What is it with Sellers and Paypal fees?

[TrumpetRhapsody]

Something I've noticed recently is the tendency for sellers to quote a price, then ask for the paypal fee to be included when paying.

 

What kind of BS is that? You don't sell something on ebay, then go back after the auction is over and ask the buyer to pay for the $2 insertion fee, do you? Stores don't ring you up, then ask you to pay the credit card fee on top of your total, do they?

 

If paypal intended buyers to pay the fee, they'd have it set up that way. If you're a buyer and don't like the fee, take it into account when setting an asking price. Don't be greedy and ask for the 3% on top of an already agreed price.

 

 

Paypal is a convenience. The seller gets his money fast so he can ship fast, and has a bit of insurance and mediation in case something goes wrong. Why should the buyer be the one to pay the fee for this convenience?

 

Hopefully this trend doesn't become a commonplace expectation here like it has on many of my other forums.

[psdenno]

I consider those fees to all be part of the cost of doing business and they should be absorbed by the seller. They can be passed along to the buyer in a much more covert manner and everyone can still be happy.

Dennis

[JSM]

You need to complain to ebay. That is against their policy.

 

Now if your a buyer and bid and win, but change your mind. Your darn right I email for those fees!

 

Been paid just about everytime in that scenario.

[Mikelly]

Using Paypal is much more convenient for all parties involved and allows a buyer to use a CC when they otherwise wouldn't be able to, would have to deal with possible money orders or other forms of payment... It boils down to IF the seller states in his/her auction that the 3% fee will be tacked ontop of the winning bid... I see nothing wrong with it if it's spelled out upfront.

 

Mike

[JSM]

Using Paypal is much more convenient for all parties involved and allows a buyer to use a CC when they otherwise wouldn't be able to, would have to deal with possible money orders or other forms of payment... It boils down to IF the seller states in his/her auction that the 3% fee will be tacked ontop of the winning bid... I see nothing wrong with it if it's spelled out upfront.

 

Mike

 

Not according to Ebay:

 

Payment Surcharges

Sellers may not charge eBay buyers an additional fee for their use of ordinary forms of payment, including acceptance of checks, money orders, electronic transfers or credit cards. Such costs should be built into the price of the item.

 

Violations of this policy may result in a range of actions, including:

Listing cancellation

Limits on account privileges

Account suspension

Forfeit of eBay fees on cancelled listings

Loss of PowerSeller status

 

Some Examples

Not permitted:

Charging an extra fee to use a credit card instead of a check.

Charging an extra fee to use PayPal.

 

http://pages.ebay.com/help/policies/listing-surcharges.html

[jeffer949]

I dont think he is talking about ebay. I think he is talking about like private sellers on here.

[JSM]

Ah yes, I see the light now. I just deal w/ it in that case.

[Mikelly]

Exactly. I buy a LOT of parts on bulletin boards and always ask to use paypal. Even though I use my debit car, the seller always gets zapped a 3% fee. So depending on the item and how big a deal it is, I send the extra without even mentioning it. I've done it for members here...

 

Mike

[jeffer949]

I say alot of people that are esp. Selling something that they made and arent selling for a great deal of money that 3% can really cut into there profit and basically make it not worthwile to do

[Six_Shooter]

I say alot of people that are esp. Selling something that they made and arent selling for a great deal of money that 3% can really cut into there profit and basically make it not worthwile to do

 

Then the seller should charge an extra 3% right off the hop.

 

I too am seeing this trend, and also feel that the seller should eat that fee, I say this as a person who sells more than buys (usually)

 

To complain as a seller about 3 measley percent seems to be so greedy, and even petty.

 

I've only payed the Paypal fee a couple times, just because the items were things that I wanted, and I felt I was still getting a good deal. If the item was something that was just an ok deal or I didn't really need or want then I wouldn't buy that item.

[TrumpetRhapsody]

I'm not talking about screwing people over here... Several of you are getting the point. I didn't specify in the original post, but i'm not referring to Ebay transactions.

 

Ebay policies agree with me, but here I'm referring to casual forum interactions. I see people posting a price, then saying "add 3% paypal fee". It just kinda burns me, like the ol' $19.95 thing... it's $20.

 

The other problem is when it isn't mentioned till AFTER a price has been agreed upon. If the seller was worried about the 3% they should have asked for it in the original price, not sneak it in after.

 

 

I'm frequently a buyer and a seller, so I do have a fairly unbiased perspective. I consider the 3% fee a cost of business, and well worth the quick payment and security. Paypal is SO widely used now, that people are trying to take advantage it IMO. As a seller, you're an odd man out if you DON'T take paypal.

 

I usually don't argue over it, but it hurts when buying something VERY expensive. If nothing else, why not split the fee? Like I said though, I think it's the seller's responsibility to pick it up.

[jeffer949]

Maybe they are trying to give someone a way to save some money if they want to send a cashiers check or MO. But if THEY want the convenience of using paypal to get the transaction done faster then they can pay the fee

[240hoke]

I for one charge the paypal fee usually, i just add it in with shipping and handling. If its a large amount then I split it with the buyer. I agree that it should be stated up front and if they dont then you shouldn't have to pay it.

 

I see it mainly as a convenience to the buyer... It isnt any more hassle for the me to wait to ship something, most buyers want their things NOW. When you receive money you still still have to transfer it into your bank account which usually takes longer then depositing a check but at least you know that you have verified funds. If somebody wants to send me a check or money order fine. You pay a fee to buy a MO and you pay for postage and it takes forever.

 

But what it all comes down to is Paypal and EBAY are making a TON of money, and take what i feel is too much. I have started selling things locally and on forums just so I don't have to deal with it.

[johnc]

As a seller of products and services, I post this on my web site and on every estimate. The last paragraph explains why I charge those fees. A potential customer can choose to pay how he or she wishes:

 

PAYMENT INFORMATION

We accept personal checks drawn on USA banks, cash, and Credit Cards (VISA and MasterCard). We also accept Credit Cards and eCHECKS via PayPal (send PayPal payment to: sales@betamotorsports.com.) Payments via personal check or eCHECK take 5 to 10 business days to clear. Products will be shipped and/or vehicles will be released after payment clearance.

 

Please note the following additional charges:

1. A PayPal payment via eCHECK will incur an additional eCHECK fee of $5.00.

2. A PayPal or Credit Card payment made from outside the USA will incur an additional 1.5% cross border fee.

3. Non-US dollar PayPal or Credit Card transactions will incur a additional 3% currency conversion fee.

4. An invoice totaling $1,000.00 or more and paid via PayPal or Credit Card will incur an additional fee of 2.9%.

 

Unfortunately, the fees listed above can be cumulative. We don't like having to charge these B.S. fees but we really don't like having to absorb these fees and pass the costs on to our customers who pay by cash or local check.

 

Banks and credit card companies have raised a lot of fees to sellers. If your credit card has a rewards program the credit card companies tack on an additional 1 to 1.5% to the seller so that the company can pay for the rewards program. Unfortunately, the seller is purposely kept unaware of that additional charge until the monthly statement comes from the credit card processor.

 

Its no uncommon for a seller to pay close to 5% of the sale of something to the credit card companies. IMHO, if you want the pay with the convenience of a credit card, you should be willing to pay some of those additional fees. Again, IMHO, its unfair for me the seller to charge cash and check customers an additional undisclosed fee. That's just plain lying.

[johnc]

BTW... I'm curious. What's the difference between paying an extra 3% as a fee verses a product that's 3% more expensive?

[m4xwellmurd3r]

nothing! Hurry!

I used to buy/sell paintball parts a lot on a particular website, and most of us would tack on the paypal fee to whatever price we had set just to make it easier. the only additional fee would be shipping (but for a lot of things shipping was included)

the only one who would know there was a paypal fee would be the seller if they didn't say anything.

[TrumpetRhapsody]

The difference is in the negotiation. It's hard to argue over the piddly 3%, though it does add up. If it's included in the price, the seller and buyer get a better feel of exactly what they're getting for the product while negotiating.

 

The credit card is a good example, and I'm sure that's why some people use paypal. I however use paypal b/c it takes it directly out of my bank. It just makes it quick for the buyer AND seller.

 

 

Maybe I'm wrong here. Maybe I should start charging the fee on top of stuff I sell, and offer money order as an option. I started this thread to get other's feelings on this issue. Like I said, paypal made it so the seller gets the fee for a reason.

[johnc]

Maybe I'm wrong here.

 

You're not wrong, people (including yourself) do business however they see fit. IMHO as long as everything is disclosed, both buyer and seller can make informed decisions.

[Six_Shooter]

John, I have to ask, why would you charge an extra 1.5% for me to pay you for something in US funds via Paypal, just because I live across a border? US currency is US currency no matter where it's sent from.

 

At this point it just sounds like a way to get more money from someone just due to the location they live in.

[RB26powered74zcar]

I sold two items today. One buyer chose to use PP over sending a money order, the other chose to send me a money order.

 

Both were advised at the begining what the total would be, either way.

 

I buy tons off ebay. Rarely do I get asked to pay PP fees, because their not suppose to ask for it, but I'm confident I'm paying them, I just wasn't told I was.

 

99% of the things I've sold, I never asked to be compensated for eBay taking 3% of my sale price out, so the buyer could use paypal.

I guess its best to just figure that into the selling price and don't mention it. It looks better to everyone that way. I figure if I'm giving a great price to begin with, why should I absorb that fee myself. That would have amounted close to $40 today I did not make on the sale. Maybe I'm wrong??