Sellers charging surcharges for PayPal payments

iamthegreatcornholio

"Payment Surcharges

Notice Date: March 25, 2001
Effective Date: March 31, 2001
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"). In order to comply with these laws and regulations, PayPal has amended its User Agreement so that, effective March 31, 2001, customers may not charge a fee for accepting PayPal. 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).
"

Clearly against the PayPal agreement, yet I frequently see seller’s charging an extra 3% for c/c payments. Does anyone report this?

Brian

67standup

On a somewhat related topic...

Many sellers accept Paypal transactions via a bank account only, not via a credit card. If a seller has this type of account, there are no Paypal transaction fees imposed. However, the first time the seller accepts a Paypal credit card transaction, their free account automatically switches to a business account, which charges a % for all future credit card AND bank account Paypal transactions.

Paypal allows the seller one freebie to switch back. That is, the seller accepts a credit card payment, get's charged a fee, but can switch back one time to the free account, rather than be upgraded to a fee-based business account.

psa8myaz

I would report them. It is a cost of doing business and should not be passed on to a buyer.

ctsoxfan

I usually shy away from auctions where the seller indicates this. It strikes me as very petty to quibble over a few pennies...just do business, and move on. I am not a professional seller, but I will take any form of payment the buyer wants to give me. If it costs me a few percent, then so be it.

67standup

Ctoxfan, I see your point. I too am an occasional seller, but if I accept credit cards via Pay Pal just once, then my account gets upgraded to "Business" and I'm charged a rather high % fee for all future credit card AND bank account transactions. Makes sense for high volume, full time sellers, but not an occasional dabbler like me. Hey, at least I offer Paypal, albeit via bankaccount only. Half the time I purchase something I have to deal with snail mail long turnaround scenarios.

EagleEyeKid

Don't sellers usually just hike up their shipping price to cover that fee?

Mantlefan

If I purchase something with a Paypal surcharge, I remind the seller that he cannot add a fee and each time they have dropped the fee!

67standup

First of all, I loooovvvveee your user icon. I send it to long time friends stating, " I found an old pix of my ex, but she doesn't look like this anymore."

I paid $3 shipping for one $.50 common that arrived in a #10 size white envelope, so I don't really try to itemize what goes into the shipping fee.

parrotpaul

When card dealers on the East coast first started to use credit card machines at shows and in their shops, many tried to charge customers the fee. Remember when gas stations tried to do the same. Gas was more expensive for credit card users.

iamthegreatcornholio

Thanks for the input. The auctions that I was looking at were between 250-1000 so it does add up if the seller tries to stick you with 3%. If I bid and just paid the amount I won, I'm sure there would be a squabble even though I'm right so I'll just boycott their stuff and report them.

Brian

habs71

I may be wrong, but I believe non-US sellers can charge a surcharge.

If it is a US seller and you're going to report them..remember to report it to PayPal & eBay.



Skip

RedRomad275

67standup, In a case like that a seller would get a neutral feedback. If I send $3 shipping I expect a bit more effort. In regards to the surcharge I don't bid on items with that included.

DirtyHarry

Ebay sellers have the latitude to list whatever they want as shipping/handling fees. As a buyer, you have the right to take it into consideration when you are bidding, and to question exactly what you are getting in advance by contacting the seller. I agree it is stupid for someone to include in their listing that they are recouping certain fee's - dumb on their part. I do not think it is fair to neg someone who delivered their product to you intact regardless of how it arrives - being that you agreed to the S/H in the first place.

ctsoxfan

67, point taken. I guess I don't mind the PayPal fees...it is worth it to not have to deal with waiting forever for a check that may or may not be good. The postitive aspects of PayPal are mentioned in another recent thread, so I'll just say that the fees they charge are like overhead I would have to pay to do business, only less.

JonB

cost to list auction for a $0.01 card is $0.30, plus ending fees, actual cost of supplies and postage (white envelope and $.37 for stanp, toploader and sleeve is $0.50. Paypal fee of $.30 for accepting payment plus the percentage...

Auction sells for $0.01, plus $0.50 to ship (actual cost)

Total Money IN: $0.51
Total Seller Fees: $0.60+

I am starting to sell a lot on ebay and I usually charge $2.50 for the first card and $1 for each additional to cover all of the fees and supplies and postage. If a seller couldn't charge a fee like that nobody would be able to pick up that $0.01 common from that odd set that they just had to have to complete it. some guy recently left me a negative because of my shipping prices, without even asking for a break, and then replied to my followup saying they weren't stated in the auction, which was crap... you can clearly look at the auction and see the shipping prices listed right there.

bottom line, sellers have to at least break even; even if they are just doing it for the love of the hobby.

but it all comes down to this: if you don't like the shipping prices, simply don't bid, why can't people just understand this?

Kabir75

I Think the seller should be ready to pay any fees, I don't mind paying the Paypal fees because I know by accepting Paypal I get one or two bids which I might not if I didn't take paypal...I know as a bidder I will only bid on an auction if they don't take paypal is when I really need the card.

NickM

I'll report sellers for surcharging PayPal fees if there is something else about their auction that really bothers me. I've knocked a couple auctions of reprints marketed as originals out this way. Otherwise, it's not worth my time.

Nick

Fabfrank

If I purchase something with a Paypal surcharge, I remind the seller that he cannot add a fee and each time they have dropped the fee!

Same here. I've also run into the occasional seller that tries to impose the fee after the auction has ended with no prior notification. I remind them they can't do this and that it is against Paypal and Ebay rules. They drop the fee and I haven't had a problem.