Paypal changes flat fee to enormous value

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old4570
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I don’t sell on Feebay any more … ( Greedy pukes )
Craig’s List / Gumtree to name just two .

 Always remember , the easiest thing in the world to do , is to expel hot air from your lungs and through some vocal chords ..
The resulting sound may , or may not be worth listening too ….

 

sochi111
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It definitely looks like Paypal is trying to cash on small transactions,

I tried to compare other payment services, and realized you have to look at hidden fees as well. they are hidden in the conversion rate.

I looked at some possible alternatives for transfers from USA to Russia and it looks like there are only 2-3 other alternatives:

Here are the fees to send $5-$10 to Russia

HiFX charges around $5 fees
Transferwise $3-$4 fees

Skrill is more affordable:

To send money you get charged with
Credit card fee 2.90 %
or ACH (Bank account) 6.00 %

Sending fee 1.45% +$0.50
Conversion fee 3.99%

So to send $5 would cost additional $0.92 ….$10 would be $1.33

Recipient in Russia has $0 fees to receive the money

but to withdraw the money or not use the account:
withdrawal fee $5.50
inactive service fee $3.0/month (after 1 year)

jon_slider
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sochi111 wrote:
I looked at some possible alternatives for transfers from USA to Russia

your post is all about using Paypal the way you might use Western Union, to send money to friends and family internationally

none of that has anything to do with purchases, does it?

If I use paypal to buy a flashlight from China, are any of the fees you are pointing to relevant?

Vegas LED Fan
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This doesn’t seem to apply to ordinary overseas transactions if you link a checking account to PayPal. I did several transactions yesterday that involved payments as small as $1.27 for some G4 LED light bulbs used for lighting Christmas blow molds. If you are worried about your account getting hacked, simply open a small account at a different bank or credit union and keep enough in it to avoid fees. Most credit unions don’t require a large balance for a checking account and don’t charge fees for transferring money between accounts if you do it online.

I did not get a similar letter from PayPal but I never use it for transferring money to relatives.

klrman
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jon_slider wrote:
klrman wrote:

My cousin sends money to his sister every month by using Moneygram.  Lowest fees and best exhange rates.  

thanks for sharing other options for sending money to friends and family.. I can see why paypal was not happy doing it for free.. I did a quick test, it seems Moneygram charge 5% to send money within the USA !{width:90%}https://farm1.staticflickr.com/804/39918972125_e88b47e400_b.jpg!

 

Can you try it again but only $900 this time?  Moneygram is supposed to only charge a flat rate of $11.50 for anything up to $900 within the US.

RobertB
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klrman wrote:

jon_slider wrote:
klrman wrote:

My cousin sends money to his sister every month by using Moneygram.  Lowest fees and best exhange rates.  


thanks for sharing other options for sending money to friends and family.. I can see why paypal was not happy doing it for free.. I did a quick test, it seems Moneygram charge 5% to send money within the USA

Can you try it again but only $900 this time?  Moneygram is supposed to only charge a flat rate of $11.50 for anything up to $900 within the US.

You can try it. It has a fee estimator

https://secure.moneygram.com/estimate/receiverInfo

klrman
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RobertB wrote:
klrman wrote:

jon_slider wrote:
klrman wrote:

My cousin sends money to his sister every month by using Moneygram.  Lowest fees and best exhange rates.  

thanks for sharing other options for sending money to friends and family.. I can see why paypal was not happy doing it for free.. I did a quick test, it seems Moneygram charge 5% to send money within the USA

Can you try it again but only $900 this time?  Moneygram is supposed to only charge a flat rate of $11.50 for anything up to $900 within the US.

You can try it. It has a fee estimator https://secure.moneygram.com/estimate/receiverInfo[/quote]

 

Thanks, I just tried it. They have changed their pricing structure again, but if you send twice $500 within the US, each time the fee is $3.99 so $7.98 total .  Much cheaper than sending $1000 at once and paying the $49.00 fee.

jon_slider
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It costs $1.65 for a US postal money order up to $1000. to use this system you have to appear in person, with cash in hand, to buy the money order

If you have a bank account and want to send money to someone, using their phone number, there is no fee if you use Zelle
https://www.zellepay.com/support/are-there-any-fees-to-send-money-using-...

paypals new fee structure are for sending money to friends and family internationally, using a credit card as the funding source

the new paypall fees do not seem to apply to credit card funded purchases of goods and services

so, there are several scenarios
1. kiriba-ru as a seller does not want to pay higher fees when accepting paypal payments
status: fees did not change

2. kiriba-ru wants to send money internationally to friends and family
status: fees went up, but only if he uses a credit card to fund the transaction, not if he uses a bank account to fund the transfer

3. Jon_slider wants to buy a flashlight internationally
status: no change in fees

4. Jon_slider wants to send money to friends and family internationally
status: no change in fees if funded by a bank account, not a credit card

5. Jon Slider wants you to send him money
status: pm me for my phone number and you can do a free transfer using Zelle… LOL!

did I miss anything?:-)

sochi111
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jon_slider wrote:
sochi111 wrote:
I looked at some possible alternatives for transfers from USA to Russia

your post is all about using Paypal the way you might use Western Union, to send money to friends and family internationally

none of that has anything to do with purchases, does it?

If I use paypal to buy a flashlight from China, are any of the fees you are pointing to relevant?

I think someone here mentioned that these Chinese sellers create US Pay pal accounts so that would not apply to you, I assume Crowdifornia is still in the U.S. Smile

I never knew but it seems like Paypal always charged a lot for international transfers right now around 7-10%

BazzH
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Now this is exactly the reason why crypto will replace other means of money transfer.

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Interesting link! on top of those private companies, they also share data (when requested) with pretty much every government agency. Since they have a banking license they are required to do this anyway (AML/KYC at the very least + any other local law) and if the request is legitimate.

Repoman44
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Revolut seems a much better solution.

Lightbringer
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Agro wrote:
BTW: https://www.schneier.com/blog/archives/2018/03/the_600_compani.html

Heh, the author, Schneier, looks like Tony Amendola. Big Smile

Still, is there any way to get away from companies “sharing” (ie, selling) your info? Any time someone collects info that can be used, it’ll at some point be misused and abused.

That’s kinda to be expected. No one’s gonna have something salable that they’re just gonna sit on.

09 F9 11 02 9D 74 E3 5B D8 41 56 C5 63 56 88 C0

jon_slider
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offtopic chatter:

CryptoCurrency is not government controlled
ALL currencies are government controlled
therefore, CryptoCurrency will Never Replace Paypal Wink

sochi111
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jon_slider wrote:
offtopic chatter:

CryptoCurrency is not government controlled
ALL currencies are government controlled
therefore, CryptoCurrency will Never Replace Papal Wink

Have to agree, while a great concept but unfortunately Crypto currencies resemble the good old “pump and dump” schemes.

Pretty much all OTC and deregulated markets are lot of times manipulated by “sharks” .

pennzy
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For the first time I noticed a foreign transaction fee on my Pay Pal linked credit card charges . Only pennies . May have been there on other statements but didn’t notice . Is this usual on Chinese purchases using Pay Pal or something new?

jon_slider
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sounds like you had a fee for currency conversion, and that is new
or, it could be a fee for using a credit card, and that would be new

can you please tell us what Percent of total purchase price was the fee you were charged, so we can figure out if it is a credit card fee, or a currency conversion fee?

in any case, I believe if you link your paypal to a bank account, and not to a credit card, then there would be no fees

just my opinion, maybe contact paypal directly and share what you learn?

pennzy
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Approximately .6 %.

pennzy
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I found this in Pay Pal agreement:

When your payment is funded by a debit or credit card and requires a currency conversion, you consent to and authorize PayPal to convert the currency in place of your debit or credit card issuer. You have the right to have your card issuer perform the currency conversion and can choose this option during checkout on your transaction review page before you complete the transaction. If your card issuer converts the currency, you’ll be charged a rate set by them (shown on your statement), and you’ll be subject to any fees and terms set by them related to the conversion.

PayPal will always perform the conversion for transactions where your PayPal balance or linked bank account is the payment method

jon_slider
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pennzy wrote:
Approximately .006 %.

does not sound like a credit card fee
if you contact paypal, I hope you will help educate us better on what is going on
Im glad the fee was so small


just saw your second post
Im glad you figured out it is a currency conversion fee

I dont quite understand if that fee would be avoided if you fund from a bank instead of a credit card
still glad it was a very small fee

thanks for sharing info

pennzy
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jon_slider wrote:
pennzy wrote:
Approximately .006 %.

does not sound like a credit card fee
if you contact paypal, I hope you will help educate us better on what is going on
Im glad the fee was so small


just saw your second post
Im glad you figured out it is a currency conversion fee

I dont quite understand if that fee would be avoided if you fund from a bank instead of a credit card
still glad it was a very small fee

thanks for sharing info

See my previous update above

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Update : should have said .6 % ( not .006%)

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jon_slider wrote:
kiriba-ru wrote:
page showed how much fees will PP withhold when Im sending money abroad

what I saw was for international money transfers to friends and family, when funded by a credit card

I see nothing about new fees for payment for goods and services paid for with a credit card, or not

Agreed, there is even a definition of “personal payment” in the Paypal email.

Quote:
A4.2 A “Personal Transaction” payment involves sending money (initiated from the “Friends and Family” tab of the “Send Money” flow) to, and receiving money into your PayPal Account from, friends and family without making an underlying commercial transaction (that is, the payment is not for the purchase of goods or services or for making any other commercial transaction).
jon_slider
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pennzy wrote:
I found this in Pay Pal agreement:

When your payment is funded by a debit or credit card and requires a currency conversion, you consent to and authorize PayPal to convert the currency

thank you for taking the time to share your research

pennzy wrote:
.6 %

good info, thank you

sounds like a currency exchange fee, if applicable, applies to any funding type, credit, debit, bank, or paypal balance

It does not sound like a 3-4% credit card transaction fee, nor the additional flat fee, that the OP mentioned when he wants to transfer funds to friends or family funded by a credit card.

I do not know if purchases paid by paypal have changed fees, afaict Paypal has always charged a ~4% fee to a seller, it was only fees to friends and family that have changed afaict. iow, Paypal wants to collect fees on sales, and when people try to get around that by claiming it is a gift, they can no longer get around the fee, when funding with a credit card. I dont think there is a fee when funding a gift to friends and family from a bank or paypal balance..

Im open to learning better info. I dont do many friend and family transfers, so not a lot of experience.

Dave. wrote:
Agreed, there is even a definition of “personal payment” in the Paypal email.
Quote:
A4.2 A “Personal Transaction” payment involves sending money (initiated from the “Friends and Family” tab of the “Send Money” flow) to, and receiving money into your PayPal Account from, friends and family without making an underlying commercial transaction (that is, the payment is not for the purchase of goods or services or for making any other commercial transaction).

thank you, Personal Transaction, non commercial, are useful terms
it is these Personal Transactions that are now no longer free afaict, at least when funding with a credit card

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