay is also guilty of this.
     
  10. alan halvorson

    alan halvorson Cinematographer

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    Don: The instant fund transfer I just made is proof that they, at least, do not incur a fee. The recepient has all the money in his account, nothing subtracted. I've never used an Echeck, but others who have received them have told me that they are feeless also.

    What price gouging? On Premier accounts, which is what I have, the fee is 2.9% + $.30 per transaction. Merchant account fees are lower. These fees are similar to BILLPOINT and are, from what I understand, quite reasonable as credit card fees go. Do I understand wrong?

    Now, as for customer support, I have never had need of it and hopefully never will, but I do share your qualms.
     
  11. Scott Weinberg

    Scott Weinberg Lead Actor

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    I've recently received payments from clients through PayPal. Usually, I have the funds immediately transferred into my checking account, and I've never noticed any fees.
     
  12. TonyD

    TonyD Who do we think I am?
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    there is a fee for for funds to go right into your checking acc't.......Gross Amount--- 43.00.....Fee Amount----1.55... Net Amount-----41.45. .this is from my most recent transaction.
     
  13. Don Black

    Don Black Screenwriter

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    Unless you have poor or no credit, you should be able to find a bank who can give you a merchant account at about 1% lower. That's for credit cards. As far as EFTs are concerned, I think it's a little sleazy to be charging what they do.

    I maintain that it's odd that you haven't seen any fees on some of your payments. I assure you that that is not the norm. Kudos if your account remains fee free. Most people do not get this type of service. Perhaps this is as a result of using a PayPal account balance in lieu of a EFT from a checking account. Maybe PayPal deems the money they make off of the carry enough to not justify charging any fees. I personally have never seen this before.

    As far as PayPal shady customer service, PayPalSucks.com has more than enough horror stories. Stick with a USPS money order. They are cheaper, more reliable, and more secure.
     
  14. John Miles

    John Miles Stunt Coordinator

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    Stick with a USPS money order. They are cheaper, more reliable, and more secure.
    And a serious pain in the ass to deal with, compared to PayPal. [​IMG]
     
  15. Martin G

    Martin G Second Unit

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    I think that you can get free transfers as long as you don't upgrade your account to take CC payments. Of course then you can only get bank transfers and transfers from paypal accounts. I always got free transfers until my account was upgraded.
     
  16. alan halvorson

    alan halvorson Cinematographer

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    You know, Martin, I think you hit it. I must now eat a little crow but I think it's worth it. I made another bank fund transfer today and the receiver did indeed incur a fee. The transaction I described above with my brother may have been to a personal, not premier, account - my brother is not an active user of Ebay and PAYPAL.

    So, there it is - PAYPAL charges fees on everything, except, perhaps, Echecks - maybe. The bastards! That's the last bank transfer I will ever do through PAYPAL.

    Actually, if you do enough business using Ebay Payments (formerly BILLPOINT), Ebay will cut you a break on the fees. This has happened to me. I believe I will go that route, for payments to me at least.
     
  17. Don Black

    Don Black Screenwriter

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    Thanks for clearing that up Alan.
     
  18. Scott L

    Scott L Producer

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    Anyone use c2it.com? This and another service for AOL users is totally free. I'd be interested in how it compares to Paypal/billpoint.
    I also remember changing my account to Premiere. Now EVERYTHING has a fee attached to it when I receive payments. [​IMG] eBay charges enough, even if I do sound cheap.
     
  19. MickeS

    MickeS Producer

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    What's the big deal about these fees? They gotta make their profits somewhere, and every bank has fees too. Is it that they're too high, or that they're there in the first place?

    /Mike
     
  20. alan halvorson

    alan halvorson Cinematographer

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    MickeS: PAYPAL was originally free. Their idea was that they could invest the money that was in everyone's account and finance their business that way, but eventually reality set in, as these things do. Some people are mad because PAYPAL broke their promise to be always free, some because the fees kept increasing, and others because they feel that the fees are too high. Plus, as I have just found out for certain this weekend, PAYPAL charges fees on every transaction and not just those funded by credit cards. This last part is annoying, since, say, a transfer between accounts, no credit card involved, involves virtually no overhead and the entire fee becomes pure profit.
     

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