Pay Pal fee - How do you handle it?
Thread poster: Kai Döring

Kai Döring  Identity Verified
Philippines
Local time: 22:49
Member (2007)
English to German
+ ...
Jun 14, 2008

Hi!

I guess Paypal is the most common way of getting paid, but not really cheap.

Do you bill the paypal fee?

Regards,

Kai


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Astrid Elke Witte  Identity Verified
Germany
Local time: 16:49
Member (2002)
German to English
+ ...
I don't think the client would accept that Jun 14, 2008

The best way is to take it into consideration in advance when quoting for the job.

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Cristina Heraud-van Tol  Identity Verified
Peru
Local time: 09:49
Member (2005)
English to Spanish
+ ...
No, I don't Jun 14, 2008

I don't bill them for the PayPal fee. I have basically 2 methods of payment: wire transfer or PayPal. If the bill reaches some US$ 300 it is still profitable to work with PayPal. If it's more, I normally tell the client to send me the money via wire transfer to my international bank account or Money Gram.

If you still feel the PayPal fee you are paying is high, then you can charge a little bit more, e.g. if you normally charge US$ 0.06 per source word, then you can explain the client about PayPal costs and that you will charge him/her US$ 0.062 to pay these.


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Susan Welsh  Identity Verified
United States
Local time: 10:49
Member (2008)
Russian to English
+ ...
Moneybookers Jun 14, 2008

It seems as though the fees on Moneybookers are cheaper than Pay Pal, but I don't have much experience with how this works.
There was a recent forum discussion on these matters--check the archive for the past week or two.

Susan


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Iza Szczypka  Identity Verified
Spain
Local time: 16:49
English to Polish
+ ...
Just started Jun 14, 2008

In my invoices I normally offer two methods of payment - wire transfer or PayPal, with the upper limit for PayPal payments clearly specified, and wire transfer as the only option for all payments in excess of the limit. This is just because of the PayPal (percentage) fee, which with smaller payments amounts to my bank charge or even less.
However, my established customers have out of a sudden got a fit of illiteracy and chosen PayPal payments disregarding the note on the invoice. I informed them they have caused extra costs for me and told them that if they wished to continue this way, in the future they'd be obliged to cover the cost. At least one responded positively - don't know yet about the others, as this is a very recent development.
I also changed the standard note on my invoices accordingly.


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Eleni Makantani
Greece
Local time: 17:49
Member
English to Greek
+ ...
...question... Jun 14, 2008

Hello,

I apologize for not being able to contribute to the discussion.

First of all, I have an account at Paypal, which I mainly use for paying for online purchases. I have only once received a very small amount through Paypal, which I haven't withdrawn. I read in this thread and elsewhere people talking about fees and whether it's to one's best interest to use Paypal for receiving money and about limits. I need to ask: what are these fees and limits? why should someone think twice before choosing Paypal to get paid?


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Vie007
Local time: 07:49
Vietnamese to English
+ ...
Link to PayPal fees Jun 14, 2008

Eleni Makantani wrote:
. . . I need to ask: what are these fees and limits? why should someone think twice before choosing Paypal to get paid?
Link to PayPal fees: https://www.paypal.com/us/cgi-bin/webscr?cmd=_display-fees-outside


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Astrid Elke Witte  Identity Verified
Germany
Local time: 16:49
Member (2002)
German to English
+ ...
Reply to Eleni Jun 14, 2008

PayPal charges a particular percentage of the amount involved. This is different from a normal bank, as banks charge a fixed fee, no matter how small the amount transferred is. If you take a small percentage of, say, 20 dollars (or 20 anything), you will realise that you only pay a few coppers to receive the money by PayPal. Therefore it seems in order to pay these few coppers, instead of making the agency pay a high bank transfer fee, which may be more than the total cost of the order.

However, if you take the same percentage of, let us imagine, 2000 dollars, then the fee is extremely high compared to the fees for a bank transfer. In this case, it is not reasonable to have to pay very high fees to receive this amount of money, when the agency could pay very much less in bank fees to transfer the money.

To find out up to what amount of money it is reasonable for you to pay the fees, and from what amount of money the agency should pay bank transfer fees instead, you need the following information:

1) The approximate cost of a bank transfer
2) The exact information about the percentage that PayPal charges you in your country. It varies for different countries. You find it on the PayPal web site for your country.

After this, you have to do some arithmetic and decide for yourself up to what limit you will allow people to pay you by PayPal.

I first become aware of the problem once when I had to pay about EUR 70 to receive some money! A bank transfer fee is more along the lines of about EUR 17.

Astrid


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Eleni Makantani
Greece
Local time: 17:49
Member
English to Greek
+ ...
Thank you, Astrid! Jun 15, 2008



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Percy Balemans  Identity Verified
Netherlands
Local time: 16:49
English to Dutch
+ ...
eChecks for large amounts Jun 15, 2008

I don't know whether this is possible for every client in every country, but I have a client in the US who always pays by eCheck which is sent to my PayPal account. The advantage of an eCheck is that the maximum fee is $5.00. The only disadvantage is that it takes a bit longer (several working days) before the money is available, because the eCheck has to be cleared. But if you regularly receive large amounts from a client, it might be worthwhile to ask them if they can send eChecks.

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