Need help w/ PayPal Japan CC fees

[DharmaBum]

I have a person in Japan who wants to buy a light from me using his credit card. I really hate Paypal and I don't use it, but this is the only way this guy can pay, so I have a few questions:

1) Can I even accept a credit card payment with the normal unverified, basic user account?

2) When the buyer uses his CC, I know that most people figure the seller loses 4%. Do I lose additional %'age because of having to convert funds?

Can someone give me a general idea of what I'm going to lose from the transaction doing it this way? Figure a selling price of $152. Thanks and sorry for the idiotic questions. /ubbthreads/images/graemlins/crazy.gif

 

[nekomane]

Do you have a Personal Account or Premier Account? Payapal says...
Personal : Receive money for FREE (non-credit card payments only)
Premier : Receive any type of payment, including credit cards, for low fees

If "non-credit card payment" means "non-credit card based payment", then you probably need the premier account.

In your second question, if you are regarding the conversion between different currencies, since the payment will be made in US$, the payer will cover any fluctuation in the excahnge rate when he/she is charged from the CC company.

There was some discussion a while back here . You might want to check it out. Still confusing, and may not answer all your questions though /ubbthreads/images/graemlins/confused.gif

If you want me to try to send a small amount from my CC based Paypal account just to see how things work out, shoot me a PM. I'm curious too /ubbthreads/images/graemlins/smile.gif

 

[GJW]

The recipient (seller) pays the currency conversion fees.
On international purchaes I've usually lost about 5% to PayPal.

 

[nekomane]

[ QUOTE ]
GJW said:
The recipient (seller) pays the currency conversion fees.
On international purchaes I've usually lost about 5% to PayPal.

[/ QUOTE ]
Hi GJW,
Even when the payment is made in US$ ? I thought the fee was for international transactions and CC fees, not for the currency conversion.

 

[GJW]

That's my understanding.
The money is still going to have to go from a foreign bank, through PayPal, and then to a US bank and the banks charge PayPal for this service.
PayPal passes it on

PayPal fees

 

[LitFuse]

[ QUOTE ]
DharmaBum said:
I have a person in Japan who wants to buy a light from me using his credit card. I really hate Paypal and I don't use it, but this is the only way this guy can pay, so I have a few questions:

1) Can I even accept a credit card payment with the normal unverified, basic user account?

2) When the buyer uses his CC, I know that most people figure the seller loses 4%. Do I lose additional %'age because of having to convert funds?

Can someone give me a general idea of what I'm going to lose from the transaction doing it this way? Figure a selling price of $152. Thanks and sorry for the idiotic questions. /ubbthreads/images/graemlins/crazy.gif

[/ QUOTE ]

1. No. You need to have a "premier" account to accept CC payments.

2. No. If the buyer is paying in USD, there is no currency conversion. Regardless, the currency conversion % is charged to the buyer, not the seller. PP will deduct .30 for the transaction and 4% of the total for this transaction.

FYI, If the buyer were paying with a PayPal balance or account funded PayPal, you would incur no fees at all.

HTH,

Peter

 

[daloosh]

Hey there DB,

I recently sold a flashlite to a Japanese CPFer, and he used a credit card, I believe. I received the funds in US dollars and paid a paypal fee of between 4% and 5% of the total. If it were an american buyer, my fee would have been just over 3% of the total.

On the other side, I recently paypalled a European CPFer, and sent euros to him. The conversion rate I got from paypal was worse than the published interbank rate I got from oanda.com. But that extra bit for paypal is built into the rate, so there was no additional fee, just a crappier conversion rate.

this, of course assumes you upgrade your paypal to accept credit cards, which levies the fee on your future cash transactions, too.
cheers
daloosh

 

[nekomane]

Thanks for clearing that up Litfuse /ubbthreads/images/graemlins/smile.gif

Was just thinking, but if I had 2 seperate Paypal accounts (if permitted), could I send funds from one of my accounts via CC to the other, allowing me to keep a balance in it?

I understand that I still have to pay fees for this transaction, but at least will be able to know how much the recipient actually gets.

 

[LitFuse]

Yes, this is quite possible nekomane. Many here, (myself included) have two PayPal accounts- one for CC payments, and one for cash. As you said, you would incur fees for the transaction, but this should work fine otherwise.

Peter

 

[nekomane]

Thanks for the tip Litfuse:)
Sorry for hijacking the thread.

 

[mattheww50]

Several idea to avoid PayPal fees.
1). In most countries the Post Office will sell a US Dollar Money Order that can be negotiated easily in the USA.
2). You can often buy USD checks from banks and currency exchanges. When I lived in Kuwait, it cost about 75 cents, and about 1% on the exchange rate. Beware of USD drafts, especially from American Express. Amex will happy convert them into a US Dollar check, for mere $50 fee....


3). The crummy paypal exchange rate is in return for not getting hosed further on the credit card transaction.
If you buyer actually pays with a card denominated in another currency, you both get hit with a hidden (or sometimes not so hidden) exchange rate charge, usually totaling about 4% of the purchase price in the USA on top of any other fees.

For large transactions (>$1000) it almost always pays to use a wire transfer, either sending or receiving US dollars.
The cost is fairly high (about $40), however in most countries the conversion of USD to local currency occurs at within a fraction of a per cent of the official exchange rate, and usually happens with surprising speed if you use a reputable bank (I can move money from a Bank of American Account to an Account in Australia in about 8 hours that way). Bank of American handles these transactions very well, I'd rather not talk about Wells Fargo. The words dishonest, incompetent, and inept come to mind. In fact Wells Fargo was ultimately forced to pay compensation.

 

[oldgrandpajack]

My bank prevents me from accepting any checks or money orders from overseas, whether or not they are in US Dollars. The bank's collection fee is $40-$45 for all checks or money orders without US routing numbers. Also, it takes from 2-4 weeks to clear.

A member in Norway once paid me in a unique way. He had his bank send the payment to a bank in Buffalo, NY. The bank in Buffalo mailed me a check, in his name. Cost him about $20 to do this.

I've also had people pay me via Western Union. This can be very expensive, depending on the country of origin. The Western Union fee is much higher in some countries. Then there is all the running around, and the forms to fill out, to do it.

Personally, I don't know of a cheaper or easier method of payment, than PayPal, for those members living outside the US, sending a payment to US members.

If you are making a PayPal credit card payment, I ask that you add $.30 to the total, and then multiply the result by 1.04, to pay the PayPal fee and international credit card fee. Usually, it is a few cents short, but once in a while it's a few cents higher.

oldgrandpajack

 

[gadget_lover]

Yes, any paypal user can get recieve a payment from a CC account. You have many options.

1) add 5% to the total before he pays you.

2) Write off the 5% as good will

3) Make it an exchange. I once had an ingeneous person send me a light (of my choice) worth $20 in exchange for a part worth $23. He bought it with his credit card from a US company and had it delivered to my house via express shipping.

There are many other ways, including the buyer "funding" the purchase by depositing cash into his paypal account. I'm not sure how that works nowadays.

I would not upgrade my paypal account just to avoid the CC fee.

Daniel

 

[mattheww50]

Any additional fees such as several posters have suggested, are an explicit violation of the PayPal User agreement, and in fact in over half the States in the USA (including California), it is expressly prohibited by state law.
You may offer a discount if you wish, but a surcharge is illegal unless your PayPal account is in the UK.

The process of having a bank send you a payment is called a payment order.

However as I pointed out earlier, just about every bank, and most Post Offices are capable of issuing a check or Money order in US dollars that is drawn on a US bank, and have MICR US transit and account numbers on them, so they are processed just like any other check in the USA.

When I lived in Kuwait, the local currency exchange issued such checks on the National Bank of Kuwait's New York City branch. The only thing foreign about those payments is where they originated! Just about all major banks outside the USA have an office in New York, Los Angeles or San Francisco, or own banks in the USA that they can use for such payments.

For example USD money orders from Australia Post are drawn on American Express Bank in New York. They are processed just like any other US check in the USA, because other than the fact that Australia Post issued them, they are a US check.

 

[gadget_lover]

I have to wonder about how the surcharge law would work in this specific case...

Some folks (here in Calif) get away with a "normal price" and a discount for cash.

In this case, it's not you that's adding the surcharge, it's Paypal, and you are simply recouping that amount. I don't know how a lawyer sees it.

What's scary is that there are only a few credit card companies, and they all charge the seller, but the "no cc surcharge" means that all of us share the cost in higher over all rates. I know that I would use more cash if cc surcharges were the norm.

Hmmm. I wonder if that surcharge law could be turned around on Paypal. We are paying them for a service, and they are adding a surcharge when a credit card is used.... Hmmmmm.

Daniel

 

[Billson]

[ QUOTE ]
LitFuse said:
[ QUOTE ]
DharmaBum said:
I have a person in Japan who wants to buy a light from me using his credit card. I really hate Paypal and I don't use it, but this is the only way this guy can pay, so I have a few questions:

1) Can I even accept a credit card payment with the normal unverified, basic user account?

2) When the buyer uses his CC, I know that most people figure the seller loses 4%. Do I lose additional %'age because of having to convert funds?

Can someone give me a general idea of what I'm going to lose from the transaction doing it this way? Figure a selling price of $152. Thanks and sorry for the idiotic questions. /ubbthreads/images/graemlins/crazy.gif

[/ QUOTE ]

1. No. You need to have a "premier" account to accept CC payments.

2. No. If the buyer is paying in USD, there is no currency conversion. Regardless, the currency conversion % is charged to the buyer, not the seller. PP will deduct .30 for the transaction and 4% of the total for this transaction.

FYI, If the buyer were paying with a PayPal balance or account funded PayPal, you would incur no fees at all.

HTH,

Peter

[/ QUOTE ]

Peter,

Does the last statement apply to the recipient regardless of the type of account? As I understand it, a premier account incurs fees regardless of the type of payment received whether it is cash or CC.

 

[LitFuse]

Hi Billson, /ubbthreads/images/graemlins/wink2.gif

No, the last statment refers to the standard account, which is the type the OP has. A "premier" account will incur the fees regardless of the payment's funding source.

Peter

 

[Billson]

Hi Peter,

Thanks for clarifying. I'm glad I didn't read it wrong. Now I understand why most people have 2 accounts.

Just curious, what are the limitations to opening multiple account for this purpose? Is this actually permitted by paypal?

 

[LitFuse]

Good question, but I don't know the answer. I have two accounts, each with a different email address and bank account. One is linked to my checking account, the other to my savings. I transfer between them at will, and PP has never said anything about it.

Peter

 

[oldgrandpajack]

[ QUOTE ]
Billson said:
Hi Peter,

Thanks for clarifying. I'm glad I didn't read it wrong. Now I understand why most people have 2 accounts.

Just curious, what are the limitations to opening multiple account for this purpose? Is this actually permitted by paypal?

[/ QUOTE ]


I opened my second PayPal Account in September. Did it after talking with a PayPal agent. She recommended it. You need to have a different charge card and bank account, for each PayPal account.

The only problem now, when I call PayPal about a problem, the agent seems to assume I'm calling about the Premier Account. I've learned to make sure, at the start of each conversation, they know which account I'm calling about.

I've had an ongoing problem with a payment I made in October. I payed a vendor with a credit card payment, from my Personal PayPal account. The vendor received his funds. PayPal seems to be happy too. My credit card was never charged for the payment. I have been trying to give them the money, but no one seems to be too concerned. It's over $400. I've even overpaid the credit card company for what I owe PayPal, telling them the situation. Looks like my credit card company is going to refund it back to me soon. Only thing I can figure, is that PayPal charged it to someone else's credit card. I mentioned this to both PayPal and my credit card company, but no one can find any problems anywhere. This happened on the weekend that PayPal was having trouble switching to the latest version of it software.

oldgrandpajack