How do I avoid paypal's 3% charge?

emjazz · #1 04-30-2008, 10:54 AM

I think I saw someone mention once that if you are paid by someone through paypal without them using their credit/debit card than you can avoid getting charged the 3% fee. Is this true? If so, how would the buyer pay through paypal? I have a buyer who insists on using paypal but I don't feel like getting gouged by the paypal charge and losing more money. Any ideas? Thanks.

playinpearls · #2 04-30-2008, 11:05 AM

i would tell him to pay the charge, i know that is against their agreement or whatever, but if my preferred choice is something else, and they dont want to do it, then let'em pay...or at least split the charge...

i_got_a_mohawk · #3 04-30-2008, 11:09 AM

If it isnt something you want to use, tell them you will let them use it, but only if they pay the fee. That arrangement is made outwith ebay so there shouldnt be a problem.

fenderx55 · #4 04-30-2008, 11:10 AM

They probably have to be set up so that it's a money transfer directly from their debit account rather than their credit card. That 3% is what most companies charge vendors when someone swipes. So when you put $10 on your visa, the seller has to pay Visa $.3 at the end of the month. That's why so many places have minimums.

I'm thinking that if it's drawing directly from the bank, they're workign around this.

emjazz · #5 04-30-2008, 11:12 AM

Yeah, I tried that but I think I'm asking his decided limit and he won't go higher. I respect that, no problem. I also have a decided loss amount that I'm not willing to go under. We just seem to be on the edge of each other's decided limits.

emjazz · #6 04-30-2008, 11:17 AM

Quote:

Originally Posted by fenderx55

They probably have to be set up so that it's a money transfer directly from their debit account rather than their credit card. That 3% is what most companies charge vendors when someone swipes. So when you put $10 on your visa, the seller has to pay Visa $.3 at the end of the month. That's why so many places have minimums.

I'm thinking that if it's drawing directly from the bank, they're workign around this.

I think this may be the case as well....I'm just not sure how to go about it that way. I'm looking for someone who can tell me for sure from first hand experience.

i_got_a_mohawk · #7 04-30-2008, 11:31 AM

Quote:

Originally Posted by fenderx55

They probably have to be set up so that it's a money transfer directly from their debit account rather than their credit card. That 3% is what most companies charge vendors when someone swipes. So when you put $10 on your visa, the seller has to pay Visa $.3 at the end of the month. That's why so many places have minimums.

I'm thinking that if it's drawing directly from the bank, they're workign around this.

The seller doesnt pay at the end of the month, it gets out of the transaction. i.e. Buyer sends $100, seller recieves $100 but there is an instant withdrawl of $3 by paypal. (kinda along those lines). That's how it used to be anyway. And it isn't quite 3% IIRC (UK could be different).

If you do a paypal to paypal transaction, it is free tho IIRC.

But, the buyer would need to transfer X amount of money into his paypal account. This then takes 5-7 working days to be "processed". The seller isnt charged that way. (IIRC)

If it isnt a huge amount of money, I'd pobably offer to go halfers with the guy if you are both on your limits.

playinpearls · #8 04-30-2008, 11:51 AM

Quote:

Originally Posted by fenderx55

They probably have to be set up so that it's a money transfer directly from their debit account rather than their credit card. That 3% is what most companies charge vendors when someone swipes. So when you put $10 on your visa, the seller has to pay Visa $.3 at the end of the month. That's why so many places have minimums.

I'm thinking that if it's drawing directly from the bank, they're workign around this.

Just as a FYI it is illegal and against all credit card company policies to have a minimum charge for credit card purchases. If some store tries to tell you about a minimum tell them its illegal and to ring you up or you will report them. You can find all the numbers online.

TrooperFarva · #9 04-30-2008, 12:14 PM

Quote:

Originally Posted by playinpearls

Just as a FYI it is illegal and against all credit card company policies to have a minimum charge for credit card purchases. If some store tries to tell you about a minimum tell them its illegal and to ring you up or you will report them. You can find all the numbers online.

It's not illegal

As far as avoiding the 3% charge, ask the buyer for a PayPal E-Check. It's how I sold my Sadowsky. Instead of a 3% charge, it's a flat fee of $5. The downside is that, like a real check, it has to clear, so it takes 3-5 business days (3, in my case) for the e-check to clear in Paypayl and appear in your account, and then another few days for the money to go from your paypal account into your bank account. But if your buyer is either trustworthy or patient, it's a good way to go.

fenderx55 · #10 04-30-2008, 12:32 PM

Quote:

Originally Posted by playinpearls

Just as a FYI it is illegal and against all credit card company policies to have a minimum charge for credit card purchases. If some store tries to tell you about a minimum tell them its illegal and to ring you up or you will report them. You can find all the numbers online.

Honestly, I hate people that waste my time with a 5 dollar purchase on their credit card. When I'm on both sides of the counter. I also sympathize with small business owners and frankly, don't have the patience or inclination to rat someone out for that. It just seems spiteful and I have better things to do with my time.

Baryonyx · #11 04-30-2008, 12:58 PM

How do you avoid the charge? Don't use Paypal!

IanStephenson · #12 04-30-2008, 01:09 PM

You get the 3% charge if your ACCOUNT is setup to take credit cards.

Most "sellers" have a merchant account (or something similar) which CAN take credit cards, but attracts a 3% charge on all cash received.

If you have a "regular" account, you can't take credit cards - only balance and bank payments, but there are no charges for receiving money. That's what I have, as I don't sell stuff much - if you are selling regularly you need to just cough up the 3%.

Ian

**baba** · #13 04-30-2008, 01:12 PM

Quote:

Originally Posted by fenderx55

Honestly, I hate people that waste my time with a 5 dollar purchase on their credit card. When I'm on both sides of the counter.

You'd hate me then. I put EVERYTHING possible on credit card. I just pay it off at the end of each month, pay no interest, and get free plane tickets.

i_got_a_mohawk · #14 04-30-2008, 01:23 PM

Quote:

Originally Posted by IanStephenson

You get the 3% charge if your ACCOUNT is setup to take credit cards.

Most "sellers" have a merchant account (or something similar) which CAN take credit cards, but attracts a 3% charge on all cash received.

If you have a "regular" account, you can't take credit cards - only balance and bank payments, but there are no charges for receiving money. That's what I have, as I don't sell stuff much - if you are selling regularly you need to just cough up the 3%.

Ian

I needed to update my account when I was selling some things on ebay so someone could pay using CC. I only get hit with whatever the %age is (20p + 2.5 or something) if it is someone using CC. That does change though dependant on how much money is going into your paypal account each month.

**cheezewiz** · #15 04-30-2008, 01:27 PM

One simple solution. Charge 3 percent more than you really want for your item.

TrooperFarva · #16 04-30-2008, 01:28 PM

Quote:

Originally Posted by baba

You'd hate me then. I put EVERYTHING possible on credit card. I just pay it off at the end of each month, pay no interest, and get free plane tickets.

Yeah, it'll be even better when your identity is stolen by the kid who jockeys the register at the bodega where you buy your gum, because he takes the credit card numbers and expiration dates of the cards people use when they buy $0.80 worth of stuff, and sells them online to someone halfway round the world, who proceeds to clone your card, and destroy your credit.

You run a much higher risk of getting your information taken when you put EVERYTHING possible on a credit card.

I suppose the possibility of financial ruin is nothing compared to the prospect of free plane tickets, however.

fenderx55 · #17 04-30-2008, 01:34 PM

Quote:

Originally Posted by TrooperFarva

I suppose the possibility of financial ruin is nothing compared to the prospect of free plane tickets, however.

::slow clap/standing ovation:: I'm sig'ing this if you don't mind. I lol'd. I got weird looks.

**baba** · #18 04-30-2008, 01:43 PM

Quote:

Originally Posted by TrooperFarva

Yeah, it'll be even better when your identity is stolen by the kid who jockeys the register at the bodega where you buy your gum, because he takes the credit card numbers and expiration dates of the cards people use when they buy $0.80 worth of stuff, and sells them online to someone halfway round the world, who proceeds to clone your card, and destroy your credit.

You run a much higher risk of getting your information taken when you put EVERYTHING possible on a credit card.

I suppose the possibility of financial ruin is nothing compared to the prospect of free plane tickets, however.

Ok chicken little. I'll take that into careful consideration.

NickyBass · #19 04-30-2008, 01:47 PM

Add another vote for the PayPal e-check service. It's alot cheaper, or so I'm told.

TrooperFarva · #20 04-30-2008, 01:48 PM

Quote:

Originally Posted by fenderx55

::slow clap/standing ovation:: I'm sig'ing this if you don't mind. I lol'd. I got weird looks.

Sig away.

I'm not opposed to credit cards, quite the contrary. I use credit cards quite frequently. But I only use them for larger purchases, and only at reputable retailers.

Identity theft is an all-too-common crime, and most everyone carries the attitude of "Oh, that'll never happen to me" until it actually happens to them. I think using your credit card for everything puts you at a much higher risk of identity theft than using cash for small purchases does.