Paypal Transaction Fee Explained

Not to be rude, but since I fund from my bank account money I send for a "giift" goes through wihtout a fee. It's about what you call it

Correct. GIFT or PERSONAL transactions are fee-free. The only drawback is there is no buyer or seller protection on these transactions. After all, it's a gift, right?

Correction, if you guys have made a gift or personal, you either have to pay the fee yourself, or the fee is paid by the individual you are sending the money to............ UNLESS, you have a current balance in your Paypal account. This information is given to you in the T&C of Service from Paypal.

To further complicate things, the 2.9% is also charged on the fee that is added on.

example

item sells for $100.00
$100 x 2.9% =$2.90
$2.90 x 2.9% =$0.0841
.0841 x 2.9% =$0.0024
subtotal =$102.99
plus .30
Total =$103.38

So in this case 3% does not add up to the total that PayPal charges.

Correction, if you guys have made a gift or personal, you either have to pay the fee yourself, or the fee is paid by the individual you are sending the money to............ UNLESS, you have a current balance in your Paypal account. This information is given to you in the T&C of Service from Paypal.

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Partically correct. If you use your linked bank account as the source there is also no fee with the "personal"/Other option.

I've always had a problem with Paypal's cut. I try not to use them if at all possible, which is why I seldom sell on ebay anymore. Though I will admit, they have made it very convenient.

Something to consider. If you accumulate a positve balance in your account, you are essentially giving Paypal a free ride on your money. Which you are not deriving interest off of.

This is not unlike what merchants who accept Mastercard or Visa have to pay. I had a merchant account for nearly 10 years; I paid, roughly, 3-4 percent of every such transaction.

What PayPal is doing is analogous to giving anyone a Merchant credit card account, w/o the hassle or monthly fees of having such a merchant account.

Whether you absorb the fees as part of the price or add 3% is up to you, just like those on Gunbroker who accept MC/Visa will often add a fee if you use the credit card instead of sending check or equivalent.

I got rid of my merchant account in part because PayPal will stand in for me.

fourdollarbill said:

Well I guess the sale ad should state:

No fee when the money comes from PayPal balance or bank account.

2.9% + $0.30 USD
when the money comes from a debit or credit card or PayPal Credit

Or better yet just add a buck to the price and say no fee's

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That's is my thoughts, dollar. Just add 3-5% to the asking price on the sale. If it goes Money Order then you can discount 3-5%=Win-Win..

I learned all I needed to about about paypal here:

http://www.aboutpaypal.org/

Paypal has worked each and every time I've used them as both buyer and seller.

The 3% is a price I'm willing to pay as a seller for the immediacy of payment.

I never add the Paypal +3% proviso.

You pay money when you use an ATM and often pay a fee when you do bill pay online with your creditors.

If you read the PayPal terms of service sellers are not allowed to add the fees to the transaction. If you do chose to violate the terms of service and add the 3% you have just created a downward spiral of decreasing returns. PayPal will charge you 3% on the added 3% so you need to calculate that amount and add it, then the 3% on that 3% and add it, so on and so forth.

Convenience Fee

I see it as I didn't have to make a trip to the post office + buy a money order so it's a wash and I also know the seller got their money.

Didn't PayPal prohibit the use of their system to pay for guns and gun related items?

Didn't PayPal prohibit the use of their system to pay for guns and gun related items?

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Yes, and that is why so many of us say:
"Just say "NO" to Paypal..."

Look at it this way:
You have to operate in deceit to use their service.
They are using your money to fund programs and persons who operate in a manner that is contrary to your interests.

No thank you.

mongoose has it right. PP's transaction fee is no different than the one you're paying (whether you know it or not) with any other credit card. The convenience of not having to purchase a check or money order, fill it out, stamp, address, and mail an envelope, and wait, is not free. Nor should it be.

Didn't PayPal prohibit the use of their system to pay for guns and gun related items?

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No, prohibition extends only to items which are "regulated"

Direct from PayPal's TOS:

You may not use the PayPal service for activities that:
1. violate any law, statute, ordinance or regulation
2. relate to sales of ... ammunition, firearms, or certain firearm parts or accessories, ... regulated under applicable law

I used to be a PayPal fan; very easy, very convenient. Up until last year when I was advertising AR-15 mags for sale and listed "discreet PayPal" as a payment option. I do not know if PayPal has "robots" that search text in various forums, or whether someone notified them and blew the whistle, BUT, bottom line PayPal discovered my ad, closed my account and has basically banned me for life because I violated their prohibited use policy by selling "high capacity" 30 round mags.

So I have taken up my own personal war against PayPal. PAYPAL snitches if you are reading this then, yes, its me, on my soap box campaigning against you and your anti-gun, elitist policies that violate the constitutional rights of American citizens...but hey, its your business, I'm just hoping that someday the political and financial pressure caused as a backlash against your policies make you buckle and change them, or better yet go out of business!

Members of THR.org, I would like to highly encourage you, since I assume you are all supporters of the 2nd Amendment, to drop your buying and selling using PayPal and adopt GUNPAL http://www.gunpal.com. They function nearly identical to PayPal, without the attitude and the anti-American policies. Please support them!!

Lee Roder said:

mongoose has it right. PP's transaction fee is no different than the one you're paying (whether you know it or not) with any other credit card. The convenience of not having to purchase a check or money order, fill it out, stamp, address, and mail an envelope, and wait, is not free. Nor should it be.



No, prohibition extends only to items which are "regulated"

Direct from PayPal's TOS:

You may not use the PayPal service for activities that:
1. violate any law, statute, ordinance or regulation
2. relate to sales of ... ammunition, firearms, or certain firearm parts or accessories, ... regulated under applicable law

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Ummm no, 30 round magazines are not "regulated" where I live and are not "regulated" anywhere I was selling them. But they are "regulated" in California. So unless you like having the California Communist Agenda, forced down your throat when you live in a "Free State" then by all means continue to use PayPal and continue to fund their politics!

I used Paypal for years with no problems. Then fraudulent PP withdrawals ranging from $50 to $500 started showing up on my bank acct. from alleged sellers of hand-lotion in Israel, or pen-and-pencil sets in Nigeria.
Paypal did reverse these fraudulent charges when I notified them but was unable to keep them from continuing. They seem to have security problems they can't deal with.

I cancelled my account and have survived very well without it.

Tinpig

Not sure what everybodies problem is...The shipping is the problem. Rather then complain about PayPal tring to make a living, work on getting the shipping down...

Kind of a waste of electrons here...

Ummm no, 30 round magazines are not "regulated" where I live and are not "regulated" anywhere I was selling them. But they are "regulated" in California.

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I hear you, but realize that PayPal, Inc., is domiciled in CA. A Corporation is a creature of Law and PayPal's existence is governed by the laws of California independent of your laws or your buyer's laws. And facilitating your transaction makes them very much a "part" of your transaction. So your transaction was subject to California's laws. That's why you got banned. Not because you sold "gun-related" items. You sold "regulated" gun-related items. You pitted PP against California's law potentially jeopardizing its right to exist, since it was chartered presumeably for "all lawful activities".

GunPal, Inc., similar to PayPal, Inc., in concept is alot freer, apparently just because that business in corporated OUTSIDE of California. I don't know where GunPal incorporated, but GunPal, Inc., is currently NOT a domestic California corporation.

I'm not defending PP, but PayPal may in fact have no choice in the matter.

I don't pay credit card fees. I don't pay ATM fees. I don't donate to the Brady Bunch. I don't use gaypal.

The interchange fee is intrinsic to this free market economy unless you are cash only

Lee Roder said:

I hear you, but realize that PayPal, Inc., is domiciled in CA. A Corporation is a creature of Law and PayPal's existence is governed by the laws of California independent of your laws or your buyer's laws. And facilitating your transaction makes them very much a "part" of your transaction. So your transaction was subject to California's laws. That's why you got banned. Not because you sold "gun-related" items. You sold "regulated" gun-related items. You pitted PP against California's law potentially jeopardizing its right to exist, since it was chartered presumeably for "all lawful activities".

GunPal, Inc., similar to PayPal, Inc., in concept is alot freer, apparently just because that business in corporated OUTSIDE of California. I don't know where GunPal incorporated, but GunPal, Inc., is currently NOT a domestic California corporation.

I'm not defending PP, but PayPal may in fact have no choice in the matter.

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Lee, I'm not sure where you come up with your information or whether you just post based on personal speculation. The fact is GunPal is headquartered and incorporated in California. There is no state law that prohibits businesses from participating in business transactions outside of the states jurisdiction that just happens to be prohibited within their jurisdiction. That would similar to saying you had a credit card issued by a California bank, that could not be used to buy stuff anywhere in the world that was prohibited from being possessed in California, even if you are not a California resident. As we all know, that's ridiculous.

Its obvious, PayPal's purely anti-gun position is because the companies board of directors have a political agenda that includes the elimination of the 2nd Amendment. Any pro gun person that continues to use PayPal is simply funding the effort to help them do so.

PEOPLE PLEASE WAKE UP AND STOP USING PAYPAL!!