Would You Pay Your Freelancer's Paypal Fees?

22 replies
I recently had a freelancer ask me about paying their Paypal fees. When you are paying your freelancers through Paypal, do you pay the Paypal fees for them?

Typically Paypal charges 2.9% plus $.30 for every payment you receive. If you pay a writer through Paypal, then they will get hit with this fee.

What do you think? If you pay your freelancers through Paypal, would you pay their Paypal fees for them?

I'll tell you what I do after I see a few responses.
#fees #freelancer #pay #paypal
  • Profile picture of the author Gewdo
    Sounds like paying for baggage on an airline. To me it is the cost of doing business online and they should be accounting for that.

    Just my 2 cents.

    Gewdo
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  • Profile picture of the author Gary Rambo
    I don't believe that I would. If the fees are that big of a deal to them, then they should incorporate that amount into their bids to compensate for it. If they're a good freelancer then I don't think most marketers would mind paying a bit extra.
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  • Profile picture of the author dave147
    No I would not pay it. They are paying Paypal for the transaction.
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  • Profile picture of the author aaron_nimocks
    Use bulk pay. Fees are cut down drastically.
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    • Profile picture of the author Kay King
      I don't think it's a yes or no answer.

      Most outsourcers would not ask for it. Many will build it into the prices they charge.

      For a low end outsourcer with bargain basement prices - the fee might not appear small and paying it might make sense.

      kay
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      • Profile picture of the author tpw
        Originally Posted by Kay King View Post

        I don't think it's a yes or no answer.

        Most outsourcers would not ask for it. Many will build it into the prices they charge.

        And if they are asking for it, they are not a real businessperson, because even McDonald's pays the roughly 3% when I swipe my debit card at the register.
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  • Profile picture of the author donhx
    It's good business for vendors to build ALL their costs into their pricing. Customers never like surcharges of any kind, including PayPal fees.

    However... if you have a very low end vendor and 3% makes a material difference to them, you may want to split the fee with them. It's your option. But your vendor should not be tacking on 3% after the deal is done.
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  • Profile picture of the author Johnny Slater
    It's really a non question. That is against PayPal's TOS.
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  • It is a cost of doing business, and at least in the United States, that cost is a write-off for tax time. Tell your freelancers to look at that tax code for their respective country. In many cases, this type of cost would be simply a write off.
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  • Profile picture of the author GreenMachine
    This is just part of the cost of doing business.. The freelancers should be aware of the fee and charge accordingly... When we are negotiating a price for my job then is the time to build this extra cost in.. plus all businesses get taxed for taking payments... same thing happens to every business that takes credit cards... the business needs to be designed to be profitable even after they get hit with fees...
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    • Profile picture of the author Kay King
      And if they are asking for it, they are not a real businessperson, because even McDonald's pays the roughly 3% when I swipe my debit card at the register.
      I agree but some of these folks ($1/article) would see McDonald's jobs as an end goal

      If you find a decent, low cost outsourcer and this is a sticking point - call it a bonus and make him happy.

      I haven't taken any work from elance for quite some time and was shocked a couple weeks ago when I placed a bid due to being invited to the project - and found the site automatically added elance fees to my bid. I always thought of that as a cost of doing business.

      kay
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  • Profile picture of the author StephanieMojica
    I don't pay service fees to my contractors and don't expect my clients to pay my service fees. It is a true cost of doing business. Nickel and diming clients is not a good business practice, IMHO.

    Stephanie
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  • Profile picture of the author Kevin Marshall
    Well I am glad to hear I am not going crazy here. Until now, I haven't had a freelance writer raise this issue with me.

    I don't pay the Paypal fees for the writers I hire to write for me. At the same time, I hear where Kay is coming from as far as the fees are concerned.

    Rather than pay the fees for a great freelancer, I think I would just pay the freelancer more money if they deserve it.
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    • Profile picture of the author digichik
      It depends on the quality of the work of the freelancer, some I would , for most I would not. I would also suggest to them they just incorporate the paypal fees into the cost of the job.

      It's funny though if you have ever look carefully at you receipt when you have your car service at a dealership, they usually have a 25.00 charge for supplies such as rags. You would think they would have that cost built in, but they don't.
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  • Profile picture of the author theultimate1
    Originally Posted by LD Carter View Post

    No. If they can't deal with a 3% loss, they shouldn't be doing business.
    I have an off-topic view here, but if a business can sustain without raising an eyebrow on 3% LOSS, they shouldn't be doing business. I know it's a slightly conservative view, but had the banks seen it this way, the effect of the just-passed recession could have been minimised.

    P.S.: I'm not trying to rub it in, just saying that penny-pinching in business is not such a bad thing; just don't compromise with quality while saving some bucks.

    Back to topic: Does sharing the PayPal fees 50-50 sound any good? Just throwing some wild shots here.
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    • Profile picture of the author Blogmudgeon
      This may sound harsh, but if a subcontractor working for me does not have business sense enough to build his overhead and indirect costs into his pricing--chances are that the work they deliver will be lacking as well. No cookie, go back to hand painting plastic trinkets... :p
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  • Profile picture of the author J Bold
    Simple way to avoid this. Send them money from your paypal balance and there are no fees either way.
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  • Profile picture of the author jays
    Hi,
    I think it generally depends on your agreement prior to hiring him to do the work.
    If nothing is stated before individually or through a company policies, then it is upto to him to include his costs in the price offered.

    Thanks
    Jays
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    • Profile picture of the author VanessaB
      I agree with Kay. Not all of these people are trying to 'run a business' some are just trying to scrape by an honest living and in a time when other 'jobs' are scarce.

      If you have a good freelancer, working for relatively cheap too, you could use the mass pay feature. It will cost you $1.00 and your freelancer nothing.

      Win-Win-Win

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  • Profile picture of the author Audrey Harvey
    If I bid for any freelance work, I take into account any fees when I'm calculating my bid. I don't expect the client to cover them, but then I make sure my bid is high enough such that I'm happy with what I get paid after the fees are taken out.
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  • Profile picture of the author DeborahDera
    Originally Posted by Kevin Marshall View Post

    I recently had a freelancer ask me about paying their Paypal fees. When you are paying your freelancers through Paypal, do you pay the Paypal fees for them?

    Typically Paypal charges 2.9% plus $.30 for every payment you receive. If you pay a writer through Paypal, then they will get hit with this fee.

    What do you think? If you pay your freelancers through Paypal, would you pay their Paypal fees for them?

    I'll tell you what I do after I see a few responses.
    Absolutely not. Your freelancer should consider those fees when quoting a rate at the start of a project.
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