WOW Paypal Fees - Did I miss something???

[Kittykat]

I do think that they consider it a commercial transaction because it isn't friends or family. I think that is the crux of the problem.

Kind of an amorphous rule, isn't it? PayPal is getting trickier and trickier.

And besides, I'm sure we're all related somehow.

[mollyeilis]

I noticed that change in wording the other day on the page.

But reading through this thread, I see:

Personal Transactions. Fees depend on the payment source that the sender selects. The amount of the fee will be shown at the time the payment is sent. The Fee is paid by either the sender or the recipient. The sender decides who pays.

Domestic Personal Transactions - U.S. sender and recipient. Sending / Receiving Payments:

Payment Fully Funded by PayPal Balance or Bank -> Free

Payment Fully or Partially Funded by PayPal Credit, Debit Card, or Credit Card -> 2.9% + Fixed Fee

Now if the sheer volume of what SR is sending out triggers it to be considered Commercial, then the fees are based on what SR is making, it seems. (from an part that I didn't quote in this post)

But if it can be considered Personal, and I feel it is b/c Commercial means something is being bought and sold, then it seems that SR should be seeing something new in the wording when they go through the June cashouts, and could consider using fully funded balance or bank, to try to make sure there are no fees.

Just my thoughts based on the stuff that could have gotten lost at the end of the copy/paste from paypal's info.

[jnorth1007]

Tricia already sends the money fully funded from her Papal account. She doesn't have it pulled from an account. The money comes directly from her paypal account so that isn't the issue. The issue is that paypal is going to charge the fee anytime a business sends you money as opposed to a friend or family. This means if the paypal account were registered as Tricia Meyer and she sent me $20 it wouldn't be charged. The account is registered as a business so they pay. I think this could have much further reaches. Here is what Paypal says:

Within the US (in USD):
Payment Method Send Money Receive Money
Personal transfers to friends and family Fully funded by:
PayPal balance
Bank account
Free Free
Fully or partially funded with:
Credit card
Debit card
PayPal credit
2.9% + $0.30 per transaction

Fee is paid by the sender or recipient-sender decides.

Making a purchase, i.e. goods, services, or eBay items All
Free 1.9% to 2.9% + $0.30 USD
This is the portion that relates to us. This means that it is free for Tricia to send it but the person recieving it must pay 2.9% + $.30
Outside the US (in USD):
Payment Method Send Money Receive Money
Personal transfers to friends and family Fully funded by:
PayPal balance
Bank account
0.5% to 2% -- varies by recipient?s country.

Fee is paid by the sender or recipient-sender decides.
Fully or partially funded with:
Credit card
Debit card
PayPal credit
3.4% to 3.9% + $0.30 USD -- varies by recipient?s country.

Fee is paid by the sender or recipient-sender decides.
Making a purchase, i.e. goods, services, or eBay items All
Free (unless using the PayPal plug-in) 2.9% - 3.9% + $0.30

If Tricia were to try to get around this by sending from an account using her name instead she would get caught just because of the sheer volume of payments she makes. I don't know the answer except to assume that you will pay the fee if you decide to use paypal.

[jtowner]

I have this answer from paypal today. If this is correct then the fees seem to be able to be corrected. I am not sure if this is correct or not. It seems to me since this person gave her name and other information out, she must be sure of what she is saying. Again not sure, Sr can you verify this statement?

Jtowner

Thank you for contacting PayPal, my name is Dayna and I am happy to
assist you today.

I understand that you would like to know why you got a fee when you
received a payment.

As for an update, all Personal PayPal accounts will no longer have a
$500.00 USD monthly limit anymore so you may receive as many payments as
you want. Along with this update, there will be receiving fee of 2.9% +
$0.30 USD for each payment out of sales regardless of which funding
source was used. *Based on the last payment you received for $63.00 USD
which was sent as \"Goods/Other\" that considered as sale. For future
non-profit payments, the sender must select Personal as the type of*
payment and the recipient will never be charged of the fees. However,
when they use a credit card that will be given an option to pay for the
fee or let the recipient pay for it.

We know situations like this can be difficult, so thanks for working
with us. If you have more questions, visit our Help Center by clicking
\"Help\" in the top right corner of any PayPal page.

Sincerely,
Dayna
PayPal Consumer Support
PayPal, an eBay Company

[jnorth1007]

I just went and checked out the payment page like I was going to send a payment. I see now that there is a second tab that says personal and you have the option to choose:

-gift
-payment owed
-cash advance
-living expense
-other

I don't remember ever seeing these options or tab before. Perhaps it is something they just addes with the changes that have been made. It would seem that perhaps SR can use the "payment owed" under personal since they are not selling goods or services. I can only say that there would need to be a guinea pig who would be willing to lose the fee if paypal decides to charge the fee anyway. The fact that SR sends many paypal payments each month may trigger it as commercial but it would seem that it can be done using this tab and classification without trying to fool paypal and it may mean there would be no fees.

[SunshineGirl]

We definitely paid for it out of our Paypal account. We've always made sure that we had enough money in there so that no one would ever be charged a fee. And we processed every one of them individually. When I go in and look at the amounts, I don't see any fees anywhere. That's the odd thing. Every single payment went through just like it normally does. It didn't show any fees when we processed them and it shows that everyone got payments of the full amount.

I fear that if we marked them as something non-profit, one or both of us would end up in trouble. One of the terms someone else posted was that if you accepted things as non-profit that were not really, you could have your paypal account taken away from you. I'd hate to have anyone get in trouble.

I did see one comment from a member (not in the forum) that talked about some people using mass pay to make payments and as a result incurring the cost themselves. We have never used the mass pay because we individually verify every account for fraud before we process each cashout.

Looking at the responses below, you can imagine how much it would cost for us to start adding all of these fees to the cashouts on our end. We have people that cash out as soon as they hit $25, every time, multiple times a month. That's hundreds of cashouts at .40 a piece before you even factor in the 3%.

[jnorth1007]

Tricia is the personal tab on the send payment screen new? Is that the tab you use for sending payments or do you send as good and services payment? I am just wondering if they added this tab and if perhaps we start sending through the personal tab as money owed it would prevent the fees.

[m 'n c]

Tricia, I received payment from another source yesterday and it shows the gross amount paid but when you look at the confirmation for payment sent/received you see the fee going out and the "net" amount paid. You might not see it from your side though.

In any case, I'll just think about future payouts and try to utilize the gift card option more than the cash option.

[3dog2kidmom]

Just a thought. This is probably going to effect the people who do paid bloggin or online earning where the money is sent via paypal too. I haven't seen it yet but I bet they apply this fee to the $20 I will be getting from PayU2blog on Friday and also from the $2 I am going to be getting from Opinion Place. Imagine the companies who do cashouts and payments through them. Craziness!

I just received a Pinecone payment and they did not take a fee out of it.

[SunshineGirl]

I just received a Pinecone payment and they did not take a fee out of it.

I'm guessing that they have always used the mass pay system because they are so big and had just figured those costs into their payouts from the beginning. We were never big enough to use the mass pay option.