allthatwhichis
Enlightened
Ditto, I'd say it was a small shock... but it WAS there in writting... 
Gotta love capitalism. :lolsign:
Gotta love capitalism. :lolsign:
You little Paypal rule breakers you :)
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Bright Scouter
Enlightened
Why is it that paypal charges for credit card transactions? Everyoen knows it's because they have to pay a fee to the credit card company. But they clearly state that in the rules, regulations, terms or whatever you want to call it. Everyone knows about it. Some people don't like it, but if it is that offensive to you, you don't have to business with them.
Then why is it that paypal has such disdain for people that pass the paypal fee, which is really a credit card company fee, on to their buyers?
How are we different than they are?
My personal opinion is that I have no problem with someone charging extra for cc paypal, or giving a cash discount. I would rather have that than to have all prices raised that percentage. That way I have the option of a lower price if I want to pay cash.
Then why is it that paypal has such disdain for people that pass the paypal fee, which is really a credit card company fee, on to their buyers?
How are we different than they are?
My personal opinion is that I have no problem with someone charging extra for cc paypal, or giving a cash discount. I would rather have that than to have all prices raised that percentage. That way I have the option of a lower price if I want to pay cash.
Brighteyez
Flashlight Enthusiast
Because a merchant (in this case eBay) can have their bank agreement for credit card processing revoked if they impose a surcharge for using a credit card, just like any other merchant. The bank fees for credit cards are a cost to the merchant for using this service and can no longer be passed on to the consumer directly in the form of a surcharge for a purchase. A Paypal user is just using Paypal/eBay's agreement and is acting as an agent of Paypal.
That having been said, Paypal is an inefficient and high cost credit card processor that may be suitable for merchants with relatively little credit card traffic, as the fees that you pay to Paypal are generally quite a bit higher than you would pay for direct credit card processing with the credit card companies. Additionally all of the credit card companies do have a per transaction fee for each transaction, and it's usually higher for purchases that are not point of sale (POS) (e.g. web/mail-order sales); and the percentages for the amount of the transaction is also higher for non-POS sales.
As an example, a merchant may have a processing fee of 1.6% plus 20¢ for a POS transaction, while an internet or mail order transaction may be 2% plus 27¢ for Visa/Mastercard. Rates for AMEX and Discover can be higher.
So if you have the option of using a credit card directly (with a trusted merchant) or using Paypal, you'll save the merchant some fees in using the credit card directly, and you don't have to go through Paypal hassles if you need to do a chargeback.
That having been said, Paypal is an inefficient and high cost credit card processor that may be suitable for merchants with relatively little credit card traffic, as the fees that you pay to Paypal are generally quite a bit higher than you would pay for direct credit card processing with the credit card companies. Additionally all of the credit card companies do have a per transaction fee for each transaction, and it's usually higher for purchases that are not point of sale (POS) (e.g. web/mail-order sales); and the percentages for the amount of the transaction is also higher for non-POS sales.
As an example, a merchant may have a processing fee of 1.6% plus 20¢ for a POS transaction, while an internet or mail order transaction may be 2% plus 27¢ for Visa/Mastercard. Rates for AMEX and Discover can be higher.
So if you have the option of using a credit card directly (with a trusted merchant) or using Paypal, you'll save the merchant some fees in using the credit card directly, and you don't have to go through Paypal hassles if you need to do a chargeback.
Bright Scouter said:
PayPal allows you to have both a personal and premium account.
In my sales threads I add the 3% PayPal fees into my price. But for buyers that choose to do non-cc paypal I offer free shipping.
In other words I don't penalize those that use a CC, but reward those that don't cost me the fee :shrug:
In my sales threads I add the 3% PayPal fees into my price. But for buyers that choose to do non-cc paypal I offer free shipping.
In other words I don't penalize those that use a CC, but reward those that don't cost me the fee :shrug:
GJW
Flashlight Enthusiast
Bright Scouter said:
They don't and that's the trick that lets them get away with it.
If they did charge for credit card transactions that would be illegal so instead they charge for all transactions on Premier accounts.
Of course, Premier accounts (and merchant accounts) are the only ones allowed to accept credit card transactions but that's what keeps it legal.
And that's the same rule they expect you to follow:
Accept cash -- no charges for anyone.
Accept credit cards -- charge everyone or charge no one.
The practice of having one PayPal account for cash and one for credit cards solves this problem quite nicely but that practice itself is against the rules for 'merchants'.
I don't know what PayPal's definition is of merchant but the rules very clearly state that those doing 'business' via PayPal may not divert cash customers to a cash account while directing other customers to a different account.
tradderran
Newly Enlightened
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I am with you. as in my Sig pay pal sucks. USPS Money orders only.:lolsign:
Beamhead said:
Bright Scouter
Enlightened
GJW,
I guess that was my point. paypall "effectively" charges you for accepting a cc by forcing you to a premier account and charges you for it. That is their way of passing on the cc fees that are imposed on them. But as you said, they do not want "merchants" to use two different accounts based on what type of payment is used.
They may say they are not charging for cc transactions, but they are using semantics to be able to say that. So I still believe it is a double standard. I realize that if I want to use paypal, I have to accept it. but I don't have to like it. If a better alternative comes around and I can use it with ebay, I will.
I guess that was my point. paypall "effectively" charges you for accepting a cc by forcing you to a premier account and charges you for it. That is their way of passing on the cc fees that are imposed on them. But as you said, they do not want "merchants" to use two different accounts based on what type of payment is used.
They may say they are not charging for cc transactions, but they are using semantics to be able to say that. So I still believe it is a double standard. I realize that if I want to use paypal, I have to accept it. but I don't have to like it. If a better alternative comes around and I can use it with ebay, I will.
