by sam770
33 replies
Guys,
Could you help me to understand why paypal credit me with less then the amount I got from my client?
I just opened a business paypal account 2 days ago, the client sent $382 to my paypal account but the balance is only $366.80 SEE SCREENSHOT ATTACHED
why?
I have another account and such thing never happened to me before.

another question: why i had to press "accept" payment to receive this payment?
on my older paypal account i just get payments automatically without any need to approve the payment. any idea?


#attached #client #credit #paypal #screen #shot
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  • Profile picture of the author Doug Wakefield
    You have to take the fees into account. The 382 is the gross amount before Paypal takes their portion.
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    • Profile picture of the author sam770
      Originally Posted by Doug Wakefield View Post

      You have to take the fees into account. The 382 is the gross amount before Paypal takes their portion.
      so you are actually saying that each time i get money to my paypal account they take this commission immediately?
      Is it ALWAYS the receiver who pay the commission? not the sender?

      So how many commissions they take total?
      one commission once someone is sending me money
      then another commission when i withdraw money to my bank account
      then another commission when converting the USD into my local currency
      is that it?
      or there are more commissions?

      How can I reduce the amount of commissions ?!
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      • Profile picture of the author donhx
        Originally Posted by sam770 View Post

        so you are actually saying that each time i get money to my paypal account they take this commission immediately?
        Is it ALWAYS the receiver who pay the commission? not the sender?

        So how many commissions they take total?
        one commission once someone is sending me money
        then another commission when i withdraw money to my bank account
        then another commission when converting the USD into my local currency
        is that it?
        or there are more commissions?

        How can I reduce the amount of commissions ?!
        Many people complain that PayPal freezes their account or they have other problems. Most often bad things happen to those who have not read ALL the PayPal Terms of Service and other procedures.

        It appears that you are not familiar how PayPal works, so expect problems. Don't blame PayPal when they happen because you can avert 99% of them just by reading the information on the PayPal site and following their policies.

        Also, remember that PayPal has nothing to do with currency exchange rates. They have nothing to do with the fees your bank charges you. Those things are just part of the cost of doing business.

        By the way, the jury is out on whether or not PayPal is expensive or not. I used to have a regular Credit Card Merchant Account but dumped it because of the fees. They charge application fees, maintenance fees, transaction fees, minimum fees, gateway fees, flat fees and a percentage...so PayPal fees are cheap by comparison in my experience. PayPal just charges a small transaction fee and a small percentage. You can even pay a smaller percentage amount to them if you have a high sales volume. All the details are on the PayPal site.
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        • Profile picture of the author Tina Golden
          Originally Posted by sam770 View Post

          then another commission when converting the USD into my local currency
          is that it?
          You most likely were charged the regular fee plus lost some due to the currency exchange, or at least that's what it looks like.

          Funny, your profile says United States...
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          • Profile picture of the author Steve Wells
            Originally Posted by Tina Golden View Post

            You most likely were charged the regular fee plus lost some due to the currency exchange, or at least that's what it looks like.

            Funny, your profile says United States...
            I have seen so many people on this forum, claim to be in the usa. Specifically individuals or companies from India.

            In my opinion thats very shady, and all the more reason to avoid doing business with anyone that is not honest.
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            • Profile picture of the author donhx
              Originally Posted by Steve Wells View Post

              I have seen so many people on this forum, claim to be in the usa. Specifically individuals or companies from India.

              In my opinion thats very shady, and all the more reason to avoid doing business with anyone that is not honest.

              Yes, the giveaway is ILS as his currency in the PayPal panel. ILS stands for Israeli New Shekel, so an exchange rate is being charged, probably by his bank since it appears his account is denominated in U.S. dollars. That's to be expected--the OP made the decision for a USD denominated account when he signed up for his PayPal business account. So, if he wants to spend Shekel's there in Israel, the dollars need to be converted. PayPal has nothing to do with that.
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            • Profile picture of the author IM Ash
              Originally Posted by Steve Wells View Post

              I have seen so many people on this forum, claim to be in the usa. Specifically individuals or companies from India.
              Common Ethnic Generalizations
              People from Ireland drink alot of alcohol
              White men can't jump
              Africans have rhythm
              People from India falsify their forum profile information

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              • Profile picture of the author sam770
                Originally Posted by Eleva8 View Post

                Common Ethnic Generalizations
                People from Ireland drink alot of alcohol
                White men can't jump
                Africans have rhythm
                People from India falsify their forum profile information

                And people become what they eat...
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              • Profile picture of the author Steve Wells
                Originally Posted by Eleva8 View Post

                Common Ethnic Generalizations
                People from Ireland drink alot of alcohol
                White men can't jump
                Africans have rhythm
                People from India falsify their forum profile information

                Again, my statement was not directed at an individual, but at a common wave of dishonesty I have seen involving foreign 3rd world country companies. India just happens to be one I have seen lots of, I will not mention the others, but I feel people should look further and investigate before hiring.

                If the shoe fits wear it, and if it does not, don't worry about it, because it wasn't not directed at the honest companies or individuals from other countries.
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              • Profile picture of the author CDarklock
                Originally Posted by Eleva8 View Post

                Common Ethnic Generalizations
                People from Ireland drink alot of alcohol
                White men can't jump
                Africans have rhythm
                People from India falsify their forum profile information
                It would make more of an impact if you used generalisations that were not true in the intro.

                Like, say:

                People from Ireland beat their wives
                White men are all racists
                Africans don't have the internet

                That would probably make your point a lot better.

                Oh, um, unless you meant "we might not LIKE it to be true, but it is" all along.
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            • Profile picture of the author sam770
              I operate from both USA and Israel
              Next time you should ask before making a wrong judgment about people and spreading it like bad energies in the Forum.
              Check your facts before you let your mouth act as the fan of your brain!

              Originally Posted by Steve Wells View Post

              I have seen so many people on this forum, claim to be in the usa. Specifically individuals or companies from India.

              In my opinion thats very shady, and all the more reason to avoid doing business with anyone that is not honest.
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              • Profile picture of the author Steve Wells
                Originally Posted by sam770 View Post

                I operate from both USA and Israel
                Next time you should ask before making a wrong judgment about people and spreading it like bad energies in the Forum.
                Check your facts before you let your mouth act as the fan of your brain!
                Lol, if you are running an honest legitimate business and not being tricky, this should obviously NOT apply to you. It was directed and applicable to those who are are not being honest.

                No need to worry in my opinion if you are on the up and up....
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          • Profile picture of the author sam770
            Originally Posted by Tina Golden View Post

            You most likely were charged the regular fee plus lost some due to the currency exchange, or at least that's what it looks like.

            Funny, your profile says United States...
            What's funny about it? We work both from the US and from Israel, that's hardly revolutionary these days. Should be obvious in a forum where people work on a Global market online, no?
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            • Profile picture of the author Alex Peltonen
              If I recall correctly, there's a certain amount where they won't charge you anything when you make a transaction with them. They always charge you for ever transaction. best thing you could do is to gather larger amount of funds first per transaction. This way you'll reduce your expenses.
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            • Profile picture of the author donhx
              Originally Posted by sam770 View Post

              What's funny about it? We work both from the US and from Israel, that's hardly revolutionary these days. Should be obvious in a forum where people work on a Global market online, no?

              You still seem to be in a haze about how PayPal works. Why not read their Terms of Service on their site and learn?

              Also, you do not need to pay a 2.5% conversion rate as I said before. Your account is denominated in USD according to the control panel shown in the image in your OP. If you REALLY work from both the US and Israel, just withdraw the money while here in USD. Take it to Israel and just pay the conversion rate at your bank, which is likely to be lower.

              However, if you want collect and disperse funds internationally and electronically, you have to pay the fees. From your OP, you were outraged that PayPal would dare charge you fees at all, but you are being very unrealistic. No free ride if you are in business.

              I predict that you will soon have major problems with your PayPal account. You have clearly not read their Terms of Service or their policies, so you are a candidate to lose the privilege of using PayPal. All the questions you have asked here have already been answered in detail on the PayPal site.
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              • Profile picture of the author sam770
                You are wrong again,
                I do understand that Paypal charge fees
                Also, I did read most of pp TOS
                I would not misjudge or predict BS without knowing the facts first.
                Without being rude, it appears as if you have no idea of what you are talking about.


                Originally Posted by donhx View Post

                You still seem to be in a haze about how PayPal works. Why not read their Terms of Service on their site and learn?

                Also, you do not need to pay a 2.5% conversion rate as I said before. Your account is denominated in USD according to the control panel shown in the image in your OP. If you REALLY work from both the US and Israel, just withdraw the money while here in USD. Take it to Israel and just pay the conversation rate at your bank, which is likely to be lower.

                However, if you want collect and disperse funds internationally and electronically, you have to pay the fees. From your OP, you were outraged that PayPal would dare charge you fees at all, but you are being very unrealistic. No free ride if you are in business.

                I predict that you will soon have major problems with your PayPal account. You have clearly not read their Terms of Service or their policies, so you are a candidate to lose the privilege of using PayPal. All the questions you have asked here have already been answered in detail on the PayPal site.
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        • Profile picture of the author sam770
          It looks like you have no idea what you are talking about.
          EVERY time I withdraw money in USD to other currency they took currency exchange fees!
          NOT the bank. PayPal!

          Originally Posted by donhx View Post

          Also, remember that PayPal has nothing to do with currency exchange rates. They have nothing to do with the fees your bank charges you. Those things are just part of the cost of doing business.
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          • Profile picture of the author Kay King
            It looks like you have no idea what you are talking about.
            EVERY time I withdraw money in USD to other currency they took currency exchange fees!
            NOT the bank. PayPal!
            Yes - and it is clearly explained on the Paypal site. LIke many financial companies they charge a fee for currency exchange - at paypal it is 2.5%.

            People look up the exchange rate online and get upset when their exchange isn't the same. What you look up is often the interbank exchange rate - available to banks only. Banks get that more favorable rate, tack on a small fee - Paypal exchanges are made through the bank they use and paypal adds another small fee.

            It's the way business works.

            kay
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            • Profile picture of the author sam770
              Thanks for that Kay,
              However, they took from me $15.2 out of $382
              It is MORE that 2.5%
              Any idea why?

              Originally Posted by Kay King View Post

              Yes - and it is clearly explained on the Paypal site. LIke many financial companies they charge a fee for currency exchange - at paypal it is 2.5%.

              People look up the exchange rate online and get upset when their exchange isn't the same. What you look up is often the interbank exchange rate - available to banks only. Banks get that more favorable rate, tack on a small fee - Paypal exchanges are made through the bank they use and paypal adds another small fee.

              It's the way business works.

              kay
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      • Profile picture of the author Christian Little
        Originally Posted by sam770 View Post

        so you are actually saying that each time i get money to my paypal account they take this commission immediately?
        That is exactly what is being said.

        Originally Posted by sam770 View Post

        Is it ALWAYS the receiver who pay the commission? not the sender?
        Yes, and you will find this is the case with virtually every site like Paypal as it's based around how the banks and merchant accounts work.

        Think about it - when you walk into a store and pay for something with your credit card, you don't get charged an extra fee for doing so. But the store owner actually pays something like 3% of the purchase amount just to be able to take your visa.



        Originally Posted by sam770 View Post

        So how many commissions they take total?
        one commission once someone is sending me money
        then another commission when i withdraw money to my bank account
        then another commission when converting the USD into my local currency
        is that it?
        or there are more commissions?

        How can I reduce the amount of commissions ?!
        Step 1: Login to your Paypal account

        Step 2: Scroll down to the very bottom of the page, in the footer links you will see a link that says "Fees", click that.

        The specific fees you pay are based on the type of account you have and how much volume you do.

        We, for example, have a Business Account that is Verified with by a bank account and credit card, but it's a non-US account as I'm based out of Canada.

        Our fees are currently showing as:

        1.9% to 2.9% + $0.30 CAD
        That's what shows on the fees page, but notice the range in percentages? Well in your paypal account that will be a hyperlink, if you click it you'll get taken to a page with more detail. For my account, I see this:

        Your account is set to the Standard Rate for receiving payments of 2.9%.
        If you receive more than $3,000.00 CAD per month, you're eligible to apply for PayPal's Merchant Rate - which lowers your fees as your sales volume increases. Your fees can be as low as 1.9%, based on your previous month's sales volume
        So if I get a $100 transaction, I'm paying $0.30 + 2.9% ($2.90) for a total of $3.30.

        I know that if you have a Premier or Personal account the rates are higher, and I believe the rates are lower if you are Verified (which is also needed to unlock the send/receive restrictions so you should verify your account).



        As for withdrawl fees, I believe it's based on how much you withdraw to your bank account. But the details are outlined on the Fees page.
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      • Profile picture of the author JamieSEO
        Originally Posted by sam770 View Post

        so you are actually saying that each time i get money to my paypal account they take this commission immediately?
        Is it ALWAYS the receiver who pay the commission? not the sender?

        So how many commissions they take total?
        one commission once someone is sending me money
        then another commission when i withdraw money to my bank account
        then another commission when converting the USD into my local currency
        is that it?
        or there are more commissions?

        How can I reduce the amount of commissions ?!

        If your buyer is from another country and paying with a credit card then you are charged the following by PayPal:

        A currency conversion fee of 2.5% + $0.30
        An international credit card fee of 3.4%

        This makes a total of 5.9% + $0.30 for the transaction. I usually just add on 6% to my sale price to cover it

        PayPal is a rip-off for fees - I have other payment processors I prefer, however buyers feel more confident paying through PayPal

        Just sit down and figure out the maximum they will charge in fees for a transaction, then add that on to your sales price as overhead
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  • Profile picture of the author sodevious
    sometimes it's either or. sometimes it gives you the option, but when you send money via paypal, you get choices, like gift, service etc and with those you can sometimes choose. when someone purchases something through ebay for example, you pay because its a good
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  • Profile picture of the author Richard Green
    Paypal's fee's are quite high compared to other payment processors fee's which is why I personally don't use them anymore.

    To answer your question, paypal only takes 1 fee, and the sender has a choice for who to charge the fee too.

    They don't charge a commission on withdrawing to your bank account, although I believe you can pay to speed up the process.

    I am not sure if there is a commission on exchanging currencies, but you will probably receive a much more favourable rate with your bank than with paypal, so it's better to withdraw the money in it's native currency to your bank.

    You can see this link here to view more about paypal fees.
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  • Profile picture of the author g36
    PayPal takes FEE for every transaction. To avoid fee, your client must send the money with the reason is personal payment >> other
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    :)

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  • Profile picture of the author CDarklock
    Originally Posted by sam770 View Post

    I just opened a business paypal account 2 days ago

    ...

    I have another account and such thing never happened to me before.
    Your other account is a personal account. The rules are different.

    why i had to press "accept" payment to receive this payment?
    Sender of the payment was unverified, and a business PayPal account defaults to request confirmation of unverified payments.

    You are beginning to notice that running a business is different.

    You're not in Kansas anymore, Dorothy.

    These things are just the tip of the iceberg. You are playing a new game, and there are new rules. Learn them.
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  • Profile picture of the author KabirC
    You can tell ths person isn't from the US, just look at his English (no offense to you, but it makes it easy to tell). Running a business has fees, I guess you are finally seeing them.
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  • Profile picture of the author Rich Struck
    I hate to be the one to point this out but all of this was in the TOS when you signed up for PayPal. It wouldn't hurt to take 15 minutes and read through their rules etc.
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  • Profile picture of the author GetMoreTraffic
    The sender can choose to pay the fees when sending. This is what I do with my outsourcers, to ensure that they get their full salary.
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  • Profile picture of the author gowireless99
    Paypal & ebay charge a fee. ebay for selling your item and paypal for getting the money from buyer. There are lot of cheats out there and paypal makes sure you don't get cheated
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  • Profile picture of the author insidmal
    If the sender uses mass pay then they are paying the fees, otherwise the receiver is..

    PayPal is 2.9% + 30 cents..
    AlertPay works the same with with a slightly lower fee of 2.5% + 25 cents..

    International payments on PayPal are an additional 1%
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  • Profile picture of the author aholmes360
    PayPal is one of the most expensive payment processors, but for domestic transactions, especially for Visa and Mastercard.

    If you want to see a quick a list of processors, check out feefighters.com (I don't work there, but I've met one of their employees) and used it to choose Merchant Circle.

    Setting up with the other processors can take a little longer than with PayPal, but you can save a lot, so its usually worth it if you're handling regular volume.
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