Now all PayPal accounts can take credit cards

Did everyone already know about this?
Personal accounts can now accept 5 credit card transactions per year on a per transaction fee.

5% ???? Are they insane??

goldserve said:

5% ???? Are they insane??

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Now you know how a retailer feels when you swipe plastic. They are subject to that charge everytime just the same. It is processing and blah blah blah fees from visa/mastercard ETC...

Thujone said:

Now you know how a retailer feels when you swipe plastic. They are subject to that charge everytime just the same. It is processing and blah blah blah fees from visa/mastercard ETC...

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Smaller retailers really get hit with fees. Bigger retailers get much better rates from the credit card companies. Really big retailers like WallyWorld pay a fairly small fee; I've heard, from various people, less than 2%, and from some, much less.....

its an absolute raught, greed.... damn i cant think of more. What sort of conspiracy theorist would i be :-\

a conspiracy realist?

On top of it CC company bribe you into using their card by giving you 1% cash back. You think "Hmm nice CC company giving me money from nowhere", well that is just a small cut out of what they are greedily taking from the store you just used your card in. The crux is now that the population demands CC to be taken the shops have little choice but to take it in the rear.

Some credit cards offer purchase protection which covers loss in shipping.

If the seller has a non-business account I usually offer to make it a cash Paypal if they will insure the shipment.

I run a small business ..... I'm charged about 1.2% for MC and Visa ..... people who say they need to add 5% for CC fees are ripping you off !!

Perfectionist said:

I run a small business ..... I'm charged about 1.2% for MC and Visa ..... people who say they need to add 5% for CC fees are ripping you off !!

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1. You look to be in the UK - these fees could be higher in the US, god knows our interest rates are.
2. It goes against almost all merchant agreement contracts to charge an additional fee to use credit card. All of them, Visa, MC, Discover, and Amex.
3. Rates are HIGHEST for online-only merchants due to the highest risk of fraud. 5% is not unheard of in the new land of highway robbery online credit card processing companies

My uncle who owns a small shop here in the US gets rates around 2% for Visa, MC and 3% Amex, higher if no card present

myk said:

1. You look to be in the UK - these fees could be higher in the US, god knows our interest rates are.

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Fees in the UK and rest of europe might be lower because everything costs more here to begin with...
Surefire E2e $96 (MSRP) in the US vs. Surefire E2e €200 (=$252,55 @ the only local Surefire reseller) in the netherlands.

I don't think so. Generally the fees for Internet and mail-order (and just about anything else that isn't a POS swipe) is charged at a higher rate. Costco has a pretty good program for small businesses that can compete with some of the big box stores for rates, and I believe the rate for non-POS transactions is something like 1.99% plus 27¢ per transaction with a minimum of $24.95 a month in charges to the merchant ($20 minimum, plus $4.95 statement fee). POS terminal fees are 1.64% and 20¢ per transaction.

The 5% that they're quoting there should cover all of those fees, the costs of the PayPal personnel and administration involved, and a profit margin for both PayPal and eBay.

goldserve said:

5% ???? Are they insane??

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Our bank charges a total of 4.5% in fees for swiping a credit card so it's different for every country I guess.

Couldn't pinpoint exactly what we pay, as there are many different fees for different situations.
Generally more than 2% and less than 3%.
More if it is a "card not present" transaction
More if you use a rewards card, yep, I get to pay for your "free" miles.
And it's against our merchant agreement for me to offer a discount for cash.

I don't know now--but when credit cards were first being offered in the US--the card companies got the US Government to write a law that prevented any stores from charging more for credit card transactions than cash or check transactions (even as a kid--it seemed like the retailer got scr*wed because it was obvious that the CC company was making ~5% on the deal and the vendor was not able to collect for it)...

However, even to this day, it is legal to offer a discount for cash (don't know if the merchant agreement is enforceable--but who would want to pay a lawyer to fight it). Gas Stations still offer credit/cash pricing and, for large purchases (years ago), I got them to knock 5% off for check.

-Bill

Retailers just marked their prices up to compensate for the credit card fees, so when you buy stuff with cash you're essentially tipping the store.