Do you think that it's fair that PayPal scim off 10%-20% of your profits?

Have any of you sold somthing and accepted payment through PayPal, only to find that they have nibbled off around 10% or 20% of your profits? Do you think they are being damn right greedy?

I know they need to make money somehow, but this is just taking the mickey. I think you should pay a small subscription to use PayPal then they wont scim your profits off. What do you think?

 

I think it's fine. Don't use them if you don't want to.

 

PayPal is great because there's no initial fees when you set up an account with them. So really, you could start using PP to collect fees from your online ventures with zero upfront cost.

The fees really aren't that huge. Now a subscription service would probably be better for them, since they would have a massive recurring income, but it would also keep users away from the service, opting instead for something that either 1) costs less or 2) is free.

PayPal is an excellent service, but honestly if they moved to a subscription fee (which I would have to pay regardless of whether I used that service on a regular basis or not), they would lose my business.

It's not good to pay for something if you aren't using it. It's far better to pay for something on a per-use (and much smaller) fee schedule.

 

Well I think they should lower their rates, I wouldn't mind if they were scimming like 5%, but 20% is bad!!! thats more than the british tax percentage rate!!

 

Well I am un-verified and I am very happy with my paypal account I do not have any problem with paypla account.

 

10 or 20% ? I don't think so,max they charge is around 4%-5% for business account holders.

 

Well, I would think the OP may be accepting payment of small amount, ie under $3 and that is why the fixed components of the fees, ie 30cents would be high in terms of percentage.

To the OP question, I have no problem in rewarding those who helped me in assisting me in obtaining payment. Paypal is not a charity and like you, they are in the business of making money and contrary to what you believe, paypal has a lot of expenses to pay to bring you the service. Would you work for free ?

Paypal is pretty much one of the global payment processor which charges the lowest fees in the industry, way below the industrial benchmark. If you are uncomfortable with the fees and do not believe that they are worth the money then look for another solution which would meet your price range. Alternatively, since the fees are pretty clear cut on their website, just raise your fees so that you are paid comfortably. Don't underprice your own service but rather price your service to a reasonable level and provide superior service.

 

accepting paypal means more sales in our experience, which is a good thing.

 

Paypal charges are a cost of doing business and you should be figuring them into your prices & passing the cost on to the customer.

 

You probably won't find a better alternative than PayPal to accept money.

It is a fairly risky business hat they are conducting, and at the end of the day, they need to make profit too.

 

hi mate,
There aren't no such thing as free lunch..

 

Paypal are in business just like the rest of us. They have to make their money somewhere. They get charged by the banks etc to move our money around for us. At the end of the day without Paypal I wouldn't have a business, so I'm quite happy to pay their (low) fees.

 

You are right. I have payments recieved 100 dollar and they only take 4-5 dollars in fee, which is about 4-5%.

Maby so but I think making money off other people's money in usury is the most rotten business's that ever existed.

 

i agree with that: PayPal should have the right to get some money. So you have to make the price a little bit higher,
so that you get want you want and need. But the price still should be payable......

 

It's not usury. Usury is an unethical ridiculous amount. They aren't trying to steal money from anyone. If they were to jack their prices up, people would leave. The fact that so many people willingly use PayPal should indicate that they aren't ripping people off.

 

they dont take that much duh....

 

I use a personal account so I am only charged when I receive funds from credit card sources. But I don't think they eat 10% or even 20% of my profits. That's way too high.

 

So I take it that you do not charge your customers any money and do not make a profit from them, even if it is just to cover your cost. Because that is what you are saying here.

Isn't business about making money to cover cost and hopefully to make a profit to fund growth.

Paypal is not a charity and even if it is, there are cost which it needs to pay which would include bank charges, salaries, utility bills, taxes and so on. They would also need to cover themselves from business losses. On top of that, credit card banks would normally charge anything between 1 to 3% to facilitate the fund transfers.

If you do not believe that what paypal offers is worth the money then just don't use them. Do it yourself or find another solution which is willing to make a loss for you.