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Tue Oct 4 2011 12:42:37

Online Retailer Reports PayPal Overcharged on Fees

By: Ina Steiner

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An online seller said PayPal overcharged fees on their merchant account this month, charging them the standard rate instead of the merchant rate. The seller was initially told their September sales were below the $3,000 minimum required to receive the more favorable rate.

When the merchant explained to PayPal that their September sales were above $3,000, another rep sent an email explaining that PayPal had found some discrepancies and had contacted the technical department, which was investigating the issue.

There are no reports of other merchants having this problem on eBay's PayPal discussion board or on the EcommerceEKG board, but it is wise to check your record and make sure PayPal is charging the correct fees for your October transactions. Let us know in the comments what you find!




Comments (4) | Permalink

Readers Comments

Online Retailer Reports PayPal Overcharged on Fees   Online Retailer Reports PayPal Overcharged on Fees

This user has validated their user name. by: Anonymous Annie

Tue Oct 4 13:36:31 2011

Even their "discounted" rates are higher than what I'm paying with my merchant account. (And I don't have such a high threshold to reach either!)

They tried to charge MORE but now that I've removed them as a payment option for my web site and Bonanza, they're getting LESS from me than before.

Online Retailer Reports PayPal Overcharged on Fees   Online Retailer Reports PayPal Overcharged on Fees

by: angryjim

Tue Oct 4 16:04:05 2011

''When the merchant explained to PayPal that their September sales were above $3,000, another rep sent an email explaining that PayPal had found some discrepancies and had contacted the technical department, which was investigating the issue.''

Sounds like typical eBay duplicity.

Online Retailer Reports PayPal Overcharged on Fees   Online Retailer Reports PayPal Overcharged on Fees

This user has validated their user name. by: Philip Cohen
Web Site

Tue Oct 4 16:04:58 2011

Being that for the great majority of their clunky operation PreyPal rides on the back of the banks/Visa/MasterCard existing payments processing services, how do you think that PreyPal makes its money?

PreyPal makes its money by charging a premium on what PreyPal pays the banks for the use of their services. As no more than an extremely large merchant account to their banker, they are probably paying their merchant account supplying bank(s) (Well Fargo and Chase) not much more than 0.5% across the board (and bank account direct debits a fraction even of that) and they are charging PreyPal users, apparently, 2.2-2.9% + 30c.

PreyPal, outside of its mandated use on whatever will ultimately be left of the Donahoe-devastated eBay Marketplace, will undoubtedly be consigned to the history books by the retail banks/Visa/Mastercard once those players get their “online” act together. There is nothing surer than the sun will rise in the morning.

PayPal claims PayPal Is Not a Payments Processor!
http://forums.auctionbytes.com/vbulletin/showthread.php?t=24148

eBay-Facilitated Shill Bidding Fraud on eBay Auctions: Case Study #4:  
http://forums.auctionbytes.com/vbulletin/showthread.php?t=23
540


And from along the way a compilation of (mostly inane) quotes from eBay executives:
http://forums.auctionbytes.com/vbulletin/showthread.php?t=24159  

Enron / WorldCom / eBay / PayPal / Donahoe: Dead Men Walking.

Online Retailer Reports PayPal Overcharged on Fees   Online Retailer Reports PayPal Overcharged on Fees

by: JS

Tue Oct 4 16:13:28 2011

I just checked my Sep billings and all is in order for me. The rate charged is correct.



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