I would like to state in my auction ad AND/OR in my email to highest bidder that I will charge an extra fee to use paypal...and give them the option to use c2it or another service.
Nope. Can't do it.... it's against the law to charge a credit-card surcharge (also against ebay policies) You can offer a discount for accepting certain forms of payments, but you can't charge extra to accept any credit-card payment.
posted on June 13, 2001 10:23:50 AM new
I don't think that would be illegal, but it would be against the rules for both eBay and PayPal. It's obvious that you're trying to recoup your PayPal fees through bogus shipping charges if you state it that way. If you really can't afford the 2.2%, just add $1 shipping across the board.
Some people who whine about the credit card charges fail to keep in mind that it saves them time and hassle also. Instead of having to drive to the PO Box, pick up checks, fill out deposit slips, go to the bank, wait in line, and make the deposit...you just click to transfer the money into your checking account. It's called CONVENIENCE people...for both the seller and buyer.
posted on June 13, 2001 10:26:02 AM newPacker this is a timely topic. Almost all of my stuff sells for less than $15.00, so I am going to be affected by the PayPay Simplification. Also, I just had my 3rd chargeback loss from a fraudulent PayPay payment, so I am now going to stringently adopt the seller protection guidelines.
I think charging an extra amount for paypal users, no matter what your reason and even if it is for a perfectly legitimate service that PayPay requires you to use, falls under the category of a surcharge and is forbidden.
I am going to raise my S&H cost by $1.00 to cover the extra fee for Priority/DC/Simplification and tell buyers that non-PayPal payments get a $1.00 off the final total. That is allowed by every TOS I have seen everywhere.
In my case, the PayPal users will actually get better service since PayPal items will go on priority/DC and others will go on first class.
posted on June 13, 2001 10:28:29 AM new
wbbell - what you suggest (The $1 discount) is allowed, but make to specify the discount is off of the bid price, not the S/H... technicality - but its the way to keep it proper.
posted on June 13, 2001 10:34:51 AM new
dervari,
Its not a BOGUS shipping fee.
In order to be covered under their protection policy you have to provide on-line tracking proof.
I try to ship 1st class when ever posible as it saves the buyer a lot of $'s. However you cannot do DC on 1st class mail.
So from now on if my buyers feel they need to use PayPal then they are going to have to pay for the privledge.
I have taken PayPal off my auction page, but I'm sure I will have some that will ask.
Heck even when it was on my auction page I had buyers ask if I took paypal.
wbbell,
Yes, wording it your way could be better provided they read that far.
Sometimes I just look for/at the shipping price if its too high I read no further. I just hit the back button.
posted on June 13, 2001 10:37:07 AM new
posted on June 13, 2001 09:48:45 AM
--------------------------------------------------------------------------------
gs4,
That wouldn't hardly be fair for the non-paypal users now would it?
packer
If you buy something in a store and you pay cash, you are paying the same amount as the person who payed with a cc.
This is a fact of life,the cost of someone using a cc is built into the price.
posted on June 13, 2001 10:37:50 AM newIt's called CONVENIENCE people...
Well, sure it is, but one I don't need. This is just like when you go the the theater and order the 55 gallon drum size popcorn, and the clerk tells you that for $0.25 extra, you can have the dumpster size- it's only a good deal if you can eat it all.
I have to fill out deposit slips and go the the bank occasionally anyway, and adding in the checks received from my auctions is not really a chore.
If a buyer insists on it for their own convenience, they should be willing to pay for it.
edited to add...
And another thing...
Calling this a "convenience" for the seller is just a way for buyers to rationalize their refusal to pay the cost of these online cc services. I offer buyers the option of paying by check, money order and, at times, several of the online payment services. Not once in over 1,000 auctions has a buyer contacted me in order to find out which method is most convenient for me.
[ edited by mrpotatoheadd on Jun 13, 2001 10:48 AM ]
posted on June 13, 2001 12:04:41 PM newPayPal users add $1.00 for Delivery Confirmation and plan on Priority Shipping. As per PayPay terms of use
packer,
if this is 'ebay legal,' that's a GREAT idea! i ship via priority anyway, but adding in the dc charges and explaining it's pp's terms of use is brilliant!
posted on June 13, 2001 02:32:24 PM newNope. Can't do it.... it's against the law to charge a credit-card surcharge (also against ebay policies).
While it IS against the law to pass a credit card surcharge on to the buyer, it IS NOT against the law to pass a PayPal fee on to the buyer (it IS against PayPal and ebaY rules however).
PayPal fees charged to the seller are NOT credit card fees. PayPal charges the seller fees on ALL transactions, not just credit card transactions. Therefore the fees can't in any way be considered credit card fees. When PayPal takes their cut, the seller is paying for a service rendered: PayPal's handling on-line payments for the seller. Nothing more, nothing less.
This is one area where ebaY missed a golden opportunity to make more money for the shareholders. If they would allow sellers to pass on the PayPal fees to the buyer, PayPal would be at a serious competitive disadvantage to Billpoint. But once again, ebaY has chosen to take the least logical of the available options. PayPal ALLOWED their sellers to pass on the charge until ebaY clarified their rule against it. Very stupid move on ebaY's part.
[ edited by MrBusinessMan on Jun 13, 2001 02:42 PM ]
posted on June 13, 2001 03:32:52 PM new
What I wonder is, how many people are even going to be willing to pay the extra shipping charges?
I sent a VCR to California today, parcel post, insured, with DC and the shipping was $23.17! I almost had a stroke because I guessed at the average it would cost to ship it to different areas and only charged him $15. If I'd had to add extra on for paypal fees, it would have cost more for the shipping than for the VCR.
And another increase coming soon. People will stop buying online!
posted on June 13, 2001 03:58:22 PM new
If you're going to charge to use Paypal-then say so in your auction.
I bought a ring and when I got the WBN, it said to add 2.2% if I used Paypal. Not cool to spring it on me like that. If the auction had said that, I wouldn't have bid. S/H was stated in auction-so don't tell me AFTER the auction is over that I owe you more money! I paid by Paypal-ignored the extra cost and got the ring. Guess he didn't think he should push it.
And FWIW-not all businesses factor in CC cost in every sale they make. I don't. That's just an extra cost of doing business.
posted on June 13, 2001 04:35:05 PM new
I haven't done the math, but is there really that much difference between what Billpoint takes and Paypal? Had a $60.00 sale go through Billpoint this week-not exactly free.
No, there isn't a big difference between PayPal and Billpoint fees. This is why I feel that ebaY dropped the ball by not allowing sellers to charge the PayPal fees to the buyers. Most buyers would balk at paying the PayPal fees and would opt for Billpoint as the alternative.
posted on June 13, 2001 05:12:15 PM new
there is a difference in billpoint fee and paypal fee in wiretransferring your fund to your bank account,i believe billpoint charges 1/2 percent while paypal is zero.
but billpoint does it for you automatically the next business day while paypal you have to do it yourself or leave it in the paypal account and collect interest(for some accounts which sign up for money market fund)
posted on June 13, 2001 05:27:50 PM newsusan, Paypal is raising its fees at the end of the month (but calling it a "Fee Simplification", and that is what has a lot of people in a flap. Once that occurs, BP will cost 5c & 0.05% more than PP on any transaction.
hwahwahwa, true, BP charges 0.5% for a "deposit fee" but it also only charges 1.75% per transaction - or 2.25% total.
Keep in mind too, there is nothing to prevent Billpoint from raising its fees to match Paypal. Sort of like airline fare changes. When one does it, the rest follow - whether the price increases or decreases.
posted on June 13, 2001 06:17:42 PM new
Frankly, I'd rather Billpoint did like Paypal does and let us decide when to deposit. I like to let mine build up and deposit one large amount rather than several small ones. Course if they did this, they'd lose money on deposit fees.
posted on June 13, 2001 07:14:56 PM new
MrBusinessMan, where is it against ebay and PP rules to charge a fee for accepting PP? I found this on ebay:
"Payment Surcharges
An eBay seller may not charge a fee, often called a "credit card surcharge," when accepting credit card payments. This surcharge, which is an added cost to the buyer over and above the final sale price and shipping/handling, is not allowed under the laws of many states, including California...."
But since accepting PP is not the same as accepting a CC, it doesn't apply here.
OTOH I don't want to bust the rules so will appreciate your reference.
posted on June 13, 2001 07:34:41 PM new
capotasto:
You're correct in that the ebaY (and possibly PayPal) rules don't expressly prohibit sellers from charging for PayPal payments. But in emails from ebaY and PayPal customer support, they have made it very clear that they won't allow the surcharge. The interesting thing is that PayPal left it up to the seller to decide for himself until ebaY came out against it.
posted on June 13, 2001 07:56:57 PM new
Packer
>I have taken PayPal off my auction page, but I'm sure I will have some that will ask.
I never have taken paypal, but still get "you've got money, just sign up" emails about once a month. Wish I could charge Paypal a fee for throwing a monkey wrench in one of my deals every time they do this. The last one wasn't to bad, it was one of my regular customers, and as soon as I reminded him, he reclaimed his money, but trying to make some people understand why their card was debited when I don't subscribe to the service is very difficult sometimes.
(But you must, they say, paypal took the money from my debit card, I checked with the bank...) Back and forth with emails...
posted on June 13, 2001 08:50:04 PM new
Since most of the items I sell on ebay are small and range in price from under $10.00 to 50.00 I find the additional PayPal fees can really cut into my profit margin. What I have started doing is to take out the PayPal logo in my items that I start under $10.00. When I contact the winning bidder I do not mention that I take Paypal. If I list an item for more than $10.00 I include the PayPal logo and state in my winning bidder email that I accept PayPal. I do have some bidders who have actually added an additional amount to their payment to cover the fees although I do not ask them to do so.
, but BillPoint just instills more confidence in me!
, and that is what has a lot of people in a flap. Once that occurs, BP will cost 5c & 0.05% more than PP on any transaction.