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Outrageous PayPal fees?

by Eduard Stinga
13 replies
I've been noticing some outrageous PayPal fees recently and I'm wondering if there's something that I'm missing, if you guys experience it as well or if it's normal.

For example, I just received a payment for a $670 invoice, here are the details:

Amount received: $670.00 USD
Fee amount: -$33.13 USD
Net amount: $636.87 USD

Now, if I go through my details, I find this:

"Your account is set to the Standard Rate for receiving payments of 3.4%."

3.4% of $670 is $22.78 + $0.45 or something = $23.23

That's $10 less than what I got charged.

What am I missing?
#fees #outrageous #paypal
  • Profile picture of the author Bruce NewMedia
    Are you receiving the payment from within country or from out of the UK?
    My fees average 5% of transaction value, so yours seems about right.
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  • Profile picture of the author zentess
    according to paypal terms cms.paypal.com/us/cgi-bin/?cmd=_render-content&content_ID=marketing_us/fees international fees are 3.9 %. So 5% is a too high, why you pay so much?
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  • Profile picture of the author owlfowl
    They take anonymous fees, depends on the country. Local fees are 3.4% but international fees are too high.
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  • Profile picture of the author Eduard Stinga
    I now live in the UK, but the PayPal account was opened in Romania, where I used to live and it still has my home address from over there. And the payment that I received came from Australia.

    I guess that's the explanation, but I never found it anywhere on PayPal's site.

    So it must have been 3.9% + an anonymous fee. I've got no idea why it is anonymous and why does it matter which country you're from when making/receiving online payments.

    I guess it would probably help if I move my PayPal account to the UK. I need to check how exactly you can do that, cause apparently, it's not that easy as just changing your address manually.
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    • Profile picture of the author AnniePot
      Originally Posted by Eduard Stinga View Post

      I guess it would probably help if I move my PayPal account to the UK. I need to check how exactly you can do that, cause apparently, it's not that easy as just changing your address manually.
      Over the years I've changed my address a couple of times and found it to be a simple process. This includes country changes..
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  • Profile picture of the author Challendge
    there are always "hidden" fees with big companies like PayPal because they know that they can get away with it. They're not technically hidden because they mention somewhere on the site. They just choose not to make it too public because they'd rather you find out after the transaction. How do they get away with such high fees? Always remember that the price of something is what someone is willing to pay for it and PayPal is in that position
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    • Profile picture of the author Eduard Stinga
      Originally Posted by Challendge View Post

      there are always "hidden" fees with big companies like PayPal because they know that they can get away with it. They're not technically hidden because they mention somewhere on the site. They just choose not to make it too public because they'd rather you find out after the transaction. How do they get away with such high fees? Always remember that the price of something is what someone is willing to pay for it and PayPal is in that position
      Guess I'll just have to increase prices then. I've been planning it for quite a while now anyway
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  • Profile picture of the author eBayer
    It's worse for eBay sellers, we pay 9% as final value fee on the final selling price + item listing fee + 3.5% or so PayPal fee, so we are down like 13%. Consider yourself better-off!
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    • Profile picture of the author MP80
      Hi Eduard,

      On top of their standard fee, Paypal also applies cross-border plus currency conversion fees. You can find all the details here:

      https://cms.paypal.com/au/cgi-bin/ma...locale.x=en_AU

      (not sure if it will redirect you, because this is the Australian page)
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  • Profile picture of the author David McKee
    Does the fees include VAT? That may be what is being "hidden" somewhere...
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  • Profile picture of the author WillR
    The extra fees are definitely to do with the currency exchange. When you are being paid in one currency and receiving in another you are bound to lose or make some money depending on the exchange rates at the time.
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    • Profile picture of the author Eduard Stinga
      Originally Posted by AnniePot View Post

      Over the years I've changed my address a couple of times and found it to be a simple process. This includes country changes..
      I know I tried to do it once by going through my profile settings, but it wouldn't work. I wanted to order something to another country and obviously I couldn't change the country from my address or from the shipping address. But if you say it's simple, it probably is, I didn't check it for a long time.

      Originally Posted by David McKee View Post

      Does the fees include VAT? That may be what is being "hidden" somewhere...
      I've got no idea to be honest, but it shouldn't be that big anyway.

      Originally Posted by WillR View Post

      The extra fees are definitely to do with the currency exchange. When you are being paid in one currency and receiving in another you are bound to lose or make some money depending on the exchange rates at the time.
      It's not that, cause I'm always getting paid in USD

      It must be some sort of high fee because of the country I was getting paid from and because of the country I got paid in. I definitely need to move my PayPal account to the UK then
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