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PayPal is getting expensive
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PayPal is getting expensive

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  • I read that last night on my phone, I busted out laughing at everyone that isnt american. But then I got sad. Because... Well.... Trump...
    Cries loudly into pillow

    Thanked by 1sharuu
  • @Morpheusxeno said:
    I read that last night on my phone, I busted out laughing at everyone that isnt american. But then I got sad. Because... Well.... Trump...
    Cries loudly into pillow

    looool so funny omg

  • ricardoricardo Member
    edited February 2017

    Their exchange rate has always been a good money maker for them. Blatantly crap rate.

    Still, Paypal are good for hiding your credit card from leaky web hosting providers. Consider that extra few % as insurance.

    This is quite good for anyone who's looking to lower conversion rates. https://www.travelex.co.uk/services/supercard They're pretty close to the spot rate and charge 1% IIRC.

  • Well, fuck PayPal. Fuck 'em some more.

  • @K4Y5 said:

    Well, fuck PayPal. Fuck 'em some more.

    In 10 minutes you will be using it again though.

  • @ricardo said: This is quite good for anyone who's looking to lower conversion rates. https://www.travelex.co.uk/services/supercard They're pretty close to the spot rate and charge 1% IIRC.

    There's also Revolut.

    Thanked by 1luissousa
  • @Ishaq said:

    @ricardo said: This is quite good for anyone who's looking to lower conversion rates. https://www.travelex.co.uk/services/supercard They're pretty close to the spot rate and charge 1% IIRC.

    There's also Revolut.

    They're pretty desperate for $$$ now :I

  • BradyHBradyH Member, Host Rep

    We stopped taking PayPal all together. Not worth the issues. Would rather take bitcoin from customers.

  • @CenTexHosting said: Would rather take bitcoin from customers.

    Not everyone uses Bitcoin, that's the problem.

    PayPal have such a massive buyer influence.

    Thanked by 1jenkki
  • @Ishaq Yeah- even if we're getting fucked, we still want our money.

  • BradyHBradyH Member, Host Rep

    @Ishaq

    Yep I agree with you on PayPal has a massive influence.

    Since we switched to either doing only credit card or bitcoin or Wire we have only lost 2 customers because of this.

    But it was something that we though long and hard over as we had several major issues with PayPal.

    Example a customer cancels with us. They were cancel out of our system and the auto payments on our side in PayPal showed canceled but it did not cancel on customers side and they still got billed for it. We had this happen with several customers.

    This is just one issue we had. There for awhile every ticket we got was something to with PayPal. So we just got rid of it.

    I know we may loose more business or not get some customers at all.

  • Their exchange rates were already atrocious...

  • justvmjustvm Member, Patron Provider

    @CenTexHosting said:
    @Ishaq

    Yep I agree with you on PayPal has a massive influence.

    Since we switched to either doing only credit card or bitcoin or Wire we have only lost 2 customers because of this.

    But it was something that we though long and hard over as we had several major issues with PayPal.

    Example a customer cancels with us. They were cancel out of our system and the auto payments on our side in PayPal showed canceled but it did not cancel on customers side and they still got billed for it. We had this happen with several customers.

    This is just one issue we had. There for awhile every ticket we got was something to with PayPal. So we just got rid of it.

    I know we may loose more business or not get some customers at all.

    We have experienced the same issue and then decided to remove the PayPal subscription button from our invoices, this solved the chargeback problems.

    They are increasing in 0.5% looks like that is a small percentage but as the volume, they process every day it is a huge money.

    From the customer side, this does not change anything but us as providers it is 0.5% increase in the cost and when you figure all fees we are talking about 7% total (transaction fee+conversion rate) they are taking in each transaction.

  • Awmusic12635Awmusic12635 Member, Host Rep

    vpsrus said: We have experienced the same issue and then decided to remove the PayPal subscription button from our invoices, this solved the chargeback problems.

    You might like this: http://myworks.design/software/whmcs-paypal-billing-agreements-payment-gateway/

    Completely solves the subscription problem. Customer cancels then the system simply stops charging them.

    We have been using it for two years.

  • randvegetarandvegeta Member, Host Rep

    vpsrus said: but us as providers it is 0.5% increase

    Actually it's much more than just a 0.5% increase. If you currently pay 3.9% and the fee goes upto 4.4%, the actual INCREASE is almost 13%! And what I mean by that is, the fees you will pay to Paypal will increase by 13%.

    And when you consider that most hosting providers already have fairly low margins, could represent a not so insignificant chunk of the profit.

    I suppose we could try and pass on the cost to the consumer? Paypal being applicable to almost every hosting provider, increasing the price won't necessarily disadvantage anyone since we all face the same price hikes.

  • busbrbusbr Member
    edited February 2017

    Can providers simply charge customers for using PayPal?

    I suppose this is not allowed as it discourages its usage, but I've seen many places do it; HEXONET/1API and ResellerClub simply credits you the actual amount they receive, VPS247 invoices you separately for payment gateway fees, etc.

  • randvegetarandvegeta Member, Host Rep

    Does charginge extra for Paypal really constitute as discouragement? It's very subjective isn't it?

    You can say it like this:

    "Pay with our favorite gateway, PAYPAL! Only 4.4%!!!"

  • Awmusic12635Awmusic12635 Member, Host Rep
    edited February 2017

    busbr said: Can providers simply charge customers for using PayPal?

    No. Paypal does not allow it. They specifically mention you cannot make a person with paypal pay more / pass on fees.

  • Actually... I've seen it a few times like. g2a , themeforest , etc. Is a normal practice. @Awmusic12635

  • Awmusic12635Awmusic12635 Member, Host Rep
    edited February 2017

    Hxxx said: Actually... I've seen it a few times like. g2a , themeforest , etc. Is a normal practice. @Awmusic12635

    It might be different in other countries, but I am referring to the U.S. Paypal:

    No surcharges

    You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method. You may charge a handling fee in connection with the sale of goods or services as long as the handling fee does not operate as a surcharge and is not higher than the handling fee you charge for non-PayPal transactions.

    https://www.paypal.com/us/webapps/mpp/ua/useragreement-full?locale.x=en_US#accepting-payments

  • Well I'm in the USA, still get charged a processing fee. Is normal. @Awmusic12635 But I understand what you mean,

  • Awmusic12635Awmusic12635 Member, Host Rep

    Hxxx said: Well I'm in the USA, still get charged a processing fee.

    For clarification I mean the seller's country

  • @Awmusic12635 one thing that's sometimes done in retail in the US is offer a "discount" (of a higher price) to incentivize people to use whatever payment method you want them to use. Back before the credit card issuer agreement allowed merchants to charge customers an additional fee for paying with that brand of credit card, this was often done to encourage cash payments over plastic. I would think it would work for this, too.

  • I suppose that the timing of stripe adding more payment methods (currently) for eu sellers is good...

  • We charge customers using PayPal shipping fees while every other payment method gets free shipping.
    PayPal never complained.

  • @Tion said:
    We charge customers using PayPal shipping fees while every other payment method gets free shipping.
    PayPal never complained.

    That's against their terms. Just because you haven't been be found up till now doesn't mean you won't.

  • Ishaq said: There's also Revolut.

    Revolut just useless, they top up only by own bank card with pic of front card in file

  • jhjh Member
    edited February 2017

    I use Revolut for cash withdrawals overseas - it's the cheapest way except for a small number of specialist credit cards in the UK. And withdrawing cash on a credit card is not good for your creditworthiness.

    However, for spending, in the UK, quite a lot of cards offer the Visa/MC interchange rate with no surcharge.

    As for PayPal, ditching it was one of the best things we ever did. I don't know why so many users here like it (yes, some dont have cards, but as a rule..). There is probably more protection when using g a credit card (not a debit card) than PayPal. Most corporates won't use PayPal. I for one have memorised all my card numbers. If an outfit looks really shady, I don't buy.

    We were quoted just under 0.5% via Elavon and WorldPay for all Visa and MC spend. Elavon werent pleasant to deal with but WorldPay has worked extremely well. Money deposited in our account 3 days later.

    As for the surcharge, I believe part of the reason behind it is to protect themselves as they have the same clause with Visa and MC. In the UK it is quite common to allow payment via debit card FOC and to make a charge for credit cards / PayPal. I think that would be acceptable as it's such a common thing to do.

  • joepie91joepie91 Member, Patron Provider

    jh said: (yes, some dont have cards, but as a rule..)

    Try "most of the Netherlands and various other countries"...

    I mean, sure, if you don't care about said customerbase, you can definitely leave out PayPal. But it's not just a handful of oddball potential customers you lose.

    (For the Netherlands specifically, you can choose to accept iDeal through various payment gateways, but plenty of countries don't have such a centralized online banking system.)

  • racksxracksx Member
    edited February 2017

    This is bad,


    We are clarifying that we will assess the $20.00 chargeback processing fee for sellers who win a chargeback but are not eligible for Seller Protection.


    And if I win the case of total order $25, I will be happy to get $5, hell NO!

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