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Paypal Transaction Fee Explained

Discussion in 'General Gun Discussions' started by fourdollarbill, Mar 24, 2010.

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  1. fourdollarbill

    fourdollarbill Member

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    I have noticed some questions and maybe some minor tension between sellers and buyers about PayPal fees of 3%. I remember one thread that was pretty heated and the buyer claimed to never buy from this seller again.

    Well if I can interject some knowledge that should put this to rest...

    ALL PayPal seller to buyer transactions up to $3K are 2.9% plus $0.30.

    If the seller transacts more than $3K per month with PayPal then PayPal will reduce it to 1.9% plus $0.30 only if the seller applies for the "Merchant Rate".

    If you have the "Merchant Rate" and sell below $3K per month then the transactions will be 2.9% plus $0.30 again.

    So actually these sale ads should state "PayPal +2.9% +.30 cents"

    Just some good info as I see the "why plus 3%" question asked a lot.

    Also that will explain to many sellers why the PayPal +3% never zero's out.

    (OH)
     
    Last edited: Mar 24, 2010
  2. falmike

    falmike Member

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    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 :)
     
  3. medalguy

    medalguy Member

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    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? :rolleyes:
     
  4. fourdollarbill

    fourdollarbill Member

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    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 :confused:
     
  5. sneedb82

    sneedb82 Member

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    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.
     
  6. SciFiJim

    SciFiJim Member

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    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.
     
  7. 1KPerDay

    1KPerDay Member

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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.
     
  8. DRYHUMOR

    DRYHUMOR Member

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    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.
     
  9. mongoose33

    mongoose33 Member

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    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.
     
  10. billybob44

    billybob44 Member

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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..
     
  11. EddieNFL

    EddieNFL member

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  12. nsaqam

    nsaqam Member

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    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.
     
  13. jdh

    jdh Member

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    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.
     
  14. Jimfern

    Jimfern Member

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    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.
     
  15. Artiz

    Artiz Member

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

    orionengnr Member

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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.
     
  17. Lee Roder

    Lee Roder Member

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    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
     
    Last edited: Mar 27, 2010
  18. mtang45

    mtang45 Member

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    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!!
     
  19. mtang45

    mtang45 Member

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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!
     
  20. Tinpig

    Tinpig Member

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    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
     
  21. The Bushmaster

    The Bushmaster Member

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    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...
     
  22. Lee Roder

    Lee Roder Member

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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.
     
    Last edited: Mar 27, 2010
  23. EddieNFL

    EddieNFL member

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    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.
     
  24. Lee Roder

    Lee Roder Member

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

    [​IMG]
     
  25. mtang45

    mtang45 Member

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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!!
     
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