Payment Choices Questions-Paypal

5 replies
I have a question which perhaps many others are in the same situation

Non-US Resident Scenario: - Clients pay me by Paypal in US$ less 4.5% Paypal fees. I use the funds to pay a supplier/vendor/VA in the US through my Paypal to their Paypal in which another 3-4% is lost and absorbed by me because vendor does not accept fees unless it's directly deposited into their bank account. So in total, a hefty 8-9% is lost through this flow. Is there any other alternative where I can save on the second part of the transaction fee? Any suggestions are highly appreciated.
#choices #payment #questionspaypal
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  • Profile picture of the author dave_hermansen
    Well, you could set up what I call a "draw" account with the vendor. You could do a wire transfer to their bank for what a couple weeks purchases normally are (say $500 - whatever a couple weeks or a month worth of purchases typically is) and they would use that money for purchases that you make in the future. When that draw account is depleted, you wire them more money for future purchases.

    Yes, there are wire transfer fees (typically $10-15), but paying those every once in awhile instead of on every single transaction should greatly reduce the loss on credit card fees.
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  • Profile picture of the author Profit Traveler
    TransferWise has some great options even has bank accounts.
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  • Profile picture of the author samsabir
    Wire transfer seems to be the only feasible option besides paypal and it will definitely cost you less money in terms of tax and relevant stuff.
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  • Profile picture of the author Monetize
    Originally Posted by freeabs View Post

    I have a question which perhaps many others are in the same situation

    Non-US Resident Scenario: - Clients pay me by Paypal in US$ less 4.5% Paypal fees. I use the funds to pay a supplier/vendor/VA in the US through my Paypal to their Paypal in which another 3-4% is lost and absorbed by me because vendor does not accept fees unless it's directly deposited into their bank account. So in total, a hefty 8-9% is lost through this flow. Is there any other alternative where I can save on the second part of the transaction fee? Any suggestions are highly appreciated.

    Have you discussed this problem with your clients or your vendor?
    Perhaps they could help you come up with a solution.
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