posted on November 16, 2000 07:24:20 PM new
Revised Fee Schedule
Notice Date: November 16, 2000
Effective Date: December 1, 2000
In order to better align the fees for using PayPal with the costs of providing the service, we are revising the fees we charge Premier and Business accounts on December 1. We are reducing the variable rate for receiving non-credit card payments from 1.9% to 1.6%, and we are lowering the maximum fee for such a transaction from $9.50 to $5. At
the same time, we are increasing the variable rate for credit card payments from 1.9% to
2.2%. A flat fee of 30¢ will apply to all transactions, and this will be the only charge on transactions under $15. On a blended basis, the new variable rates average to our current 1.9% fee. However, the new fee structure provides an opportunity for cost
savings by users who prefer payments funded by a bank account or PayPal balance. In
December, we plan to launch a feature that will allow payment recipients to further save
money by limiting the kinds of payments they accept. These price changes were made
only after a careful examination of the different ways we could incent people to help
lower our credit card processing costs, and we are proud to say that PayPal remains the
cheapest payment method around!
Som they make it LOOK like a deal. 1.6% on non credit card transactions, BUT they now charge .30 for those as well. So, they reduced the percentage, but added .30. Pretty slick.
I knew they's raise the CC percentage soon. Glad I'm not taking them anymore. 2.45% on my merchant account doesn't look so bad anymore.
posted on November 16, 2000 07:55:58 PM new
Not only is this not a cut or a bonus for not useing a creditcards to pay it actually and incress over all 1.6% + .30 for a buyer to pay you with there paypal funds this is basically and technically a free transaction for Paypal.
they would be changeing them selves 1.6% +.30 to move Virtual money from one folder to another.
I wonder how paypal bills its self for these charges. this is like someone who shilled on there auction and won so they paypaled there Exchangepath account the winning bid and shipping packed the item and sent it off to them selves.
posted on November 16, 2000 08:58:45 PM new"Does this mean if I'm NOT premeir or business that I'll also be charge 30 cents when someone pays me thru their paypal acct?"
No, nothing will change for you if you are just using a personal account.
A flat fee of 30¢ will apply to all transactions, and this will be the only charge on transactions under $15.
I re-read the passage quoted from the email and I also went to PayPal's website and it reads exactly the same way. The way that the paragraph is worded makes it a little confusing. The words all transactions seem to mean just that, all transactions if you read the sentence by itself. But they do have this sentence inside the section for credit card fees so you could be right about it applying to credit card transactions only. I guess this is another question for Damon. I just wish we could trust his answers.
I just thought of an easy way to find out for sure. Send me $20 from your existing account balance or bank account and I'll tell you what the fees were. I promise to then return your $20. And you can trust me because I never lie. Well, not often. Well, every once in a while. Not more than three or four times a week, max. So how 'bout it?
[ edited by abingdoncomputers on Nov 16, 2000 09:15 PM ]
posted on November 16, 2000 11:17:05 PM new
I think maybe they have to charge that 30c fee to all transaction. Since you're not allowed to charge credit card fees, the 25c fee that was only charged for credit card transactions may have been illegal.
On the otherhand the message says:
In December, we plan to launch a feature that will allow payment recipients to further save money by limiting the kinds of payments they accept.
So, if the 30c fee is being added to all transactions, what would be the point of limiting the types of payments accepted? Isn't it just credit card and non-credit card?
[ edited by bkmunroe on Nov 16, 2000 11:22 PM ]
posted on November 17, 2000 12:28:33 AM newIn December, we plan to launch a feature that will allow payment recipients to further save money by limiting the kinds of payments they accept.
Oh boy, oh boy, I get to limit the kind of transactions I accept to save (.3%). Wow!!! That's $3 on every $1000. I'm impressed!
posted on November 17, 2000 03:28:57 AM newIn December, we plan to launch a feature that will allow payment recipients to further save money by limiting the kinds of payments they accept.
Oh boy, oh boy, I get to limit the kind of transactions I accept to save (.3%). Wow!!! That's $3 on every $1000. I'm impressed!
Actually the difference would be 0.6%. The ability to select what type of payment are accepted might mean a personal account could be set for 'non credit card funds' only when it approached it's 6 month limit. I believe that was a request from some.
-------
I'm still not convinced that the $0.30 applies to non credit card transactions. I could be wrong, it has happened before.
posted on November 17, 2000 03:38:26 AM new
Paypal are just being greedy bastards !!!!!!
Do not forget their other source of income. They use all the money in their systems to invest and make more money, yet now they choose to nickel and dime a seller to death !!! I will not be using Paypal after Dec.1st !!!!!!!!
posted on November 17, 2000 06:55:18 AM new
Since the $500 limit on personal accounts only applies to credit card funds, when they offer the option to choose the type of payment you accept, will it be possible to keep a personal account that only accepts non-credit card payments indefinately?
posted on November 17, 2000 07:27:22 AM new
amalgamated:
"Since the $500 limit on personal accounts only applies to credit card funds, when they offer the option to choose the type of payment you accept, will it be possible to keep a personal account that only accepts non-credit card payments indefinately?"
I don't know about PayPal offering any such option, but I am presenting saying in my auctions and email notices that I can take PayPal only as a non-credit card payment. Some people have written to ask me to clarify what I mean, but so far it's worked beautifully. I've gotten a great many non-credit card payments, otherwise they've paid by check/money order or used another service I take.
posted on November 17, 2000 07:37:48 AM new
Since the $500 limit on personal accounts only applies to credit card funds, when they offer the option to choose the type of payment you accept, will it be possible to keep a personal account that only accepts
non-credit card payments indefinately?"
Doubtfully, as this was referred to in the paragraph pertaining to business and premier accounts.
As far as the .30 per transaction, I have written to them and asked them to clarify. I don't expect an answer any time soon, though.
posted on November 17, 2000 03:22:54 PM new
I got the answer today.
Here is my e-mail:
I have a question on the new fees. As I read it, the .30 cents will apply to ALL transactions, including non-credit cards. Is that the case?
Please let me know.
Thanks.
XXXX
And their response:
Dear Ms. XXXXXX,
Thank you for contacting PayPal.
A flat fee of 30¢ will apply to all transactions, and this will be the only charge on transactions under $15.
If you have any further questions, please feel free to contact us
again.
Sincerely,
Gloria
PayPal Customer Service
So, YES it applies to non credit card transactions. So, they have not decreased the fee, they have effectively increased it, by adding the .30. They must think we are all a bunch of idiots!! For a $15.00 non credit card transaction the new vs. old fees are pretty close (.28 versus .30), but for say a $30.00 transaction, the old fee would have been $.57. It will now cost you .78. Quite a difference, when you add all those little pennies up.
Oh well, as I said, I'm glad I got rid of it when I did.
posted on November 17, 2000 05:55:28 PM new
kidsfeet -- Personally, it sounds a cut-and-paste response from the Policy. I wish the person drafting the Policy Change would anticipate buyer/seller questions before finalizing the change.
keziak -- Like you, I originally stated "non credit card" Paypal was acceptable. But I continued to receive credit card payments from buyer's Visa "check card". Paypal processes it as a credit card, while buyers may think it is a non credit card payment.
Now, I state "Paypal eCheck Bank Account only". So far, so good.
posted on November 17, 2000 06:16:42 PM new
"In December, we plan to launch a feature that will allow payment recipients to further save money by limiting the kinds of payments they accept."
Interesting. Remembering what I know about dealing with this company I take that to mean you can save money if you choose not to accept such and such credit card - of course if you choose to accept say VISA, then there will be a charge - all credit cards will have a differing rate that should you choose to accept them you will be charged that rate per transaction. Same rules would apply for checks. Of course, remember, these are only options - you don't have to accept money from anyone - just make sure they have access to your real-world accounts - and you will be charged nothing. In essence, you will save money.
I'm tellin' 'ya.
noteye
A sad Texan once commented "I Wish it would rain, not so much for myself, I have seen rain before. But, for my 10 year old son."
posted on November 17, 2000 08:13:56 PM new
Paypal thinks we will all go along with these rate increases. I will no longer do business with them. Hope a lot of others will do the same. That's the only thing that will get their attention.
posted on November 17, 2000 08:25:19 PM new"In December, we plan to launch a feature that will allow payment recipients to further save money by limiting the kinds of payments they accept."
Too late- I already found a way to limit the kinds of payments I accept, and it was easy (free, too- unlike many of PayPal's current services). I stopped accepting payment through PayPal.
posted on November 17, 2000 08:27:09 PM new
I did some calculations and the new fees put PayPal only slighter cheaper than Billpoint. I'll be switching to BP come Dec 1.
(Credit card purchases only)
$14.99 transaction PP .30 BP .35
$20.00 transaction PP .74 BP .80
$50.00 transaction PP 1.40 BP 1.48
BP does not charge for e-check transactions, except the 0.50% (.005) for depositing the money. VISA charges are free for the holidays. [BP rates above are based on 1.75% plus 35 cents plus 0.50% deposit fee]
The savings from PP aren't worth the hassle to do business with PP. I haven't used BP much to this point, but it seems preferable at this juncture. The hard part will be getting my customers to switch over with me.
posted on November 17, 2000 08:31:29 PM new
Has any one here stopped taking Paypal? If so has it affected your business at all? I am about ready to tell them to shove it, but a lot of my customers use the service. What are your experiences with other services ie, exchangepath?
posted on November 17, 2000 08:40:44 PM new
I stopped taking PayPal a while back, and I don't see any difference. I do take ExchangePath and PayDirect- I've received payment through both, but more through PayDirect.
While using PayPal, out of every 10 auctions, my totals averaged something like this: 5 PayPal, 2 money order, 2 check and 1 cash payment. Now, it's more like 4 PayDirect, 3 money order, 2 check and 1 cash- not really much of a change, but overall, a few less online payments.
I suspect that will change once buyers sign up with other payment services. Once they reach their $250 spending limit with PayPal and are required to verify their checking account to be able to spend more, I think a lot of buyers will leave PayPal.
posted on November 17, 2000 09:18:40 PM new
I've stopped taking PayPal. I've noticed no drop and in fact a boost over the previous month.
It's mostly a case of the buyer having to sign up with something else and that's slightly annoying to have to do. Once they've registered someplace else they don't seem to care, which is understandable since there's little difference to them, other than some being pretty grateful that I notified them of PayPal's recent conduct.
