Paypal - using a credit card to fund vs. bank account?

I have often wondered what the difference is? I see some posts where the seller asks for "non-credit card paypal payments".

As I feel that paypals fraud security is probably not my best option, I always use my credit card as the primary funding.

Do seller incur higher percentages for credit card payments from buyers?

How do you use your credit card for paypal? I've always wanted to so I can protect myself but I thought you had to have a business or premier account?

sumadaz wrote in post #7688244
How do you use your credit card for paypal? I've always wanted to so I can protect myself but I thought you had to have a business or premier account?

Under options where you add a bank account for funding, you can add a credit card as well. I don't have a business or premier account that I know of.

when you pay with your credit/debit paypal take 3% tax. and if you going to pay it straight from your bank you should choose instant transfer that way there's no tax. im not sure how it's set up but i have 2 account one that only except instant transfer for non tax. the other is when someone want to pay by a credit card, therefore im going to get tax for that. So if you going to use your debit you should just use instant transfer cause it basically the same. Otherwise if you don't have money then CC + 3% tax.

But that 3% fee is incurred no matter what right? That's how paypal makes money on every deal. That's why sellers here always say that if you pay with paypal, add 3% for fees, right?

that cause you don't know how to work the system. if you instant transfer me paypal doesn't tax me. seller said add paypal fee cause people always pay with their CC cause they don't have money in the bank. also even tho they have money in the bank they pay with their debit and debit/credit is the same thing. the top section is the instant transfer, the middle is E check, and the last is Credit/debit. Pay with the top no tax, that is straight from your bank.

Cowboylife -

Paypal will charge the seller 3% in fees if using a CC. Depending on the type of account the seller has, the fees for other methods vary, but usually less than 3% (especially for non-business accounts). IMHO, Using a CC for payment is usually worth the extra cost just for the added level of protection as a buyer.

cowboylife wrote in post #7688210
As I feel that paypals fraud security is probably not my best option, I always use my credit card as the primary funding.

Always always always use a credit card. Paypal will leave you high and dry if you ever have a dispute, but your credit card company will back you up all the way.

jgrussell wrote in post #7688891
Always always always use a credit card. Paypal will leave you high and dry if you ever have a dispute, but your credit card company will back you up all the way.

Agreed.
The paypal agreement/contract does say you're not allowed to dispute with your CC company, but so far I've heard of no one not having issues with that...

SMP_Homer wrote in post #7690292
Agreed.
The paypal agreement/contract does say you're not allowed to dispute with your CC company, but so far I've heard of no one not having issues with that...

No it doesn't. It says you can't do BOTH a PayPal dispute resolution and a credit card chargeback, that's all:

13.9 Relationship between PayPal’s protection programs and Chargebacks

Credit card chargeback rights, if they apply, are broader than PayPal’s protection programs. Chargeback rights may be filed more than 45 days after the payment, may cover unsatisfactory items even if they do not qualify as SNAD, and may cover intangible items.

You may pursue a Dispute/Claim with PayPal, or you may contact your credit card company and pursue your chargeback rights. You may not pursue both at the same time or seek a double recovery. If you have an open Dispute or Claim with PayPal, and also file a chargeback with your credit card company, PayPal will close your Dispute or Claim, and you will have to rely solely on your chargeback rights.

PayPal User Agreement

credit card all the way, but be prepared to pay 3-5% fee (depending on what country you're sending payment too).

i also found that you should check with your CC company, not all types of CC cover things such as PP fraud (please correct if I'm wrong!)


cheers

I pay all the time using my CC via PayPal & they charge me no extra for doing so???

Maybe the fees are different in the USA as apposed to the UK?

As above I always pay via that as it gives so much more protection against fraud/scams & just as important PayPal cos they are as much use as a chocolate fireguard is disputes.


Shelton.

jgrussell wrote in post #7688891
Always always always use a credit card. Paypal will leave you high and dry if you ever have a dispute, but your credit card company will back you up all the way.

+1 on that. I never use my bank account anymore.

I guess some people got it mixed up.

As a BUYER you pay exactly what is it, no matter how you do it.

As a SELLER, as moeronn said, PP charges you fees depends on the type of account the seller has, and that's fees not "tax". For example if I have a Premier/Business account, I pay 1.9% to 2.9% + $0.30 USD no matter what, even if you instant bank transfer.

PP wants does not want you to do CC is because they don't want to pay the transaction fees (I don't know how much, but there is) to the CC companies.

The reason that some sellers request that you fund payment via bank account and not credit card is because they have a basic Paypal account that can only accept Paypal payments that are paid via bank accounts or paypal funds. They do not incur the 3% Paypal fee if they keep their account as basic. They receive the full amount of your payment with no fees taken out.

If you pay with your credit card through Paypal, the seller cannot accept this payment unless they upgrade their account to accept credit card payments, at which point, *EVERY* payment they receive will incur the 3% paypal fee regardless if it comes from a credit card or a bank account.

When I first started using Paypal back in 1999, I tried to keep my account without upgrading it and forcing people to pay via bank account to avoid the Paypal fees, but eventually it became impossible to force everyone to pay me with their bank account.

Now that Paypal charges fees for me even if the buyer pays via bank account, they are making an extra 3% since the banks don't charge Paypal 3% like credit card companies do.