topic Re: Extra cost with PayPal as a payment method? in Buying

Extra cost with PayPal as a payment method?

sjef0900 — Fri, 19 Aug 2016 06:50:24 GMT

Hi,

Can a seller list PayPal as a payment method then have extra details listed under payment details:

"Pick up only preferred...extra cost on price for PayPal Fees"

If I win this item and use PayPal to pay (extra buyer protection) how will the seller reclaim extra fees?

Thanks!

Re: Extra cost with PayPal as a payment method?

lyndal1838 — Fri, 19 Aug 2016 07:26:59 GMT

The seller cannot charge you extra for paying by paypal, as much as they would probably like to.

The question is whether you will ever get the item if you don't pay them

The seller may well take the chance on what feedback you will leave and just cancel the transaction.

Re: Extra cost with PayPal as a payment method?

sjef0900 — Fri, 19 Aug 2016 07:45:20 GMT

Thank you!

I thought it seemed an unusual arrangement. Are you implying that they need not honour the sale if I use PayPal... Eg if proceedings went as follows:

Auction won. PayPal payment sent. Contact Seller to arrange pick up...

They could cancel the sale based on the fact they wanted cash?

Re: Extra cost with PayPal as a payment method?

lyndal1838 — Fri, 19 Aug 2016 07:50:27 GMT

They should not cancel the transaction but the fact is that no-one can force the seller to sell to you, no matter what payment method you use.

If you are going to pick up the item it is really better for both of you if you pay cash when you pick up the item. If it is not as described or you don't like it then you can just walk away.

If you have paid by paypal you then have to hope that you can get your money back by opening a dispute....and then wait and hope that the dispute goes in your favour.

Re: Extra cost with PayPal as a payment method?

sjef0900 — Fri, 19 Aug 2016 08:36:34 GMT

Great thanks for the reply.

People are such weirdos in western Sydney - I sort of don't like the idea of turning up with cash on me, prefer electronic payment for the added security... But I take your point.

Cheers!

Re: Extra cost with PayPal as a payment method?

kopenhagen5 — Fri, 19 Aug 2016 09:20:36 GMT

I know what you are saying but online purchases, cash is the most secure.

You could pay with PayPal and turn up to the address with no one ever being home.

Could even be a false address by a scammer.

Cash is king.

Re: Extra cost with PayPal as a payment method?

phorum_junkie* — Fri, 19 Aug 2016 10:01:23 GMT

If you have a smartphone you could go to pick up and if all is as it should be make the payment using your phone on the spot or arrange to use the seller's computer to make the payment.

The seller is probably quoting the extra fee to try and discourage anyone for using Paypal to make the payment. It is not a god idea to pre pay on a pick up item from either the buyer or seller's point of view. Although Paypal no offer some protection with pick up it is not a sure fired thing that you will be able to get your money back if there is something wrong with the item.

I would never use Paypal for a pick up item and as a seller I would prefer for the buyer's sake that they paid cash after they had inspected the goods.

Re: Extra cost with PayPal as a payment method?

sjef0900 — Fri, 19 Aug 2016 10:06:09 GMT

Okay!! Great suggestions and advice!

Re: Extra cost with PayPal as a payment method?

davidc4430 — Fri, 19 Aug 2016 10:28:22 GMT

taking all advice given, maybe this seller is one to avoid.

if hes saying things in his listing that raise the hair on the back of the neck, might be a sign of a problem to deal with.

Re: Extra cost with PayPal as a payment method?

bjmonty28 — Tue, 23 Aug 2016 08:53:15 GMT

Never ever use PayPal for pick up items.

Sellers must also learn to never ever accept PayPal for pick up items.

All a buyer has to do is claim item not received and the buyer will ALWAYS get a full refund with no questions asked because the seller cannot prove the item was picked up/sent.

Re: Extra cost with PayPal as a payment method?

locall1961 — Fri, 26 Aug 2016 00:49:24 GMT

I would never accept PayPal as a payment method if someone is picking up an item as the seller has no protection from a buyer picking the item up and then opening a dispute saying they never received the item and they then get their money back, so the seller loses the item and his/her money. Even getting a receipt signed by the buyer is not enough proof. All the seller has to do is to refund you your money and get you to pay on pick up which they are entitled to do.

Re: Extra cost with PayPal as a payment method?

letscleanupmycupboards — Wed, 31 Aug 2016 12:38:27 GMT

Seller can prove its been collected. All I do is have the buyer sign a collection form and get a drivers licence number.

Re: Extra cost with PayPal as a payment method?

shepherdsrule — Wed, 31 Aug 2016 21:25:50 GMT

Something else to consider.

If it is pick up and you say you don't like carrying cash, I am assumig it is a large amount of money.

Please bare in mind that the seller has to pay a % to paypal, and why should they have to do that when they have offered the safest method possible - view item, pay for item, get receipt and off you go.

Re: Extra cost with PayPal as a payment method?

gec2002 — Thu, 01 Sep 2016 00:21:50 GMT

"The seller cannot charge you extra for paying by paypal, as much as they would probably like to"

While correct now as of October 19th Paypal are changing their User Agreement:

"Policy Updates
Changes to the User Agreement, Combined Financial Services Guide and Product Disclosure Statement, and Privacy Policy.
Effective date: 19 October 2016
Change to the User Agreement
We have made one change to the User Agreement. Previously, clause 11.2(c) set out that if you receive funds through PayPal, you must not impose a surcharge or any other fee for accepting PayPal as a payment method.
We have amended clause 11.2(c) in a way that permits you to impose a surcharge or other fee for accepting PayPal as a payment method that does not exceed the amount you pay us for that payment as a percentage of your total price."

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

Re: Extra cost with PayPal as a payment method?

lyndal1838 — Thu, 01 Sep 2016 00:33:43 GMT

But what does the ebay policy say on the subject?

Ebay policy is notorious for not following normal retail best practice and if they declare that ebay sellers cannot charge extra then too bad, so sad....ebay sellers cannot charge anything extra.

I am not sure why it is a problem anyway....sellers have alway had the ability to build paypal charges into their item selling price or postage. The only person who loses is the buyer who pays by bank deposit and in that case the seller can make allowances in their postage charge or some other way.

Re: Extra cost with PayPal as a payment method?

go-tazz — Thu, 01 Sep 2016 05:42:10 GMT

From that link:

FAQs: Surcharging PayPal Payments

What’s changing?

Previously, our User Agreement didn’t allow you to impose a surcharge or any other fee for accepting PayPal. Now, youcan add a surcharge to PayPal payments.

If you choose to, you can surcharge up to the average fee you've charged per transaction

by PayPal over a 12 month period.

Why has the rule changed?

Recently, the Reserve Bank of Australia (RBA) reviewed the regulation of payment systems in Australia, including the law on surcharging.

To ensure merchants are given a reasonable opportunity to recover the costs of accepting payments online, we decided to amend our rules to align with the intent of the RBA’s new card scheme surcharging standard.

Should I put a surcharge on PayPal payments?

While you can, we don’t recommend you do. Adding a surcharge can significantly increase your

abandonment rates, and in turn your ability to grow your online business.

How do I calculate my maximum surcharge?

Activity > Statements >Activity export)

Enter the date range for the most recent 12 month period and choose a file type, then click Download History.

Divide the total of the “Fee” column by the total

of the “Gross” column to calculate your maximum surcharge percentage.

If you don’t yet have 12 months of sales history with us, you can estimate what your sales will be

(and from that, your anticipated fees) over a 12 month period to determine your maximum

surcharge.

Can I charge a fixed dollar amount?

No.

A surcharge may only be expressed as a percentage of the sale total.