I have been looking around for some time now. I see payments received through Paypal, from websites like Fiverr and other popular ones, without any transaction fee being cut by Paypal. How can that be done? It cannot be 'Gift' payments for sure. Are this allowed only to businesses in USA?
Umh? Do we? I don't see any monthly fee deducted. They just do it on transaction basis, taking their cut and stuff and paying about $3.8. My question is of that transaction of $3.8 that they make to our Paypal account. How is it that no fee is cut by Paypal on that $3.8 transaction?
Sites like fivver are using the PayPal MassPayment system which allows them to pay out a large number of recipients without the recipient incurring a fee. The sender of the payment, in this case fiverr, pays up to $1 for each payment they pay out to the customer. PayPal recently changes this system so that it is not enabled by default for new accounts and you need to write to them and ask to have it enabled. You will need to have an existing payment history in order to be approved to use this feature now. The system was getting abused as a way to get around paying larger transaction fees, so it was adjust to be an approval based service only now. PayPal massPay: https://www.paypal.com/webapps/mpp/mass-payments