Avoiding Paypal charges?

innovate · 2 September 2005 at 5:50PM

Since Paypal charge pretty extortionately on all transactions that get paid into a "premier" account, would the following work

Set up two Paypal accounts - one basic, one premier [I know this requires two bank accounts, too, if you want to become verified]
set up eBay account so payments go to the basic account by default
if somebody pays with a credit/debit card, ignore the invitation from Paypal to upgrade. Instead, refuse the payment (so buyer gets credited), then ask buyer to pay again into the Premier account

Or is there a simpler way to ensure that Paypal charges only incur when somebody pays by credit card?

soolin · 2 September 2005 at 5:55PM

Is it worth doing this and upsetting your buyers who may think you are running some type of scam and report you to ebay? It might work for a while if you only sell the occasional item and sit by your pC so you can refuse payments immediately, but some buyers, me included, would not be happy to pay to an account not shown on the invoice from ebay and report you as a non performing seller.

For me my time is valuable, to save a few pounds on my paypal sales would cost me too much in spare time.

Also, how many people keep a balance on their paypal accounts to pay with anyway as that is the only way you can receive payment without incurring charges.

Soo

Chalky87 · 2 September 2005 at 9:41PM

innovate wrote:

Since Paypal charge pretty extortionately on all transactions that get paid into a "premier" account, would the following work
Set up two Paypal accounts - one basic, one premier [I know this requires two bank accounts, too, if you want to become verified]

set up eBay account so payments go to the basic account by default

if somebody pays with a credit/debit card, ignore the invitation from Paypal to upgrade. Instead, refuse the payment (so buyer gets credited), then ask buyer to pay again into the Premier account

Or is there a simpler way to ensure that Paypal charges only incur when somebody pays by credit card?

I've never heard any of those ideas for making PayPal charges cheaper....it's fair to say I'm confused! My advice add onto your selling price the charges incurred, like all other businesses and then your profit will be your profit!

Peter_Griffin · 2 September 2005 at 11:52PM

whitey1987 wrote:

I've never heard any of those ideas for making PayPal charges cheaper....it's fair to say I'm confused! My advice add onto your selling price the charges incurred, like all other businesses and then your profit will be your profit!

You can't do that directly ... you can't say for example - if paying by paypal please add x amount.

You could sneak it onto postage or make a buy it now more expensive.... but i personally hate that, and would put me off - maybe others too!! i sometimes give a discount for paying by cheque. However at the end of the day you have to pay for the "convenience" of paypal, its another cost you have to incur as paypal have no real competitors... its about time they did though!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

innovate · 3 September 2005 at 8:27AM

soolin wrote:

Also, how many people keep a balance on their paypal accounts to pay with anyway as that is the only way you can receive payment without incurring charges.

Soo

My understanding is that if someone has zero in their Paypal account but the account is linked to their bank account (which all verified accounts would be) then I can receive their payment into my basic Paypal account, i.e. at no charge.

I would find it completely ok if Paypal put a levvy on items that are paid by credit/debit card, because they have to do additional things. But slapping the additional charges on all items is just money-spinning by Paypal, IMHO.

shellsuit · 5 September 2005 at 9:10PM

Takes from Paypal rules :

PayPal account holders may not deceive buyers as to the nature of their account. That is, if you advertise on a listing that you accept credit card payments through PayPal, you must have a Premier or Business PayPal account or be willing to upgrade from a Personal PayPal account to a Premier or Business PayPal account when you receive your first credit card funded payment.

PayPal account holders may not split payments between a Personal PayPal account and a Premier or Business PayPal account by directing buyers paying with credit card to pay their Premier or Business account and buyers paying with PayPal balance or bank account to pay their Personal account. Any business payments that are split and made to a Personal account will be subject to fees applicable to a Business or Premier account. Personal accounts are for personal use only. If you would like to do business through your PayPal account, please use a Premier or Business account.

innovate · 5 September 2005 at 11:58PM

shellnsteve, looks you found some rules that I was unaware of and that if I (and other sellers) comply with will keep me (/us) out of a lot of red hot water....please post URL link, I'll then try and encourage eBay to add a link/mandatory acceptance of these terms when we put up auctions.

mike230652 · 6 September 2005 at 1:36AM

innovate

I have to agree with soolin on this one. If I was buying from anyone who suggested what you say....

First off...it would make me VERY nervous

Second...I'd report it to eBay.

Please don't regard this as an observation of you personally....but you must be as aware as anyone of the con people out there...and my alarm bells would ring!

You can always put that you add Paypal costs to final charges in your eBay auction details??
mike

soolin · 6 September 2005 at 7:26AM

mike230652 wrote:

You can always put that you add Paypal costs to final charges in your eBay auction details??
mike

Unfortunately you are not allowed to surcharge for paypal payments. Surcharging will get your auction pulled, but more worryingly (I can't spell today!) remove any seller protection from the sale.

Soo

Avoiding Paypal charges?

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