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Question about PayPal adaptive payments and possible reduced fees

Discussion in 'Black Hat SEO' started by gjockey, Dec 15, 2011.

  1. gjockey

    gjockey Junior Member

    Joined:
    Nov 11, 2009
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    Hi,

    2 part question

    (1) If I understand things right, Paypal adaptive payments would allow a buyer to make a primary payment to a seller and also a second payment (ie. to the host e-commerce website for a transaction fee). If this is correct, why does fiver operate where a buyer pays fiver then fiver holds money, takes fee and then allows seller to withdraw money from fiver after 2 weeks.

    Wouldn't it be easier/simpler for the website/fiver to take a transaction fee directly from the buyer and let the buyer pay the seller directly? Seems you would avoid chargeback hassles since the buyer is paying the seller directly and the payment process would be much faster/simpler.

    (2) Also, on a website auction site, I found the following exchange between a potential buyer and the website owner. Could anybody enlighten me on what the owner's "method" might be? I know about micropayments and PayPal reducing fees for large customers, but it seems like he's hinting at something much different. Thanks.

    Buyer:
    I have one other question about the Paypal transactions. If you are subtracting 20% off of the $4, that would leave $3.20 to be paid to the seller. Paypal fees on a $4 transaction according to Paypal's fee chart would be 2.9% of $4 plus 30 cents. This would mean there would be a fee of around 41 cents on each transaction, leaving about 39 cents of profit on each transaction after paying Palpal and the seller. Is this correct? If I'm misunderstanding something, please forgive me.


    Seller:
    Thanks for the question. We do not have those Paypal fees. Our Paypal fees run at 0 or .2 cents per transaction and we will share these trade secrets obviously with the winning bidder. This is not the forum for it. Good luck and happy bidding.