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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. 21st, 2015 03:48 am (UTC)
Honestly, if any artist is so hard-up that a dollar or less is actually significant, just sucking it up and raising your prices would get you MORE money, by a few cents. Like (warning, completely random made-up pulled-from-nowhere numbers alert) charging an extra $1.46 on top of your listed prices can cover the fee at the cost of looking suspicious as hell... OR just raising your price by $2 will cover that fee AND give you an extra 54 cents!! :O

These artists are giving red flags to customers whose business they probably would have wanted and running the risk of getting in trouble with PayPal just to pursue the option that will give them less opportunity to keep a little extra per transaction! I don't get it. 6_9


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