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PayPal raises fees for most domestic transaction types to 3.49% + $0.49

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Re: PayPal raises fees for most domestic transaction types to 3.49% + $0.49

#151

Post by yarcob »

Urgo wrote: post #18
kaslai wrote: post #17

Earlier quoted context omitted.

Yeah I definitely missed it and it caught me by total surprise today. I imagine many are in the same boat. This also comes after they've adjusted their policy so that they keep all fees even after a payment has been refunded. They're getting less and less attractive every month.

Keeping the fees on refunds bugs me so much as well and is completely out of line. Sadly everyone seems to do this now. We haven't gone live with it yet, but following this change I actually went comparison shopping a little. I'm planning on swapping my payment processing over to Braintree.. which is still paypal.. but actually does have less fees. It has the benefit of still being able to accept paypal payments (at…

The last time I went comparison shopping I figured Wirecard was a good deal. I even got a quote from them and planned to switch to them. But I was a lazy procrastinator, so I did nothing for a couple of months, and then all of the sudden I read about them on the news...

Re: PayPal raises fees for most domestic transaction types to 3.49% + $0.49

#152

Post by lvl100 »

Paypal is a classic rent seeker. Nearly two years into pandemic, they still refuse to hire people for live customer service. Despite record profit.

If anyone is looking for a startup idea: an online payment platform that charges on outbound bank transfers only. Heck charge 5% fee. And let all transactions be completely free.

Re: PayPal raises fees for most domestic transaction types to 3.49% + $0.49

#153

Post by TheOtherHobbes »

nicoburns wrote: post #123
stephen_g wrote: post #106

Earlier quoted context omitted.

Interesting. In Australia you can charge a surcharge, but only what the interchange fee cost you. So airlines especially used to charge large fees, like $12 or something, and now can only charge a few dollars.

Before this law in the UK it was mostly small businesses (e.g. local independent grocery stores) charging 50p per transaction. I think the law was probably to encourage uptake of contactless payments which are targeted at these small transactions. It's still legal here to have a minimum transaction value for paying with card, which some businesses use. But since the pandemic it's become more common to find businesses…

I occasionally had disagreements with shop owners because I didn't have cash and I wanted them to add the payment fee manually so I could pay by card and actually - you know - buy stuff.

A lot simply wouldn't - like I was attempting fraud or something.

Re: PayPal raises fees for most domestic transaction types to 3.49% + $0.49

#154

Post by 2ion »

doikor wrote: post #104
2ion wrote: post #88

Earlier quoted context omitted.

- direct bank transfer = debit. When you send money using SEPA you have no right at all to charge the money back, as it's always a voluntary authorized transaction. The marchant got you by the balls. - In DE at there are fast "instant" payments called paydirekt or giropay, which make "checkout" using your giro account fast and simply. However, it's debit again. Balls grabbed. - Your checking account usually receives…

About the charge backs if one is mainly shopping from local companies there is really strong consumer protection laws instead. Basically you can demand a refund and if they don't give it to you it is a really simple process of just sending a bill to that company for your money and initiate bankruptcy process if they fail to pay.

Yes, but in this context, everything depends on the interaction with the merchant. While most merchants are not pricks, they are businesspeople and won't unconditionally accommodate any claim even if it is reasonable. Based on my experience, the worst are not necessarily the small merchants unless they are just fraudsters but the semi-large online stores like Otto/Saturn/MediaMarkt which will do everything to make a return and refund as impossible as possible.

Re: PayPal raises fees for most domestic transaction types to 3.49% + $0.49

#155

Post by lmilcin »

I have worked for an acquirer side of the business where I implemented the credit card application but also took part in complete certification process and day to day business.

For a normal credit card transaction, most of the fee goes to the bank issuer of the card. This is banks' major source of income nowadays (aside people who don't pay off their credit card on time).

This means that most acquiring business -- the companies like Visa, Mastercard and actual acquirers that maintain the infrastructure -- get very small part of that pie but it is still very worth their time.

I don't know what kind of deal PayPal has but 3% suggests their cut is order of magnitude more than any traditional acquirer, but without hassle of maintaining EPOS terminal infrastructure.

And that half a dollar is damaging to micro transactions. Technology was supposed to make it easier to pay for small things, individually. Half a dollar cannot be explained even if each transaction was processed manually.

Re: PayPal raises fees for most domestic transaction types to 3.49% + $0.49

#156

Post by op00to »

semi-extrinsic wrote: post #99
tinus_hn wrote: post #95

Earlier quoted context omitted.

The problem with iDeal is that there is 0 consumer protection. If you pay for an order using a credit card and it’s a scam, you do a chargeback. If you pay for an order using iDeal and it’s a scam, the money is gone the moment you pay. There is no way to get the money back.

I love how Americans are totally fine with paying a tax on every transaction they make in order to protect random people from occurrences of financial fraud, yet are vehemently opposed to exactly the same system for healthcare. I mean, rationally you would expect the opposite: people typically don't do $10k+ transactions using credit cards, so a worst case consequence of fraud you're not protected from is quite small…

This is so far off topic, but just like Americans are guilty of seeing the rest of the world as a homogenous entity, you are making a huge miscalculation on what “Americans” want.

Re: PayPal raises fees for most domestic transaction types to 3.49% + $0.49

#157

Post by op00to »

throwaway473825 wrote: post #137
semi-extrinsic wrote: post #99

Earlier quoted context omitted.

I love how Americans are totally fine with paying a tax on every transaction they make in order to protect random people from occurrences of financial fraud, yet are vehemently opposed to exactly the same system for healthcare. I mean, rationally you would expect the opposite: people typically don't do $10k+ transactions using credit cards, so a worst case consequence of fraud you're not protected from is quite small…

Note that high fees aren't a prerequisite for consumer protection. European credit cards offer full protection, despite having capped interchange fees.

Do they? Can I get an immediate refund for anything if I don’t like the item? I can with my Amex. No questions asked under $1000.

Re: PayPal raises fees for most domestic transaction types to 3.49% + $0.49

#158

Post by Geee »

dessant wrote: post #7

PayPal is awful for small transactions, I regularily get donations for my projects that are literally 0 USD, because all of it is eaten away by PayPal fees, and even for a 5 USD donation you end up losing around 15% of the transaction amount. Do you know of any other service that is suitable for microtransactions, besides cryptocurrencies?

There's zero fees in Strike afaik. https://strike.me

Re: PayPal raises fees for most domestic transaction types to 3.49% + $0.49

#159

Post by a_imho »

exporectomy wrote: post #58
bserge wrote: post #5

Still the easiest way to start selling online, at least in Europe... They've got the low volume starter business niche by the balls.

Yep. I investigated Stripe once but you had to use an API. Paypal is just copy and paste code into your HTML page.

Also Stripe is not supported in many countries.

Re: PayPal raises fees for most domestic transaction types to 3.49% + $0.49

#160

Post by Reason077 »

c12 wrote: post #130
Reason077 wrote: post #90

Earlier quoted context omitted.

Merchant fees for both debit and credit cards are significantly lower in all EU countries (and UK), compared to the US, thanks to the interchange fee regulation (IFR) that caps interchange fees at 0.2% for debit card and 0.3% for credit cards. This translates into much lower merchant fees. Even a tiny startup with zero transaction volume can easily get less than 2% on their physical card transactions (using something…

Due to Brexit merchant fees in the UK are no longer capped. Visa for example, plan to increase the interchange fee on digital payments made between European customers and British businesses from 0.3% to 1.5%. Other providers will surely follow. Still lower fees than in the states but probably not for long.

> "Due to Brexit merchant fees in the UK are no longer capped."

No, they are absolutely still capped in the UK. The IFR regulation has been mirrored in the UK so the same caps still apply to UK cards and UK banks.

The exception you are referring to is when a UK card is used for an online ("card not present") transaction at an EU merchant. In this case it is now considered an inter-regional transaction and a higher cap applies: 1.15% for debit and 1.5% for credit cards. (but note, even here there is still a cap!)

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