PayPal changed its fees policy for e-checks
Thread poster: Katalin Horváth McClure

Katalin Horváth McClure  Identity Verified
United States
Local time: 23:05
Member (2002)
English to Hungarian
+ ...
Jul 22, 2011

I just wanted to warn everybody that PayPal recently (on July 12) changed its policy about e-checks. (And guess what, not to our advantage.)

Until now, if you received a payment via e-check, the fees they deducted were a $5.00 flat fee, regardless of the amount you received. This was very convenient if you received anything over $125, because over that amount credit card payment fees would be more than $5.00. The tradeoff was that you had to wait longer to actually get the money, so
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I just wanted to warn everybody that PayPal recently (on July 12) changed its policy about e-checks. (And guess what, not to our advantage.)

Until now, if you received a payment via e-check, the fees they deducted were a $5.00 flat fee, regardless of the amount you received. This was very convenient if you received anything over $125, because over that amount credit card payment fees would be more than $5.00. The tradeoff was that you had to wait longer to actually get the money, sometimes more than a week.

Now, they simply got rid of this $5.00 cap. Now they are charging the same fees as for credit card payments. I found out this just now, when digging around the PayPal website, looking for an explanation why they deducted more that $5.00 from the last e-check payment I received. They did not bother directly notifying their users, other than in a Policy Update buried somewhere.

So, now, we can still get paid by e-check, but we will have to pay the same fees as for an instant payment. Yeah, we will have the added advantage of having to wait a week or more for the money to clear...

Katalin


[Edited at 2011-07-22 21:14 GMT]
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JaneD  Identity Verified
Sweden
Local time: 05:05
Member (2009)
Swedish to English
+ ...
Good to know Jul 23, 2011

Thanks for mentioning this, Katalin - it's always been a better way to receive PayPal payment as the commission level was better, but now as you say the only "advantage" seems to be that it takes longer!

 

Thayenga  Identity Verified
Germany
Local time: 05:05
Member (2009)
English to German
+ ...
Notification Jul 24, 2011

On July 4th PayPal sent me an email to inform me about the intended changes.

Receiving an e-check does take quite some time before you actually do get the money.

An added "advantage" for Europeans is that you're being ask whether you wish to keep the USD or convert them to Euros. Naturally, I have PayPal convert the USD to Euros, and get to catch a glimpse at the amount in Euros. Then, usually about 5 - 6 days later when the e-check has finally been cleared, I'm faced w
... See more
On July 4th PayPal sent me an email to inform me about the intended changes.

Receiving an e-check does take quite some time before you actually do get the money.

An added "advantage" for Europeans is that you're being ask whether you wish to keep the USD or convert them to Euros. Naturally, I have PayPal convert the USD to Euros, and get to catch a glimpse at the amount in Euros. Then, usually about 5 - 6 days later when the e-check has finally been cleared, I'm faced with the same option and have PayPal convert the amount again! Thus far, this double process has cost me an average of 3.8% of the Euro value due to currency fluctuations.

It would be good if ProZ provided a column in which I could list the payment methods I don't accept. With PayPal's new fee policy it's simply too expensive to accept e-checks.

[Edited at 2011-07-24 06:23 GMT]
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José Henrique Lamensdorf  Identity Verified
Brazil
Local time: 00:05
English to Portuguese
+ ...
In memoriam
PayPal is getting too expensive Jul 24, 2011

Sometime in the past 12 months or so PayPal set up operations in Brazil, where receiving money was always messy. Previously, the only thoroughly legal way to receive funds from PayPal in Brazil was via Xoom.

Since the Brazilian PayPal startup, some things happened.

First, Xoom stopped accepting funds from PayPal. Next, Xoom lowered their fee to USD 4.99 per transfer up to USD 3K, and improved their speed, offering a cash deposit to any Brazilian bank within the next ban
... See more
Sometime in the past 12 months or so PayPal set up operations in Brazil, where receiving money was always messy. Previously, the only thoroughly legal way to receive funds from PayPal in Brazil was via Xoom.

Since the Brazilian PayPal startup, some things happened.

First, Xoom stopped accepting funds from PayPal. Next, Xoom lowered their fee to USD 4.99 per transfer up to USD 3K, and improved their speed, offering a cash deposit to any Brazilian bank within the next banking hour in Brazil.

Next, PayPal raised their fees, which are now about 7.5% of the amount transferred, taking 3-5 banking days from them to a Brazilian bank account. To assign some monetary value to these 3 days, in Brazil the monthly interest rate on overdrafts is around 10%, so one can safely add 1% for the delay, totalling 8.5% of the amount as the cost of receiving a payment via PayPal in Brazil. As a last costly touch, they openly admit on their help pages that their exchange rates are 1% lower than market. Pretty significant!

Any further change by PayPal will most likely justify translators charging 10% extra from clients who insist in using it.
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Katalin Horváth McClure  Identity Verified
United States
Local time: 23:05
Member (2002)
English to Hungarian
+ ...
TOPIC STARTER
Are there any feasible (cheaper) alternatives? Jul 25, 2011

If anybody has any good suggestions for getting payments from the UK and/or from the EuroZone to the US, please share.

In my experience, receiving bank wires cost me $25-$35 per transfer, regardless of the amount. These are intermediary bank fees, not the sending fees the client pays. My bank does not charge me for incoming wires, because I have a special type of account, but for other type of accounts there would be an extra fee, too.

PayPal is now 3.9% + $0.30 per tra
... See more
If anybody has any good suggestions for getting payments from the UK and/or from the EuroZone to the US, please share.

In my experience, receiving bank wires cost me $25-$35 per transfer, regardless of the amount. These are intermediary bank fees, not the sending fees the client pays. My bank does not charge me for incoming wires, because I have a special type of account, but for other type of accounts there would be an extra fee, too.

PayPal is now 3.9% + $0.30 per transfer.

I closed my Moneybookers account a while ago when they started to charge some 4% or so.

So, what else is out there?

Katalin
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Kaiya J. Diannen  Identity Verified
Australia
Member (2008)
German to English
Domestic Jul 25, 2011

I just wanted to clarify, for anyone checking in (direct from PayPal):

"As long as the sender is in the same country, it's free to receive:

- Instant transfers
- eChecks
- Payments from a PayPal balance "


 

José Henrique Lamensdorf  Identity Verified
Brazil
Local time: 00:05
English to Portuguese
+ ...
In memoriam
What's the point? Jul 25, 2011

Janet Rubin wrote:
I just wanted to clarify, for anyone checking in (direct from PayPal):
"As long as the sender is in the same country, it's free to receive:
- Instant transfers
- eChecks
- Payments from a PayPal balance "


What would be the point in using PayPal within one same country... unless the banking system there hasn't discovered computers yet?


 

Katalin Horváth McClure  Identity Verified
United States
Local time: 23:05
Member (2002)
English to Hungarian
+ ...
TOPIC STARTER
Personal Payments vs. Purchases Jul 25, 2011

Janet Rubin wrote:

I just wanted to clarify, for anyone checking in (direct from PayPal):

"As long as the sender is in the same country, it's free to receive:

- Instant transfers
- eChecks
- Payments from a PayPal balance "


This is only true if we are talking about a Personal Transfer.
When we get paid for translation work, that is a Purchase type transaction.
A few years ago, only payments for Goods were categorized as Purchases, but then they changed and it now includes Services as well.
I have no problem receiving payments within the US, or even from Canada, as checks work without any problems.
However, getting paid from overseas is problematic.

Katalin


 


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