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Thread poster: jyuan_us
Does Paypal charge for receiving funds?

jyuan_us  Identity Verified
United States
Local time: 19:59
Member (2005)
English to Chinese
+ ...
Feb 20, 2011

Under the tab of "personal transfer", it states that receiving money is "Free when the money comes from PayPal balance or bank account.".

Under the tab of "purchase", it states that the rate is 1.9% to 2.9% + $0.30 USD† for "get paid".

My question is, if a translation company intends to pay me with fund from their bank acount, will this be considered as personal transfer or as "purchase"?

If it is considered as personal transfer and thus free, is there any monthly limit, beyond which paypal starts to charge a fee?

Thank you for your input. I know I can read all the information on Paypal' site but their description is not always very clear to me.


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Rudolf Vedo CT  Identity Verified
United States
Local time: 18:59
Member (2008)
Croatian to English
+ ...
My take on the pp info Feb 20, 2011


jyuan_us wrote:

My question is, if a translation company intends to pay me with fund from their bank acount, will this be considered as personal transfer or as "purchase"?


Even if the sender pays from the bank account or PP balance, it will be considered a purchase if you request the money (e.g., you send a money request or invoice via PayPal), or (not 100% sure but I believe it to be true) if the sender indicates that it is for goods and services.
If the money is coming from outside the US a 1% cross-border fee applies in any case.



If it is considered as personal transfer and thus free, is there any monthly limit, beyond which paypal starts to charge a fee?


Not that is evident from their information. The purchase rate does go down a little after $3k revenue/month though.

In short, if we're talking about payment for a translation, it's very difficult to avoid the fee, because it's virtually certain that the confluence of conditions needed to bring that about will not occur - the client will decide to use a cc, or mark it as a business payment, or ask to you send an invoice via pp - in short, something almost always happens to trigger to charge. No doubt that is by PayPal's design, to increase their revenue. They really want to limit free "personal transfers" to dad sending junior spending money at college, Joe sending Bob the $20 he owes for his part of last night's bar tab that Bob fronted, birthday gifts, etc.

Just factor it into your price for clients who want to use PP.



[Edited at 2011-02-20 06:06 GMT]


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Dinny  Identity Verified
Greece
Local time: 02:59
Italian to Danish
+ ...
Private account is free of charge Feb 20, 2011

I used to receive my payments to my Paypal account and there were no charges. Even transferring money to my bank account from my Paypal account was free if the amount was over 100 euros.

Then one of my clients had the unhappy idea of paying me by credit card, and I could only receive the amount if I upgraded my account to .... whatever, Gold or Premium or something like that.

After I did that I now have to pay a fee for every single amount I receive to my Paypal account and with no upper limit. If f.inst. I receive 1,000 dollars, it would probably cost me around 80 dollars in fee. Goes without saying that I do not use my Paypal account anymore, because there is no way I can revert to just having a private account.

Very annoying though!


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Simone Linke  Identity Verified
Germany
Local time: 01:59
English to German
+ ...
not true Feb 20, 2011

That doesn't seem to be true any longer.

My account type is listed as "private person" and yet I pay fees for each and every payment I receive for my translations. Regardless of the type of payment or the purpose of the payment.

I've received regular money transfers as well es cheque payments as well as some debit card payments (if I'm not mistaken). Sometimes people indicate my invoice number, sometimes they don't indicate any purpose of the transaction. Some payments are in my own currency, some or not.

No matter what, I always pay a fee, at least I can't remember any transaction that was free.

My assumption is that the clients all have corporate accounts. Thus, PayPal knows right away that these are business transactions.

In any case, as Rudolf has already said, just accout for these fees in your rates. If for some reason you don't have to pay any fee for a given transaction, you can always give this client a discount for their next job to show your honesty.


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jyuan_us  Identity Verified
United States
Local time: 19:59
Member (2005)
English to Chinese
+ ...
TOPIC STARTER
Thank you all for your kind replies Feb 20, 2011

To be more specific, my account is a "personal account", and all my transactions are within United States.

Is there any difference in the rate of service charge by Paypal between a "personal Account" and a premier (or business) account?

I remember that Paypal automatically upgraded my account either because someone transfered a large amount or he used a credit card to make the payment. (I forgot what exactly the trigger was.) I sent an email to Paypal saying that I didn't want to upgrade it. Paypal changed it back to the Personal Account but told me that if the same thing happens again, it will be upgraded again, and they will not be able to downgrade it any more.

Does anyone have a similar experience? Can you share your experiene?

The description on its site is so confusing. I don't understand why Paypal doesn't make everything clear and straightforward. As least to me, there are too many questions to ask about it.

[Edited at 2011-02-20 19:04 GMT]


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Rudolf Vedo CT  Identity Verified
United States
Local time: 18:59
Member (2008)
Croatian to English
+ ...
Account type doesn't matter Feb 20, 2011

The fees are now the same for all types of accounts, as clearly stated here:

https://www.paypal.com/cgi-bin/webscr?cmd=_display-fees-outside

What matters is how the transaction is funded and what (PayPal believes) it is for.

[Edited at 2011-02-20 19:00 GMT]


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jyuan_us  Identity Verified
United States
Local time: 19:59
Member (2005)
English to Chinese
+ ...
TOPIC STARTER
Thank you Rudolf for pointing to that page Feb 20, 2011


Rudolf Vedo CT wrote:

The fees are now the same for all types of accounts, as clearly stated here:

https://www.paypal.com/cgi-bin/webscr?cmd=_display-fees-outside

What matters is how the transaction is funded and what (PayPal believes) it is for.

[Edited at 2011-02-20 19:00 GMT]


it's a big achievement for me to know the fees are now the same for all types of accounts.


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Ie Ling Arnett  Identity Verified
United States
Local time: 16:59
Member
English to Indonesian
+ ...
Paypal Apr 14, 2011


jyuan_us wrote:

To be more specific, my account is a "personal account", and all my transactions are within United States.

Is there any difference in the rate of service charge by Paypal between a "personal Account" and a premier (or business) account?

I remember that Paypal automatically upgraded my account either because someone transfered a large amount or he used a credit card to make the payment. (I forgot what exactly the trigger was.) I sent an email to Paypal saying that I didn't want to upgrade it. Paypal changed it back to the Personal Account but told me that if the same thing happens again, it will be upgraded again, and they will not be able to downgrade it any more.

Does anyone have a similar experience? Can you share your experiene?

The description on its site is so confusing. I don't understand why Paypal doesn't make everything clear and straightforward. As least to me, there are too many questions to ask about it.

[Edited at 2011-02-20 19:04 GMT]


I have been having both a personal and premier account for at least 5 years t . The difference is that for personal account, I can't use a Paypal debit card to withdraw the funds. Some clients have paid me using a credit/debit card to my personal account and I have never been automatically upgraded by Paypal or had any problems with the transactions. I just have to pay for the fees. Hope it helps


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Does Paypal charge for receiving funds?







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