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PayPal fees, WTF?

Posted: Wed Feb 22, 2017 2:10 pm
by jonb
Hi

I just sent £2 to someone and got charged 27p by PayPal. What the hell? That is over 10%!!! (Actually, 13.5%)

Not happy. It's not the amount but the percentage that is boiling my blood. :evil:

Talk about abusing a dominant position. Swine.

Harumph.

jonB

Re: PayPal fees, WTF?

Posted: Wed Feb 22, 2017 2:34 pm
by davidb
I have a PayPal account for legacy reasons and received a notification about an impending update to their terms and conditions. They like to "link" any bank cards and accounts to your PayPal account, and it seems to me that the updated terms would make it easier for them to charge your card/account whenever they think it's necessary. I could be mistaken, but it's probably worth taking another look at those.

I "unlinked" my card from my account. I don't remember actually "linking" it in the first place - online services are very slippery when it comes to opting their users into arrangements without making it clear what they have done. I'll probably close the account in the near future. :x

Re: PayPal fees, WTF?

Posted: Wed Feb 22, 2017 3:19 pm
by geraldholdsworth
davidb wrote:I'll probably close the account in the near future. :x
I heard a horror story recently about someone who closed their PayPal account and then PayPal suspended all their cards for them.

Re: PayPal fees, WTF?

Posted: Wed Feb 22, 2017 4:00 pm
by davidb
geraldholdsworth wrote:I heard a horror story recently about someone who closed their PayPal account and then PayPal suspended all their cards for them.
That's useful to know, thanks. Just as well I removed my card details from my PayPal account, then, although I'm sure they'll still be floating around in their system's back end somewhere...

Re: PayPal fees, WTF?

Posted: Wed Feb 22, 2017 4:34 pm
by topcat96
Paypal are not a bank, they are a payment processor according to their website blurb. Consequently, they are not legally bound by any local banking regulations and can charge whatever fee's they like.

They have you over a barrel when it comes to using places like Ebay and have final say on suspending and in some cases, closing your Paypal account without giving a reasonable cause.

My account was recently suspended for simply adding a new credit card to it (old one had just expired) and not being able to prove who I was (no valid passport etc.). No way am I going to send them copies of my information either electronically or by post - You have no idea who could intercept the information and do some ID theft and take out loans etc in your name.

Thankfully after about an hour on the phone to them and getting bounced around from person to person, it got sorted in the end but now am very wary of them and their riding rough-shod over everyone just because they can.

I've just started to look for alternatives to use wherever I can, circle pay being one of them that seems to fit my current needs.

Re: PayPal fees, WTF?

Posted: Wed Feb 22, 2017 4:40 pm
by MartinB
Jon - if you use the PP 'family and friends' gifting option when you send money to people you know and/or trust, there are zero fees.* There is no invoicing or payment protection but if you know the people, it's fine, I use it all the time... 8)

* Assuming the funds are available

Re: PayPal fees, WTF?

Posted: Wed Feb 22, 2017 6:23 pm
by tricky
zero fees unless, you don't have a card or account inked, then they wanted to charge me over £2 to send £2!

Re: PayPal fees, WTF?

Posted: Wed Feb 22, 2017 7:26 pm
by IanS
Anyone tried Paym, I've had it set up for a couple of years, just never found anyone else with it.

http://www.paym.co.uk/

Re: PayPal fees, WTF?

Posted: Wed Feb 22, 2017 7:44 pm
by trixster
My mates and I use paym all the time - useful for sending a bit of cash to cover last night's takeaway!

Re: PayPal fees, WTF?

Posted: Wed Feb 22, 2017 8:31 pm
by jonb
MartinB wrote:Jon - if you use the PP 'family and friends' gifting option when you send money to people you know and/or trust, there are zero fees.* There is no invoicing or payment protection but if you know the people, it's fine, I use it all the time... 8)

* Assuming the funds are available
I'm pretty sure that is what I did, yet it still cost 13.5%!

Re: PayPal fees, WTF?

Posted: Wed Feb 22, 2017 8:46 pm
by MartinB
I sent £25 to Tim last night (as per your £2 too I'm guessing :wink: ) in two transactions and I paid no fees. I do have a linked bank account but there was sufficient funds in my PP balance to cover the £25. Thing is, over literally hundreds of these 'gifts', both in & out, I've never incurred (or seen my gifters incur), any fees at all.... :-k

Re: PayPal fees, WTF?

Posted: Wed Feb 22, 2017 10:34 pm
by daveejhitchins
I use Gift, through PayPal too - no cost to me either.

Dave H :D

Re: PayPal fees, WTF?

Posted: Thu Feb 23, 2017 12:23 pm
by jonb
Paid via credit card, but would have expected 3.5%, not 13.5%

Re: PayPal fees, WTF?

Posted: Thu Feb 23, 2017 1:43 pm
by JonC
Could be an admin error. What did Paypal say when you queried it?

Re: PayPal fees, WTF?

Posted: Tue May 30, 2017 1:00 am
by stevendt
Yes, PayPal fees suck, but the costs for such a low value transaction are skewed by their minimum processing cost, they charge 3.4% + £0.20.

Yes, it's a rip off, but they are the published fees

https://www.paypal.com/uk/webapps/mpp/paypal-fees

As it says, even if you use "Send money to Friends & Family"' if you fund the payment by credit card, rather than money in your PayPal or bank account, you still pay the fees.

(Don't think that I am defending them, I'm just pointing out how their charges are applied)

Regards
Dave