Paypal Surcharges

Discussion in 'Vintage Topic Archive (Sept - 2009)' started by p7196, Apr 13, 2008.

  1. p7196

    p7196 Guest

    I don't know how many of you know this but , Paypal TOS strictly says that you can not charge a surcharge for accepting paypal as payment. Paypal is closing accounts of people who are charging a surcharge for using paypal. I have noticed that several merchants are charging surcharges. There are also several states that have laws against surcharges not all states but many do. Also Visa & Mastercard prohibit surcharges as well. This applies to using paypal,obopay and the many others out there.
     
  2. AndrewST

    AndrewST Guest

    Most of the people who are charging the surcharges are trying to regain what they loose in the PayPal transaction fee.

    Although that still doesn't make it right.
     

  3. You know there's an extremely easy way to get around this (my old job did it to charge for credit cards). They simply said "all prices reflect a cash discount". That way you're not charging a customer extra for not using paypal, you're simply not giving them the discount for paying in cash.
     
  4. Strangerous

    Strangerous Member

    4,752
    0
    That works in a FTF situation, but I've yet to see a way to send greenbacks over the internet. It's always done through some type of electronic means that is backed with a banking account or credit card. You can send funds with PayPal with both, but if paypal "charges" vendors, then it doesn't matter if the buyer pays from his checking account or credit card. (CASH or CREDIT!)

    I personally feel that the paypal surcharges are wrong, due to the fact that in business, these details should not be overlooked during the initial planning. An oversight on their part should not cost me ANYTHING! :)
     
  5. Uraijit

    Uraijit Guest

    Nothing wrong with recovering your costs. Why should I take a loss in payment via paypal? If you want to pay with paypal, then pay the fees. If you don't want to pay the fees, mail a money order.
     
  6. Strangerous

    Strangerous Member

    4,752
    0
    My friend, here's what you fail to see: When you have a business, you have a few things that have to be planned for. In business you have a few factors to deal with... Like "value proposition", "market segment", "revenue generation and margins", "position in value network", and "competitive strategy". That paypal fee, would go into the price of the item, under the "margins" banner, and it would never be seen by the consumer. Openly stating that payment method A will cost you 5-10% more than if you use payment method B is simply bad business.

    I bet every business out there would love to charge everyone a little bit extra to help in "Revenue generation and margins" because in every other real business, the "cost structure" has already been accounted for in the price of the item. When you sell the item is when you "recover your costs", NOT when payment is processed. If you want to use "fly by night" vendors, go ahead and pay the fees, but a real business doesn't punish the consumer.

    EDIT: This doen't go for the folks on the forum, because we are individuals, and then it's an even playing field. This only refers to businesses. Just wanted to make that clear.
     
  7. p7196

    p7196 Guest

    Anyway you look at it IT IS WRONG. Why should I have to pay for a fee you get charged when you knew there were fees when you agreed to the TOS when you opened the account. There are many who will say paypal is the only payment option. The want to charge a bullsnit 3% surcharge. If your profit margin is so low you can't afford to lose the fees don't sell. Anyway you look at it it is either illegal or at a minimum a violation of TOS.
     
  8. Mike_AZ

    Mike_AZ U.S.S. Member

    2,254
    0
    If you accept PayPal as a payment option then you should accept that you'll take a 3% hit for it. If you aren't willing to accept that, then don't accept PayPal as a form of payment. Should you also add a surcharge for having to drive to the bank to deposit the MO? Gas isn't free you know. I think you should price your items appropriately to cover your costs of doing business.
     
  9. p7196

    p7196 Guest

    You know I completely agree. If the price is higher and you're not telling me I have to pay a surcharge I don't mind the higher price. It is when you blatantly tell me I have to pay it. That gets to me. It is like you think you are going to force me to do something. When someone tries to force me I don't play well with others.
     
  10. i agree...but paypal sees it as you running off their customers (which is B/S)... :lol:
    everyone wants in your pocket, but you stay out of theirs. :roll:
     
  11. That's massively stupid: if I choose a payment method that costs the seller money, I'm happy to pay extra for the convenience (within reason!)

    I won't name names (in case PP is watching), but I recently bought from someone here who didn't want to take PP for that reason. But: I volunteered to pay the extra, and the problem was solved to everyone's satisfaction.
     
  12. Mike_AZ

    Mike_AZ U.S.S. Member

    2,254
    0
    As I pointed out above, money Orders cost the seller extra money also. The seller has to drive to the bank ad deposit or cash it. Should the seller charge you extra to cover the cost of gas? What about a seller who doesn't have a bank account? It will cost him extra to cash the check or money order. So every form of payment except cash costs the seller money. Sellers need to account for that overhead and price their item accordingly. You can always choose not to accept PayPal, but your limiting you potential customer base by doing it. Besides, for a $100 purchase it is only $3.30.
     
  13. I have over 100 ebay sales with 100% positve rating. I just add the paypal fee INTO the sale price.

    EBAY NAME dead_scott
     
  14. Most eBay sellers recover their Paypal fees by using the "handling fee" charge in shipping.
     
  15. MalcolmStone

    MalcolmStone Member

    116
    0
    What really sucks, however, is that my aunt wanted to send me some money for Christmas, and as a nice gesture on her part wanted to Paypal it to me so I would get it quicker (she lives in Seattle and I'm in WV). Not thinking anything of it, I told her that would be fine. Well, since I have a sellers account, Paypal decided to take their 'cut' of my Christmas money, even though this was not a 'business' transaction. I was kinda peeved, but oh well. I've made more money from eBay by having a sellers Paypal account than if I hadn't, so I'm not truly complaining, just wished Paypal discriminated against certain transactions getting charged or not.

    BTW, I've purchased firearm parts and firearms themselves and still used Paypal, but never mentioned anything about it being for firearms related stuff. 'Machined Parts' works on there as well. :)

    Tom
     
  16. the way around this crap is to offer a cash or money order discount. on the zombie patches the extra .50 cents, while not required, is gladly accepted to help cover the stupid costs.

    On a damn 25 dollar transfer paypal charges over a buck. so stupid.
     
  17. Uraijit

    Uraijit Guest

     
  18. jsumpter99

    jsumpter99 Guest

    Paypal is a joke anyway.

    From a buyers perspective,they will tell you all day long that you have buyer security but when it comes to getting ripped off they will only refund you money if the funds are available in the sellers account. If the seller drains his paypal account before you file a claim, you wont get jack. They were even nice enough to facilitate sellers doing exactly this by offering paypal debit cards now.

    From a sellers perspective, paypal doesnt give a crap about your terms of sale. I sold a brand new cd player that wouldnt fit my car on ebay. Number one, I always sell electronics AS IS. The guy that bought my radio hooked it up, and listened to it for about two weeks. Then he decided to hook up a "system" in his car. He admitted in email to powering on the radio without connecting the ground wire. Mysteriously enough it did not work after that. He filed a claim against me with paypal. Thinking I was ok I emailed paypal the auction number with my terms of sale, as well as forwarded them the email where the buyer admitted to frying the thing. They evidently still thought that I should replace the radio because I was not given another chance to repsond and the funds were automatically removed from my account.

    The ONLY reasons paypal is still around is marketing and lack of other options for online quick payment. They are a horrible company when it comes to customer service, so the bs with thier tos doesnt suprise me a bit.
     
  19. yep....same here. if you look into it, most ebay sellers do it. :wink:
     
  20. Strangerous

    Strangerous Member

    4,752
    0
    Uraijit, It doesn't matter how long your post is, the fact of the matter remains.
    "If you don't eat/plan for the surcharge, don't offer it as a method of payment."
    And comparing the "paypal vs money order" to the "Priority vs Ground" is not an equal argument, as the seller isn't USPS, UPS, FEDEX, or DHL. He doesn't put the price on the shipping, they do.
    You're right on one thing, consumers like options, and the option I like is no paypal surcharge. ;)
    I like you Ijit, you almost always have the best rebuttals. :lol: