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Old 09-05-2009, 12:45
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designsbycristi designsbycristi is offline
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Join Date: Apr 2009
Posts: 970
Default Re: Paypal fees? What?

I had this very same issue just recently come up. A friend of mine told me "did you know that someone sent me a payment of $40 and sent it as a gift instead of goods and paypal didn't charge me any fees". So, I have some really regular customers and one in particular ordered $150 in items from me so I thought "I will try this out on her" (note: she is a very good customer and what I would consider a friend at least online. I wouldn't tell everyone this). So, to make a long story short I asked her if she could send the money to my paypal account and send it as a gift to me instead of me invoicing her. I explained the whole thing to her. Here's what I learned:

1) When you hit "send money" in paypal, it brings you up a form where you input the email address etc. What many of us don't realize is that at the bottom where we normally would select either goods, services or ebay (the purchase tab), there is actually another tab right next to that which says personal. Someone sending money as a gift would need to select the personal tab and then the gift option.

2) When you send as a gift it does not charge the receiver any fees IF that seller is using a funded paypal account (meaning there is money already in their account) or bank account (no debit cards or credit cards).

3) If the sender uses a credit card you will be charged the transaction fee.

4) There is no way for a seller to control how you send money to them. That means that if you are sending money to them and have been using the purchase tab instead of the gift tab then the person you have been sending money to has been charged a fee. The only way for you to avoid having to pay paypal fees (such as in transactions that occur on this board, trades etc.) is for you to send the money as a gift AND be sure to use either a funded paypal account or a bank account (again no credit cards or debit cards).

I hope that clears up any confusion. I think this will save us all a bunch of money if we can find a system to communicate this info to each other. I would suggest bumping this thread for the next week or so. That way when we do business with each other, we will all become very familiar with how to send money to each other the cheapest way possible so we all benefit and we don't sound money hungry or unprofessional lol!

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