paypal fees, how much do you pay?

Discussion in 'Ecommerce Forum' started by Jonsam, Feb 16, 2021.

  1. Jonsam

    Jonsam UKBF Contributor Free Member

    31 0
    i signed a contract with paypal in September 2019 at a rate of 1.4% but a few mts later they changed it to 2.9% and I did not realise until now, we process nearly 1 million a year with them

    I complained but they want me to move my card payments to them also to get a reduced rate, but I don't want to do that

    so for the moment, I have turned the Paypal option off

    so how much do you pay? i am interested to find out if any one else is getting a reduced rate
     
    Posted: Feb 16, 2021 By: Jonsam Member since: Feb 4, 2011
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    27,343 3,354
    5% plus 5p.
     
    Posted: Feb 16, 2021 By: Mr D Member since: Feb 12, 2017
    #2
  3. Jonsam

    Jonsam UKBF Contributor Free Member

    31 0
    your paying to much the standard rate is only 2.9 plus 30p
     
    Posted: Feb 16, 2021 By: Jonsam Member since: Feb 4, 2011
    #3
  4. Mr D

    Mr D UKBF Legend Free Member

    27,343 3,354

    LOL.
    Below is bottom part of 2 paypal transactions today.

    Please, tell me how I'm overpaying and how the standard rate is only 2.9% plus 30p.
    A business owner can choose whether to be on standard rate or micropay rate. For some of us its far cheaper - to the tune of better part of a grand a year - to use micropay rates.

    We don't all benefit from a 30p fixed rate charge.

    Gross amount
    £2.99 GBP
    PayPal fee
    -£0.20 GBP


    Net amount
    £2.79 GBP


    Gross amount
    £2.70 GBP
    PayPal fee
    -£0.19 GBP


    Net amount
    £2.51 GBP
     
    Posted: Feb 16, 2021 By: Mr D Member since: Feb 12, 2017
    #4
  5. japancool

    japancool UKBF Big Shot Full Member

    3,800 731
    Posted: Feb 16, 2021 By: japancool Member since: Jul 11, 2013
    #5
  6. nick34785

    nick34785 UKBF Regular Free Member

    150 12
    If you sell to USA customers in USD you'll pay 2.9% + 2% foreign fee + 3% currency exchange fee.
    Totally 7.75%.

    Stripe charges 2.9% with no currency conversion (if you add a USA bank account).
     
    Posted: Feb 22, 2021 By: nick34785 Member since: May 25, 2014
    #6
  7. Mr D

    Mr D UKBF Legend Free Member

    27,343 3,354
    And for those without a US bank account?
     
    Posted: Feb 22, 2021 By: Mr D Member since: Feb 12, 2017
    #7
  8. DontAsk

    DontAsk UKBF Ace Free Member

    1,855 291
    They could open a Transferwise dollar acount.
     
    Posted: Feb 22, 2021 By: DontAsk Member since: Jan 7, 2015
    #8
  9. Mr D

    Mr D UKBF Legend Free Member

    27,343 3,354
    And then pay what fees to transfer dollars into pounds?

    All well and good Stripe not charging a fee for something it isn't doing. Usually someone is going to charge to convert currencies.
     
    Posted: Feb 22, 2021 By: Mr D Member since: Feb 12, 2017
    #9
  10. nick34785

    nick34785 UKBF Regular Free Member

    150 12
    Transferwise would charge 0.43% to convert USD to GBP.

    If you have expenses in USD then you would save even more, as you wouldn't need to convert GBP to USD to pay those.

    Paypal used to enable to withdraw USD to a US bank account with no fees. Now they charge 3% to withdraw USD to a US bank account (if you have this option).
     
    Posted: Feb 23, 2021 By: nick34785 Member since: May 25, 2014
    #10
  11. SeanOF

    SeanOF UKBF Newcomer Free Member

    13 1
    We pay 2.9% + 30p

    What really bugs me abut Paypal is if you take payments in USD the not only do you pay this fee but t transfer the money back to GBP they charge about 4-5% from mid on the FX. In addition they won't even let you transfer the USD out to a USD bank account because you can only have one bank account associated with your Paypal account and that's our GBP one. In effect then, we end up paying about 8-9% to take a USD payment.

    Separate to that we run USD web sales via Stripe and into our TransferWise USD bank account. We tried Revolut as they transfer FX exactly at the mid but because they hold their USD, EUR etc accounts in London, Amazon won't allow you pay money in there so it wasn't an option. Plus I had the Revolut account open for about a month before I discovered this and found their customer service very poor so decided they weren't for us. TransferWise charge about 0.5% from mid for FX transactions and that's pretty good plus the support is good with connecting to Xero etc available.

    Every time I look at the balance of USD in our Paypal it makes me wince. If anyone knows a way to get it out without incurring Paypal fees, let me know. None of our suppliers take Paypal as payment.
     
    Posted: Feb 23, 2021 By: SeanOF Member since: Jan 21, 2021
    #11
  12. Mr D

    Mr D UKBF Legend Free Member

    27,343 3,354
    So have a seperate paypal account for the USD sales. And other account linked to that.
     
    Posted: Feb 23, 2021 By: Mr D Member since: Feb 12, 2017
    #12
  13. SeanOF

    SeanOF UKBF Newcomer Free Member

    13 1
    I'm not sure you can do that. Two reasons:
    1) USD Paypal accounts are for US registered entities only
    2) Each registered entity can only have one Paypal account

    At least, this is what I've always thought - am I mistaken? Have you got both a GBP and USD Paypal account for the same UK-based entity (a LTD)?
     
    Posted: Feb 23, 2021 By: SeanOF Member since: Jan 21, 2021
    #13
  14. japancool

    japancool UKBF Big Shot Full Member

    3,800 731
    You can receive multiple currencies in a single Paypal account.
     
    Posted: Feb 23, 2021 By: japancool Member since: Jul 11, 2013
    #14
  15. Mr D

    Mr D UKBF Legend Free Member

    27,343 3,354
    If it's cost effective then a us registered entity can work. Or else use a non US payment method that does not cost too much.
    I do not have currently a USD PayPal account. Looked into one back in 2015 when we only had the 2 PayPal accounts and were looking to shift multiple pallets a week to the US. Setting up a US business as an admin point only was one of the options we went through with the accountant and the CPA.
    eBay at the time required PayPal as a payment method. Amazon of course paid in USD anyway so a bank could have worked well.
     
    Posted: Feb 23, 2021 By: Mr D Member since: Feb 12, 2017
    #15
  16. Mr D

    Mr D UKBF Legend Free Member

    27,343 3,354
    Yes, just some do not like to factor the costs into their prices. Instead they absorb the extra costs themselves thereby reducing profits.
    Nice of them to help poor foreigners out that way.
     
    Posted: Feb 23, 2021 By: Mr D Member since: Feb 12, 2017
    #16
  17. SeanOF

    SeanOF UKBF Newcomer Free Member

    13 1
    Yes, I already do. The issue here is you can only take OUT one currency per account and in my case that's GBP so any USD I receive have to be transferred to GBP at an extortionate rate set by Paypal.
     
    Posted: Feb 23, 2021 By: SeanOF Member since: Jan 21, 2021
    #17
  18. SeanOF

    SeanOF UKBF Newcomer Free Member

    13 1
    Yup. This is the nub of the issue. Paypal screw you no matter what.

    Anyway, apologies to the OP for the tangent I've inadvertently led this thread on.
     
    Posted: Feb 23, 2021 By: SeanOF Member since: Jan 21, 2021
    #18
  19. Guy Incognito

    Guy Incognito UKBF Regular Free Member

    230 35
    We put a fair amount of business through PayPal (will be about 4m this year). I am seeing what rate I can get.
     
    Posted: Feb 25, 2021 By: Guy Incognito Member since: Aug 2, 2016
    #19
  20. Guy Incognito

    Guy Incognito UKBF Regular Free Member

    230 35
    So we're now on 1.4% + 30p which they will review after 3 months and should then come down to 1.3% + 30p.

    I owe someone a beer as we've just saved a significant amount of money!

    Edit - thank you @Jonsam - I just called up their help line, they went through our account details and then sent over a new contract with these fee proposals. We put £2.25m through PayPal last year, so it's a bit sickening knowing that we could have saved £35k but more importantly this year it will bring our fees down by a huge amount.
     
    Posted: Feb 25, 2021 By: Guy Incognito Member since: Aug 2, 2016
    #20