Pages in topic:   [1 2] >
Receiving money via PayPal: good thing or bad thing?
Thread poster: Dorothy Schaps

Dorothy Schaps  Identity Verified
Germany
Local time: 01:27
German to English
May 5, 2015

Hi everyone,

I have some questions regarding payments via PayPal... Up to now I've always refused to accept payments via PayPal, because I'll get charged to receive the money. Recently, however, I've turned down quite a lot of job offers for precisely this reason and I'm wondering if I should change my thinking...

I'd really like to know why so many agencies prefer to pay via PayPal rather than bank transfer - can anyone shed some light on that please? All I know is that sending money via PayPal is free and some banks charge commission for international transfers (although I've never incurred any, neither when sending nor when receiving money). In fact an agency in Spain said that they do get charged high rates - so I guess every country is different? I really think there must be more advantages for the companies sending the money - is it extremely time-saving for example? At the moment I can only see the disadvantages for me and I'd like to understand both sides of the argument.

What are your experiences with being paid via PayPal? Do agencies generally bear the costs? Could I just add a line to my invoice 'Plus 1.9% + €0.35 PayPal charges' and have them accept it, no questions asked? Are the PayPal charges likely to be lower than bank charges? Or if they won't accept the costs could I demand payment within one or two weeks? What do you do?

Thanks very much

All the best
Dorothy


Direct link Reply with quote
 

Lincoln Hui  Identity Verified
Hong Kong
Local time: 07:27
Member
Chinese to English
+ ...
You'll often get charged to receive money by bank transfer as well May 5, 2015

My bank charges $15 USD for incoming wires. For amounts under $500 Paypal fees are less than my bank fees, and for trivial projects of several hundred words it makes no sense to use anything but Paypal.

It's certainly a much simpler affair to send money by Paypal than by bank transfer, even if you can do it through internet banking - there are less hurdles to clear, less forms to fill, no bank codes and SWIFT codes to deal with, usually very little bank/national regulations redtape; all you typically need is the Paypal email of the receipient, enough funds in your Paypal account to cover the transfer, and that's all.

I cover the costs on my own end, whether it's from my bank or from Paypal. The invoicing process is bothersome enough without wasting my time trying to get savings that come out to below minimum wage when time spent is taken into account.

[Edited at 2015-05-05 13:29 GMT]


Direct link Reply with quote
 

Thomas T. Frost  Identity Verified
Germany
Local time: 01:27
Member (2014)
French to Danish
+ ...
Sometimes the least bad solution May 5, 2015

It's instant and requires a lot less administrative work than setting up an international wire transfer.

Transferwise and many other such services are a lot cheaper but don't support many countries and still require a lot more work than Paypal.

The downside is that it's expensive for the translator. I just received a payment in USD from India. The fee was over 5 %. If I want it changed to euro, it will cost 3 % or more in addition, so we're looking at more than 8 % in fees. That's about the most expensive service you'll be able to find. A payment of for example USD 500 thus costs around USD 40 in fees, so above a certain amount an alternative to Paypal is likely to be better.

Agencies pay nothing to use Paypal. The translator pays the whole party.

Within the euro zone, SEPA transfer is the obvious solution, as it is in most cases free, and it must be credited one day after it is debited without deduction of intermediary bank fees. If a Spanish bank charge for SEPA transfers, my attitude would be that that is the agency's own problem, and they could choose a bank that doesn't. I'm still to come across a euro zone bank that charges for online SEPA transfers.

I also have accounts in two other EU non-euro Member States so I can accept transfers in their currencies without charges.

What fees are concerned, it's a compromise to consider. If the fees make the job unprofitable, then I would refuse it. If you can earn enough money working for clients that don’t require Paypal, then you can turn them down. Otherwise, it's simply a part of normal and deductible business expenses.


Direct link Reply with quote
 

Natalia Mackevich  Identity Verified
United Kingdom
Local time: 00:27
Member (2009)
English to Russian
+ ...
On budgeting May 5, 2015

Several years ago I was also reluctant to use Paypal, because I did not shop online. These days, I use payments received through PayPal for online shopping (e.g. small stuff from eBay, etc.) and charity (in most cases sick children's parents have a PayPal account, and it's very easy and quick to transfer money like this - it literally takes 2 to 3 minutes). So basically, offering several payment options gave me some flexibility in budgeting. My main clients pay directly to my bank account, while some minor irregular payments top up my "pocket money".

[Редактировалось 2015-05-05 14:58 GMT]


Direct link Reply with quote
 

Sheila Wilson  Identity Verified
Spain
Local time: 00:27
Member (2007)
English
+ ...
You need to do whatever is good for your business May 5, 2015

It's up to you which payment methods you accept, and in which currencies. You may well find that you want to vary your conditions to suit individual cases; and use the payment method as a bargaining tool. You live in the eurozone, so accepting anything other than euros is not perfect. Also, wire transfers between two eurozone members should be as cheap as a transfer within the member country (i.e. very often without charge), so accepting any other form of payment from eurozone members is not perfect. But you need to be as flexible as possible with clients who seem to be worth having.

Personally, I don't allow PayPal payments from eurozone clients unless they can give me a good reason, but I'm perfectly happy for clients in other parts of the world to use PayPal, as I know that wire transfers may cost them dearly and drive them away. But whereas my terms state 30 days payment for wire transfers, PayPal payers have to pay within 10 days, or they have to add a 3.5% handling fee (from 11-30 days). I accept the equivalent number of US dollars or GB pounds in addition to euros, but I won't accept any other currency. My Spanish bank doesn't charge commission for receiving USD; my UK bank account is in GBP; and my PayPal account has balance streams in EUR and USD (the latter avoids conversion as I spend the dollars online) - that's why I'm ready to accept these payments.

You need to decide what you'll accept and why, and make sure there's a good business case.


Direct link Reply with quote
 

Gabriele Demuth  Identity Verified
United Kingdom
Local time: 00:27
Member (2014)
English to German
Sheila May 5, 2015

Sheila Wilson wrote:


Personally, I don't allow PayPal payments from eurozone clients unless they can give me a good reason, but I'm perfectly happy for clients in other parts of the world to use PayPal, as I know that wire transfers may cost them dearly and drive them away. But whereas my terms state 30 days payment for wire transfers, PayPal payers have to pay within 10 days, or they have to add a 3.5% handling fee (from 11-30 days). I accept the equivalent number of US dollars or GB pounds in addition to euros, but I won't accept any other currency. My Spanish bank doesn't charge commission for receiving USD; my UK bank account is in GBP; and my PayPal account has balance streams in EUR and USD (the latter avoids conversion as I spend the dollars online) - that's why I'm ready to accept these payments.

You need to decide what you'll accept and why, and make sure there's a good business case.



I was to ask this a client in the Eurozone who habitually pays via PayPal. Would it cost them to transfer the amount into the Euro account at my bank? I don't want to ask them to pay additional fees, but if they don't pay a fee it would be cheaper for me.


Direct link Reply with quote
 

Thomas T. Frost  Identity Verified
Germany
Local time: 01:27
Member (2014)
French to Danish
+ ...
Usually free May 5, 2015

Gabriele Demuth wrote:

I was to ask this a client in the Eurozone who habitually pays via PayPal. Would it cost them to transfer the amount into the Euro account at my bank? I don't want to ask them to pay additional fees, but if they don't pay a fee it would be cheaper for me.


SEPA transfers are free in most euro zone banks. However, each bank can set their own fees, which then apply to their own account holders. The fees for non-domestic SEPA transfers may not be higher than the fees for domestic transfers. Payer and beneficiary each pay their own fees if any.


Direct link Reply with quote
 

Harishankar Shahi  Identity Verified
India
Local time: 04:57
Member (2014)
English to Hindi
+ ...
Most hated thing is who pay the charges of Pay Pal. May 5, 2015

Specially in concern of India, Pay Pal deduction hurts, I am always trying to say my clients that please pay extra in Invoice, so I hate it... I used only, when have no choice.

Direct link Reply with quote
 

Alok Tiwari  Identity Verified
India
English
+ ...
Ask the client to add PayPal fee :) May 5, 2015

Hi,

A simple solution would be to ask the client to add a PayPal fee to your charges. There are various online fee calculators.

https://salecalc.com/paypal

It should typically be 3% + $ 0.3 per transaction (approx.) So, just go ahead and ask the client to add this fee, and many would be willing.

PayPal is reliable. And if you get more than $3000 in a month, you can ask for additional discount by contacting PayPal support.

PayPal is safe since your Bank Details are not revealed, only an email id. You can pay using PayPal too, in case you are getting some work outsourced.

A general thumb rule is to use PayPal for small payments and Bank Transfer for bigger amount. Most clients too follow this rule. As sometimes, it may be more costly to do a wire transfer to someone in another continent (if the amount is small). Then PayPal comes to the rescue.

Even refunds are easy with PayPal. Suppose you get a wrong amount, the refund can be instant, and without costing a penny.

Best,





[Edited at 2015-05-05 18:38 GMT]


Direct link Reply with quote
 

Anton Konashenok  Identity Verified
Czech Republic
Local time: 01:27
Russian to English
+ ...
Don't forget about the conversion rates May 6, 2015

Colleagues, if you ask the client to bear Paypal charges and the transaction involves a currency conversion, keep in mind that Paypal's exchange rates are much worse then at most banks, and Paypal only allows you to withdraw funds in your local currency.

Direct link Reply with quote
 

Tom in London
United Kingdom
Local time: 00:27
Member (2008)
Italian to English
About PayPal May 6, 2015

Here are a few of the answers to your questions, and others:

http://tinyurl.com/uggq

The forums are interesting.

Despite the shrill tone of this site, it's interesting.

[Edited at 2015-05-06 06:24 GMT]


Direct link Reply with quote
 

Merab Dekano  Identity Verified
Spain
Member (2014)
English to Spanish
+ ...
No worthwhile alternative, I'm afraid May 6, 2015

If you are based, say, in Europe and have customers across the ocean, PayPal remains the least of the evils.

Another option is opening a US bank account. The option is interesting and some banks are free, but it is not easy and will cost you a lot of time.


Direct link Reply with quote
 

Tom in London
United Kingdom
Local time: 00:27
Member (2008)
Italian to English
Alternatives May 6, 2015

If you don't like the way something works, **competition** is the best way to bring about improvement.

The Top 12 Online Payment Alternatives that compete with PayPal are:

http://sejr.nl/QMOEOY

For a while now, I have been advocating that Proz could set up its own payments system, which I have suggested could be called ProzPay. So far, no result ! It would probably be far too complicated to organise, and would have a relatively limited number of users.

[Edited at 2015-05-06 06:32 GMT]


Direct link Reply with quote
 

Merab Dekano  Identity Verified
Spain
Member (2014)
English to Spanish
+ ...
I agree May 6, 2015

Tom in London wrote:

If you don't like the way something works, **competition** is the best way to bring about improvement.

The Top 12 Online Payment Alternatives that compete with PayPal are:

http://sejr.nl/QMOEOY

For a while now, I have been advocating that Proz could set up its own payments system, which I have suggested could be called ProzPay. So far, no result ! It would probably be far too complicated to organise, and would have a relatively limited number of users.

[Edited at 2015-05-06 06:32 GMT]


Brilliant idea I think, Tom. Not surprised it has not been followed up, though. It's all about "scale". And ProZ has relatively small team.

I find PayPal abusive "feewise" and otherwise. Yet, I am not receiving billions of dollars from the States. So I guess I'm just putting up.

As for the alternatives, I would certainly go for them. The only problem is how on earth I can convince my US customers that as of now they will have to please, please, use Intuit or Click2Sell. I guess we all anticipate the answer.

The abuse of PayPal comes with its brand name. They were married with eBay, but they already filed for divorce. Yet, everybody knows their name and therefore everybody is using their services. Sad but true.


Direct link Reply with quote
 

Samuel Murray  Identity Verified
Netherlands
Local time: 01:27
Member (2006)
English to Afrikaans
+ ...
Tom, those alternatives aren't really alternatives May 6, 2015

Tom in London wrote:
The Top 12 Online Payment Alternatives that compete with PayPal are:
http://sejr.nl/QMOEOY


Here's a quick overview of what those 12 online payment alternatives offer for translators:

Google Wallet
Works only if both translator and client is in the USA.

WePay
Aimed at e-commerce, not personal money sending.
Does not offer any information about fees on its site, must "contact sales staff" to get that information.

2checkout.com
Aimed at e-commerce, not personal money sending.
Accepts credit cards, debit cards and PayPal payment
Client pays nothing
Translator pays USD 0.45 + 7%
Translator pays bank currency exchange rate + 5%
Chargebacks costs the translator USD 25.00

Authorize.net
Aimed at e-commerce, not personal money sending.
Client pays nothing
Translator pays USD 49 setup fee
Translator pays USD 25 monthly fee
Translator pays USD 0.30 + 4.4%
Chargeback costs the translator USD 25.00
No information given about currency exchange fees

Skrill
Client pays 1% (max EUR 10)
Client also pays 1.9% if paying via credit card
Translator pays no recipient fee
Translator pays EUR 2.95 withdrawal fee
Translator pays bank currency exchange rate + 5%
Translator pays EUR 1 per year if no transactions made in a year

Intuit
Aimed at e-commerce, not personal money sending.
Client pays nothing
Translator pays USD 0.25 + 3.4%
Translator pays 1% if client uses VISA, Mastercard or AMEX
Translator pays 0.5% if client uses electronic payment

ProPay
Appears to be Canada-specific.

Dwolla
Works only if translator is in the USA.

Braintree (a PayPal company, they say)
Translator must have PayPal business account
Client pays nothing
Translator pays EUR 0.30 + 6.8%

ClickBank
Aimed at e-commerce, not personal money sending.

Stripe
Aimed at e-commerce, not personal money sending.
Client pays nothing
Translator pays EUR 0.30 + 2.9%
Translator pays bank currency exchange rate + 2%

Comparing the services is also difficult because not all of them show all the fees on their sites. Some of them assume that some fees are not "their" fees (but your and your client's bank's fees) and therefore don't state it on the site. Some of them don't mention their currency exchange rate surcharges (so it's easy to forget to take those into account).

So, essentially, there is only PayPal and Skrill. Skrill is cheaper (even if you tell your client that he can deduct the Skrill fee off your invoice) but does not work in the USA.

Other options for money sending include:

* Western Union (fees difficult to calculate, must often pick up money in person, can take several days for transfer)
* Moneygram (fees difficult to calculate, must often pick up money in person, can take several days for transfer)
* WorldRemit (somewhat limited number of country-to-country combinations, USD 4 per transaction)
* Xoom (limited number of countries, client pays USD 5.00)
* Transferwise (essentially this is a normal bank transfer, with reduced currency exchange fees)


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 »

Receiving money via PayPal: good thing or bad thing?

Advanced search







PDF Translation - the Easy Way
TransPDF converts your PDFs to XLIFF ready for professional translation.

TransPDF converts your PDFs to XLIFF ready for professional translation. It also puts your translations back into the PDF to make new PDFs. Quicker and more accurate than hand-editing PDF. Includes free use of Infix PDF Editor with your translated PDFs.

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