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Thu Feb 5 2015 10:38:05

Merchant Warns Sellers to Watch for PayPal Overcharges

By: Reader

Sponsored Link

Dear Ina,
I am an avid reader of your newsletter and appreciate all of its contents. I would like to draw your readers' attention to an issue I have had with PayPal in January.

I sell on eBay and also offline. I use PayPal for most of my transactions. I am lucky to have transactions each month which qualify me for the merchant's rate of 2.2%+.30. I was checking some of the fees for certain transactions and discovered that since Jan 1, I have been charged 2.5%+.30.

I contacted them and the issue was resolved and I was refunded. I wonder how many others neglect to check their fees and are being overcharged?

Incidentally, although they said the issue would resolve itself on Feb 1, it didn't and right now they are at a loss to explain why this is happening to my account. Their techs are looking into it.

My advice to all who use PayPal - check your transaction fees!
R.




Comments (18) | Permalink

Readers Comments

Merchant Warns Sellers to Watch for PayPal Overcha   Merchant Warns Sellers to Watch for PayPal Overcha

This user has validated their user name. by: iheartjacksparrow

Thu Feb 5 11:13:13 2015

One more reason not to accept PayPal.

Merchant Warns Sellers to Watch for PayPal Overcha   Merchant Warns Sellers to Watch for PayPal Overcha

by: P.Dorf This user has validated their user name.

Thu Feb 5 13:35:37 2015

another bottom-line-enhancing-glith (BLEG), expect a load more leading upto the PP spin-off

Merchant Warns Sellers to Watch for PayPal Overcha   Merchant Warns Sellers to Watch for PayPal Overcha

This user has validated their user name. by: Ric

Thu Feb 5 14:45:22 2015

Chalk this up to another John Donahoe destructive innovation designed to steal small increments from sellers who are too busy to do the math and catch them in the act.

I would guarantee that the OP is not the only seller being victimized by this.

Has PayPal come out with a statement?  Of course not, they want everyone to believe this is an isolated "glitch" and not a widespread criminal act.

If PayPal were run by honest, and straight shooting leadership, they would release a statement and contact every customer acknowledging the issue and promising consumers who use PayPal that they are going to examine each and every account to confirm this is not happening to others.

The chance this will happen is about as likely as John Donahoe returning the $23 Million he received to stay at eBay and see it's destruction through.  

Merchant Warns Sellers to Watch for PayPal Overcha   Merchant Warns Sellers to Watch for PayPal Overcha

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

Thu Feb 5 16:51:19 2015

I'll bet if this glitch was charging 1.2% and 20 cents per transaction, it would be permanently fixed within the hour.

Merchant Warns Sellers to Watch for PayPal Overcha   Merchant Warns Sellers to Watch for PayPal Overcha

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

Thu Feb 5 17:54:59 2015

"PreyPal" has just notified an increase in fees in Australia. Their standard rate, starting at “domestic transactions” will be 2.6% + $0.30 per transaction; and it goes UP from there, unless you are doing $2500 or more per month …

https://www.paypal.com/au/webapps/mpp/ua/upcoming-policies-full
https://www.paypal.com/au/webapps/mpp/paypal-fees-table
https://www.paypal.com/au/webapps/mpp/paypal-fees

The eBay executive suite—where the incompetent mingle with the disingenuous, the malevolent and the outright criminal, and the just plain stupid ... http://bit.ly/11F2eas

Merchant Warns Sellers to Watch for PayPal Overcha   Merchant Warns Sellers to Watch for PayPal Overcha

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

Thu Feb 5 19:10:44 2015

“I think we were able to move the needle, but I have to say I leave a little frustrated in that I wish we as an executive team would have done more.”—Paypal’s Don Kingsborough, as he and another 2399 staff exit eBay/PayPal (Feb 2014)

http://www.reuters.com/article/2015/02/05/us-ebay-paypal-executive
s-idUSKBN0L900X20150205


The eBay executive suite—where the incompetent mingle with the disingenuous, the malevolent and the outright criminal, and the just plain stupid ... http://bit.ly/11F2eas

Merchant Warns Sellers to Watch for PayPal Overcha   Merchant Warns Sellers to Watch for PayPal Overcha

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

Thu Feb 5 19:41:32 2015

Here’s another one …

https://recode.net/2015/02/04/ebays-innovation-and-new-ventures-gr
oup-hit-hard-by-layoffs-in-restructuring/


“I’m 100 percent convinced that we will influence a change in retail,” eBay’s Steve Yankovich told Re/code this summer during an interview at one of eBay’s San Jose headquarter offices—as he now moves sideways; still, he still has a job, apparently—LOL …

The eBay executive suite—where the incompetent mingle with the disingenuous, the malevolent and the outright criminal, and the just plain stupid ... http://bit.ly/11F2eas

Merchant Warns Sellers to Watch for PayPal Overcha   Merchant Warns Sellers to Watch for PayPal Overcha

by: pace306 This user has validated their user name.

Fri Feb 6 12:19:38 2015

"to RIC's excellent point" ....

Its been LONG established that theft, fraud and deception are the corporate motto's for both eBay and Paypal since JD became "king".

The "taking small amounts" crime was copied by JD from a few different movies. All of them steal the rounding cents etc from accounts to make millions.

JD's eBay steals from you by charging you listing fees but not showing your listings, by suppressing your listings, by allowing fakes in categories you sell in, by VEROing you for nothing, by stealing due to bid fraud, all the way to stealing from you via FORCED returns.

Paypal steals from you by taking the most creative routes to NOT "seller protect you" when an issue occurs.

Ive had cases where Ive lost - but the customer admitted that the reason the DIDNt get thier item is that they moved in between ordering the item and delivery!

Ive had others like the one I got when I sold a cell phone aka SNAD. Except that the women was trying to activate it on some unknown carrier - but thats some how my fault.

Both companies, to keep the shareholders (read board of directors) and their crooked buyers happy "create facts on teh ground" that dont exist as to explain their fraud.

eBay chalks it up to "taking losses is part of business" (so basically shut up and take one for the team), and Paypal just holds and/or refuses to give you your funds.

I havent checked my transactions to see whats what - but nothing these 2 do suprise me anymore.

Ryback = feed me more, eBay/Paypal = steal for me more.

Merchant Warns Sellers to Watch for PayPal Overcha   Merchant Warns Sellers to Watch for PayPal Overcha

by: WhoKnewIt This user has validated their user name.

Mon Feb 9 00:32:22 2015

"My advice to all who use PayPal -"  

DON'T !!

Merchant Warns Sellers to Watch for PayPal Overcha   Merchant Warns Sellers to Watch for PayPal Overcha

by: donald This user has validated their user name.

Mon Feb 9 00:44:14 2015




when will these two companies stop defrauding their customers. Is that all they know how to do ?

Merchant Warns Sellers to Watch for PayPal Overcha   Merchant Warns Sellers to Watch for PayPal Overcha

by: comet This user has validated their user name.

Mon Feb 9 01:14:43 2015

LOL---In order to have Paypal STEAL from you--you first have to have SOLD something.

So--eBay fixed that FOR us.  

Merchant Warns Sellers to Watch for PayPal Overcha   Merchant Warns Sellers to Watch for PayPal Overcha

This user has validated their user name. by: Marie

Mon Feb 9 02:52:17 2015

While I certainly believe the OP has an issue that needs to be fixed.  Others post like PP does this on a regular basis which is no where near the truth.  It is just being used as yet another reason to complain about Ebay.

@Phil

Your new rates in Australia are still cheaper than they have been in the US for years.  We pay 2.9 + 30 cents for other US transaction.  If we have $3000+ go through PP in a calendar month it will drop to 2.5 + 30cents.

Merchant Warns Sellers to Watch for PayPal Overcha   Merchant Warns Sellers to Watch for PayPal Overcha

by: Chicago48 This user has validated their user name.

Mon Feb 9 04:37:35 2015

Paypal's mobile payment service charges 2.7%.  

Merchant Warns Sellers to Watch for PayPal Overcha   Merchant Warns Sellers to Watch for PayPal Overcha

This user has validated their user name. by: SellSellSell

Mon Feb 9 12:14:26 2015

I tried ProPay to break away from PayPal. I had an issue with an international transaction and filed all the required documentation they needed to reverse a chargeback to have the case closed and out the item and a chargeback fee charged to my account. I have had a great track record with PayPal in the past and have stopped using ProPay. Just my experience and have had good support with them.  

Merchant Warns Sellers to Watch for PayPal Overcha   Merchant Warns Sellers to Watch for PayPal Overcha

by: Tornad0sRul This user has validated their user name.

Mon Feb 9 12:25:21 2015

From my experience it is clear that Paypal and EBay work together and yet each points the finger at each other when they encounter problems.  I wouldn't put it past Paypal to be just as corrupt as EBay is, an that is pretty darn corrupt.

Merchant Warns Sellers to Watch for PayPal Overcha   Merchant Warns Sellers to Watch for PayPal Overcha

by: tmooreseller This user has validated their user name.
Web Site

Mon Feb 9 14:15:38 2015

I have started to install buy buttons of my own creation and also installed a separate order form so customers can avoid Paypal if they choose to. It's the only thing I can do at the moment. So far I have not found a good shopping cart. Some of the other payment services charge more than PayPal. As usual, everything gets thrown at the seller instead of the buyer. If you are in this business to sell something, good luck.

Merchant Warns Sellers to Watch for PayPal Overcha   Merchant Warns Sellers to Watch for PayPal Overcha

by: rachel This user has validated their user name.

Tue Feb 10 01:26:46 2015

This is what the website says, that you have to apply. This happened to me a few years ago and they said they evaluate yearly here they say monthly so if your sales go down which well it had been tough in 2014 for sure...Here is what they are saying now!
What's the difference between Standard Rate and Merchant Rate?
Answer
The Standard Rate is the basic transaction fee for sellers receiving payments through PayPal.
The Merchant Rate is determined based on sales volume from the previous calendar month. Here's how you can view the Merchant Rate Criteria and apply for the Merchant Rate:
Log in to your PayPal account.
Click Fees at the bottom of the page.
Click More about merchant fees , found in the third segment of the screen titled, "Selling is 2.9% + $0.30 per sale, or less".
Click View All Discounts & Fees.
Click Apply Now to apply for a lower rate.
 

Merchant Warns Sellers to Watch for PayPal Overcha   Merchant Warns Sellers to Watch for PayPal Overcha

by: Toledo Maude This user has validated their user name.

Wed Feb 11 12:03:46 2015

Paypal was a real stinker in the early years freezing buyer and seller accounts with little or no valid reasons.  This stopped when the Feds fined Paypal something like 50 million or more.  Sweet!

When eBay outlawed payment by check or money order, I vowed to open my own credit card processing account but did not.  I went with Paypal, paid their fees good or bad.

Over the years and turnovers with my own websites and now selling on Etsy as well as eBay, Paypal has been as good as any bank is be to a small customer.  But as I do with eBay everyday, I also reconcile my account with Paypal watching that they do not steal too many pennies.  

Today, I did received a pleasant surprise while reconciling my bank accounts.  Instead of sitting on a bank transfer to my local bank and making interest from my bank transfer for up to four days, the money arrived in my local bank in two days.  BRAVO!

I hope I am not “running up the flag and declaring victory” for the little guy too soon...



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