Why the paypal 3% charge?

mullyman

Hung Like a Gnat!
Silver Member
I'm wondering why some people request that if you pay by paypal that you add 3% to cover their charge? To me that just sounds silly. The seller ends up paying 3% out of his pocket anyway. I'm no math guru or anything but if something costs $100.00 there will be $3.00 tacked onto that. If I pay $103.00 to cover the paypal fee then won't the seller get 3% tacked onto that $103.00 and have to pay $3.09? What's the point? Why doesn't the seller just eat the 3 bucks from the get go? He ends up paying more charging 3% to it.
MULLY
 
I have sold a bunch of stuff here on AZB. I always request that the buyer adds 3% for the paypal charge. If he/she adds the 3% I will pay the shipping charges which is more than fair for both parties.

I still love those classic looking "player's" you have Mully!!!!

John
 
if you sell a cue or anything for around $100 is fine but a $1000 or $2000 cue costs $30 or $60, still if the deciding factor is the $30 or $60 then that is between the buyer and seller.
 
mullyman said:
I'm wondering why some people request that if you pay by paypal that you add 3% to cover their charge? To me that just sounds silly. The seller ends up paying 3% out of his pocket anyway. I'm no math guru or anything but if something costs $100.00 there will be $3.00 tacked onto that. If I pay $103.00 to cover the paypal fee then won't the seller get 3% tacked onto that $103.00 and have to pay $3.09? What's the point? Why doesn't the seller just eat the 3 bucks from the get go? He ends up paying more charging 3% to it.
MULLY

I do not see any problem with a seller requesting an additional 3% to cover the paypal fee. Especially if they are willing to take multiple forms of payment and ask you to pay that fee ONLY if you choose to use that form of payment. If you really are opposed to paying the additional fee, you would have another option ( usually slower and less convenient). You could pay with a money order to avoid the fee.

In your example, the seller would have to pay the .09 extra, which is better than paying the $3. In this example it is practically nothing, but as the price of the item increases so do the fees. So no, he would not be paying more than if he did not charge the extra fee.

In business, all costs of doing that business are passed on to the customer, one way or another. Otherwise that business will not be in business for long! In this instance the seller is just being more upfront about it and giving you a choice in the matter. Just as shipping charges will be passed on to the buyer. A seller could just figure out the fees and shipping and add it to the selling price ( some do).

As a buyer you will end up paying for the cost of shipping and paypal fees ( if you use paypal) whether you are explicitly told so or not. I do not see the fact that it is openly disclosed as a sticking point at all.


The other day I was getting gas. The station had a reduced price if I paid with cash. The merchant will have to pay a small fee for using the merchant sysytem. By me paying with cash, they do not have to pay this fee on my transaction, so they passed the lack of this fee on to me. I did not see any problem with this option. I have had a business before and, as they say, that's the cost of doing business. Just about every business has had to increase their prices in the last year due to rising energy costs. Some made it obvious, some did not, but all customers had to absorb this cost in some way.

If you are selling something, you have to get the price that you want for the item as well as any costs involved with the selling of that item. Just the way it is.


JW
 
mullyman said:
I'm wondering why some people request that if you pay by paypal that you add 3% to cover their charge? To me that just sounds silly. The seller ends up paying 3% out of his pocket anyway. I'm no math guru or anything but if something costs $100.00 there will be $3.00 tacked onto that. If I pay $103.00 to cover the paypal fee then won't the seller get 3% tacked onto that $103.00 and have to pay $3.09? What's the point? Why doesn't the seller just eat the 3 bucks from the get go? He ends up paying more charging 3% to it.
MULLY

It's not a very professional way to do business but then you have a lot of trunk salesman and flippers that are not professionals.
As a buyer it's your choice to accept such terms for the purchase or shop elsewhere for better terms.

Consider the $100 item and the 3% example -
If you don't pay the fee the seller receives $97 from the $100 payment.
If you do pay the fee the seller receives $99.91 from the $103 payment.
Seller is out 9 cents rather than $3 if you add the 3% paypal fee.

When a pro business determines item price it includes electronic payment charges as well as any other costs of selling/shipping the item. For those that think free shipping is really free, it's not. The shipping/handling cost is built into an items price.
 
poolpro said:
In your example, the seller would have to pay the .09 extra, which is better than paying the $3. In this example it is practically nothing, but as the price of the item increases so do the fees. So no, he would not be paying more than if he did not charge the extra fee.

JW


I'm not complaining so please don't take it out of context. I'm confused/curious. In your example he only pays 9 cents but that's not right, he'll pay 3.09. I'll pay 100 dollars plus 3% of that. He'll receive 103 dollars and have to pay 3% of that, which is 3.09. Wouldn't it be cheaper for him to just pay 3 bucks at the beginning?
MULLY
 
mullyman said:
I'm wondering why some people request that if you pay by paypal that you add 3% to cover their charge? To me that just sounds silly. The seller ends up paying 3% out of his pocket anyway. I'm no math guru or anything but if something costs $100.00 there will be $3.00 tacked onto that. If I pay $103.00 to cover the paypal fee then won't the seller get 3% tacked onto that $103.00 and have to pay $3.09? What's the point? Why doesn't the seller just eat the 3 bucks from the get go? He ends up paying more charging 3% to it.
MULLY

Well.. I think is justifiable...
If the seller charges $103... he pays $3.09.... he gets $99.91.... 9 cents short of the $100 he wants .... instead of $3 dollars short... This might be peanuts when the price is $100... but it is $60 vs. $1.80 when the price is $2000..

Just my thoughts...
 
mullyman said:
I'm not complaining so please don't take it out of context. I'm confused/curious. In your example he only pays 9 cents but that's not right, he'll pay 3.09. I'll pay 100 dollars plus 3% of that. He'll receive 103 dollars and have to pay 3% of that, which is 3.09. Wouldn't it be cheaper for him to just pay 3 bucks at the beginning?
MULLY

No.. not cheaper... to pay $3 at the beginning...
$103 minus $3.09 is $99.91.. He pays only 9 cents... if buyer pays the 3%....
 
Forget it. I'm a frickin' moron. Look, I teach English, not math. I've always hated math, hahaha!! I put it down on paper and used a calculator, you guys are correct, he'd pay 9 cents. My bad. Like I said, I wasn't complaining, just confused/curious. I hate math!
MULLY
I really hate math
 
mullyman said:
I'm not complaining so please don't take it out of context. I'm confused/curious. In your example he only pays 9 cents but that's not right, he'll pay 3.09. I'll pay 100 dollars plus 3% of that. He'll receive 103 dollars and have to pay 3% of that, which is 3.09. Wouldn't it be cheaper for him to just pay 3 bucks at the beginning?
MULLY

I don't think math is your strong point ... think in terms what what the seller NETS/receives from the transaction.
 
And just to let you know, I'm not getting involved in buying something. I was just reading around and saw that 3% request and it got me thinking. No more, no less.
MULLY
 
What is really difficult to chew on concerning PayPal is when you sell a cue for more than $2000. They do not cover any liability or insuance yet they still take the 3% beyond the insured $2000. I have sold cues for $5000+ and still payed the $150+ in fees only to get no services from paypal beyond the $2000 mark.

Paypal has some qualities but the frustrating issues far outweigh the positives for both the buyer and seller. I refuse to use this service any longer because of this issue.......

The safest way to sell via internet is to agree on a 3rd party and pay this qualified person a nominal fee confirming said item is "as described". This would solve 99% of the issues I read about daily. Whether the sale goes through or not the third party is paid regardless.

sexy_sport2.jpg
 
To put an end to the "who pays fee", using the $100 example started in this thread. If you want to clear $100 for the transaction and don't want to go under the $100 basement to receive money, just ask for $110 for your item. Or, ask $130 and "let" the buyer talk you down to $110 or $105 (basic selling strategies). Tell the buyer "you'll cover fees", when actually you've already incorporated the fees into your selling price. The buyer feels they've negotiated a better price and you cover any fees and clear what you wanted to (everyone feels they've won). Like it should be!!!!:)
 
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Jazz said:
I don't think math is your strong point ... think in terms what what the seller NETS/receives from the transaction.

Shit, you don't have to *think* that math isn't my strong point. hahaha!! When numbers get going through my head I just see white noise. I honestly feel embarrassed about this thread.
MULLY
 
Paypal offers, in my opinion, more protection on a practical level, to the buyer than to the seller. Why should a seller, who pays much if not all of paypal's revenue, be more vulnerable to a fraudulent buyer who contributes nothing above the item selling price?

I took payment of $850 from a Japanese buyer and shipped the cue. Paypal accepted his stolen credit card info...sent money to my bank...told me the funds were available. Weeks later, they froze my account and eventually sent me to a brutal untruthful collection agancy.

I got stuck for the entire amount. But only after the collection agent agreed to settle for a reduced amount. After paying off that portion, I was referred to a second collection agency and informed that paypal does not settle. In a store, they check ID. On the phone, the require the 3 digits on the back of the card. How did paypal take a stolen number? They admit no responsibility in the crime.

For my fees, I want better protection as a seller. This is just my opinion, and they will probably read what I have said and sew me for even more undeserved money.
 
Dartman said:
It's not a very professional way to do business but then you have a lot of trunk salesman and flippers that are not professionals.
As a buyer it's your choice to accept such terms for the purchase or shop elsewhere for better terms.

Consider the $100 item and the 3% example -
If you don't pay the fee the seller receives $97 from the $100 payment.
If you do pay the fee the seller receives $99.91 from the $103 payment.
Seller is out 9 cents rather than $3 if you add the 3% paypal fee.

When a pro business determines item price it includes electronic payment charges as well as any other costs of selling/shipping the item. For those that think free shipping is really free, it's not. The shipping/handling cost is built into an items price.
It is hard to get the fees "built in" to the price of the cue when you cant even sell cues right now for their true worth. Are we supposed to give the cues away AND pay fees and shipping on top of everything else?
 
If you have patience, the way to go with paypal is an Echeck, the fee is only $5.00 flat rate and it doesn't matter the amount. I just received a paypal payment from Greece and they actually took 4%. The payment was $1100 and they took $44. THIS SUCKS!

Doug
 
From what i've seen, the people that ask for the 3% fee, are people who accept multiple forms of payment. If someone only accepts paypal, then i'm sure they would probobly just add it into the cost of the cue. ( IE sell the cue for 110 instead of 100 )
 
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