This is an occasional topic here. In fact, 3% is quite reasonable -
I've costed Paypal's cut of a sale at up to 8%, given that they charge
'international' members extra, even if I leave the money circling in
cyberspace over Florida and respend it in the US. The justification by
eb*y is that associating any charges with a credit card transaction is
illegal in California, where they are incorporated. And as Paypal
transactions MAY involve a credit card... So even if I sell an item to
someone in the UK and the credit transaction is between two Paypal
accounts, they still forbid a premium charge. Trouble is that Paypal is
the only really fast and effective method for an international
transaction. (Bidpay/Western Union orders take a month to clear and
attract a bank charge).
Personally I have been known to ask for a premium on Paypal equal to
about half the charge - I figure it's only fair that the buyer should
share the expense of the transaction as I am a private seller, not a
dealer, and all the considerable expenses involved in selling on eb*y
are not tax deductible. And, after all, tradition auction houses
handling art, etc., often hit both sides with a fee.
The only way that one can do this legally now is to bury the Paypal
premium in a 'handling' charge. Perversely, eb*y does not forbid
charging for a currency exchange transaction! The trouble is that high
handling or exchange charges tend to outrage buyers, who assume that
you are trying to rip them off. On the occasions that I've requested a
5% premium in the listing and eb*y hasn't noticed, buyers have never
complained or refused to pay it.
Simon, if you can find a way to organise a free transaction or to build
a fair cut of the fees into an auction, I'd love to hear it!
AndrewF
On 07/11/2004, at 12:46 AM, Andrew Gullen wrote:
> on 2004/11/06 8:04 AM, Simon Worby at simon@xxxxxxxxxxxx wrote:
>> Has anyone paid the "extra" 3-odd % for using PayPal that some buyers
>> ask for?
>> I never pay it since eBay have banned it, and I've never had anyone
>> complain
>> or ask me for the extra money yet.
>
> I've offered to, as I believe both the buyer and seller benefit so I am
> willing to split the cost. I don't remember whether I've won an auction
> where this was an issue or not.
>
> Frankly I find eBay's ban outrageous, as this is a monopoly practice to
> benefit one of their companies - does it apply to other payment
> methods?
> It is also interference in other people's business.
>
> The credit card companies ban merchants from offering discounts for
> cash,
> and I also find this outrageous interference in restraint of trade.
> Such
> things limit people's choices and distort the market, but somehow such
> considerations seem to have no weight when the interests of the rich
> and
> powerful would be adversely affected. What hypocrisy!
>
>
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