Any legitimate business will have the fee built into the cost of their product or services. Because this is an honest operating cost.
However, if you're hell-bent on passing on the fee to your customer, it would depend on where your PayPal account is located.
PayPal charges 2 amounts on every transaction - one is a fixed fee (ranging from 30 cents to up to 59 cents) irrespective of the size of the transaction. The other is a dynamic fee that is a fixed percentage of every transaction (ranging from 2.9% to upto 4%)
So if you're located in the US, you'll end up paying 3.49% if you use Checkout (or 2.89% if you receive payment) + a fixed fee based on your buyer's country. Here is the
fee structure.
If you're in a country like India - you'll end up paying 4%. Here is the
fee structure.
The amount you charge your client is not based on your whim but follows a proper calculation. Or else, you're just overcharging.
The formula is
p + ᶠ ⁄₁₀₀ p + x = c
Where,
p = Your Price
f = Percentage of your Fee
x = Fixed Fee
c = Amount charged to Client
A simplified version of the above formula is -
p (1 + ᶠ ⁄₁₀₀) + x = C
So hypothetically, you're paying
2.9% + 30 cents in Fixed fee and want a
$500 payment from your client. Your equation would look like this -
500 (1+2.9/100) + 0.30 = C
500 x 1.029 + 0.30 = C
514.5 + 0.30 = C
514.80 = C
So you'll end up charging your client $514.80 to be able to receive exactly $500 in your PayPal balance.
Yes, am fun at parties.
