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Old 05-18-2004, 09:54 PM #1
StealthRT
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Charging the 3% Paypal Fee is ILLEGAL!

I'm so sick of people charging thier buyers an additional 3% fee if you pay by paypal. Usually you are not even charged this yourself! If you have a personal account, and get paypal thru a bank account, you don't get charged this fee. You do on credit cards though, as this fee is from the credit card companied, not paypal...A mod desperatly needs to sticky this note in the B/S/T forums to let people know this. You can find it in the user agreement when you sign up for paypal, and its a known fact charging a fee on credit card payments is highly illegal, and if you were an actual business you'd loose your ability to accept credit cards, and be heavily fined...If you do not believe this, check you paypal user agreement, or better yet, just give paypal tech support a call or email. In fact, heres the actual respose you'll likely get:

Quote:
hank you for contacting PayPal.

It is against our User Agreement for a seller to charge an additional
fee to accept payments from a PayPal buyer.

Under Visa, MasterCard, Discover and American Express regulations and
the laws of several states, including California, merchants may not
charge a fee to the buyer for accepting credit card payments (often
called a "surcharge"). You agree that you will not impose a surcharge
or any other fee for accepting PayPal as payment. This restriction does
not prevent you from imposing a handling fee in connection with the
sale of goods or services, as long as the handling fee does not operate
as a surcharge (in other words, the handling fee for transactions paid
through PayPal may not be higher than the handling fee for transactions
paid through other payment methods). Sellers residing in the United
Kingdom and listing items for sale on a UK-based website may impose a
surcharge, but only under the following conditions:

1. Both the buyer and seller reside in the United Kingdom;

2. The purchase price is paid in pounds sterling;

3. The surcharge imposed by the seller is no greater than is
necessary to recover the receiving fees incurred by the seller;

4. The seller clearly indicates to the buyer prior to the
buyer's submission of a bid or (in non-auction transactions) prior to
completion of the purchase that a surcharge will be incurred and the
amount of the surcharge.

If you have any further questions, please feel free to contact us
again.

Sincerely,
Keri
PayPal Customer Service
PayPal, an eBay Company
I hate when I see people doing this because its a load of crap. Granted for a $20 purchase, a 3% is nothing to ya, but what if you want to buy someones $1200 timmy and pay with paypal? Do you want to cover THEIR 3% fee without question now??? Some Admin or Mod please sticky a note in the forums and keep your eyes out for threads of sellers charging you this fee...Otherwise I feel compelled to just report all the users I see doing this to paypal, they WILL shut your account down after they investigate the link to your for sale ad...
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Old 05-18-2004, 10:57 PM #2
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ok..instead of fee from now on i will say (paypal payments require an extra 3% in order to compensate fees..)
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Old 05-18-2004, 11:05 PM #3
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no, you miss the point...thats still illegal. You have to charge the same "processing fee" on all forms of payment...If they pay by money order or whatever, you'd still have to charge them 3% on that also...
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Old 05-18-2004, 11:20 PM #4
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NM..i got ya..it's like stores they can't charge you more because they use the credit card....I got ya...good point...another reason to do MO's...thanks
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Old 05-18-2004, 11:21 PM #5
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jsut figure it into ur price...if ur selling a used item..u can sell it for whatever u want.... so instead of asking 1200.... ask 1236....simple.....since there is no set price for USED equipment
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Old 05-18-2004, 11:24 PM #6
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yeah, word
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Old 05-19-2004, 12:11 AM #7
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Exactly...figure it into your price to start with, reguardless rather people pay thru paypal or by a money order...
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Old 05-19-2004, 02:17 AM #8
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This has been mentioned several times. I suggest you just mention it to any buyers you may buy from who ask you to pay the 3%. I don't see how it is illegal for an individual to do that. Sounds like its a problem between them and paypal to me.
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Old 05-19-2004, 07:08 AM #9
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its just against their TOS
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Old 05-19-2004, 09:17 AM #10
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It is highly illegal, rules for internet sales on credit cards are no different then a normal retail store, so how many stores do you see charging you a fee to use a card? All the credit card compainies will tell you its illegal, and it also violates the paypal user agreement...
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Old 05-19-2004, 12:10 PM #11
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Like I said, I doubt it is illegal for individuals. I can believe it is illegal for business.
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Old 05-19-2004, 04:03 PM #12
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if its against their TOS you can't do it...just like PBN's
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Old 05-19-2004, 06:48 PM #13
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It is illegal for everyone who accepts a credit card as a form of payment...The letter I posted clearly states this already, but yeah its a problem between paypal and their user base, not PBN, and I see a lack of interest in doing anything about it, so I'll just keep it to myself and when I see someone post that they require a fee if paying by paypal I'll just report 'em to customer service with a link to thier post...Paypal doesn't mess around with warning people, they just shut the account down provided they clearly violated the user agreement...
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Old 05-19-2004, 08:42 PM #14
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If I charge the 3 percent Paypal may have a problem with it...but it won't be illegal. The government cannot tell me that I cannot ask for coverage of the fees charged by paypal. I don't think that even applies to any business unless they have over 15 employees.
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Old 05-19-2004, 09:42 PM #15
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o, so you're arguing wether it's illegal or against the rules....
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Old 05-19-2004, 10:31 PM #16
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Quote:
Originally posted by JoshGrrrr
If I charge the 3 percent Paypal may have a problem with it...but it won't be illegal. The government cannot tell me that I cannot ask for coverage of the fees charged by paypal. I don't think that even applies to any business unless they have over 15 employees.
Actually it has nothing to do with how many employees a business has rather they can do this or not. It is illegal, and against the rules/user agreement. Credit Card companies will not allow this to happen, obviously because it will discourage credit card purchases, so they got a law passed pertaining to this sort of action...They can tell you cannot charge a surchage on a credit card payment. You are required to calulate that into your item prices no matter how they are paid for. This is a very basic business technique.
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Old 05-19-2004, 11:16 PM #17
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it's not fees from paypal...it's fees that credit card companies charge you to use their card...If you went in to Albertsons would you expect them to charge you an extra 3% but only if you used a credit card but not if you used cash or a check book...HUM?
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Old 05-20-2004, 01:09 AM #18
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It does have to do with how many employees you have. If you have less than 15 employees you can tell your secretary "give me head or your fired" and she can do nothing about it. The government is not allowed to meddle in your business practices unless it is considered "interstate commerce". The government sees 15 employees or more as interstate commerce. Sexual harrassment, hiring based on race, all that is legal if you have under 15 employees. I assume this is the same.
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Old 05-20-2004, 09:06 AM #19
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No, its not the same...
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Old 05-20-2004, 10:30 AM #20
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Quote:
Originally posted by JoshGrrrr
It does have to do with how many employees you have. If you have less than 15 employees you can tell your secretary "give me head or your fired" and she can do nothing about it. The government is not allowed to meddle in your business practices unless it is considered "interstate commerce". The government sees 15 employees or more as interstate commerce. Sexual harrassment, hiring based on race, all that is legal if you have under 15 employees. I assume this is the same.
Correction - the FEDERAL government is not allowed to meddle in your business practices unless it's interstate commerce. Otherwise, the State government meddles wit your business practices.
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Old 05-20-2004, 10:45 AM #21
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Quote:
Originally posted by JoshGrrrr
Sexual harrassment, hiring based on race, all that is legal if you have under 15 employees.
Toatally wrong! Nowhere in any statute does it say "sexual harrassment is only illegal if you run a company with more than 15 employees." It is ALWAYS a crime, and you can ALWAYS get in trouble for it. Kinda off topic I know, but that's a huge mistake.

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