An FYI about Paypal

[Skigod377]

[Skigod377]

If you are not in a hurry for the money, ask your buyers to pay by Echeck through paypal instead of the instant money transfer. An echeck takes anywhere from 4-8 buisness days depending on the amount, and the fee is signifigantly less. An example… A paypal payment for $380 charges a $15.12 fee. An Echeck for $1000 charges a $5 fee. It may be a flat $5 rate for the echeck, Im not sure. If the amount you will be getting is large, it may be worth it to wait. Just letting you know. I hate paypal gouges. I bet Windstone could save a fortune doing this…

[Mimi]

Is “instant money transfer” different than paying by credit card?

[Skigod377]

mimitrek wrote:

Is “instant money transfer” different than paying by credit card?

I think its the same. Echeck is an actual transfer from your bank as opposed to paypal paying and waiting for the money.

[Mimi]

If the buyer chose her bank account as the funding source (instead of her credit card), would Paypal charge the same fees as if she had paid by E-check?

Speaking of that, is E-check different from just debiting money from the bank account?

[.]

mimitrek wrote:

If the buyer chose her bank account as the funding source (instead of her credit card), would Paypal charge the same fees as if she had paid by E-check?

Speaking of that, is E-check different from just debiting money from the bank account?

Good question. I was wondering that also.

[Maebnus]

skigod377 wrote:

mimitrek wrote:

Is “instant money transfer” different than paying by credit card?

I think its the same. Echeck is an actual transfer from your bank as opposed to paypal paying and waiting for the money.

Hm… I’m pretty sure it’s different. When I pay, it gives me 3 options:
*Instant Money Transfer (which is connected to my bank account & I can see it pending that same day on my bank page)
*eCheck (I’ve never used, but is from your acct with a few day’s delay)
*Credit Card

Anybody know how much in fees is connected to each method? I would guess it’s by percentage, but that’s logical so probably isn’t right 😛 I never thought about fees until recently, so now I feel bad about potential fees I put on people just cuz I was lazy 😕

[Mimi]

Hmm…it looks like instant money transfer and E-check are pretty much the same. From what Ski said, the fees are different.

But I wonder why? It looks like the money is coming out of the bank account in both cases.

[Jennifer]

mimitrek wrote:

Hmm…it looks like instant money transfer and E-check are pretty much the same. From what Ski said, the fees are different.

But I wonder why? It looks like the money is coming out of the bank account in both cases.

I think it has to do with processing times. With an instant transfer, the money is taken out quickly. With an e-check it takes days and days… I’m betting something about having an instant transfer costs Paypal more from the banking system than the slower e-check. That’s just a theory though.

Just as you can do instant transactions with some banks, but they charge a small service fee, vs. a normal transaction which may take a few days but is free. Just a thought!

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[Skigod377]

Ok, I am not an expert and this is mainly to benefit the seller, not the buyer. There are less fees taken out with an Echeck. With a paypal payment, paypal pays the seller right away and charges a percentage. Its basically a loan till the money clears from your acct. With the echeck, you are waiting till the money actually gets to you before you can spend it, so it costs less. I guess I was not too clear. The CC is not an option w/Echeck… it comes from your bank acct.

[Mimi]

Thanks Nam & Ski…that clarifies things. That’s good info to keep in mind.

[Skigod377]

mimitrek wrote:

Thanks Nam & Ski…that clarifies things…

You’re welcome 🙂 I just thought some sellers who sell high-priced items would llike to know. I hate losing all that money to paypal and this is a little better, if you can afford to wait a few days.

[Jodi]

skigod377 wrote:

mimitrek wrote:

Thanks Nam & Ski…that clarifies things…

You’re welcome 🙂 I just thought some sellers who sell high-priced items would llike to know. I hate losing all that money to paypal and this is a little better, if you can afford to wait a few days.

I’d rather get the money right away for my stuff. I can write the fees off on my taxes as credit card fees, so I sort of get it back anyway.

[Nina]

Here is a break down of the paypal fees for a business member.

Receive payments funded by PayPal Balance, PayPal Instant Transfer or PayPal eCheck:
1.9% to 2.9% + $0.30 USD

Receive payments funded by Credit Card, Debit Card or Buyer Credit:
1.9% to 2.9% + $0.30 USD

So basiclly the e-check has a fee of around 1.9% and an instant transfer (funds in your paypal account) is about 2.9% This is the reason that I’m not doing online lay-a-ways right now. The fees are too high & I don’t want to have to charge the buyer these fees.

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