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Thread started 05 Feb 2017 (Sunday) 21:52
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Buying online with PayPal (but paying with credit card)?

 
howiewu
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Feb 05, 2017 21:52 |  #1

Hi,

Sorry if this is a silly question, but I really have not used PayPal much.

An online vendor only takes PayPal as payment. I have a credit card on file for my PayPal account. So, if the merchandise sells for $1000, how much will PayPal charge me?

I read the PayPal help page, which says:

"Sending money – Personal payments:

It's free within the U.S. to send money to family and friends when you use only your PayPal balance or bank account, or a combination of their PayPal balance and bank account.

There is a fee to send money as a personal payment using a debit card or credit card. The fee in the U.S. is 2.9% plus $0.30 USD of the amount you send. For example, if you send $100.00 USD by credit card, the fee would be $3.20 USD ($2.90 + $0.30). For personal payments, the sender can pay the fee or pass it on to the recipient. If the recipient doesn't want to pay the fee, they can choose not to accept the payment."

however, it also says:

"Goods and services – Purchase payments:

There’s no fee to use PayPal to purchase goods or services. However, if you receive money for goods or services (such as from selling an item on eBay), the fee for each transaction is 2.9% plus $0.30 USD of the amount you receive."

So, does this transaction fall into the category of "sending money", or "purchasing goods and services"?

If the former, then I would be charged $29.30 and paying a total of $1029.30, but if the latter, then I should be charged $1000 only.

So which one?


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maverick75
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Feb 05, 2017 22:22 |  #2

You shouldn't be charged, at least I never have been. The only time you would get charged was if you were sending it to a personal paypal account directly through paypal. if you're paying through their store even with a CC, it will not charge you. The fees get taken out on their end.


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stevecan
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Joined Apr 2013
The sunny south
Feb 05, 2017 22:24 |  #3

If you are buying a product, that would be a good, and the seller pays all fees for paypal payments such as those. Unless, of course you agree to pay the seller those fees as a stipulation of the transaction. When you are "Sending Money" think Western Union type activity, cash to a distant person, not a purchase. Paypal is a seller financed business.

Someone correct me if I'm wrong, please. Also, not a lawyer, so this post is not to be considered legal advice, this is just my opinion.


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Ming-Tzu
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Feb 06, 2017 01:21 |  #4

If you are paying another individual on PayPal the total of $1,000, and you are using a credit card, there will be a 3% fee attached to that payment. In this case, the person you send the money to will receive only $970, with the other $30 going to PayPal as fees. You pay only $1,000 from your credit card.


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NDAPhoto
Member
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Joined Jul 2015
California
Feb 10, 2017 09:34 |  #5

If you are clicking the seller's link on their website or clicking the link in their electronic invoice, then you do not pay a Paypal fee. However, when you initiate payment from your own Paypal account by choosing "send money" and enter the recipient's Paypal address while specifying "purchase", then you are charged a Paypal fee.




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moose10101
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Maryland, USA
Post has been edited 10 months ago by moose10101.
Feb 13, 2017 08:38 |  #6

NDAPhoto wrote in post #18269512 (external link)
If you are clicking the seller's link on their website or clicking the link in their electronic invoice, then you do not pay a Paypal fee. However, when you initiate payment from your own Paypal account by choosing "send money" and enter the recipient's Paypal address while specifying "purchase", then you are charged a Paypal fee.

If you click "Send money", your two choices are:

  • Pay for goods or services
  • Send money to friends and family

Under the "Pay for goods" option, it clearly says. "Free for you. The seller pays a fee." So I don't know how you figure the buyer pays a fee for a purchase.



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Intheswamp
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Joined Sep 2013
South Alabama
Feb 13, 2017 10:20 |  #7

If you use the option to send money to "friends" and "family" I don't believe you have any recourse with PayPal should the transaction go sour...you don't receive the item, item is broken, etc.,. Purchasing goods and services gives you a slight layer of protection.

Also, unless the seller stipulates that they (the seller) will add the 3% to your total bill you should not be liable for it. Since they only accept PayPal it would seem that they have the fee already included.


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NDAPhoto
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Post has been last edited 10 months ago by NDAPhoto. 7 edits done in total.
Feb 13, 2017 11:35 |  #8

moose10101 wrote in post #18272143 (external link)
Under the "Pay for goods" option, it clearly says. "Free for you. The seller pays a fee." So I don't know how you figure the buyer pays a fee for a purchase.

I was simplifying for the OP who specifically mentioned using a credit card connected to his Paypal account. When "sending money" the free for you applies only when using funds from your existing Paypal balance or if connected to your bank account. However, if using a credit or debit card there is a fee. Paypal says you can try passing that onto the recipient... but try it sometime and see how well that goes.

OP already cited the exact wording from the horse's mouth:
"It's free within the U.S. to send money to family and friends when you use only your PayPal balance or bank account, or a combination of their PayPal balance and bank account... There is a fee to send money as a personal payment using a debit card or credit card. The fee in the U.S. is 2.9% plus $0.30 USD of the amount you send. For example, if you send $100.00 USD by credit card, the fee would be $3.20 USD ($2.90 + $0.30). For personal payments, the sender can pay the fee or pass it on to the recipient. If the recipient doesn't want to pay the fee, they can choose not to accept the payment."




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John ­ from ­ PA
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Feb 13, 2017 13:42 |  #9

NDAPhoto wrote in post #18272266 (external link)
I was simplifying for the OP who specifically mentioned using a credit card connected to his Paypal account. When "sending money" the free for you applies only when using funds from your existing Paypal balance or if connected to your bank account. However, if using a credit or debit card there is a fee. Paypal says you can try passing that onto the recipient... but try it sometime and see how well that goes.

OP already cited the exact wording from the horse's mouth:
"It's free within the U.S. to send money to family and friends when you use only your PayPal balance or bank account, or a combination of their PayPal balance and bank account... There is a fee to send money as a personal payment using a debit card or credit card. The fee in the U.S. is 2.9% plus $0.30 USD of the amount you send. For example, if you send $100.00 USD by credit card, the fee would be $3.20 USD ($2.90 + $0.30). For personal payments, the sender can pay the fee or pass it on to the recipient. If the recipient doesn't want to pay the fee, they can choose not to accept the payment."

You should have been a lawyer...the answer to the question of

...if the merchandise sells for $1000, how much will PayPal charge me?

is nothing. You are buying goods, no fee.




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iazybandit
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Joined Apr 2011
New York
Feb 14, 2017 09:23 |  #10

NDAPhoto wrote in post #18272266 (external link)
I was simplifying for the OP who specifically mentioned using a credit card connected to his Paypal account. When "sending money" the free for you applies only when using funds from your existing Paypal balance or if connected to your bank account. However, if using a credit or debit card there is a fee. Paypal says you can try passing that onto the recipient... but try it sometime and see how well that goes.

OP already cited the exact wording from the horse's mouth:
"It's free within the U.S. to send money to family and friends when you use only your PayPal balance or bank account, or a combination of their PayPal balance and bank account... There is a fee to send money as a personal payment using a debit card or credit card. The fee in the U.S. is 2.9% plus $0.30 USD of the amount you send. For example, if you send $100.00 USD by credit card, the fee would be $3.20 USD ($2.90 + $0.30). For personal payments, the sender can pay the fee or pass it on to the recipient. If the recipient doesn't want to pay the fee, they can choose not to accept the payment."

I've paid with credit card before and have never been charged a fee.


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moose10101
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Maryland, USA
Feb 17, 2017 08:02 |  #11

NDAPhoto wrote in post #18272266 (external link)
I was simplifying for the OP who specifically mentioned using a credit card connected to his Paypal account. When "sending money" the free for you applies only when using funds from your existing Paypal balance or if connected to your bank account. However, if using a credit or debit card there is a fee. Paypal says you can try passing that onto the recipient... but try it sometime and see how well that goes.

OP already cited the exact wording from the horse's mouth:
"It's free within the U.S. to send money to family and friends when you use only your PayPal balance or bank account, or a combination of their PayPal balance and bank account... There is a fee to send money as a personal payment using a debit card or credit card. The fee in the U.S. is 2.9% plus $0.30 USD of the amount you send. For example, if you send $100.00 USD by credit card, the fee would be $3.20 USD ($2.90 + $0.30). For personal payments, the sender can pay the fee or pass it on to the recipient. If the recipient doesn't want to pay the fee, they can choose not to accept the payment."

You said, "... while specifying "purchase", then you are charged a Paypal fee"

A "family and friends" transfer is not a purchase. If this is your idea of simplifying, God help the OP if you try to complicate things.




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Furlan
Senior Member
633 posts
Joined Nov 2012
Feb 17, 2017 08:38 |  #12

Lets try to simplify this Pay-Pal does what it does to make money. They will make a payment using your money bank account or Pay- Pal balance. They are not going to
pay a credit card company out of their pocket to make a payment on your behalf.




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moose10101
registered smartass
1,568 posts
Joined May 2010
Maryland, USA
Post has been last edited 9 months ago by moose10101. 3 edits done in total.
Feb 17, 2017 09:08 |  #13

Furlan wrote in post #18276439 (external link)
Lets try to simplify this Pay-Pal does what it does to make money. They will make a payment using your money bank account or Pay- Pal balance. They are not going to
pay a credit card company out of their pocket to make a payment on your behalf.

Who said they did?

The question here is "does the BUYER pay a fee when they pay for a purchase", and the answer is "NO", even if you pay with a credit card. PayPal charges the SELLER a fee.

Maybe the folks claiming to "simplify" this should step back from their keyboards.




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NDAPhoto
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Joined Jul 2015
California
Post has been last edited 9 months ago by NDAPhoto. 2 edits done in total.
Feb 17, 2017 12:34 |  #14

Ed McMahon: You have just won 1 Million Dollars in the Paypal Sweepstakes.

Fine print: If your name was chosen.

OP: Does that mean I won?

POTN Member 1: No I did.

POTN Member 2: Me too.

Ed McMahon: Everyone wins in the Paypal Sweepstakes.




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Nathan
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Boston
Post has been edited 9 months ago by Nathan.
Feb 20, 2017 11:15 |  #15

This assumes that the "online vendor" is a legitimate business vendor that has a Pay with PayPal option as part of the online checkout process. If this online vendor is asking you to initiate and send the payment yourself, then pause right there and let us know what else is going on.


Your reading of PayPal's policies has made this more complicated than it needs to be.

  • If the merchandise sells for $1000, you will be charged $0 in fees when paying with a credit card. You will only need to make the $1000 payment, subject to any interest rate charges you might incur through your credit card.

  • For your clarification, a personal "payment" is simply wiring money to someone. You're just sending money, not actually buying anything. PayPal does this for free as a perk of being a member if the transfer is credited from your PayPal or bank account. If you use a debit or credit card, your financial institution will charge fees to PayPal - think of these as ATM fees or credit card processing fees. In turn, PayPal will recover these fees either from you or the recipient.

  • "There’s no fee to use PayPal to purchase goods or services."

    This is all you need to really pay attention to for standard purchases.

  • "However, if you receive money for goods or services (such as from selling an item on eBay), the fee for each transaction is 2.9% plus $0.30 USD of the amount you receive."

    You're not receiving money, so this doesn't apply to you. These fees are charged to the seller. PayPal makes money off of sellers. Sellers benefit from the ease and convenience of accepting PayPal as a form of payment, especially since so many people have PayPal accounts.

  • You asked if this transaction falls into the category of "sending money" or "purchasing goods and services"? Unfortunately, you've missed very key portions of the policies you've copied and pasted. This is "sending money" but not to friends or family. This transaction is a purchase of goods and services, but you're not the one who the fees go to.

  • What basically happens when you buy something for $1000 is you pay $1000 through PayPal from a bank account or credit card. PayPal takes its 2.9% cut + .30 USD and then sends the remaining $970.70 to the seller (if my math is correct... I might fail you there :p). You should remember that if PayPal charged you $30 for using its services at checkout, you would simply choose to pay with a credit card directly to the vendor. Most big online vendors accept both credit cards directly or PayPal. There are many small vendors who don't have credit card processing services, so they might only accept PayPal.


    Hope that helps.



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