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JV contests and paypal fees

by atatari
9 replies
Hello Warriors,

I have a JV contest running and soon will be sending some cash to the winners. Question: who is supposed to pay the Paypal fees? The winner or a contest organizer? What's the common practice?

Thanks,
Anton
#contests #fees #paypal
  • Profile picture of the author WillR
    If someone wins $100 then I send them $100.
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    • Profile picture of the author atatari
      Thanks, William! So the recipient will have to pay the fees when accepting the payment. On the other hand, in the US the person who is giving the gift (e.g. a JV contest prize) is subject to a gift tax. I was wondering if the same rule would apply to the paypal fees. Any more opinions?
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      • Profile picture of the author WillR
        Originally Posted by atatari View Post

        Thanks, William!
        I haven't been called that for a while... haha, thanks!

        Originally Posted by atatari View Post

        So the recipient will have to pay the fees when accepting the payment. On the other hand, in the US the person who is giving the gift (e.g. a JV contest prize) is subject to a gift tax. I was wondering if the same rule would apply to the paypal fees. Any more opinions?
        It's not a gift if it's part of your business and a prize. It's just a business expense and would be taxed as an expense of your business.

        I've run many affiliate contests and I always just send them the amount promised. I have also won prizes in many affiliate contests and they have always sent just the amount promised. No one would expect you to send the fees on top of the amount. I've never seen that done before.
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  • Profile picture of the author Ryan Jericho
    Banned
    Generally its up to you. . . Its your Contest afterall. If you feel like rewarding them with the full amount, all fees payed, for all their hard work, Do it. If not, Im sure they won't be bitter over a few dollars of fees - after all, its bonus cash
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  • Profile picture of the author vishwa
    The fees will charged by PayPal to receiver who receive the payment until its a mass payment.
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    Techbizmasters.com- Blogging, Technology, and Digital Marketing
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    • Profile picture of the author The Marketing Mom
      Use mass payments. If you do that - you pay a tiny fee, and they pay nothing.

      If you don't have mass payments in your paypal account - you can request it.
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  • Profile picture of the author JensSteyaert
    If i would launch a JV contest, and the price is for instance $500, then i would make sure that the winner in fact receives $500.

    So yes i would suggest to pay the fees yourself, you should have made enough money to be able to afford that.
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  • Profile picture of the author Kim Standerline
    I've only ever sent them the money as per usual, I don't think anyone would in all honesty expect you to pay the fees as well Anton

    Nice of you to think of it though

    Kim
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  • Profile picture of the author brutecky
    Send it as a 'gift to friends or family'. Provided you pay with your PP balance there is no fee.
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