posted on September 26, 2002 12:37:24 AM new
I know you can not allowed under various TOS's to change a fee for accepting credit cards, pay pal, billpoint etc in an E-bay auction but you can give a cash discount. I also know some buyers don't like a handling fee added to the shipping cost, so I was thinking in my next few auctions to state, the following
"Closing auction price includes a 3% discount for cash payments. Any other forms of payment do not qualify for the 3% discount and 3% of the auction price (before shipping) will be added to the final total
**Cash payments include, Cash, Personal Check , Money Orders and Pay Pal Payments not funded from a credit card
posted on September 26, 2002 03:52:03 AM new
I am wondering why you would not charge the 3% on the shipping as well. If the buyer pays through Paypal you are being charged that 3%. Depending on the shipping charge this can amount to quite a bit.
posted on September 26, 2002 04:49:16 AM new
If I read this correctly you are adding 3% to the final price if the buyer uses a cc, which is against the law.
posted on September 26, 2002 05:04:42 AM new
What you've written is a tad bit confusing and a bit on the illegal side!
Instead of:
"Closing auction price includes a 3% discount for cash payments. Any other forms of payment do not qualify for the 3% discount and 3% of the auction price (before shipping) will be added to the final total
Write this:
""Closing auction price includes a 3% discount for cash payments. Any other forms of payment do not qualify for the 3% discount"
This should be easer to understand, and is not illegal!
posted on September 26, 2002 05:26:28 AM new
My shipping should be around 6-7 dollars per item I believe I can afford to "eat" the amount of pay-pal fees that would generate. If I'm wrong then I would notice it after the first auction or two and adjust accordinging, but that is neither here nor there, is what I'm proposing to do "LEGAL" according to the TOS of Ebay?
posted on September 26, 2002 05:35:52 AM new
The way it is worded makes it COMPLETELY legal. They are not adding a fee, only discounting for certain specified forms of payment. The method has been used for years.
.
A Man will spend $2.00 for a $1.00 item he needs.
A Woman will spend $1.00 for a $2.00 item she doesn't need.
posted on September 26, 2002 06:34:13 AM new
That may not be illegal in the eyes of the law, but it is against eBay's rules and if turned in you will have your auction canceled.
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:
You may not be saying it is a CC surcharge, but by discounting for cash, you are in effect doing so and it is against eBays agreement and you can be shut down.
posted on September 26, 2002 08:54:53 AM new
LEGAL???
I thought the winning bid price is the winning bid price?
You can add a % on top of my highest bid price?
I DON'T THINK SO!!!
"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:
Can a seller add a surcharge to the final price of an eBay item? Yes, in three instances.
Sellers may charge reasonable shipping and handling fee to the final price of their item, providing that this fee is disclosed up front in the listing. A shipping and handling fee can cover the seller's reasonable costs for mailing, packaging and handling the item. Shipping and handling fees cannot be listed as a percentage of the final sale price.
Sellers may pass along the costs associated with using a third party escrow service, if the buyer chooses to use an escrow service.
Sellers may choose to accept payment in a different currency than the currency listed on eBay. If the buyer chooses to take advantage of this optional payment method, the seller may pass along to the buyer any costs associated with the currency exchange, provided that the costs are disclosed and agreed to in advance by the buyer.
Please note that some types of payment surcharges are permitted on some of eBay's international sites."
posted on September 26, 2002 09:08:37 AM new
Rather than trying to weasel additional funds out of your customers to pay for card processing, why not use the one service where the buyer pays the fee?
posted on September 26, 2002 09:37:05 AM new
You're just trying to creatively get around the surcharge, but it won't work. Any fee added to the auction price is a surcharge, and against everyone's terms of service. The only way this will work is if you allow a discount for cash. If I won your auction, I would not pay the surcharge for paying with paypal.
posted on September 26, 2002 09:46:36 AM new
You cannot offer a "discount" for cash, all that is doing is saying you will be paying more for using a credit card.
The agreement states "Any form of payment"
So by offering a discount for one form of payment, in effect you are charging for other forms of payment.
And just because you are getting away with it, just means that no one has reported you to ebay, yet...
posted on September 26, 2002 10:30:34 AM new
twelvepole - you are wrong there, cash discounts are acceptable, lots of business do it, and it is not against the terms of credit card companies
posted on September 26, 2002 12:24:40 PM new
beowolf is correct. The 3% must be subtracted from the final bid price. In other words the winning bidder would owe the seller the amount of the winning bid less 3%. Adding 3% to the final bid price would be a surcharge which is illegal AND against ebay rules. Allowing a cash discount is completely legal and within ebay rules.
