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Something that Paypal doesn't want you to know about!

Discussion in 'Business & Tax Advice' started by HostStage, Mar 24, 2013.

  1. HostStage

    HostStage Jr. VIP Jr. VIP Premium Member UnGagged Attendee

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    Hey Folks,

    Over the last 5 days, it was accounting time with my accountant. You can't imagine how unexciting it is, to say the least, but so damned useful.

    We happened to conclude that paypal was charging a lot of $ for paypal transaction's fees, not mentionning currency conversion.

    So i went to paypal and start digging a bit about their fees.

    And if you are working with higher volume than you start with, you can reduce these fees by applying to a new grid plan, it is instant and yet it has to be manual.

    Look for it in their website, and i believe it is starting from $2.5k in monthly turnover (new fees plan start from there)

    This tips is applying to transactions fees only from my belief, but i'll be investigating their exhange rate and how they are applying it to try to optimize this too.

    Should be useful for some of you ;).

    NOTE : I didn't check on a personal account but a business one.
     
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  2. subster

    subster Elite Member

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    DAMN! Really? thank you sooo much. i have 50-60k per month on paypal and never knew that you can turn on this screw.1000 thanks + rep
     
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  3. coolboy113u

    coolboy113u Junior Member

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    thanks for the tip.. But can you give any more details?

    P.S.: I hate using PayPal, but there is no option for me.
     
  4. lakim0

    lakim0 BANNED BANNED

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    My monkeys are jumping in papal with joy.
     
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  5. HostStage

    HostStage Jr. VIP Jr. VIP Premium Member UnGagged Attendee

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    Exact same reaction here! When i've been given the figure of how much i'm paying for these atrocious default fees, i almost fall out my chair!

    It was 3% + 0.34cts...

    Would they mail you to tell you that you can swap your fee plan ? Ofc not, why mailing a cash cow?
     
  6. HostStage

    HostStage Jr. VIP Jr. VIP Premium Member UnGagged Attendee

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    Okay, i doubled checked and it is country specific at least for the rates.


    Here is a link where you can see what i'm talking about :

    https://www.paypal.com/webapps/mpp/merchant-fees

    Click on the View All Discounts & Fees

    Then click on apply now.

    I received an email 2 minutes after my application telling that i was able to benefit from it. And a few minutes later, all the transactions benefited from the new plan!
     
  7. 50cent

    50cent Regular Member

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  8. whynotmakeit

    whynotmakeit Power Member

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    Yeah me too :-(

     
  9. HostStage

    HostStage Jr. VIP Jr. VIP Premium Member UnGagged Attendee

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    It did take me to a spanish page too, i had to use a VPN to get the US page.

    Just type paypal transaction fee in google, you should be prompted to the right page specific to your country and see if it is available for you too.
     
  10. 50cent

    50cent Regular Member

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  11. whynotmakeit

    whynotmakeit Power Member

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    found it under profile. easy to find....seems I had already done it :-(
     
  12. HostStage

    HostStage Jr. VIP Jr. VIP Premium Member UnGagged Attendee

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    Dealing with the conversion fee, i also found a better strategy but i would need to contact paypal first.

    The game plan would be to force a wire in the currency you receive your paypal funds, and let the bank handle the conversion. For instance, you receive $$ in paypal and you wire as $$ instead of turning as ? before you do the wire.

    Basically, you would avoid paypal to take their cut on their maximised conversion rates. (+ 2% i believe)

    But before putting that in motion, it depends on your bank conversion politic and the amount you are wiring of course. Some bank are using flat fees.