PayPal Clarification

Lumenz

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Nov 24, 2005
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I am a little confused about paying with PayPal. Sometimes, there is an extra charge when paying with a credit card PayPal account. My PayPal account goes directly to my checking account so I am not sure whether I should be paying extra for the credit card account or if that is considered a cash account.
 

powernoodle

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PP sellers can have 2 kinds of accounts. First type may receive only cash, from bank accounts or other PP accounts. This one charges the seller no credit card fee. The other type of account can receive payments from credit cards, debit cards, directly from banks, and from other PP accounts. It charges a fee irrespective of whether you pay that account with a credit card or not.

So, some sellers have 2 separate accounts - one to receive cash, and one to receive credit cards. They have to pay a fee on the latter one, so they often pass that fee on to the buyer by saying "add X%" if paying by credit card.

So, if you are paying with cash to the first kind of account, you should pay no extra fee. If you are paying with cash to the second kind of account, the seller may seek a fee from you even though you arent paying with a cc, because they are charged a fee on any kind of transaction to that account.

Sorta confusing.

peace
 
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Lumenz

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Nov 24, 2005
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Location
Bay Area, CA
So to clarify...

A dealer is accepting payments only through PayPal and he is charging $100 for Flashlight X. However, if someone is paying with a credit card on the PayPal account, Flashlight X is $105.

My PayPal account takes funds directly from my checking account. So if I were to buy Flashlight X, I would only pay $100?

I think it is the "cash" keyword that is confusing me. I don't actually have funds sitting in my PayPal account to transfer; my funds are in my checking account. So the extra fee (for this particular dealer and his PayPal account) is only for PayPal payments using a credit card on the account?

Thanks!
 

powernoodle

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I'm unsure of your query, but dig this:

I have 2 PP accounts. Account #1 can receive only "cash", i.e., cash from your bank account or cash sitting in your PP account. Account #2 can receive the same cash, plus credit cards and debit cards.

Account #1 charges me no fee when I receive anything into it (and I can only receive cash into it). Account #2 charges me a fee when I receive anything into it, whether its cash, credit or debit.

Whether you pay me into account #1 or #2, you just pay my asking price ("this light costs $100"). That is to say, no fees get added on to the price from the buyer's perspective. The fees, if any, get sucked out of the seller's PP account.

yo
 

chamenos

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Lumenz, since your payment isn't CC funded, it will be considered a "cash" payment, hence you will pay $100 for the flashlight, not $105.

Like powernoodle said, the seller probably has two separate accounts for both types of payments (CC or non-CC).

It would make no sense if he only had one account, since Paypal will take cut from a payment sent to him, regardless if it was CC or non-CC funded, if that account of his is a "Premier" account capable of receiving CC payments.

Hope that helps...
 

NeonLights

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Jan 18, 2003
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When paying for something with Paypal, there are never any extra fees charged by paypal. Some sellers may ask for a fee if paid by credit card, but that would only be if they had two different accounts (like I do).

When receiving money through Paypal, fees may be charged depending on the type of account.

-Keith
 
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