Paypal. Who pays the fees?

dougdarter

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Hi,

I've been around user/hobby forums for a good many years, and to be honest, the question of Paypal fees always vexes and confuses me.

Of course, the question of who SHOULD pay the fees is quite obvious. Paypal always intended the seller to pay the fees, it was, after all for their benefit that Paypal was set up, as a means of accepting payment for goods purchased on Paypal.

Paypal fees are not expensive, certainly a lot less than those paid as fees in a UK auction house, or VAT, which is several times as much, and what we would expect to pay as a seller to a used camera shop in terms of their profit, or mark up and VAT, therefore selling at full value on a forum such as this should be win/win, for both parties.

It is becoming increasingly obvious, that sellers are asking buyers to pay the fees, either by adding 3% to the purchase price, or by sending payment as 'gift'. Adding 3% is fine, it's generally only a few pounds on most purchases, but asking for payment as gift is just plain wrong to my mind, though to be fair, it's accepted pactice by most buyers and sellers on just about any forum you visit.

It can, and does go disastrously wrong. If, for instance, you buy a camera/lens/whatever and you agree to pay as gift, you lose all and any protection that Paypal, and indeed, the law can offer. If indeed, the goods are faulty or the seller is dishonest (not that I'm implying that that would happen here), you have no recourse to any help. You sent the money as a gift, period. You can't ask for it back, nor can you claim that goods sent to you were dishonest or faulty. You sent the money as a gift.

I've come across several examples of people refusing to send me the goods unless I pay them by 'Gift'. In these cases, I'm always pleased I refused, because it's likely the goods were 'hooky'.

Most people are more than happy to accept Paypal fees, and eBay fees when selling on eBay, but are loathe to accept them when selling privately!

When I sell anything, I'm happy to absorb the few extra £ss in paypal fees, and if they look like becoming onerous, I calculate the cost, and add it to my asking price, add the postage, and make that my selling price. All my sales are eBay fees and postage included, and I make it quite clear. Both I and the buyer then know what the true price is, and both are happy.

I am a member of the 'British Blades' forum, where I am a maker as well as a collecter, and have, like here perfect feedback. The big difference with that forum, is that eBay policy is quite clear - the seller pays the fees. It is forbidden to ask the buyer to pay the fees, even by asking via a PM, and anybody found trying, has their trading credentials removed, and three strikes, and they're out.

The great thing about this, is that it removes uncertainty, absolutely. Everybody knows exactly where they stand, and everybody is, unsurprisingly, very happy.

I'm not for a minute suggesting that this policy is adopted here, because there are people here, who'm I know and trust, who I'd probably be happy to pay with 'gift', but even so, I always say that I'll include the fees, just so that the seller doesn't lose on his advertised price. I wish I didn't have to though!
 
Not sure this has been posted in the correct forum, but nevertheless....

Paypal is a convenience and secure method of paying for things, irrespective of the seller being an individual or a business reseller.
In the case of the latter, it'd be easy to build-in the 4% levy, such that when PP takes their 3.4%+20p, the seller is only losing 20p.
In the case of a private seller, why shouldn't the buyer pad the agreed price with the 4% (and 20p to be absolutely fair) – after all the fee has just bought you assurances that if there's something not 100% about the item purchased, you have recourse to seeing most of the money back, bar the postage to and from yourself.

Regarding eBay private sales – most sellers accept they get raped by eBay for the privilege of paying to use their "shop window" system, since they rarely get a chance to discuss with the buyer about the PP fees before being paid.
Obviously if you're one of those buyers/bidders that takes their sweet time getting round to paying, then there's more of a chance for a discussion (although one which can be viewed by eBay if alerted) to take place, but then most buyers treat private sellers no different from traders, especially if they rarely sell on eBay themselves.
So like I said, most sellers have resigned themselves to getting whatever eBay/PP tells them they're getting, after the bidding has ended.

Gift option is only free for both parties involved if the sender uses their bank account to fund the payment or has funds sitting in their PP account already. Any card used (certainly CC) will incur a fee for the sender.

In conclusion......just pay the 4% to private sellers, or use your bank's free online transfer, so long as you know there's a lot more hassle if things aren't 100% as described/expected.
Alternatively, you can opt for both parties registering with Skrill (formerly Moneybookers), which is an Escrow service.
Cheaper than PP, and allows for an agreed period of assessment before funds are automatically released to the seller – obviously they can be released sooner, if the buyer logs in to confirm they're satisfied with the item.
 
Another forum I use warns of not using paypal gift as payment, they also have in their rules that they take no responsibily for any transaction carried out in the classifieds.
 
Skim read the war an peace post so excuse any missed point..

Personally I'd always expect the buyer to pay the fees, I offer paypal alongside bank transfer and it's the buyers choice to use it. Yeah you can avoid the fees if you gift and have a balance but again that's the buyers decision.

At the end of the day how much protection do you even have on a bank transfer?

E: and remember kids to get all of the other parties details (as per the rules) for if the transaction goes sideways. It's surprising how few people I've had ask for mine.
 
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On a private sale, if the buyer insists on paypal rather than any of the multiple legitimate free ways to pay that incur no fees, then the buyer pays the fees.

I rarely sell stuff privately but when I do the price I sell for is the amount I want in my account at the end of the transaction.
 
You're all grownups, and we shouldn't need to hold your hand :)
 
For me the seller, if stipulating PP, should pay the fees. If the buyer is requesting to pay then its their responsibility. The problem with PPG is that both seller & buyer are at risk, the buyer for the obvious reasons but the seller can be stung with a reversal and if its PPG then there's not a lot you can do. To be honest I find PP fees acceptable if only for the insurance it offers.

Jakeblu aka Steve
 
If I sell something receiving payment through paypal is an inconvenience to me - and I certainly won't be paying for that inconvenience - it's paypal gift or bank transfer.

I've come across several examples of people refusing to send me the goods unless I pay them by 'Gift'. In these cases, I'm always pleased I refused, because it's likely the goods were 'hooky'.

Utter tosh, it is not likely they were hooky at all, just that the seller didn't want to pay fees or the seller does not trust the paypal system.
 
As a buyer, I'm happy to pay via paypal gift, and am happy to pay extra for paypal fees. I recently bought something off a newish seller on another forum. I didnt know them but they'd been around for a while. They offered bank transfer or paypal gift. Natwest want me to add a new payee every time I try to transfer some money and it involves looking for the blasted card reader - something which sits in the same place all day every day right until I actually need it at which point it disappears.

I would rather the seller stated: item for sale £100 if BT/PPG or £105 if PP, rather than any confusion about who pays.
 
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