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In your opinion, is charging people an extra 3% for paypal wrong?
GoldenEyeNumismatics
Posts: 13,187 ✭✭✭
I'm talking about transactions outside of ebay.
Would you consider charging someone an extra 3% if they wish to pay via paypal wrong? Even when they are given the option of paying by check? Do you consider it just another cost of doing business? Opinions?
Would you consider charging someone an extra 3% if they wish to pay via paypal wrong? Even when they are given the option of paying by check? Do you consider it just another cost of doing business? Opinions?
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Edited: I feel the same way about transactions outside of ebay.
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<< <i>I'm talking about transactions outside of ebay.
Would you consider charging someone an extra 3% if they wish to pay via paypal wrong? Even when they are given the option of paying by check? Do you consider it just another cost of doing business? Opinions? >>
Not at all...some of the auctions that I attended over the years, give you a 3% discount if you pay vial cash or check instead of a credit card.
worse than the frigging mafia/syndicate. Maybe sellers should just do it the ol fashioned way- treat ebay like a venue- and not a bidness.
<< <i>nothing wrong with it at all. >>
It does not bother me.....but charging the buyer violates your user agreement with paypal.
Alan
You wouldn't believe how long it took to get him to sit still for this.
I think it all depends on your relationship with the other party.
Personally, I don't see anything wrong with charging extra. Many stores give discounts for cash or debit versus credit around here.
3% can be a hefty chunk of your margin in many cases. Just try to buy bullion with a credit card. B&M stores around here tack on an extra 3% to take a CC on bullion. Checks and cash are fine, CCs are just too costly. That's almost $25 on a single one ounce Gold Eagle.
John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
<< <i>Depends on your margin. if it is Gold bullion I say it is totally fine. If it is a $200 coin you picked up for a $100 somewhere then you are being cheap. >>
That's exactly the right answer. I price it into the equation for inexpensive coins or coins with a decent margin. But try to pay for gold bullion with paypal. 2.9% is likely more than the total margin on the sale for the seller.
i hate to think of all the sales that I've made where paypal and ebay made more than I did but there have been many. They never lose money on a transaction either.
--jerry
<< <i>In your opinion, is charging people an extra 3% for paypal wrong? >>
No way. If you're the seller, you have every right to state acceptable payment methods, and if the buyer doesn't like it, they don't have to buy. No one should be mad over having a choice of mailing a check, or paying via paypal +3%.
<< <i>So who values the convenience of PP or CCs more? The buyer or the seller? If the buyer is doing it merely out of convenience then I see nothing wrong with him paying all or part of the cost of that. Why does the seller always have to bear the cost. I'd guess tho that most businesses adjust their asking prices to include any credit card costs. I have no qualms about asking PP users on the BS&T board to cover any PP fees if they wish to pay that way. >>
The buyer of course. The buyer wants credit card miles and instant payment. The seller, on the other hand, would like his 2.9% and is willing to bend over backwards to make the buyer happy. So sellers are always trying to read the buyer and decide if they prefer convenience or a low price. I often make the decision for them rather than offer them the discount. --jerry
<< <i>
<< <i>In your opinion, is charging people an extra 3% for paypal wrong? >>
No way. If you're the seller, you have every right to state acceptable payment methods, and if the buyer doesn't like it, they don't have to buy. No one should be mad over having a choice of mailing a check, or paying via paypal +3%. >>
good point. I can ask to be paid in beer and tequilla if I want...and that sounds good tonight....long week....oh, it's only tuesday....
Millertime
Complete Dime Set
<< <i>As a buyer that 3% bugs me at times while others I'm more than willing to pay it. When I'm dealing with a seller such as LordM I know he's giving me a really good deal and that 3% it costs him is taking a high percentage of the profits so I don't mind paying at all. However, when a seller is making a very nice profit on the coin and wants to nickel and dime me for paypal and s/h then it's irritating. Millertime >>
Millertime,
If I mention the 3% (2.2%) in my case then know that it is a significant part of my margin on that coin. --jerry
Sometimes, the buyer benefits (unsure of the seller, pay right away, able to use CC for miles or large purchases, etc).
Sometimes, the seller benefits (unsure of the buyer, less buyers for larger items if they can't use CC, get their money right away, don't have to drive to the bank to cash a check and wait days, etc).
If you don't like it, don't use it. If you don't like what happens to your sales, then make the choice.
Pretty simple if you ask me (and, I don't like seeing all the fees when I sell either....for some of my friends who just sold through me, they lost money due to the fees, but it was still a choice).
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
Dave
To support LordM's European Trip, click here!
<< <i>People get into a nit over everything.... Sometimes, the buyer benefits (unsure of the seller, pay right away, able to use CC for miles or large purchases, etc). Sometimes, the seller benefits (unsure of the buyer, less buyers for larger items if they can't use CC, get their money right away, don't have to drive to the bank to cash a check and wait days, etc). If you don't like it, don't use it. If you don't like what happens to your sales, then make the choice. Pretty simple if you ask me (and, I don't like seeing all the fees when I sell either....for some of my friends who just sold through me, they lost money due to the fees, but it was still a choice). >>
Your "Sometimes the seller benefits is slightly inaccurate and unbalanced. Paypal protects the buyer, not the seller. The "unsure of the buyer" doesn't really make sense. An MO or bank wire makes sense when you're not sure of the buyer.
How so
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
In these states its against state laws to charge extra for a credit card purchase, Ca. Co. CT. Fl. Ks. Me. Ma. Ny. Ok. and Tx.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
If I know you or you have a good reputation to protect I'll pay the 3% as a premium for buying from a low risk seller.
If you're unknown then the 3% should be your cost of doing business because without PayPal I'm not going to buy.
<< <i>"An MO or bank wire makes sense when you're not sure of the seller." How so
Sorry, I meant buyer. my post is edited.
<< <i>Why not give free shipping if they pay by check? >>
One of my buyers recently made this suggestion, and it worked out quite nicely since it was a pricey item and the PayPal fee would have been over $18.
Russ, NCNE
I have bought hundreds of coins at auction and paid by check for most all transactions.
I have never received a discount for paying by check. Have i missed something?
The free shipping for "other than paypal" (or echeck) is something I have done a few times.
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
<< <i>Perry contact your credit card issuer, its most likely a violation of their merchant card holder agreement to charge a surcharge. Visa or mastercard as a rule don't allow this. Same for those of you who charge a surcharge on paypal, check to be sure you aren't violating the agreement. I would never purchase an item from anyone who would add a surcharge to an item. If your margin is that thin, I suggest you check your business plan and revise it.
In these states its against state laws to charge extra for a credit card purchase, Ca. Co. CT. Fl. Ks. Me. Ma. Ny. Ok. and Tx. >>
That is true. You can offer a discount for cash etc but you can not charge a surcharge.
<< <i>"Not at all...some of the auctions that I attended over the years, give you a 3% discount if you pay vial cash or check instead of a credit card. "
I have bought hundreds of coins at auction and paid by check for most all transactions.
I have never received a discount for paying by check. Have i missed something? >>
No you didn't ask for a discount so you didn't get one. No guarantee you will get it, but it caint hurt to ask.
All it takes is for one dillweed to sue you to make you wish you knew the facts beforehand. I've lost count over the years of businesses we financed that had to fight off silly lawsuits or lawsuits brought about by technical violations of some obscure law or regulation. Sometimes common sense isn't enough.
you'll see that they can be 2 to 3 times the 3% that Paypal charges. I'm mostly a seller so I bear the fees, but as a
basic convenience/service charge, 3% is reasonable. The auction fees are where the pain is administered. Heck, a bank
will charge $2 to withdraw $20 from an ATM, and millions of people accept that 10% hit every day.
With all due respect, IMO those people are not too bright.
As many have already posted, the procedure is not to add a surcharge but to offer a discount for cash (void where prohibited by law).
One of the reasons that I use a credit card for just about everything I can is because I get a cash rebate. Now my rebate has to be less than what my bank charges the vendor but I can't remember the last time I saw any business offer a discount for cash. They tried it with gasoline stations some years ago but it was a failure and quickly abandoned.
If I was offered a discount for cash that was greater than what I get on my credit card, I would pay with cash.
Joe.
I actually prefer to receive paypal since it makes the transactions go much more quickly. No waiting for the check, waiting for the check to clear- keeping track of multiple transactions like this takes time. With paypal, I receive the money, ship the coin.
Mint News Blog - US Mint News, Product Information, and Commentary.
With all due respect, IMO those people are not too bright.
Good point. But unfortunately it becomes "what the market will bear".
<< <i>
<< <i>In your opinion, is charging people an extra 3% for paypal wrong? >>
No way. If you're the seller, you have every right to state acceptable payment methods, and if the buyer doesn't like it, they don't have to buy. No one should be mad over having a choice of mailing a check, or paying via paypal +3%. >>
Great advice are you going to lend him your paypal account when paypal suspends him?
With all due respect, IMO those people are not too bright.
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Yep, the same not too bright people who will let a CoinStar machine keep 10% of their change, but would raise Holy Hell if a bank teller gave em only $90 worth of change for a $100 bill.
If you're selling, particularly here, I think that it's best to just have a single asking price on a coin, including your fees and shipping. If anything, you can then offer a discount for purchasing multiple items (because shipping for one item is built into each price) or for paying by check/MO (because PayPal fees are built into your price).
If your margin is too close on a particular item, just state that the price is firm (e.g., "I'm selling these at my cost, so prices are firm")
I frequently shy away from sellers when they nickel and dime me with a 3% fee. They come off as cheap, and cheap people aren't usually particularly easy to do business with. Cheap sellers have also been known to skimp on packaging, which can end badly.
That's my 2c (please add 3% if you're paying for my 2c by paypal).
<< <i>Wow is the word that comes to mind. In some states and in some cases Visa has fined merchants for offering cash discounts >>
If a merchant has CC fees figured into his prices whats wrong with expecting break if I don't use a CC? Why is it that I'm expected to subsidize a CC user? For many things it really doesn't matter much, but for large ticket items it could be a nice little sum.