Paypal takes a fee from sellers on transactions processed through them ... it's how they make their money.
It's similar to the 2-3% fee you pay to Visa/MasterCard when your store's clients use their credit cards instead of cash or check.
At ABO, our standard discount for people participating on one of the AIDS rides, Team-In-Training for The Leukemia Society, etc. is D10-7 ... 10% cash, check or ATM/check/debit card (used as an ATM, i.e. PIN number instead of signature) ... but only 7% for credit card (or debit cards run as a credit card) transactions, because of the 3% fee that the credit card companies take.
Having people use their debit cards as ATM cards rather than credit cards saved us about $10K in transaction fees last year.
Since the banks hit us with the 3% transaction fee on returns as well, we charge a 6% restock fee on returns that are credited to the card, but offer full refunds if the client takes store credit. Most regular or semi-regular clients are fine with this. One-offs are generally okay with it once we explain why the restock fee. If they make a stink about it, then we go ahead and eat the charges.
I've won eBay auctions where the seller charged a small bit extra for PayPal payments ... it's generally worth the extra buck or two to me for the convenience (depending on the size of the transaction, of course).
--
Steven L. Sheffield stevens at veloworks dot com veloworks at mac dot com aitch tee tea pea colon [for word] slash [four ward] slash double-you double-yew double-ewe dot veloworks dot com [four word] slash
> From: OROBOYZ@aol.com
> Date: Mon, 10 Dec 2001 00:04:32 EST
> To: wspokes1@hotmail.com, classicrendezvous@bikelist.org
> Subject: Re: [CR]cancel ebay outing:Dura Ace crankset
>
> In a message dated 12/9/01 6:53:01 PM Eastern Standard Time,
> wspokes1@hotmail.com writes:
>
> << Please visit to read the bottom line which basically explains why i had to
> cancel my auction. >>
>
> So Ebay got po'ed that you charged an extra $3.00 for the use of PayPal?
> Just wondering, why did you charge for that, isn't it free? I am not
> questioning your right to charge whatever you want (unlike Ebay) but what is
> your reasoning here?
> Thanks
> Dale
>
>
> Dale Brown
> Greensboro, North Carolina