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Hosting Discussion > Operating a Web Hosting Business > Billing and Accounting > Charging extra to cover Paypal fees etc.
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  Post #1 (permalink)   03-08-2010, 08:52 PM
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Because of the fees associated with using Paypal or most other payment options, some companies have taken to charging a little bit extra to cover the expenses caused by Paypal. Do you charge extra for payments thru Paypal, or do you charge the same price regardless of payment method?
 
 
 


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  Post #2 (permalink)   03-08-2010, 09:10 PM
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I know that charging extra fees to customers that use credit cards is against merchant account guidelines (even though you see it all the time; especially in brick-n-mortar stores. You know -- the signs that say 'min $10 purchase if using cc' or '1% discount if using cash').
Check PP TOS; they're quick to drop merchants that violate their guidelines.
 
 
 


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  Post #3 (permalink)   03-08-2010, 10:18 PM
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I don't know if it's in their TOS or not but I charge the same regardless of payment method.

The way I look at it is, I knew the fee's when I signed up, my clients shouldn't be punished because I choose to offer PayPal.
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  Post #4 (permalink)   03-08-2010, 10:31 PM
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Originally Posted by JerryM View Post
I don't know if it's in their TOS or not but I charge the same regardless of payment method.

The way I look at it is, I knew the fee's when I signed up, my clients shouldn't be punished because I choose to offer PayPal.
True; just build the costs into the amounts you're already charging, regardless of payment method. It may irritate customers anyways if they have to pay different amounts based on method...
 
 
 


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  Post #5 (permalink)   03-08-2010, 11:28 PM
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I always thought it was against their TOS, the person is responsible for the fees with using their service. It just seems dumb really, and honestly as I am at my point for people whining about PP fees. If you want something for free, just wish it - you would have a better shot in the dark of not getting fees with someone for using their services. Seriously, why whine about it - they are doing you a favor transferring funds for you, its their job, they should get paid for it.
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  Post #6 (permalink)   03-09-2010, 01:29 AM
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I am thinking about only offering 6monthly and 12 monthly pay upfront as the fees are hardly worth the effort.
 
 
 


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  Post #7 (permalink)   03-09-2010, 08:31 AM
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I don't really see what the fuss is all about with PayPal..

On a $10 payment I get charged less than $1... On a $100 payment, it's less than $3. Pretty worth it to me.

If you don't think it's worth the effort, why spend the effort to sign up for it?
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  Post #8 (permalink)   03-09-2010, 09:13 AM
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Quote:
Originally Posted by JamesCWilson View Post
Because of the fees associated with using Paypal or most other payment options, some companies have taken to charging a little bit extra to cover the expenses caused by Paypal. Do you charge extra for payments thru Paypal, or do you charge the same price regardless of payment method?
Quick answer. We charge the same regardless of the payment method. I've seen this in brick and mortar stores, but won't shop there - to me, it's pinching pennies at the expense of your clients.
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  Post #9 (permalink)   03-10-2010, 08:40 PM
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I personally charge the same price regardless of payment method, but I have seen a few other companies that charged a certain extra percentage(I think it was like 5%?) for using something like Paypal.

Personally I feel that it's best to just charge the same rate for all payment types, although I see nothing wrong with raising your standard price a little, but ONLY if it is universal for all payment types.
 
 
 


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  Post #10 (permalink)   03-11-2010, 01:00 PM
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I charge the same. That would be a lot of work to setup differnent charges for different payment types. I'd just stick with one price across the board and encompass the cost of the charges into that price.
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