posted on August 14, 2001 07:48:52 PM
This is copied from the eBay Mrketing board Date: 07/26/2001
Time: 12:05:24 PDT
***Payment Surcharges***
Our current policy regarding payment surcharges states that members may not charge a fee when accepting credit cards for payment. Under eBay policy, this is a form of fee circumvention and it is also a violation of many state laws, including those of California. Therefore, this is not permitted on eBay.
Although other types of payment surcharges are not necessarily illegal, we do not currently permit them on eBay since they fall under our Fee Circumvention policy. Since the practice of charging additional fees to cover various forms of payment has become more prevalent, we are clarifying our policy to ensure that users understand that these surcharges are not allowed on eBay. Please click here to review the clarified policy.
Regards,
eBay
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Payment Surcharges
Sellers may not charge eBay buyers an additional fee for their use of ordinary forms of payment, including acceptance of checks, money orders, electronic transfers or credit cards. Such costs should be built into the price of the item -- this policy reduces the potential for confusion among bidders about the true cost of an item. Further, some forms of payment surcharges, such as credit card surcharges, are forbidden under the laws of many states, including California. For more information, see:
posted on August 14, 2001 07:53:19 PM
Copied Directly from the PayPal User Agreement:
13. No Surcharges. Under Visa and MasterCard regulations and the laws of several states, including California, merchants may not charge a fee to the buyer for accepting credit card payments (often called a "surcharge". You agree that you will not impose a surcharge or any other fee for accepting PayPal as payment. This restriction does not prevent you from imposing a handling fee in connection with the sale of goods or services, as long as the handling fee does not operate as a surcharge (in other words, the handling fee for transactions paid through PayPal may not be higher than the handling fee for transactions paid through other payment methods).
posted on August 15, 2001 01:20:17 AM
If the seller was smart, he would have just included the fees in his pricing of shipping and handling without a word - and none would be the wiser...
posted on August 15, 2001 06:59:33 AM
Since most of my items close at less than $15, the PayPal fees are very troubling to me. I just listed some auctions with my first ever handling fee. Ugh, I hate doing it, but I can't take the hit anymore. I am curious to see how it will affect the bidding on my items. I chose a 50 cent handling fee, which doesn't cover much, but will at least help me recoup some of the PayPal fees...
posted on August 15, 2001 07:15:12 AM
Well when I first started selling I overcharged shipping to cover possible paypal fees. I was makeing some money and was happy but I knew that there had to be a better way or some way to revise everything to get more hits and bids.
Ive found that when the shipping cost is the actual cost of shipping I sell higher and get more hits on my auctions.
I used to ship motherboards for $15. Actual cost is around $9.50. I changed it to $9.50 for all mobo's and wham Im selling them like hot cakes.
Ive just come to the determination to live with the fees. Its convenient and quick.
The reason I posted this thread was to provide a seller with all the pertanent info on surcharges. he was actually listing the surcharge in his tos.
When I buy and see high shipping and or surcharges, I just pass it over and go to the next.
Perfect example, I saw an enermax power supply up for auction. Retails for $49.95. The shipping cost was $21.00. I used to sell these and they shipped for no more than $10 usps priority.
Needless to say though people were still bidding like crazy. I saw 3 bids for 49.95 on this dutch auction.
Unbelievable what sellers can get away with and how gullible buyers are.
posted on August 15, 2001 09:24:44 AM
Part of my TOS reads "If you wish to pay by US MO or cheque, please add $8 to cover my UK Bank charges" Reading the above, this appears to be illegal, but all UK sellers trading with USA do it. Any thoughts folks? This is not my trading name.
P.S. Please ask your local Bank how much they would charge to handle a UK£ cheque!
posted on August 15, 2001 10:10:58 AM
I have been selling on ebay for a couple years not huge volume about 300 auctions. Anyway before I knew better I accepted a Canadian check for payment on $13.00 item. I took to my local bank and they said they normally charge $15.00 US to send off to another bank to have funds converted. In answer to Greetingsfrom UK my bank would charge $15.00 to process payment from UK.
Ski
posted on August 15, 2001 11:18:46 AM
Greetingfrom UK: Why not simply require your international bidders to send payment in the form of an International Money Order payable in UK funds. If the money order is is UK funds, your bank should not charge you to cash the money order. Your Bidder on the other hand will have to pay the conversion fee. This would emliminate you from having to charge the $8 fee. This is what we require our internatonal customers to do and I have not had the bank charge me a fee. Just a thought.....
posted on August 15, 2001 11:33:38 AM
Direct from ebay's rules:
Payment Surcharges Sellers may not charge eBay buyers an additional fee for their use of ordinary forms of payment, including acceptance of checks, money orders, electronic transfers or credit cards. Such costs should be built into the price of the item -- this policy reduces the potential for confusion among bidders about the true cost of an item. Further, some forms of payment surcharges, such as credit card surcharges, are forbidden under the laws of many states, including California.
GreetingsfromUK,
Unfortunately, this appears to cover your additional charge for money orders.
posted on August 15, 2001 11:36:47 AM
Many thanks vohnjamm. I agree with your comments, but as I sell low value lots, usually around $5, I think I may get problems when my buyers find out the cost of an International Money Order in UK £! I guess most UK International sellers break the following:
Payment Surcharges
Sellers may not charge eBay buyers an additional fee for their use of ordinary forms of payment, including acceptance of checks, money orders, electronic transfers or credit cards. Such costs should be built into the price of the item -- this policy reduces the potential for confusion among bidders about the true cost of an item.
