New Paypal fees
Just a word of warning for those who get use PayPal for online transactions- regardless if you are using a personal or business account- if the Sender is paying you for Goods, Services, or eBay Items under the Purchase Tab, PayPal gets a percentage.
If you are wiring money ($40) to your friend or family member, the person will receive $38.54.
Here is the way to avoid getting charged from PayPal if you are sending a non-invoiced personal money transfer:
You have to click on the PERSONAL TAB before you Send Money. Leave the radio button on GIFT. *For now* you will not be charged by PayPal.
However, if you receive payments from eBay or if you receive payments from someone who does not select “Gift”, you will no longer receive the full amount. Be careful-your PayPal homepage will list the Gross. You have to click on Purchases Received to see the deductions.
All of this was explained in PayPal’s new Terms of Service, doncha know?
My legal department is telling me to be clear that I am not advocating that you select or tell someone to select “Gift” if the transaction was for goods or services or cash advance or something else. I’m just notifying you about the change of PayPal terms since the new PayPal fees have been shocking for some.
The bottom line is that PayPal is a huge corporation and could do whatever they want, similar to your bank’s TOS. For eBay sellers (who are forced to only use PayPal for their online transactions), this is no surprise: you have been double charged for a while now. (eBay and PalPal are the same company- one fee to have the auction, one fee per transaction to get paid only through PayPal).
Also many PayPal users have complained about PayPal holding their money for up to 21 days.
It’s not like there are a bunch of free alternatives to PayPal or widely accepted PayPal alternatives out there either. Does it suck? Yes, but it’s the cost of doing business.
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