PSA: PayPal Fees (DO's and DONT'S) + TUTORIAL

Posted 7 months, 15 days ago (Edited 2 months, 19 days ago) by sonyaism

EDIT: Unsure where to put this, a follower of mine told me "General" would be good enough. lol


Hey everyone. Recently, I was in a situation concerning PayPal fees that left me salty.

So, being salty, I posted a PSA on my bulletins.

Then, being even saltier, I updated and moved my PayPal Tutorial (used to be on dA) which I am here to share with you today!

Before I get started, I would like to just address PayPal Fees.


It goes against PayPal's User Agreement to charge
your customer/buyer PayPal's Trasaction Fees.


International Transactions

Please be aware that as of late 2016, PayPal has installed auto-currency exchange.
Please refer to my guide on Weebly on how to deal with it.
Please check in with people you are buying from outside the country if they want their money in USd or their home-currency.
ALSO, fees are higher than normal fees when sending abroad.


Transaction Fees

  • DO know that asking someone to cover your PayPal Fees will get you in trouble.
    • They can limit or freeze your account which means you won't be able to receive or spend funds, depending.

  • DO know that it is against PayPal's User Agreement to charge someone PayPal's Transaction Fees.

  • DO raise your prices discreetly if the fees are that much of a hassle.

  • DO not ask for your buyer to cover your PayPal Fees.
  • DON'T use "Friends & Family" payment method to avoid fees.
    • As a Seller: Potentially can limit/freeze your account.
    • As a Buyer: The seller is able to scam you because this does not offer "PayPal Protection" which means you are unable to open a dispute against them if they run off with your money.

  • DON'T ask your buyer to cover your PayPal Fees.

  • DON'T ask your buyer to cover your PayPal Fees.

  • DON'T ask your buyer to cover your PayPal Fees.
Note: If you were someone that added an extra dollar or more when sending money, that can be considered a "tip."
You put extra money onto the transaction out of your own volition. No one asked you to do so.
If the seller did ask you to cover the fees, then they are violating PayPal's User Agreement which you, under no circumstance, should be covering the fees.



Screenshot of the User Agreement Clause






Thanks for taking a read!

Feel free to critique, corret, and comment below!

I need the feedback. :')

>>sonyaism ♥

Thank you so much for Calling this out

Aaa, I'm late to the party, but thank you so much for this! No more having to explain it to them myself! :P

If someone asks me to cover thier fees should I not do business with them?

I can not agree with this ENOUGH!

Im not sure where to put this but I thought this might be the best place to do so. Artists who use paypal, they are changing their ToS which will affect a large group of us who do not use Invoices. Please read the article here to learn how to protect yourself and how to use Invoices

I hope this helps o Q o

^That was posted last year but yes, invoices are definitely the way to go since you can put in your TOS.  Paypal encourages you to do so in invoices which will help cover you better.

Wait, you're not suppose to pay someone's pp fees? I commissioned someone and in their prices they add the pp fees into the price :0 (But it was like 71 cents so it didnt bother me)

Actually, when they say surcharge what they're referring to is when you offer multiple methods of payment for something and tack on extra fees if people use certain methods.

For example, when you go to the gas station and they tell you that if you pay cash it's $2.20/gallon, but if you pay by credit card it's $2.50/gallon. It's very illegal.

So what they mean is don't tell people it's $30 by cash, $35 by credit card, and $40 by paypal. That's why it says at the end "is not higher than what you charge non-Paypal transactions" — basically because they don't want you making money off the fact that you're catering to people using Paypal as an option, not for just covering the fee, they don't care who pays that so long as it's paid. Actually, if you're in possession of a merchants license you're able to have your customers pay tax. Only thing is, paypal fee is not a tax fee. It's a fee that goes to third party, and it CAN be claimed when you file taxes; it's deductible.

So if an artist is making you cover the fees for a Paypal transaction, remember that these people are totally able to claim this on their tax return, in turn they're making money off you paying the fee...unless they're being illegal and not filing taxes.