Who pays PayPal fees? You or your customer?
Thread poster: SEA-words

SEA-words  Identity Verified
English to Italian
+ ...
Nov 14, 2012

Do you pay for PayPal fees when you receive a payment or do you ask the agency/client to take care of it?

One agency told me that since they are charged when they receive money through PayPal from their clients, likewise they don't cover any fee when paying the translators.

So the translator is the end of the chain and has to pay for everybody else?


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Tom in London
United Kingdom
Local time: 04:40
Member (2008)
Italian to English
Just say no to PayPal Nov 14, 2012

Paola Slajmer wrote:

Do you pay for PayPal fees when you receive a payment or do you ask the agency/client to take care of it?

One agency told me that since they are charged when they receive money through PayPal from their clients, likewise they don't cover any fee when paying the translators.

So the translator is the end of the chain and has to pay for everybody else?


You may find this website illuminating:

http://tinyurl.com/atf8a5w


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Rasmus Drews  Identity Verified
Local time: 05:40
Member (2011)
English to Danish
+ ...
You usually pay your own fees Nov 14, 2012

Usually you pay all fees at your end - whether it's via PayPal or bank transfer. The agency transfers the full amount due, and whatever PayPal or your bank takes out is your responsibility.

So the translator is the end of the chain and has to pay for everybody else?

Well no, because the agency also pays for receiving money from the clients.

You may find this website illuminating:

http://tinyurl.com/atf8a5w


... which is why I am usually quick to withdraw any funds I have in PayPal


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Bryan Crumpler  Identity Verified
United States
Local time: 23:40
Dutch to English
+ ...
I love paypal Nov 14, 2012

My suggestion would be to abstract the charges into your rate.

That way, clients don't feel like they are being nickled and dimed, and you effectively aren't getting hit with unaccounted for charges.


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Samuel Murray  Identity Verified
Netherlands
Local time: 05:40
Member (2006)
English to Afrikaans
+ ...
Two answers Nov 14, 2012

Paola Slajmer wrote:
Do you pay for PayPal fees when you receive a payment or do you ask the agency/client to take care of it?


You pay your own fees. With PayPal, the recipient pays most of the fees, but that is just how PayPal works.

One agency told me that since they are charged when they receive money through PayPal from their clients, likewise they don't cover any fee when paying the translators.


That is not a valid argument. Nothing prevents them from asking their clients to cover the PayPal fee -- they only do that because they're timid (and they're hoping you're more timid than they).


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Alex Lago  Identity Verified
Spain
Local time: 05:40
Member (2009)
English to Spanish
+ ...
Paypal fees struture Nov 15, 2012

The problem with Paypal fees is that there is no fee for sending money, sending money is free, that is why Paypal is so popular, I send an amount for free and the person receiving the payment gets the full amount in their account, so for making payments it is the perfect system.

Paypal doesn't charge you for receiving the payment, they charge you money for removing the money from your account (and if the money is in a currency other than your home currency they also apply low exchange rates so you also lose money on the conversion). I don't think the client should have to pay that after all they've already paid what I asked them to pay, however as suggested by Bryan if you know beforehand that they will pay via Paypal you can add the fees to your quote.

You could also simply refuse to use Paypal, however my suggestion (and this is what I do with Paypal) is to have it, because it comes in handy for payments from one-off customers or for regular customers that don't have a high turnover, that way your Paypal balance will never be excessively high and you won't have a problem keeping the money in your Paypal account, then use that money to pay for other things directly via Paypal that way you won't be subject to any fees.

I certainly don't use Paypal for large payments or my bread & butter clients, but it comes in handy.


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Sheila Wilson  Identity Verified
Spain
Local time: 04:40
Member (2007)
English
+ ...
For me, it's a bit of both Nov 15, 2012

Paola Slajmer wrote:
Do you pay for PayPal fees when you receive a payment or do you ask the agency/client to take care of it?

I only offer PayPal when better payment methods aren't available. For instance, I expect my EU clients to pay by wire transfer in almost all cases as this is normally free, or very reasonable, for both parties. For other countries, I only ever accept charges at my end, never everything. So, if my bank charges fees, I'll pay them, but not the client bank's fees.

As has already been said, the fact that all the fees get lumped on the PayPal receiver is just the way that PayPal works. I don't get too hot under the collar about it because I buy a lot of things by PayPal, and so does my husband, so we get the benefit of free and easy payments. As far as my clients are concerned, in those cases where I agree to accept PayPal payments, I operate in one of two ways:
1) I simply increase my rate;
2) my T&C specify payment at my normal rate but within 10 days (rather than my normal 30 days). For payment between 11-30 days, there is an added commission of 3.5% to cover their credit. I think that's fair to both parties, though I have heard that it might not be in line with PayPal rules. I'll cross that bridge if/when I come to it.

The way NOT to use PayPal is to accept large payments, at normal rates, in a foreign currency that PayPal converts. I need to accept USD payments quite often so I avoid paying extra to PayPal by keeping the cash in a separate USD stream until I can usefully spend it as USD. The growing e-commerce world makes that quite easy.


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SEA-words  Identity Verified
English to Italian
+ ...
TOPIC STARTER
I do the same Nov 15, 2012

Sheila Wilson wrote:
I need to accept USD payments quite often so I avoid paying extra to PayPal by keeping the cash in a separate USD stream until I can usefully spend it as USD. The growing e-commerce world makes that quite easy.


I do the same, however I can't easily spend USD over the internet, since this would mean buying from overseas, and I take this risk only for small amounts.

Unfortunately I cannot hide PayPal fees in my rate, I did it once, and I lost the client. Honestly I raised my rate of 10%, since raising it of 4% would mean dealing with the 4th decimal digit - who does that?

However, paying three digits worth of PayPal fees in a year is really a shame. Any bank account in USD would be cheaper! (I use PayPal mostly to sell stuff on eBay, btw).

I am a huge fan of PayPal's competitor, Skrill (former Moneybookers), but it seems that they abide too much the law and a lot of merchants are not happy with Skrill asking them paper multiple times to prove their business is legit.

PayPal, on the other side, is easier to access and the check they run on their accounts are lighter, thus it is the leader in online payments.

I know that in the US you can deduct PayPal fees for tax purposes, so if anyone based in the US comes across this thread, here's the link! http://freelanceswitch.com/the-business-of-freelancing/10-deductions-freelancers-can-grab/


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