Paypal TOS Violations

[hi-perf]

one thing that has been irking me about this site's for sale section is the trend of charging the 3% paypal fee to buyers.

technically this is against the Paypal TOS (link), look in part VI.

No Surcharges. Under Visa, MasterCard, Discover and American Express regulations and the laws of several states, including California, merchants may not charge a fee to the buyer for accepting credit card payments (often called a "surcharge"). You agree that you will not impose a surcharge or any other fee for accepting PayPal as payment. This restriction does not prevent you from imposing a handling fee in connection with the sale of goods or services, as long as the handling fee does not operate as a surcharge (in other words, the handling fee for transactions paid through PayPal may not be higher than the handling fee for transactions paid through other payment methods).

straight from the horse's mouth. well don't think its the end of the world, theres a solution for all of this.

solution: do not apply a surcharge of 3%. instead make your initial price 3% higher, and instead offer a discount for cash/money order/check/local pickup.



example: i want to sell my CD player for $100.00. Lets take a look at two similar scenarios, each with its own level of legality.

-> Old way (in violation of Paypal TOS)
FS: CD DECK $100.00 + S/H + 3% paypal fees if paying by paypal.

-> TOS compliant transaction
FS: CD DECK $103.00 + S/H , $3 discount if paying by cash/check/money order.

see the difference? there is no surcharge. the seller still gets the full amount, and does not charge a surcharge, instead its a discount that is perfectly legal.


mods/admins/everybody: im not going to tell you how to run your website or the for sale section, or how to sell things, but consider this just a heads up in case you want to protect yourselves.

i have been aware of this for a while and i just decided today that i would inform you all.

 

[jadonP5]

either way it's the same thing though.

 

[low_psi]

wgaf

 

[Jeph]

So if i call mine a 3% "handling" fee or a 3% discount if paying by check or money order, then its fine.

 

[sephiroth]

So if i call mine a 3% "handling" fee or a 3% discount if paying by check or money order, then its fine.

you can't call it a handling fee unless it is the same for all types of payment.
The second suggestion is in compliance with the TOS however.

This restriction does not prevent you from imposing a handling fee in connection with the sale of goods or services, as long as the handling fee does not operate as a surcharge (in other words, the handling fee for transactions paid through PayPal may not be higher than the handling fee for transactions paid through other payment methods).

 

[jadonP5]

wgaf

?

 

[hi-perf]

So if i call mine a 3% "handling" fee or a 3% discount if paying by check or money order, then its fine.

no. it must specifically be a discount to the original price to be in line with the TOS.

charging a handling fee specifically when the form of payment is paypal is against the TOS.

by increasing the original price by 3% you can comply with the TOS and still maintain the original amount you want after fees, or avoid them altogether.



more examples:

-> still in TOS violation
FS: CD DECK: PAYPAL PRICE $103.00 + S/H
CASH/CHECK/MONEY ORDER PRICE $100.00 + S/H

-> complies with TOS
FS: CD DECK $103.00 + S/H , $3 discount if paying by cash/check/money order.

 

[Hughes412]

It's all the same thing, so who cares. I wonder if this is conected to any other threads in this forum?

 

[low_psi]

?

who gives a ****

 

[hi-perf]

It's all the same thing, so who cares. I wonder if this is conected to any other threads in this forum?

i figured this would be the general reaction.

the result is the same yes, but one way breaks the law, and the other way covers your ass.

not a demand by me, but more of an FYI more than anything. its up to the admins/whoever makes the rules if they want to make this a rule.

anyway again not telling you what to do: i think ill quote myself:

but consider this just a heads up in case you want to protect yourselves.

 

[protegeDaryl]

hrmmm i wont be a dick.... soo thanks for the heads up... and yes payin for paypal fees is bs

 

[NoRotorNoMotor]

there was a thread here a few months back that the seller stated the buyer MUST use paypal and they MUST pay the extra 3% fee

thought that was kinda lame, but i forget who it was

 

[AznXstazy]

i dont get it..... if its what i think your saying. people use paypal cause its hell of alot easier and it SOMEWHAT helps to get your money back...

 

[Perma]

What if the person is paying direct PayPal cash and not Visa, MasterCard, Discover or American Express?

Yeah, it sucks being charged the PayPal fee, but suck it up. There are worse crimes...

 

[Dark-one]

whebn someone denys to pay 3% i tell them to send a money order which most likely will cost more and have to wait longer. Your a cheap ass if complain about the 3%

 

[NoRotorNoMotor]

i think it goes like this

if the seller has a basic paypal account the buyer can pay with via a bank account and the seller isnt charged, but he also cant accept cc payments

however if the seller has a premium account then any form of payment is charged the 3% fee

i have a premium account so i get charged the 3% fee no matter what, however i pay using my bank account and only use my cc for backup so if i pay a basic account holder there is no fee

i never ask for the 3% fee unless the item is $500+ and they choose to use paypal instead of MO

*edited numerous times cause i can't type

 

[Lt. Dan]

whebn someone denys to pay 3% i tell them to send a money order which most likely will cost more and have to wait longer. Your a cheap ass if complain about the 3%

Exactly, you're a cheap-ass if you sell a product and complain about a 3% charge to get your money instantly. It works both ways....

Dan

 

[jadonP5]

this whole thing kinda blows....work it out on a case by case basis, this is what price negotiation is all about in the first place. charge what you want to when you sell, and pay what you want to when you buy. no skin off anyone as long as an agreement is reached.

 

[protegeDaryl]

Exactly, you're a cheap-ass if you sell a product and complain about a 3% charge to get your money instantly. It works both ways....

Dan

im glad u pointed that out dan i was just about too. lol

 

[Dark-one]

i'm not in the charity bussiness if they want the parts they can buy them for the price plus 3% simple as that. I'm not unicef. 3% adds up after a while. I gladly pay the 3% to others as well.