Paypal transaction costs
Thread poster: Ana Pando & Anne Spence
Ana Pando & Anne Spence
Local time: 09:21
French to English
+ ...
Oct 6, 2005

Hello,

A client wants to pay me for a translation by Paypal (up until now i've been paid by bank transfer). I see that the charges for receiving payments by Paypal are much higher than those for receiving a bank transfer.

I would like to know what other translators do when in this situation. Is it normal to add the transaction costs on my invoice?

Thanks


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xxxBrandis
Local time: 09:21
English to German
+ ...
depends upon the type of account you have Oct 6, 2005

with the paypal people. I for example, have a premium business account and I request my customer about 3% - €5,- which ever is higher to add to the transfer value, as my bill is an FOB bill. hope that helps. Brandis

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xxxPFB  Identity Verified
Local time: 09:21
English to French
+ ...
PayPal Oct 6, 2005

Hello

As far as I know, the commission is 3.90 %. In my case it is much cheaper than a bank transfer (obviously it depends on the amount transferred). I don't ask my clients to pay the commission if we agree on a PayPal payment from the start - but I do ask them to pay 10 % on top of my usual rate if they insist on paying by bank transfer.

Hope this helps.

Philippe


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Heinrich Pesch  Identity Verified
Finland
Local time: 10:21
Member (2003)
Finnish to German
+ ...
Bank transfer in the EU are free of charge Oct 7, 2005

Philippe Boucry wrote:

Hello

As far as I know, the commission is 3.90 %. In my case it is much cheaper than a bank transfer (obviously it depends on the amount transferred). I don't ask my clients to pay the commission if we agree on a PayPal payment from the start - but I do ask them to pay 10 % on top of my usual rate if they insist on paying by bank transfer.

Hope this helps.

Philippe


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Ivana de Sousa Santos  Identity Verified
Portugal
Local time: 08:21
French to Portuguese
+ ...
I've got a "Personal Account" Oct 7, 2005

and I don't pay anything for the transfers.

We only pay 1€ to transfer the money to our bank account if it's less than 500€.


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Ana Pando & Anne Spence
Local time: 09:21
French to English
+ ...
TOPIC STARTER
Still slightly confused! Oct 7, 2005

By my calculations I only have to pay around 3 euros to receive a bank transfer (i'm with the Credit Agricole) and around 3.9% of the amount earned for the translation with Paypal, which seems to amount to around 13 euros!!!! (the job is worth 405 euros)Am I missing something here?

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Sara Freitas
France
Local time: 09:21
French to English
Heinrich, it depends on your bank's fee schedule Oct 7, 2005

For intra-EU transfers banks are allowed to charge what they would charge for transfers within the same country.

Example: The bank where I have my "work" account charges me 92 cts every month when I pay my "salary" into my personal account with another bank in same country. They would also be allowed to charge me the same amount for a transfer to a bank in another EU country, but no more. (Incidentally, I am going to move my "work" account to my personal bank to avoid this...I just *hate* bank fees!!).

In some cases, bank transfers can be more expensive than Paypal, but I'd rather pay more for the added security of working with a bank than gamble with Paypal (what exchange rates do they use? what additional fees do you have to pay to get the funds out of your Paypal account? what justification, if any, does Paypal have to give if they wish to freeze your account? what about the risk of pirating and identity theft? how easy is it to get customer support when something goes wrong with Paypal?).

My 2 cents!


Sara


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Ana Pando & Anne Spence
Local time: 09:21
French to English
+ ...
TOPIC STARTER
Good point Sara Oct 7, 2005

Sara Freitas-Maltaverne wrote:

For intra-EU transfers banks are allowed to charge what they would charge for transfers within the same country.

Example: The bank where I have my "work" account charges me 92 cts every month when I pay my "salary" into my personal account with another bank in same country. They would also be allowed to charge me the same amount for a transfer to a bank in another EU country, but no more. (Incidentally, I am going to move my "work" account to my personal bank to avoid this...I just *hate* bank fees!!).

In some cases, bank transfers can be more expensive than Paypal, but I'd rather pay more for the added security of working with a bank than gamble with Paypal (what exchange rates do they use? what additional fees do you have to pay to get the funds out of your Paypal account? what justification, if any, does Paypal have to give if they wish to freeze your account? what about the risk of pirating and identity theft? how easy is it to get customer support when something goes wrong with Paypal?).

My 2 cents!


Sara



Thanks Sara! You seem to be very well-informed about this topic! I am, like you, wary of Paypal. I'll make sure that I state my preference for bank transfers from now on.


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Peter Bouillon  Identity Verified
Germany
Local time: 09:21
French to German
+ ...
Only if both countries share the currency EUR Oct 7, 2005

Sara Freitas-Maltaverne wrote:

For intra-EU transfers banks are allowed to charge what they would charge for transfers within the same country.


... provided, unfortunately, that both source and destination countries have the currency Euro. Transferring money from Great Britain (Pound Sterling) to Germany (Euro) is much more expensive than transferring money from Germany to Germany, which is allowed due to the differing currencies.

This is where PayPal and Moneybookers come in. They also provide an easy way to offer payment by credit card to customers.

P.

[Edited at 2005-10-07 13:56]


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Sara Freitas
France
Local time: 09:21
French to English
Good point, Peter. Oct 7, 2005

I don't ever deal with that situation, fortunately. The rare payments I get from the U.S. come by check (I'd rather pay the fees for depositing foreign checks into my account than use Paypal) and the rest of my payments are from euro-currency countries.

I would be very wary of Paypal, however. (As I've said many times on this site). There may be a lot of hysteria and overblown stories by disgruntled ex-Paypal employees on anti-Paypal Web sites, but the class action suits against the company are real and I have a hard time believing that they are totally unfounded. Plus, have you ever really read the fine print? The day I did that was the day I closed my Paypal account.

I heard that you can have secure online payment developed for your Web site for a few thousand euros/dollars. The day I need to rely on credit cards for payment I will make the investment.

Regards,
Sara


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xxxPFB  Identity Verified
Local time: 09:21
English to French
+ ...
Your bank is more expensive than PayPal and just as unsafe Oct 7, 2005

Sara Freitas-Maltaverne wrote:

I don't ever deal with that situation, fortunately. The rare payments I get from the U.S. come by check (I'd rather pay the fees for depositing foreign checks into my account than use Paypal) and the rest of my payments are from euro-currency countries.

I would be very wary of Paypal, however. (As I've said many times on this site). There may be a lot of hysteria and overblown stories by disgruntled ex-Paypal employees on anti-Paypal Web sites, but the class action suits against the company are real and I have a hard time believing that they are totally unfounded. Plus, have you ever really read the fine print? The day I did that was the day I closed my Paypal account.

I heard that you can have secure online payment developed for your Web site for a few thousand euros/dollars. The day I need to rely on credit cards for payment I will make the investment.

Regards,
Sara



Sara, I'm afraid I have to disagree with you here.

Banks in France are more expensive than anything PayPal will make you pay. As for the fine print, have you read that of your bank (not that we can escape those conditions - mind)? You'll discover it when you wnat to move your biz account to the bank where you have your personal account. How much will they charge you for simply closing that account?

And I'm sure that living in France, you've heard of the two recent incidents of website fraud that 2 of the best known French banks have had to deal with.

I'm not a great fan of PayPal either but I don't believe that French banks are any better, and PayPal is cheaper.

Cordialement (now what's that in English?;-))

[Edited at 2005-10-07 20:13]


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Sara Freitas
France
Local time: 09:21
French to English
Fair enough, Philippe Oct 8, 2005

It is up to every small business owner to assess costs, benefits, and risks when making decisions.

I read *all* of the fine print (my bank's and Paypal's) and made my decision accordingly.

Paypal may very well be a good, economical solution for a lot of people, but I am not willing to take the risk of having my account frozen by them. Also, legally, Paypal is operating in sort of a vacuum...not much jurisprudence as of yet...esp for international (non-U.S. account holders).

When I opened my bank account, I was well aware of the fees and costs of closing the account. With my soon to be "new" bank (my current personal bank) I know that I have a responsive customer relations rep to help me out over the phone or face to face when needed. There is also a clear legal framework protecting banking customers in France, so I feel confident that the situation will be resolved if there is ever a problem with my account.

Just my personal preference!

Kind regards (in English )

Sara


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Peter Bouillon  Identity Verified
Germany
Local time: 09:21
French to German
+ ...
Don't leave money on Paypal or Moneybookers accounts Oct 28, 2005

Sara Freitas-Maltaverne wrote:
but I am not willing to take the risk of having my account frozen by them.


This point is valid. You should always see to it that any money you have on Paypal or Moneybookers accounts is withdrawn ASAP.

Besides, these companies aren't banks. Should they go bust, how unlikely that may be, your balances will probably go bust, as well.

P.


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Paypal transaction costs

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