|Sat July 10 2021 10:12:12|
Can You Pass Your PayPal Fees on to Buyers?
By: Ina Steiner
The answer is no, you can't simply charge your buyers the exact fees PayPal charges you for processing your payment. For the skeptics among you, here's what it says in the PayPal User Agreement
"No surcharges: You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method. You may charge a handling fee in connection with the sale of goods or services as long as the handling fee does not operate as a surcharge and is not higher than the handling fee you charge for non-PayPal transactions."
A reader brought to our attention that not everyone is abiding by those terms, whether intentionally or not.
"I am not a fan of PayPal either, but the shameless way a lot of merchants are openly passing along PayPal's fees (instead of just building the fees into their overall price structure) is getting ridiculous," the reader said.
The reader pointed to sellers "shamelessly charging 3-4% in surcharges to pay PayPal" on Instagram accounts.
We found a seller posting an item for sale on Instagram that included the following verbiage: "not including, shipping base on location or #paypalfees 2.9%. Request an invoice."
Do you think sellers should be allowed to pass along the exact payment-processing costs they're charged, whether by PayPal or other payment processors?
And unless or until it's allowed, do you see sellers violating such terms as a problem? Should PayPal crack down?