How much will Paypal charge for receiving funds paid by credit card?
Thread poster: jyuan_us

jyuan_us  Identity Verified
United States
Local time: 18:06
Member (2005)
English to Chinese
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Jan 25, 2011

A new client plans to make payment by credit card to my Paypal, which is an individual account. My question is, does Paypal charge a fee for receiving funds paid by credit card? If so, how much?

many thanks!


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Alex Lago  Identity Verified
Spain
Local time: 00:06
Member (2009)
English to Spanish
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Look in paypal's website Jan 25, 2011

You can find all that info in paypal's website

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Richard Foulkes  Identity Verified
United Kingdom
Local time: 23:06
German to English
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Paypal payments can be reversed (?) Jan 25, 2011

I'm not 100% certain but I'd expect Paypal to apply the same fixed scale of commission as they do if the funds are on account or coming from a bank account. Personally, I'm not inclined to give Paypal such a percentage of my hard-earned translation earnings (not while my bank doesn't charge a penny for wire transfers anyway!).

Something you may also wish to look into, which I recently read on an ebay-related blog, is that people paying through Paypal via credit card can reverse the payment for up to 120 days. Given that it's a new client you're talking about, you may want to check whether this applies in the US.

Hope that helps.

Richard.


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LEXpert  Identity Verified
United States
Local time: 17:06
Member (2008)
Croatian to English
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Yes. About 3%. Jan 25, 2011

jyuan_us wrote:

A new client plans to make payment by credit card to my Paypal, which is an individual account. My question is, does Paypal charge a fee for receiving funds paid by credit card? If so, how much?

many thanks!


There is a fee to receive payments by credit card, and it will typically be in the neighborhood of 3% (varies, and there is a small flat component, but it's close enough), but check their website for exact amounts. The type of account you as the recipient have (personal vs. business) makes little difference as PayPal increasingly charges for every form of transaction under the sun these days. Even if somebody is sending you a bank-transfer-funded payment, with a personal account you will still get charged if there is any indication that it is a "business" transaction, e.g., you issue an invoice or money request, they indicated it is for goods or services, etc.

As to Richard's point, I don't think you can just reverse a PP transaction at will, but you can dispute with PayPal, claiming that your card was used fraudulently or that you didn't get what you ordered, and PayPal holds the funds while it investigates. Of course, someone could always dispute directly with the credit card company too; using a CC via PP gives them two levels of recourse, though (if PP denies their claim). Naturally you should regularly clear out your PP account. However, if PayPal decides that the claim is valid, and you have no balance in your PP account, presumably your PP account goes into the red and PP could institute collection proceedings for the claimed amount.

Back to the PayPal fees... they are essentially unavoidable. All you can really do is build them into your rate.

[Edited at 2011-01-26 02:26 GMT]


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Richard Foulkes  Identity Verified
United Kingdom
Local time: 23:06
German to English
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Clarification Jan 26, 2011

As Rudolf points out, my previous post was slightly hasty and unclear but was merely intended to highlight potential abuse of Paypal by scammers / unscrupulous agencies.

I've paraphrased the anecdotal evidence from the ebay blog I referred to below. Make of it what you will!:

- Seller sells item to a US buyer
- Buyer pays by PayPal straightaway
- Seller mails item and receives positive feedback
- 116 days after payment, PayPal take the money back citing 'Chargeback because of unauthorised credit card use'

NB: If there are no funds in a buyer's account, PayPal take funds from buyer's registered credit card and pay into seller's account. PayPal deem card transactions to be between seller and card co., not PayPal and card co. Buyer has up to 120 days to contact their card company to tell them that they did not authorise this transaction.

- The seller here appealed to PayPal who said the transaction is between seller and card co. and that, while they will investigate, the conclusion will take up to 75 days.

As I understand it, the seller does not know whether the payment is made up of funds on account or funds taken from a credit card so, in the interest of reducing risk, I would personally think twice about accepting large payments from a first-time client via this method. That said, I use Paypal regurlarly for small ebay payments and have never had a problem!

[Edited at 2011-01-26 14:58 GMT]


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