Is PayPal Scamming Us?

[Kevin Lam]

=====QUESTION ANSWERED - False Alarm=====

Hey guys,

I want you to do something, check your PayPal transactions and verify that you are receiving the right amount of money. For those with a Premier/Business account, you should be charged (at the highest) 2.9% + $0.30 per transaction.

Here's an example:

$10 x 0.971 - $0.30 = $9.41

Tip: .971 is opposite of 0.029

Pick out 3 different transactions. Punch in the numbers and you'll be surprised to find out how much it's suppose to be and how much PayPal actually gives you.

Here's your formula:

transaction_amount x 0.971 - 0.30 = your profit

Again, compare it to what PayPal says you get. Some amounts will be right, but some amounts will be wrong.

I picked out 3 amounts from my history, $5, $10, and $59. My profit should have been $4.55, $9.41 and $56.98. PayPal gave me $4.50, $9.31 and $56.40. Sure, it's not much, but imagine millions of transactions!

Is it just my account, my math, or is anyone else experiencing the same thing? Please help.

Originally Posted by netdebut

LOL, I was just looking back in the transactions again. The amounts that are off ARE from countries outside the US. So it's definitely currency exchange related. So as they say in the military "belay my last." False alarm guys. Moderators can delete this thread so we aren't spreading false statements around. Thanks for interacting, guys.

[Chris Lockwood]

Here are a few from mine:
$15 gross = 74 cent fee
$40 = $1.86 on a foreign sale, $1.46 domestic
$6.95 = 50 cents

You can do the math and tell me if those fees look right. I really doubt they are cheating us- if the numbers look wrong to you, it's probably your math or reading the formula wrong.

It wouldn't make sense for them to publish a fee schedule, then charge more than that. Too many people would complain or stop using them, and it might get them in legal trouble, too.

Do any of the sales you're looking at involve conversion from foreign currency? That could affect the fee.

[GarrieWilson]

Kevin,

The fee also depends on the funding source.

Garrie

[Kevin Lam]

LOL, I was just looking back in the transactions again. The amounts that are off ARE from countries outside the US. So it's definitely currency exchange related. So as they say in the military "belay my last." False alarm guys. Moderators can delete this thread so we aren't spreading false statements around. Thanks for interacting, guys.

[TheRichJerksNet]

My wife has always called them loansharks ...lol

It depends upon funding source and payment. If a CC is used the % charged will be higher. For example $27.97 product you are charged $1.11 but same amount with a CC you are charged $1.39

James

[hamot2]

Kevin -

If the transaction is in USD funds, then the 2.9% plus $0.30 fee would apply. However, if the transaction needs to be changed into USD funds, then there are additional fees that would apply.

Hope that helps,
Tim Jensen

[Kevin Lam]

Hey Garrie,

The charges for sources apply to only free accounts.

[Chris Lockwood]

With a business account, the funding source doesn't affect how the fee is calculated. Read the fee table if you don't believe me.