why are some adding 3% for paypal?

[Mr Bogus]

Ok so guys taking PP payments have this thing about adding 3% if you pay by PayPal...

They then do not charge any extra if you use a regular credit card... (virtually every merchant account I have setup charges at least that and they have a monthly service fee of 29.99 to 59.99)

Why the poke against Paypal?

 

[rubber2burn]

The 3% is for the Paypal fee that they take way from the seller for using their service that is why most people say ad +3%

 

[Aquaman]

you need to figure in the 3% of the total cost that you really want to get for your product.

 

[Mr Bogus]

I do understand that PP charges 3% of gross fee (I do about 20K a year through them myself) If I tacked on the 3% my clients would bug on me..

so what about that they will take a regular credit card without the addl fee? (most are more than the 3% of PP btw)

 

[captain]

you need to figure in the 3% of the total cost that you really want to get for your product.

Exactly! When I do raffles I calculate that 3% in so that at the end of the day I have made my target number. If you sell a product just calculate the 3% into it and then dont make things confusing and ask for 3% more.

 

[WuzzaCBXRider]

I wouldn't pay that 3% anymore than I would pay the CC fees the seller is charged for the convenience of his buyers. If he doesn't want to accept paypal fees then he shouldn't offer it as a method of payment.

 

[Commuta_Busa]

any and all fees you want a customer to pay should just be rolled into the price. It's kinda like if someone is selling something for say $10.00 but then says well, if you call me to order it's another +% because you called me and i have to pay for having a phone, or if you order it through my website ou have to add +% because I have to pay for webb services. Everyone knows that it costs to operate a business but products and services shold be accuratly priced based on the costs.

just my .02

 

[johnnycrash]

If he doesn't want to accept paypal fees then he shouldn't offer it as a method of payment.

+1

 

[Mr Bogus]

I wouldn't pay that 3% anymore than I would pay the CC fees the seller is charged for the convenience of his buyers. If he doesn't want to accept paypal fees then he shouldn't offer it as a method of payment.

pretty much my point...

just seems more and more guys think that it is "ok" to say "Add 3% if you are paying by paypal" is all...

I have some 200+ clients on subscription billing and it does cost me a good penny every year as their payments come in, I have the "overhead" figured into my business plan.

I was curious if I was the only one that "went the other way" when the 3% thing was added on...

I might add that Paypal seems to be picking up speed with all the "identity theft" issues anymore. I myself prefer using them as I do not have to give out any information to any merchant I do business with... so far PP has been pretty solid on security... (knock on wood)

 

[Commuta_Busa]

some companies/people still add a processing fee, admin fee, or a handling fee. I think all of these tactics are a bit rediculous. Like you've don'e just include it in your overhead before you determine the selling price.

 

[PocketRocket]

Do anyone know which is the best company to use for collecting payments from people using credit cards online? Whats it cost to set it up? Thanks

 

[GMbusa]

This is to help understand something about selling new parts online. There's so many people selling parts for next to nothing online that honestly, you need that extra 3% added to almost not break even. The gap of dealer pricing on stuff and MSRP isn't that much anymore since alot of parts come overseas and the US dollar isn't worth too much at this time. Then you factor in that no one online pays anywhere near MSRP and alot of times a shop might end up making only $5-10 on a part. Most of the online part stores rely on sales quantity, not actual profit to make the $$.

 

[IllusionalTA]

i usually accept paypal if they add the 3% but i also would take a money order, or a check or even cash.. it's only fair.. as as the price of the part goes up.. so does the chunk they take out of it.. Most of us normal folk's are not businesses so therefore for the random crap we sell.. 3% is common practice for those using paypal..

 

[Commuta_Busa]

I'm just waiting for people to start saying "I just got the part in today, so if you buy it today it'll be priced less than next week. Next week I'll have to add +$ because I'll have to factor in additional inventory costs"

I blame all of this on ebay!

I understand the common joe asking for the 3% but not a business. I don't feel sorry for the guy who doesn't make a profit. If profits are what they're after then establish an e-commerce business. There are tax breaks which can help a small business stay afloat without having to focus strictly on how much of a profit margin they've made on each and every item during the startup process. If you follow good business practices your business will grow and be successful. Profits will come too. I know everyone is trying to make a buck these days but sometimes it's a little ridiculous.

Alot of online only businesses can be priced lower since it costs less to run such a business. It makes it difficult for the brick&morter companies to stay competitive. MSRP has never been the appropriate formula for online only companies.

 

[captain]

This is to help understand something about selling new parts online.  There's so many people selling parts for next to nothing online that honestly, you need that extra 3% added to almost not break even.   The gap of dealer pricing on stuff and MSRP isn't that much anymore since alot of parts come overseas and the US dollar isn't worth too much at this time. Then you factor in that no one online pays anywhere near MSRP and alot of times a shop might end up making only $5-10 on a part.   Most of the online part stores rely on sales quantity, not actual profit to make the $$.

It's called the cost of doing business..... I disagree with you on your perspective that you have to add the 3%

Shops that use a processing company to swipe credit cards have to pay for a terminal, a monthly fee, a processing per card fee and a phone line.... Those are cost that are built into the overhead. Economy of scale comes to mind when you sell items... If you buy a case of product and you get a discount for buying in bulk (group buys) then you have the ability to offer the product to your customers at a lower cost or increase your margin......

If you sell the same items as another store but you sell one a month and they sell 100 then its easier to spread the cost of the 3% to all of the purchasers....

At the end of the day thats how people are able to sell items closer to cost, the need for the margin is less because they make up the difference in volume...


Its all about perspective! I put the 3% included into the cost of the product because I consider that a necessity to sell with bike-shirts.com, I could take money orders, and other forms of payment but it would not meet the needs of my customers. GMBUSA do think that the local gas station or resturant gets to process credit cards for free? Those shops dont ask you to pay more when using a credit cards then when you pay with cash, they include the overhead of the "necessity" right into the cost and spread it out...

CAp

 

[Aquaman]

And isn't funny that when you do it that way, everyone seems happy!!!!

 

[Rockin C Racing]

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1257998[/ATTACH] AM]
GMBUSA do think that the local gas station or resturant gets to process credit cards for free? Those shops dont ask you to pay more when using a credit cards then when you pay with cash, they include the overhead of the "necessity" right into the cost and spread it out...

CAp

Just need to clarify this here Cap..  I've been to many gas stations that charge you more for using a credit card.  They advertise the price per gal and identify that cash price is different than CC price.

But I understand what you are saying.

 

[captain]

AM -->

1258001[/ATTACH] AM]
GMBUSA do think that the local gas station or resturant gets to process credit cards for free? Those shops dont ask you to pay more when using a credit cards then when you pay with cash, they include the overhead of the "necessity" right into the cost and spread it out...

CAp

Just need to clarify this here Cap..  I've been to many gas stations that charge you more for using a credit card.  They advertise the price per gal and identify that cash price is different than CC price.

But I understand what you are saying.

Never in my life have I seen gas offered at a reduced rate...... My next question to follow along with that would be how many times have you seen this?

 

[Vic_E55_2001]

I`d never buy from person charging PP fees, period.

Next time when you want to sell someting just think about it. It`s not just 3%.
It`s inconvinience for me to go get a money order or look for a stamp and envelope.
It`s also slowing down delivery time twice.
What al that means? simple thing.. Seller don`t care about his/her customer.

 

[BlueHaya]

There was a gas station in town (Raceway) that offered a cash price that was lower, but that has been the only one I have ever seen...not sure if they still even do it. I go to HEB so I can get grocery points

It is all about the $$$$ and nothing else.