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Sat July 11 2015 09:13:02

PayPal Collects Cross Border Fees on Some Domestic Transactions?

By: Reader

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Dear Ina,
This is a first for me...at least a first time catching Pay Pal's sneaky way to grab more of my money.  

Like most eBay sellers, my sales are very slow and I noticed in my PayPal account, for the only two items I sold this week, there was a slight discrepancy in PayPal fees. Both items I sold were shipped to the US and totaled $160, however; the PayPal fees were different. 

I called to inquire about this difference and the PayPal agent told me it's because one of the buyers has her default address in Canada, therefore I was assessed an extra 1% cross border fee. 

Nothing was indicated on the transaction page that this was the case so I asked how I was supposed to know. The PayPal agent said that there is no way for the seller to tell.  

She offered to reimburse the 1% fee. Even though it's next to nothing, I took her up on it since I was already on the phone with her. Now I wonder how much money PayPal has made from me over the 14 years of selling on this 1% cross border fee that isn't actually an international transaction.

Maybe others have written in about this issue and I missed it since I've only been a subscriber for about two years. 
Thanks,
Elizabeth




Comments (23) | Permalink

Readers Comments

PayPal Collects Cross Border Fees on Some Domestic   PayPal Collects Cross Border Fees on Some Domestic

This user has validated their user name. by: toolguy

Sat Jul 11 11:13:34 2015

I have my Paypal account set up to take US payments only!

I also only ship to US addresses.

Don't need any foreign headaches.  

PayPal Collects Cross Border Fees on Some Domestic   PayPal Collects Cross Border Fees on Some Domestic

by: sasikat9 This user has validated their user name.

Sat Jul 11 13:28:20 2015

Just another good reason not to ship to ANY FOREIGN COUNTRY.

PayPal Collects Cross Border Fees on Some Domestic   PayPal Collects Cross Border Fees on Some Domestic

by: Idon'tcareanymore. This user has validated their user name.

Sat Jul 11 14:46:07 2015

To me foreign sales are better than domestic.
Around 20% of my eBay sales are international. For 10 years I have had no more than 5 problem transactions and lost money only on two. 2-3 international return for all these years. I get that many frivolous returns every month from US buyers.
Many more problems with the domestic buyers conditioned by eBay's rules. Just checked my dashboard. All my ''defects'' are from domestic sales, none from international buyers.

Based on my experience international buyers are more respectful and pay faster.

Naturally I don't use their Global shipping program.
You make more $$ on international shipping too because they pay extra slightly more for shipping than actual cost. So you make more instead of paying for shipping from the regular price.
It takes no more than 30 seconds more to print the shipping label with customs declaration for an international shipment than it would for a domestic one.
All sellers restricting themselves to US buyers only are losing some $$. That might be better. More sales for sellers that do ship internationally...

PayPal Collects Cross Border Fees on Some Domestic   PayPal Collects Cross Border Fees on Some Domestic

This user has validated their user name. by: Rexford

Sat Jul 11 15:48:58 2015

Idon'tcare anymore says "All sellers restricting themselves to US buyers only are losing some $$. That might be better. More sales for sellers that do ship internationally..."

I loved my international buyers, and I agree with what you have said, but the minute eBay forced US sellers to pay the shipping on international returns I ended international shipping. Sometimes we ship heavy items, and with bad exchange rates in some countries, an international return could be quite expensive.  We'd have to refund both the original shipping paid and the return shipping.  We are simply not going there.  This is one time where eBay have just gone too far.  Yes, we will lose some money, but so will eBay.

PayPal Collects Cross Border Fees on Some Domestic   PayPal Collects Cross Border Fees on Some Domestic

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

Sat Jul 11 21:56:31 2015

A 1% loading for the seller when the buyer should be paying this conversion fee; indeed, you can be sure that the buyer is effectively already paying such a "fee" built into the foreign exchange conversion rate ...

“Money, not morality, is the principle of commerce …”—Thomas Jefferson.

Demonstrably, that principle applies, in spades, to both eBay and PayPal … http://bit.ly/1nSA1Zl

And, not even the criminal code gets in the way of commerce at eBay Inc. … http://bit.ly/11F2eas

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

PayPal Collects Cross Border Fees on Some Domestic   PayPal Collects Cross Border Fees on Some Domestic

This user has validated their user name. by: iheartjacksparrow

Sat Jul 11 23:46:39 2015

Years ago when I sold on eBay I had quite a few international sales each month. Nowadays I don't even offer to ship outside of the U.S. because of the massive increase in postage to foreign countries, and the fact that buyers outside the U.S. have become adept at scamming sellers.  

PayPal Collects Cross Border Fees on Some Domestic   PayPal Collects Cross Border Fees on Some Domestic

This user has validated their user name. by: windsorbear

Sun Jul 12 00:14:00 2015

Maybe I'm reading this wrong, but if I am not, then everyone seems to be missing the point.  The OP said the shipping addresses were in the USA.  She did not do an international sale.  The only reason one of the sales had an extra 1% fee was because one of the buyers had a default address that was in Canada... even though that was not the address that the package was shipped to.  So now PayPal charges a 1% fee for packages shipped from the USA... to the USA... just because the buyer has one of their addresses listed in Canada, and there is no way to know this if the sale is made because the ship to address is in the USA.  Or am I totally reading this wrong???

PayPal Collects Cross Border Fees on Some Domestic   PayPal Collects Cross Border Fees on Some Domestic

This user has validated their user name. by: toolguy

Sun Jul 12 02:36:24 2015

@windsorbear

I suspect that the buyer has a Canadian based Paypal account and a US shipping address. That would account for the 1% additional charge.

PayPal Collects Cross Border Fees on Some Domestic   PayPal Collects Cross Border Fees on Some Domestic

by: SparklyEyes7 This user has validated their user name.

Sun Jul 12 09:15:38 2015

I also love my international buyers!  I do a combo of using GSP and shipping to them directly, whatever is their preference.

PayPal Collects Cross Border Fees on Some Domestic   PayPal Collects Cross Border Fees on Some Domestic

by: Cobalt This user has validated their user name.

Sun Jul 12 11:02:26 2015

windsorbear- you got it correct. According to Pay Pal there is no way for you to know a buyer has an international address"linked" to their account if the ship-to address is in the US.

PayPal Collects Cross Border Fees on Some Domestic   PayPal Collects Cross Border Fees on Some Domestic

This user has validated their user name. by: windsorbear

Sun Jul 12 12:19:56 2015

I was just wondering as everyone seems to be commenting about whether or not they will do international sales... and that has nothing to do with what the OP was saying in this letter!  She didn't do an international sale... she did a domestic sale to someone that just happened to have a non-USA address listed in PayPal's database.

PayPal Collects Cross Border Fees on Some Domestic   PayPal Collects Cross Border Fees on Some Domestic

This user has validated their user name. by: bitbybit

Sun Jul 12 14:45:23 2015

Ebay and Paypal are making mega bucks on shipping. Besides blatantly stealing by double dipping on shipping fees in eBay and Paypal, they are now blindly stealing from sellers if the buyer happens to have an international address listed in Paypal even though US seller is shipping to an address within the USA.

This really is triple dipping. Paypal collects a percentage on the total sale which includes shipping, eBay charges a shipping fee and now Paypal collects an additional 1% unbeknownst to seller.

Now don't get me started on the bloated GSP super duper extensive fee program and eBay's new smack the seller on international returns program. (Note: wonder why descriptions are being hidden?)

Since many US sellers have stopped selling internationally, Paypal, or should I say Donahoe, have found a way to collect a cross border fee and none will be the wiser.    

PayPal Collects Cross Border Fees on Some Domestic   PayPal Collects Cross Border Fees on Some Domestic

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

Sun Jul 12 15:58:09 2015

It is usual for a foreign exchange transaction to be performed by either the transferor or the transferee; in PayPal's case, I would not be at all surprised if “PreyPal” was “double dipping” by charging both the transferor and transferee an FX fee. Let's face it, if you can't clearly see what is going on you may assume that the likes of the clunky eBay/"PreyPal" operations will most likely be taking advantage of such lack of transparency ...

“Money, not morality, is the principle of commerce …”—Thomas Jefferson.

Demonstrably, that principle applies, in spades, to both eBay and PayPal … http://bit.ly/1nSA1Zl

And, not even the criminal code gets in the way of commerce at eBay Inc. … http://bit.ly/11F2eas

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

PayPal Collects Cross Border Fees on Some Domestic   PayPal Collects Cross Border Fees on Some Domestic

This user has validated their user name. by: toolguy

Sun Jul 12 23:38:54 2015

The solution is simple

DON'T take foreign based payments with Paypal!

It's an option. . .

PayPal Collects Cross Border Fees on Some Domestic   PayPal Collects Cross Border Fees on Some Domestic

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

Sun Jul 12 23:55:44 2015

toolguy,

If eBay shows the addressee as being at a local address, how would a merchant know otherwise; and, if the goods are sent to other than PayPal's default address, how does that affect any warranty of delivery?

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  

PayPal Collects Cross Border Fees on Some Domestic   PayPal Collects Cross Border Fees on Some Domestic

by: Oh Really? This user has validated their user name.

Mon Jul 13 01:24:12 2015

This has NOTHING to do with where the item was shipped or where the buyer was registered, also nothing to do with ''exchange'' as P Cohen mentioned

ALL credit card processors charge extra to process payments made with non-US credit cards. They are simply passing along the fees that MasterCard, Visa, & Amex charge when one of their credit cards is used in a cross border transaction.

It seems pretty ridiculous to me that people are getting so upset about making a sale that costs them an extra 1%, if your margins are so tight that you are better off with no sale at all then your career on eBay or elsewhere is going to be pretty short.

My brothers lives in Boston, he has lived there for 20 years and has a green card. He also still maintains his Canadian banks accounts, credit cards etc because his kids live in Canada and he will be returning to Canada when he retires.

I guess you some people here would rather he didn't buy on eBay, after all they would surely be losing money with that MASSIVE 1% fee.

It works both ways, you could sell to me here in Canada and you won't have to pay the extra fee because I usually use my US issued credit card for eBay purchases.

PayPal Collects Cross Border Fees on Some Domestic   PayPal Collects Cross Border Fees on Some Domestic

by: Interesting Antiques This user has validated their user name.

Mon Jul 13 01:57:33 2015

A Class action suit sounds right for this! Disgusting underhanded and most likely ilegal collection of monies.

PayPal Collects Cross Border Fees on Some Domestic   PayPal Collects Cross Border Fees on Some Domestic

This user has validated their user name. by: bitbybit

Mon Jul 13 02:39:56 2015

I don't know why I didn't think of this before but Toolguy must be Griff's replacement as seller advocate. It all makes sense now. So glad you have our back toolguy.  

PayPal Collects Cross Border Fees on Some Domestic   PayPal Collects Cross Border Fees on Some Domestic

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

Mon Jul 13 04:06:36 2015

@Oh Really,

If you look at your bank’s credit card account statement you will see that the payer’s local bank charges the payer an FX fee on payments made in another currency; the inter country merchant/payee receives payment in his local currency with no further FX fee.

If you pay via "PreyPal", “PreyPal” charges the payer’s credit card or PayPal account in the local currency and then does the FX conversion themselves, quoting an exchange rate at which the conversion was made to the payer, which no doubt includes an FX fee; then, “PreyPal” also charges the merchant/payee an additional 1% fee; sounds like double dipping to me—which is what we have come to expect from these shysters …

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  

PayPal Collects Cross Border Fees on Some Domestic   PayPal Collects Cross Border Fees on Some Domestic

by: Cobalt This user has validated their user name.

Mon Jul 13 13:07:24 2015

Oh Really? - I am not upset about making a sale that cost me another 1%, I am bothered by the fact that Pay Pal is double charging for the same fee.  I certainly don't care where you or your brother shops. Cool off.

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