I think some people who are new to the site (and maybe some who aren't so new) need a refresher on how to use PayPal. I have run a lot of group buys over the past couple of years, and with the recent hacker attacks on our members, people are finally starting to use the Goods & Services option that gives the buyer some protection when they make a payment. But I guess not everyone knows that this imposes a fee on the person receiving the payment.
First of all, when you are making a PayPal payment, you will eventually get to a screen that has this on it.
"Sending to a friend" means that you are using PayPal Friends & Family, which does not give the buyer protection should the seller not fulfill their duties. If you click on the "Change" link on the right, you will get to this screen.
"Paying for an item or service" means that you are using PayPal Goods & Services, which does give the buyer protection should the seller not fulfill their duties, but it also deducts an amount from the amount you are paying to the seller. For transactions made from one USA account to another USA account, this fee is 2.89% + $0.49. The formula to give the seller their full payment is as follows:
(Payment Due to the Seller + $0.49 ) divided by 97.11% = G&S Payment Made by the Buyer
So, if you buy chips for $100 + $9 shipping ($109 total due to the seller), and want to pay using the G&S option, you need to pay ($109 + $0.49) = $109.49 divided by 97.11% = $112.75. Paying this amount will give the seller the full $109 ($112.75 x 2.89% = $3.26 + $0.49 = $3.75 G&S fees).
International PayPal fees are higher, but I'm not sure exactly what those fees are. They seem to be all over the board. If anyone knows how to calculate them, please post in this thread.
BOTTOM LINE: MAKE SURE YOU KNOW WHICH PAYMENT METHOD YOU ARE MAKING WHEN USING PAYPAL, AND IF YOU CHOOSE THE GOODS & SERVICES OPTION, MAKE SURE YOU SEND THE CORRECT AMOUNT SO THAT THE SELLER RECEIVES THE FULL PAYMENT.
First of all, when you are making a PayPal payment, you will eventually get to a screen that has this on it.
"Sending to a friend" means that you are using PayPal Friends & Family, which does not give the buyer protection should the seller not fulfill their duties. If you click on the "Change" link on the right, you will get to this screen.
"Paying for an item or service" means that you are using PayPal Goods & Services, which does give the buyer protection should the seller not fulfill their duties, but it also deducts an amount from the amount you are paying to the seller. For transactions made from one USA account to another USA account, this fee is 2.89% + $0.49. The formula to give the seller their full payment is as follows:
(Payment Due to the Seller + $0.49 ) divided by 97.11% = G&S Payment Made by the Buyer
So, if you buy chips for $100 + $9 shipping ($109 total due to the seller), and want to pay using the G&S option, you need to pay ($109 + $0.49) = $109.49 divided by 97.11% = $112.75. Paying this amount will give the seller the full $109 ($112.75 x 2.89% = $3.26 + $0.49 = $3.75 G&S fees).
International PayPal fees are higher, but I'm not sure exactly what those fees are. They seem to be all over the board. If anyone knows how to calculate them, please post in this thread.
BOTTOM LINE: MAKE SURE YOU KNOW WHICH PAYMENT METHOD YOU ARE MAKING WHEN USING PAYPAL, AND IF YOU CHOOSE THE GOODS & SERVICES OPTION, MAKE SURE YOU SEND THE CORRECT AMOUNT SO THAT THE SELLER RECEIVES THE FULL PAYMENT.
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