Question About PayPal Fees and Paying a Writer...

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Hey guys,
If I tell a writer that I would pay him X amount for an article, should I send him a couple extra cents so that he receives the exact amount I advertised after PayPal takes their fees?

Hypothetical example: If I were to pay someone $1 for "Goods/Services," in reality they would only receive around 67 cents (2.9% plus .30 cents in PayPal fees). Kind of messed up, I know.

If you were in my position as the employer, would you view this as your responsibility to ensure that the writer gets every single cent I advertised? Or would you simply say, "Oops, sorry. I'm keeping my end of the deal. Whatever happens in PayPal fees is beyond my control."

Perhaps the answer is completely up to the employer (me).....but what would you do, personally?
  • Profile picture of the author kenmichaels
    Originally Posted by Epic Passive Income View Post

    Hey guys,
    If I tell a writer that I would pay him X amount for an article, should I send him a couple extra cents so that he receives the exact amount I advertised after PayPal takes their fees?

    Hypothetical example: If I were to pay someone $1 for "Goods/Services," in reality they would only receive around 67 cents (2.9% plus .30 cents in PayPal fees). Kind of messed up, I know.

    If you were in my position as the employer, would you view this as your responsibility to ensure that the writer gets every single cent I advertised? Or would you simply say, "Oops, sorry. I'm keeping my end of the deal. Whatever happens in PayPal fees is beyond my control."

    Perhaps the answer is completely up to the employer (me).....but what would you do, personally?
    In my opinion it would be a dick move if you did not make sure he received every dime you agreed upon.

    However, with that said. Good business is not always about being fair.

    Personally, I like to sleep well at night, so I always do the math in there favor.
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    • Profile picture of the author SteveJohnson
      Originally Posted by kenmichaels View Post

      In my opinion it would be a dick move if you did not make sure he received every dime you agreed upon.

      However, with that said. Good business is not always about being fair.

      Personally, I like to sleep well at night, so I always do the math in there favor.
      When you go to a store and purchase something with a credit/debit card, do you have them add on a little extra so they get the full purchase price?

      Electronic payment fees - paypal, merchant account, gateways - are just a cost of doing business. If your writer needs to recover those costs, he/she needs to raise their prices.
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  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by Epic Passive Income View Post

    If I tell a writer that I would pay him X amount for an article, should I send him a couple extra cents so that he receives the exact amount I advertised after PayPal takes their fees?
    No, certainly not.

    Like anyone running a business, your service-provider has some business expenses involved in handling such transactions and banking the money. Those are his business, and his problem, not yours.

    When I was writing articles for people, and collecting the money by PayPal, they paid the agreed amount, and the fact that it then cost me something to transfer those funds (however often and in whatever-sized units I chose to do that) to my bank was my issue, not the customer's. Sometimes I didn't even do that, anyway: I sometimes even spent them from PayPal without banking them.

    I'd have been both amazed and amused if a client had ever added my PayPal costs onto his payment!

    If you buy something by check, you don't add anything to cover the recipient's bank charges, do you?

    Originally Posted by Epic Passive Income View Post

    Perhaps the answer is completely up to the employer (me).....but what would you do, personally?
    You're not an "employer", though, are you, in the example you've given? You're a "customer".

    It would never occur to me, at all, to pay more than the amount quoted/invoiced.

    .
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    • Profile picture of the author kenmichaels
      Originally Posted by Alexa Smith View Post


      I'd have been both amazed and amused if a client had ever added my PayPal costs onto his payment!


      .
      It's funny how everyone has a different outlook on things.

      I guess the honey moon is over ... This is the first time I know of
      that I don't agree with your view point.

      Its about time
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      • Profile picture of the author Alexa Smith
        Banned
        Originally Posted by kenmichaels View Post

        I guess the honey moon is over ... This is the first time I know of that I don't agree with your view point.

        Its about time
        LOL, I would obviously have been better off having you as a customer, Ken, back in 2007/8!

        .
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        • Profile picture of the author kenmichaels
          Originally Posted by Alexa Smith View Post

          LOL, I would obviously have been better off having you as a customer, Ken, back in 2007/8!

          .
          I think my view point stems from the fact that writing is tough for me.

          I have hired - literally, thousands of professional writers over the years.
          Finding good ones that not only write well, but understand core principles
          and can do proper research without having to be hand held through the
          process .... well to me those few and far between people need to be treated
          like they are worth their weight in gold.

          To me they are, so I go out of my way to make sure they want to
          work with me.

          I guess that means its not an ethical or moral thing for me, but simple practicability.
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  • Profile picture of the author Elvis Michael
    Bingo!
    Two completely opposite opinions, both great answers. This is exactly why the very subject has me thinking and sweating, LOL.

    I guess the official answer is something among the lines of, "I am not legally required to pay the extra money, but it would be a nice gesture."
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    • Profile picture of the author Kay King
      Two of my best clients always paid the fees - the freelance fees and the paypal fees. It was their idea and one of them told me it was meant to keep me happily writing for his 30+ websites.

      It's up to the client and the provider. Everything is negotiable. I think offering to pay the fees is a great move once you find a worker you like and want to keep using.
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      • Profile picture of the author lanfear63
        If you took credit card payments on stuff you sold you would be paying fees. If the person takes Paypal payments, essentially you can pay them via sending directly to their account from yours or use Paypal's credit card payment option to pay them. Either way, they pay fees for the convenience and speed of the service, just like you would.

        Common business practice.

        If they want a check then they are prepared to wait and pay less fees.

        I don't see an issue here.
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        • Profile picture of the author Claude Whitacre
          Originally Posted by lanfear63 View Post

          If you took credit card payments on stuff you sold you would be paying fees. If the person takes Paypal payments, essentially you can pay them via sending directly to their account from yours or use Paypal's credit card payment option to pay them. Either way, they pay fees for the convenience and speed of the service, just like you would.

          Common business practice.

          If they want a check then they are prepared to wait and pay less fees.

          I don't see an issue here.
          Well I'm going to make this an issue...a BIG issue.

          We live in the US of A. And do you know why employers don't add the Paypal fees when paying? Because they hate our Freedom, that's why!

          Why, when I was a kid, we got paid in dirt, that's right..dirt. And not that fancy designer dirt that is all the rave with the kids today. No Sir! Just regular good old American dirt. And we were proud to get it.

          I hope this settles the argument.

          OK. Really? Why in the world would you pay someone a dollar? I'd give them a dollar tip at least. When people pay me, and they put it on a credit card, I wouldn't think of asking them to add because of a processing fee. What I have done, when it's only a dollar or two, is just not charge them. Heck, a $2 sale takes a 50 cent receipt, a 30 cents VISA fee, and a minute of my life to write the receipt.

          What in the world could you buy for a dollar? If you like what they send you, tip them.
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          • Profile picture of the author lanfear63
            Originally Posted by Claude Whitacre View Post

            Well I'm going to make this an issue...a BIG issue.

            We live in the US of A. And do you know why employers don't add the Paypal fees when paying? Because they hate our Freedom, that's why!

            Why, when I was a kid, we got paid in dirt, that's right..dirt. And not that fancy designer dirt that is all the rave with the kids today. No Sir! Just regular good old American dirt. And we were proud to get it.

            I hope this settles the argument.

            OK. Really? Why in the world would you pay someone a dollar? I'd give them a dollar tip at least. When people pay me, and they put it on a credit card, I wouldn't think of asking them to add because of a processing fee. What I have done, when it's only a dollar or two, is just not charge them. Heck, a $2 sale takes a 50 cent receipt, a 30 cents VISA fee, and a minute of my life to write the receipt.

            What in the world could you buy for a dollar? If you like what they send you, tip them.
            Well SEASONED, I see your POINT here, but I EXPECT to pay fees when I get paid, and if they don't charge them I send PAYPAL a dollar though the mail. I TIP them as I know they are hurting for cash.

            Personally, I would build the fees into my price as I would not expect a tip on something like this, unless it was an article about food. I always tip on food
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            • Profile picture of the author AprilCT
              Alexa, I would bet that your fees are a good bit higher (and deservedly so,) than a really good percentage of others selling their words. The better writers get private clients at higher rates, so it won't hurt them as much as others working for a pittance per word from the mills.

              I am certain those Paypal or other processor fees take a good bite out of earnings in addition to what a freelancer has to pay the government on their income.

              I certainly agree that a customer should not have to worry about paying the fees a writing freelancer incurs. However, it's often a matter of article buyers (or mills) retaining writers or losing them to a brick and mortar job if net earnings don't pay the bills.

              I'm seeing the same idea in action at stores that require cash payment unless the bill totals $10-$15. This will probably become more commonplace as time goes on.
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              • Profile picture of the author bizgrower
                Originally Posted by AprilCT View Post

                Alexa, I would bet that your fees are a good bit higher (and deservedly so,) than a really good percentage of others selling their words. The better writers get private clients at higher rates, so it won't hurt them as much as others working for a pittance per word from the mills.

                I am certain those Paypal or other processor fees take a good bite out of earnings in addition to what a freelancer has to pay the government on their income.

                I certainly agree that a customer should not have to worry about paying the fees a writing freelancer incurs. However, it's often a matter of article buyers (or mills) retaining writers or losing them to a brick and mortar job if net earnings don't pay the bills.

                I'm seeing the same idea in action at stores that require cash payment unless the bill totals $10-$15. This will probably become more commonplace as time goes on.
                You reminded me of my bar owner friend who does not take credit cards unless the bill totals $15 or more, and he does not take American Express because of their higher costs.

                I think he's missing out on more business than it's worth. And, he's missing out on the guy who was, say, going to have a burger and a beer until his friends show up and now all five of them meet elsewhere.
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          • Profile picture of the author David Beroff
            Originally Posted by Claude Whitacre View Post

            What in the world could you buy for a dollar?
            At the moment, it appears that one can buy about two to three hours of some people's time on oDesk. And it'll get you around 20 small tasks done on MTurk.
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      • Profile picture of the author Ryan Raj
        I think the onus is on the employee to state that his fees should be after all necessary deductions.He should highlight to his client that they should be pay a certain amount after taxes and other fees.Only then the client will be alert to certain fees that might effect what his employee,agent or freelancer will ultimately receive.
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  • Profile picture of the author bizgrower
    I think that over time if you like their work, then pay the fees. Also, tip them or bonus them
    separate. A specific gesture of appreciation goes a long way. (I just bought my hotel housekeepers new vacuums to make their jobs easier and I'm sure they get that it's cause I like their work.)
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  • Profile picture of the author Elvis Michael
    Lots of interesting opinions from both sides, thanks guys -- they really did help

    I will likely not cover PP fees for very tiny projects, but I will cover them for bigger projects as a token of gratitude. Best of both worlds.

    Thanks!
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  • Profile picture of the author SteveJohnson
    I commented before even skimming the entire thread, my bad.

    Whether you cover your writer's fees is entirely up to you, obviously. I wouldn't do it as a matter of course, but for someone whose services I valued I might, and would think of it as a bonus for the service provider as appreciation for great service. I would also let them know my reason for doing it so they are aware that they're being reward because their services are valued.
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    • Profile picture of the author Frank Donovan
      Originally Posted by Epic Passive Income View Post

      Bingo!
      Two completely opposite opinions, both great answers. This is exactly why the very subject has me thinking and sweating, LOL.
      I think you're getting two opposing views because some responses are written from the point of view of a professional writer's advertised rates. In such circumstances, any processing costs will have already been taken into account in those rates. However, the question in your OP was phrased from a client's perspective, stating the client's price:

      Originally Posted by Epic Passive Income View Post

      If I tell a writer that I would pay him X amount for an article, should I send him a couple extra cents so that he receives the exact amount I advertised after PayPal takes their fees?
      If you, as a client, are advertising a specific price for the job, I can understand why you'd ask about the processing costs. Nevertheless, in practice, most experienced writers would not expect you to add any extras to the quoted figure.


      Frank
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  • Profile picture of the author razorz18
    I guess maybe you referring to outsource writting to filipinos. I suggest you stick with the Paypal fee but you can paid extra for good work as tips. That much better.
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