Paypal fee Question? (1 Viewer)

nitzilla

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Hi guys,
Sorry for the noob post, but want to check something....
When you say "Pay via paypal (buyer pays fees)" how does that work?
I know PP charges the seller ~2.9% + some change, but how does the buyer pay it.....
Say you want to buy $100 worth of something, so you should really send $~103.00, but then PP would charge more for the extra $3. Is it just a close approximation to the "total with fees", or is there a better way to pay with fees included?

So far I've always paid by FF, so it hasn't been an issue, but I just want to know for future reference. :)

Thanks in advance
nitzilla
 

links_slayer

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Looking forward to responses here as well. IIRC there is an option of picking up the fees as a buyer when paying for goods and services with a credit card - it has been a while since I've done this so it may be incorrect.
 

Mr. Cheese

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You have the concept down with your example. With the 2.9% + the other charge paypal has most people say it equates to 3% of the total so if the sale price was 100 you'd pay 103 like you mentioned. After paypal takes its 3% on the 103 the seller would receive $99.91 which in most eyes is close enough to the original amount they were wanting. Doing FF is a good way to avoid those pesky fees but some buyers aren't comfortable with that so doing it the conventional way is a safer way for them.

As far as a better way to avoid the fees I don't think there is a way unless you do it as FF. If someone knows of a way using the conventional payment please post up.
 

Irish

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It's a little bit of math:

Y = Seller's Price
X = How much you need to send to cover Y + pp fees

X = (Y+0.3)/0.971

So if you need to cover $100 + pp fees, you have to send X = (100+.3)/0.971 = $103.30*

*note this is assuming you're dealing with something like the classifieds here, whereas those selling chips would be considered small merchants, so the pp fees are 2.9% + $0.30 per transaction.
 

nitzilla

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Thanks everyone, great info!

nitzilla
 
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