posted on June 13, 2001 10:25:54 AM new
I am a business Paypal user. Thus I am charge .30 fee plus 2.2%: I have no problem paying this for their service but it does eat into my profits. My question is In my auction description what is the correct way to write this up? letting the customers know that if using Paypal they will be charged these fees. I have taken several payments with no complaints from the buyer until today. One guy told me it was illegal he was not paying these fees. Please help. Thank in advance.
posted on June 13, 2001 10:42:39 AM new
If you read the TOS at PayPal and at ebay, you'll see that what you're trying to do is against both. You can be suspended from both sites for passing the fees on to your customers.
The only way around this is to charge a handling fee. I'd say add it in to your opening bid, but then you'll be paying final value fees on it as well. If you do add it as a handling charge, don't say it's PayPal fees. Your bidder who got angry may just report you to both sites, as it is illegal. You can't pass on the surcharge that cc companies charge you either.
posted on June 13, 2001 01:01:30 PM new
How can PayPal charge us? I guess you'll find that answer on their website in the Terms of Service or you can ask them by e-mailing [email protected] or visiting their forum at AW and ask there.
I assure you though, it's legal, because they are performing a service.
We, on the other hand, are letting our bidders pay through their service.
I would guess it's the same way a bank can charge you for checks, overdrafts, daily overdraft charges, etc. You certainly aren't going to pass any of those charges on to your customers are you? (If they pay by check)
Credit card companies can charge you surcharges for using their services.
posted on June 13, 2001 10:54:02 PM new
Sorry, time to vent again. I wish that those who are claiming it is "illegal" to pass on these charges would explain which law they are talking about. It is against the TOS of PayPal and Ebay, but it is certianly not illegal under any law that I am aware of. It is illegal for a merchant to pass on credit card fees in some states, but in this case, PayPal is the merchant not the seller. The seller is not accepting credit cards, PayPal is (remember the e-mails "You've got cash" ). Not all PayPal users even pay by credit card. Even as a merchant, you are allowed to charge a handling fee as long is it the same regardless of the buyers method of payment. In the case of PayPal, even if the seller was considered the merchant, you would be allowed to pass on the fees as long as you charged the same fee to everyone, not just credit card users. Again, which law are we talking about? If there is no law against it, it is not illegal.
[ edited by auctionee on Jun 13, 2001 10:54 PM ]
