Excessive Fees with Paypal
By VotreAmie
@VotreAmie (3028)
United States
May 15, 2007 6:35pm CST
Yesterday I upgraded to a Premier account to be able to accept payments with credit cards through ebay.
On the other hand I am a member of a PTR program that already paid me 5 times. Each time $1. And I have never been charged by paypal. I always received the $1 sharp.
Now after I upgraded my paypal account, I cashed out at my program again for $1. To my surprise when I went to check the transaction on PayPal, I saw that the fee is $0.34. So each $1 I am going to pay PayPal $0.34. Sure they are getting rich. What is funny is that next to the $1.00 there is this option: Print shipping label. It's like they are considering that I sold something on ebay. If I have to pay 34 cents for each $1 then it's not worth it to continue with these programs.
Well I don't know what to do. Did you have an experience like this? Should I contact Paypal? How much does paypal charge you when you receive payments from your GPT programs?
2 people like this
3 responses
@lilaclady (28207)
• Australia
15 May 07
yes i guess they lok at it that although it may seem a lot it would cost you way much more to have credit card feature from a bank. A friend of mine wanted to put bank cred card feature on his page but it cost hundreds plus a percentage so I guess Paypal is a lot better than that..
@VotreAmie (3028)
• United States
16 May 07
Hi lilaclady. I know that we can not avoid these paypal fees. But I never knew they would charge 34% (34 cents for a $1 transaction) in fees, that's too much. Could you please tell me what percentage you get charged for your GPT programs? Thanks lilaclady.
1 person likes this
@lilaclady (28207)
• Australia
16 May 07
Hi... I just asked the guy in the band I help, he runs the webpage he has just put together, he had the costings in front of him and he said that every cd they sell for 22 dollars Paypal gets 87c... I hopr that helps you....
1 person likes this
@VotreAmie (3028)
• United States
16 May 07
Thanks lilaclady. I got everything figured out. Paypal is not charging 34% as I thought. I was wrong. Their fees are $0.30+3.9% or something like that... So the solution is to not cash out at $1.00. We need to request payments like at $5 or more to cut down on the international paypal transactions.
Here is an example to understand better:
$1 cashout: Paypal fees= $0.30+3.9% of $1=$0.34
$5 cashout: Paypal fees=$0.30+3.9% of $5=$0.50
$10 cashout: Paypal fees=$0.30+3.9% of $10=$0.69.
I am laughing at myself now. I just freaked out when I thought that I would pay 34 cents for each $1 transaction. You see from the example above, the fee is less if you cashout at a higher amount.
I hope that this discussion will be of some help to other friends so they will not freak out when they have this same experience. Thanks!
1 person likes this
@keithstieneke (823)
• Lincoln, Nebraska
16 May 07
Yes, the Paypal premier account does have excessive fees in my opinion. But considering they are one of the largest employers in Omaha Nebraska from what I know of they do have a lot of people to pay and they pay their employees quite well. That doesn't excuse them from those type of changes, but it may be part of the explanation.
I think also that the fee stays a certain amount for different payments like maybe .34 cents for transactions up to such and such a dollar amount rather than based on each dollar.
@VotreAmie (3028)
• United States
16 May 07
Hi Keth. The 34 cents were on the $1 transaction. It doesn't state otherwise. I think I will have to call them to be clear. Thanks keith.
@VotreAmie (3028)
• United States
16 May 07
Thanks keith. I did some research and I found out the information... Here is how it works:
You receive $X amount. Depending on the type of your account (premier or personal) and the country where the payment comes from, you pay a certain fee. In my case, I live in the US, the payment came from Thailand and my account is a Premier account, my fee is:
$0.30+3.9%X
Thanks for your response keith and take care.
@VotreAmie (3028)
• United States
16 May 07
Hi Gabs. My paypal account is new so I had the personal account. When I upgraded to premier those fees hit me lol
