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Advice: Paypal Fees

As a result of PayPal's crackdown on 'gifts and services' being used to pay for goods, an artist I follow had decided to start using 'goods and services' but insists on using a fee calculator to add the fee onto the price of their commissions. In other words, making the buyer pay the fee so they don't lose out on their full pay.

I would like some advice on this please because they're insisting that this is acceptable by PayPal but I'm not entirely sure as other sources suggest that this isn't tolerated, as it could be seen as the seller avoiding covering the fees themselves.

Note: I didn't mention the artist's name because this isn't a beware about them, I'm just a friend who's rather concerned about their practises and I don't want to see them get into trouble with PayPal and I'm hoping that there's someone in the community who may be savvy about this kind of thing.

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Jun. 20th, 2015 08:25 pm (UTC)
I believe they only use Paypal for their transactions and they specified this applied to said transactions.

This is why this is quite confuddling for me. If PayPal is the only service they use, does the handling fee stance count?
Jun. 20th, 2015 08:28 pm (UTC)
That'd probably be something that Paypal would have to decide. Because honestly, I don't do business with unethical people who try and shill their fees onto me. She can factor them into her cost of doing business like normal people do, or she can't.
Jun. 20th, 2015 08:32 pm (UTC)
Exactly why I'm not going to commission them anymore to be honest because I'd rather not risk getting myself into trouble nor do I agree with what they're doing.

Thank you for your help with this though!
Jun. 20th, 2015 08:37 pm (UTC)
Well, I went ahead and sent a poke to Paypal about it. Let's see if they get back to me.
Jun. 20th, 2015 08:45 pm (UTC)
Thank you very much! I hope they can provide some answers. It's such a grey area especially since it's digital goods.
Jun. 25th, 2015 09:53 pm (UTC)
Spoke to Paypal about it. The "handling fees" are only legal if she charges them across the board, so... if she's not taking any other payments and would normally not charge handling fees if she accepted cash, then she can't do that.
Jul. 4th, 2015 05:35 pm (UTC)
Here's the issue. The artist themselves told you that the fee is specifically for Paypal. If they had only ever said "I charge a 4% handling fee on all purchases" that would be one thing, but they didn't.

They need to simply incorporate the 4.5% that PP charges into their total price, as this sort of non-sense will absolutely drive customers away.


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