Pages in topic:   [1 2] >
Is it wise to receive payment of over €5K via PayPal
Thread poster: Jenny Duthie

Jenny Duthie  Identity Verified
France
Local time: 11:44
French to English
Oct 1, 2012

Hello,

I'm a freelance translator based in France, I did a very large job for a US agency (who pay me via PayPal) and the amount which is due next week will be nearly 7000 US dollars (about 5400€). I'm worried about losing a substantial amount of this invoice through PayPal & currency conversion charges because it's such a high amount, would wire transfer be a safer and cheaper option? Or perhaps 2 separate PayPal payments? I also use Moneybookers. I haven't discussed this with the agency yet, as I'd like some feedback before contacting them.

Thank you.

Jenny


Direct link Reply with quote
 

Attila Piróth  Identity Verified
France
Local time: 11:44
Member
English to Hungarian
+ ...
Wire transfer Oct 1, 2012

PayPal costs will be prohibitively high - around 4% of the total. And evan though the echecque and mass transfer options are more cost-effective, they are much more expensive than they used to be.

Moneybookers' fees are much more reasonable. Nonetheless for such a high amount, wire transfer would certainly be my choice. Normal checks are another option; check with your bank the fees for cashing checks before proposing that option.

Best,
Attila


Direct link Reply with quote
 

Mark Hamlen  Identity Verified
France
Local time: 11:44
Member (2010)
French to English
+ ...
Check with your bank Oct 1, 2012

The cost for a wire from the States should be about 35 euros, check with the bank and the dollars will be changed to euros at the bank rate. Paypal will cost you an enormous amount. A check from the States will take about a month to clear and then there will be exchange charges.

Direct link Reply with quote
 

Mauro Miccolis  Identity Verified
Italy
Local time: 11:44
English to Italian
+ ...
Avoid Paypal Oct 1, 2012

Hi. I used to get paid by Paypal (even whenever I sold something) and after a while you realize that even though the circuit is one of the safest, you eventually lose a lot of money.
So if you can use another type of payment I higly suggest you to do.


Direct link Reply with quote
 

Thayenga  Identity Verified
Germany
Local time: 11:44
Member (2009)
English to German
+ ...
Paypal fees Oct 1, 2012

Attila Piróth wrote:

PayPal costs will be prohibitively high - around 4% of the total. And evan though the echecque and mass transfer options are more cost-effective, they are much more expensive than they used to be.

Best,
Attila


Hi Attila,

4% PayPal fees? Is that dependant on the country?
The last time I received money through PayPal (and it wasn't that large an amount), they charged 5.7 % for the transfer from a country in the Middle East. Higher fees apply for other countries.

You are right, PayPal does take a big piece out of one's hard-earned money. Therefore, if there is any other means that you can get your money through, then don't use PayPal.


Direct link Reply with quote
 

Samuel Murray  Identity Verified
Netherlands
Local time: 11:44
Member (2006)
English to Afrikaans
+ ...
My biggest amount so far Oct 1, 2012

Jenny Duthie wrote:
I did a very large job for a US agency (who pay me via PayPal) and the amount which is due next week will be nearly 7000 US dollars (about 5400€).


The biggest single amount that I have received via PayPal was about $6000. The transaction fee was $45. PayPal froze the account and demanded additional proof of identification (but I expected that to happen). A week or two later, PayPal unfroze the account and I was able to transfer the money to my bank account.

I don't always understand the transaction costs. Some time later I got a $2000 payment from the same client, and the PayPal transaction fee was only $5. I really don't get it.


Direct link Reply with quote
 

Laura Gentili  Identity Verified
Italy
Local time: 11:44
Member (2003)
English to Italian
+ ...
What I would do Oct 1, 2012

PayPal can cost you a lot of money. US companies usually don't use MoneyBookers.
PP is good for them because they pay nothing, therefore I would suggest them that I am willing to pay the costs for a bank transfer and pay approx. 35 USD for the transaction, and get the money on my account in a couple of working days. Depositing a cheque in my bank account would cost me 10-15 euros here in Italy but then it takes a month to have the money actually available (in other words, the money appears on your account but it's not actually available for a month). So the options are basically 2:
wire transfer @ 35 USD, money in 2 working days
US cheque @ 10-20 euros (according on the bank), money in 30 working days

I would rather pay 35 USD instead of waiting, but it's a personal choice.

Laura


Direct link Reply with quote
 

Yaotl Altan  Identity Verified
Mexico
Local time: 04:44
Member (2006)
English to Spanish
+ ...
Fair or unfair Oct 1, 2012

Samuel Murray wrote:

Jenny Duthie wrote:
I did a very large job for a US agency (who pay me via PayPal) and the amount which is due next week will be nearly 7000 US dollars (about 5400€).


The biggest single amount that I have received via PayPal was about $6000. The transaction fee was $45. PayPal froze the account and demanded additional proof of identification (but I expected that to happen). A week or two later, PayPal unfroze the account and I was able to transfer the money to my bank account.

I don't always understand the transaction costs. Some time later I got a $2000 payment from the same client, and the PayPal transaction fee was only $5. I really don't get it.



Well, Samuel. That was less than 1%, which is fair, don't you think so?


Direct link Reply with quote
 

Jenny Duthie  Identity Verified
France
Local time: 11:44
French to English
TOPIC STARTER
I'll choose wire transfer Oct 1, 2012

Many thanks for your helpful replies, I'll choose wire transfer for this one!

Direct link Reply with quote
 

Kuochoe Nikoi  Identity Verified
Ghana
Local time: 10:44
Japanese to English
Not sure but... Oct 1, 2012

Samuel Murray wrote:
I don't always understand the transaction costs. Some time later I got a $2000 payment from the same client, and the PayPal transaction fee was only $5. I really don't get it.

If I recall correctly the percentage PayPal charges depends on the category the sender files the payment under. If it's "Gift" there's a different charge, if it's "Services" there's a different charge, that sort of thing. It also depends on whether the client used their PayPal balance to pay you or used a credit card: https://www.paypal.com/webapps/mpp/paypal-fees


Direct link Reply with quote
 

Elías Sauza  Identity Verified
Mexico
Local time: 04:44
Member (2002)
English to Spanish
+ ...
eCheck charges $5 Oct 1, 2012

Samuel Murray wrote:

Jenny Duthie wrote:
I did a very large job for a US agency (who pay me via PayPal) and the amount which is due next week will be nearly 7000 US dollars (about 5400€).


The biggest single amount that I have received via PayPal was about $6000. The transaction fee was $45. PayPal froze the account and demanded additional proof of identification (but I expected that to happen). A week or two later, PayPal unfroze the account and I was able to transfer the money to my bank account.

I don't always understand the transaction costs. Some time later I got a $2000 payment from the same client, and the PayPal transaction fee was only $5. I really don't get it.





Some of my clients use eCheck, a paypal option, and that charges only $5 regardless the amount transferred. It takes longer to clear the funds from the sender, but it's worth the while compared to the normal, immediate transfer.


Direct link Reply with quote
 

Neil Coffey  Identity Verified
United Kingdom
Local time: 10:44
French to English
+ ...
Concur with Samuel Oct 1, 2012

A similar thing happened to me as did to Samuel. I don't necessarily begrudge the fee-- there are occasions when Paypal is more convenient than an international bank transfer. But on the other hand, Paypal can be a real pain with randomly blocking your account when they feel like it, and it wouldn't be a surprise if larger payments were one of the many secret factors that led them to do so.

[Edited at 2012-10-01 18:08 GMT]


Direct link Reply with quote
 

José Henrique Lamensdorf  Identity Verified
Brazil
Local time: 08:44
English to Portuguese
+ ...
PayPal fees Oct 1, 2012

Thayenga wrote:

Attila Piróth wrote:
PayPal costs will be prohibitively high - around 4% of the total.


Hi Attila,
4% PayPal fees? Is that dependant on the country?
The last time I received money through PayPal (and it wasn't that large an amount), they charged 5.7 % for the transfer from a country in the Middle East. Higher fees apply for other countries.


Yes, it depends on the receiving country.

Since PayPal opened their own operations in Brazil, here they deduct:
  • 6.5% in fees
  • 3.5% in overtly (they say so in their help screens) lower exchange rates.


Were that not enough, though Brazil has the world's fastest banking system, they delay payment to a bank account by a minimum of 3 business days, and a maximum of two weeks (the latter only if an eCheck is used). Since that fastest banking system comes together with Brazilian interest rates being around 10% per month, you can figure it out.

Since PayPal strictly forbids surcharging buyers paying through them, I state my standard rates for payment via PayPal, and offer a 10% discount to clients willing to use any other payment method.


Direct link Reply with quote
 

Clarisa Moraña  Identity Verified
Argentina
Local time: 07:44
Member (2002)
English to Spanish
+ ...
Is your client willing to use Paypal or bank wire? Oct 2, 2012

My US bank charged me 100 usd for sending a $700 payment to a friend of mine living in Spain (supposedly, all wiretransfers are charged approx. USD100). Depending on the Paypal account you have, they might charge you 3.9% of the total amount to send you the payment. Thus, Paypal would charge you about USD373 for sending you USD7000. The costs of currency exchange might be similar, but if I were you, I would insist my client to pay me by wire transfer.

Regards

Clarisa


Direct link Reply with quote
 
Richard Foulkes  Identity Verified
United Kingdom
Local time: 10:44
German to English
+ ...
Read Paypal T&Cs Oct 2, 2012

Having had mixed experiences with Paypal on ebay, my advice would be to read the T&Cs in full to see if you're comfortable with them, particularly with regard to dispute resolution.

I've found them to side with a complaining buyer regardless of circumstances (and the fact that the seller is paying their commission) and to be pretty intransigent when it comes to arguing a case.

Losing £5 on ebay is one thing...losing a few grand is another. I'd always go with wire transfer. Once it's in the bank, it's in the bank.


Direct link Reply with quote
 
Pages in topic:   [1 2] >


To report site rules violations or get help, contact a site moderator:


You can also contact site staff by submitting a support request »

Is it wise to receive payment of over €5K via PayPal

Advanced search







memoQ translator pro
Kilgray's memoQ is the world's fastest developing integrated localization & translation environment rendering you more productive and efficient.

With our advanced file filters, unlimited language and advanced file support, memoQ translator pro has been designed for translators and reviewers who work on their own, with other translators or in team-based translation projects.

More info »
SDL MultiTerm 2017
Guarantee a unified, consistent and high-quality translation with terminology software by the industry leaders.

SDL MultiTerm 2017 allows translators to create one central location to store and manage multilingual terminology, and with SDL MultiTerm Extract 2017 you can automatically create term lists from your existing documentation to save time.

More info »



Forums
  • All of ProZ.com
  • Term search
  • Jobs
  • Forums
  • Multiple search