Aaa, I'm late to the party, but thank you so much for this! No more having to explain it to them myself! :P
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 Toyhou.se 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 |
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'S | DONT'S |
|
|
| 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
Explained
>> CLICK FOR MY PAYPAL TUTORIAL ON WEEBLY <<
PLEASE IGNORE THE FACT IT'S ON MY SPECIES WEEBLY.
IT'S EASIER TO MANAGE THAN MAKING A SEPARATE WEEBLY. LOL
Thanks for taking a read!
Feel free to critique, corret, and comment below!
I need the feedback. :')
>>sonyaism ♥
^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.
Oh, this is quite nervous to write something the very opposite of the topic but I think I have to share this.
Long time ago I send a question about this problem to PayPal service center. And then they said it is okay to take "handling fee" from customers, even to get covered PayPal transaction fee.
To avoid any misunderstanding, I'll post those emails here. It would be very long, but please bear with me ;u;
| << My first e-mail to Paypal >> |
| I've read a term about Paypal fees and came up with a question. Terms said : <You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method. You may charge a handling fee in connection with the sale of goods or services as long as the handling fee does not operate as a surcharge and is not higher than the handling fee you charge for non-PayPal transactions.> What does 'handling fee' there mean? and what's differences between surcharge and handling fee? I'm quite confusing. If I do take PayPal as ONLY monetary currency transaction method, is it okay to ask the buyer of my service of handling fees of $0.5~1 with their charge? I mean, if I sell $5 worth of artwork, there would be $0.495 of paypal fee I should pay so I will only get $4.5. I use Paypal as only transaction method to selling art, and I'd prefer to take the full $5 if possible. So, if I send the buyer an invoice of $5.51 to get $5 pure payment, (of cousre NOTED AND FULLY AGREED before any purchasing process) is that regarded as a violation of terms? I don't want to make any trouble, and have absolutely zero intention to violate any terms of use. If I could understand this term clearly, it would be very much helpful. Thank you. |
And I received a reply like this.
(It came to me via PayPal Message Center which is cleared after 90 days, so I no longer have the original text - but I do have screenshot I saved back then.)
Sorry for Korean letters there. They means :
▶ I double-checked them that is it okay to send my buyer an invoice of $5.51($5 price + $0.51 PayPal fee covering) to get fully paid for $5 art commission.
And again their reply was "Yes it is okay", "as long as everything is calculated and included with the price of the item that you are selling." as written below there.
So I think... I can say it is okay to ask your costumers to cover PayPal fee, if it is agreed AND calculated UPFRONT and then requested as onetime payment.