Paypal/Skrill fees
Thread poster: Cristiano Lima

Cristiano Lima
Brazil
Local time: 06:57
Member (2014)
Russian to Portuguese
+ ...
Sep 4, 2014

Greetings!

I assume that everyone here knows that transactions at sites like Paypal require the payment of certain fees. Sometimes they are expressive amounts, around 30 dollars or more.

Hence, my question is, how do you deal with the outsourcer on this matter, since the Paypal fees are not included at invoices? (I suppose they are not)


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Paulinho Fonseca  Identity Verified
Brazil
Local time: 06:57
Member (2011)
English to Portuguese
+ ...
Paypal/Skrill fees Sep 4, 2014

Hi,

I have been using paypal for many years and what I do is to estimate fees and include them in my rates. I never let clients know fees are evident on invoices, although they are aware costs are included. Besides, paypal is way better than dealing with banks. I have got skrill account, but never used it.

Some of my clients use Xoom.com and they say there are no fees.



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ATIL KAYHAN  Identity Verified
Turkey
Local time: 12:57
Member (2007)
Turkish to English
+ ...
50 % / 50 % Sep 4, 2014

PayPal happens to be pretty expensive. Perhaps one way to deal with this is to split the fees 50/50. Thus, you pay 50 % and the outsourcer pays the other 50 %. This occured to me just now, and I have not done it yet. What I used to do until now was to pay 100 % of the fee. I can see now that this is not fair at all. Actually, the scenario is that PayPal literally takes advantage of its customers by applying high fees.

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Sheila Wilson  Identity Verified
Spain
Local time: 09:57
Member (2007)
English
+ ...
Charges must be paid for Sep 4, 2014

If there's an unavoidable charge to accept a payment, then that charge has to be paid for. Normally, it's the client who must pay, but not always.

Think of the charges from your more normal point of view as a buyer. Do you always pay the cost of delivery, or do you sometimes choose a seller because they offer free delivery? If the seller of a book accepts PayPal, cheque, bank transfer etc for purchases, do you pay extra when you choose PayPal or not? My experience is that it varies.

So, you have many choices:
1) hide the charge in your rate
2) accept the charge for yourself (it may be a legitimate business expense in your country - I don't know)
3) display a separate charge
4) a compromise solution of some sort.

Personally, I adopt practice 4: I offer 30 days free credit for wire transfers but I expect to be paid within 10 days if a client wants to use PayPal without paying the commission. I think that's fair to both parties. I daresay you'll find that there are people here using each of those choices above.


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Samuel Murray  Identity Verified
Netherlands
Local time: 10:57
Member (2006)
English to Afrikaans
+ ...
It's the cost of doing business Sep 4, 2014

Cristiano Lima wrote:
Transactions at sites like Paypal require the payment of certain fees. Sometimes they are expressive amounts, around 30 dollars or more. ... How do you deal with the outsourcer on this matter, since the Paypal fees are not included at invoices?


Each party pays what is required of them by the payment system. With PayPal, the translator ends up having to pay the transaction fee. However, if you feel that the cost is excessive, you can add it to your initial quote. However, you can't really add it to your invoice if the client didn't know that you were going to add it.

I would be surprised if the cost of using PayPal is not tax deductible.

Sheila Wilson wrote:
If there's an unavoidable charge to accept a payment, then that charge has to be paid for. Normally, it's the client who must pay, but not always.


I would have thought that "normally" it is the translator who must pay it.




[Edited at 2014-09-04 14:40 GMT]


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José Henrique Lamensdorf  Identity Verified
Brazil
Local time: 07:57
English to Portuguese
+ ...
I revert savings to the client Sep 4, 2014

I have separated translation costs from financial costs.

As the OP is in Brazil, like me, PayPal deducts from us 6.5% in fees, and then openly adopts a 3.5% lower-than-market currency exchange rate. So we receive 10% less than what our clients pay via PayPal.

Since PayPal is owned by and consequently intended for eBay, they have some policies unfavorable for translators, no matter how acceptable they may be for people doing their garage sales online.

One such PayPal policy strictly forbids payees to surcharge payers for these fees. Penalties include seizing the entire account.

My solution was to state my rates explicitly for payment via PayPal. I also state that if the client chooses to pay me via bank transfer or any P2P contrivance (e.g. Moneygram, Western Union), they'll be entitled to a 10% discount.

PayPal cannot prevent me from giving discounts to anyone I wish, especially when their system is clearly NOT involved in any way in the transaction. For the very same reason, they are unable to impose any penalty on me.


Like Samuel Murray said, it's the cost of doing business. Indeed!

Yesterday a colleague, also here in Brazil, asked me whether I charge my clients for the BRL 60 fee for processing each wire transfer I receive. I told her I don't, because that's my cost of doing business, since I was the one who chose Itaú Personnalité as my bank. Had I chosen HSBC instead, would I charge my clients their BRL 200 fee?

If I did it, and my clients were Brazilian-banking-savvy, they'd try to convince me to move from HSBC to Itaú, which I'd consider a highhanded procedure. So I pay my cost of doing business, which is none of their business!


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