posted on August 21, 2001 11:04:07 PM
I've noticed that some sellers state that they will only accept Paypal payments if the total is over a certain amount. I've contacted ebay about this and have been informed that this is an acceptable practice.
I find this very strange since stores and other retail establishments are not allowed to set a minimum.
I thought setting minimum purchase requirements was against mastercard/visa rules?
Anyone have ideas about this one?
Since ebay doesn't mind this sort of activity perhaps I'll only accept Paypal on total purchases over $50.00.
posted on August 22, 2001 02:33:53 AM
fishbowl, I don't know whether b&m's are "allowed" to or not, but I have been in some that do have a sign by the register saying no charge cards below a certain amount.
I've never seen any posts here regarding this policy and PayPal, but logically, I can understand why people do it.
When pp decided to bend it's customers over this last time, it was to add the 2.9% (plus 30 cents) to purchases under $15.00 - this is a hefty chunk on small items.
To me, the smarter thing would just be to leave pp out of auctions you think are going to end lower than you like to take pp for. If you're pleasantly surprised at the end of the auction, you can always give the buyer the option in your WBN.
posted on August 22, 2001 02:46:39 AM
The seller who accepts PayPal is NOT considered the merchant by the credit card companies, PayPal is. That's why chargebacks are filed against PayPal not the seller personally. Therefore how could there be any objection to setting a minimum for PayPal use? I find it stranger that they (eBay, PayPal, MC/Visa, etc.) can hold us to the no fee rule, we would be charging to provide a service much the same way that c2it does.
posted on August 22, 2001 03:02:11 AM
I have stopped offering Paypal because most of my items are under $10, however, I have quite a few frequent buyers who have always paid that way, so I let them still use it. I have a question about postage. I find that a lot of buyers lump it in with the whole purchase, so that means I am paying 2.9% on postage too, right? Or do I pay on the total amount anyway, which includes the postage?
posted on August 22, 2001 05:54:51 AM
You pay PayPal based on the TOTAL transaction: item price plus shipping plus insurance.
Another thing, PayPal's fee isn't 2.9% of the transaction. The 2.9% is very misleading! It's over 3% when you factor in the 30 cent add on fee. For example, for a $5 transaction paid via PayPal, the PayPal fee would be $.45 or 9% of the transaction.
posted on August 22, 2001 05:57:21 AM
i have encountered several retail stores that have a minimum purchase for using a credit card. these have been mostly quikie-mart type stores and the purchases have been under $5.00 (i am on an expense account at work and never use cash, ever , for anything...almost)....the other one i encountered was a gentlemans club that had a min. $50 purchase to use a c. card, but of course spending more tha 50 is a given when you hit those type clubs...for entertainmnet of customers only, hehehhe
posted on August 22, 2001 06:24:50 AM
What does the wire transfer fee have to do with it? The wire transfer fee is part of the 3.0% (plus 35 cents) BillPoint charges for over $15 transactions, otherwise it would be 2.5% (plus 35 cents). They only charge the .5% wire transfer fee on transactions over $15. PayPal doesn't do an automatic wire transfer and yet their fee is only .1% less? Why?
posted on August 22, 2001 07:35:51 AM
In my B/M shop, I am not allowed to set limits on credit cards. If someone wants to use theirs for a .50 purchase, I have to let them. To do otherwise and if I'm reported, I lose my CC account. And as far as I know and from the people I've talked to, it's this way everywhere. Those that set the limits are just hoping they never get caught.
posted on August 22, 2001 09:39:17 AM
It's also against V/MC rules to set a **maximum** on credit card purchases. The only exception is if the merchant has a daily V/MC maximum allowable on his merchant account.
