Lots of alternatives. I don't use paypal anymore for this reason AND they can freeze all your funds at any time esp involving crypto as they don't cover it in their policies. Beware.
PayPal Fees Are Insane
21–30 of 33 posts
Re: PayPal Fees Are Insane
#22Okay thank you, @fwir, @asdajksah2123, @lathiat
These points make much more sense however
If there is 1.75% of counterparty risk then why do bank transfers charge fixed rates of 0, 3 Euro and alike. If the underlying transfer is swift, sepa, wire then shouldn't this be the baseline?
That or give the option to accept the counter party risk for failure of transfers.
And there surely is signing methods that one could do as an escrow like service to mitigate most of the fee
Re: PayPal Fees Are Insane
#23Okay thank you, @fwir, @asdajksah2123, @lathiat These points make much more sense however If there is 1.75% of counterparty risk then why do bank transfers charge fixed rates of 0, 3 Euro and alike. If the underlying transfer is swift, sepa, wire then shouldn't this be the baseline? That or give the option to accept the counter party risk for failure of transfers. And there surely is signing methods that one could do…
In addition to the points already mentioned (counterparty risk, currency conversion, popularity, ease of seller side integration), don't underestimate how much PayPal can increase conversion rates by making it easy for the buyer to make a purchase.
Fumbling around with credit cards or IBAN numbers + having your banking app fail randomly when trying to authorize payments is annoying. PayPal just works. Also, if you're some random shop on the internet many customers prefer to pay via PayPal rather providing you banking details or credit card numbers.
> That or give the option to accept the counter party risk for failure of transfers.
In Germany, merchants frequently offer to be paid by IBAN in advance or by invoice after the delivery. No fees, but the risk is fully on one side.
> And there surely is signing methods that one could do as an escrow like service to mitigate most of the fee.
PayPal basically acts like an escrow with their buyer protection policy. If you find another provider, good luck convincing the customers.
Re: PayPal Fees Are Insane
#24Earlier quoted context omitted.
In Australia the Reserve Bank publishes the average cost of acceptance by card type. As of 2019 the published rates are 0.5-1% for Visa and Mastercard (lower end for debit, higher for credit) and 1.4% for American Express. They are basically all dropping over time, not going up. This includes terminal rental, monthly fees, etc. PayPal charges 2.6% plus a fixed $0.30 fee for domestic + another 1% for international. St…
Paypal in USA charges 3.49% for domestic!
But credit cards in the US also charge about 3%. Paypal’s somewhat pegging to what’s ‘reasonable’ in the locale.
Re: PayPal Fees Are Insane
#25Earlier quoted context omitted.
Which doesn't help when your exchange steals your stable coins.
There are many who avoid exchanges altogether which was the original purpose of crypto: DeFi
And DeFi has no way to interact with the real world and fiat. The fundamental flaw with crypto is that the real world requires trust and governance to handle the corner cases when there are disputes between parties. None of the blockchain technologies in use today have solved that. If someone knows otherwise, please show me. I have a friend that lost 7 digits worth of crypto assets because of this issue 5 years ago, and it seems to keep on happening to other people. This is flat out wrong, unethical and immoral.
Re: PayPal Fees Are Insane
#26I have been spoilt using a traditional bank for transactions and the fees are 0. It is insane, I was charged 0 USD to invoice 30,000 USD.
What you did there was make use of a good client relationship. This won’t work selling a tshirt to a stranger. So it is about use cases.
Re: PayPal Fees Are Insane
#27Okay thank you, @fwir, @asdajksah2123, @lathiat These points make much more sense however If there is 1.75% of counterparty risk then why do bank transfers charge fixed rates of 0, 3 Euro and alike. If the underlying transfer is swift, sepa, wire then shouldn't this be the baseline? That or give the option to accept the counter party risk for failure of transfers. And there surely is signing methods that one could do…
In addition to the points already mentioned (counterparty risk, currency conversion, popularity, ease of seller side integration), don't underestimate how much PayPal can increase conversion rates by making it easy for the buyer to make a purchase. Fumbling around with credit cards or IBAN numbers + having your banking app fail randomly when trying to authorize payments is annoying. PayPal just works. Also, if you're…
> Fumbling around with credit cards or IBAN numbers + having your banking app fail randomly when trying to authorize payments is annoying.
What country? I use 3 EU banks and different credit/debit cards and haven’t had issues in the past 5+ years; there is no fumbling; the data is stored in Apple Pay or google pay or the browser password vault, so maybe (there isn’t anymore as the banking apps immediately allow to add your card without you even having a physical card) there is 1 time fumbling and that’s it. And the banking apps have never failed for auth.
PayPal on the other hand stole money from my company and closed/banned my personal account because they simply couldn’t fix a bug they have and closing an account is easier and cheaper for them. It’s a horrible company and has high fees. Happy to never having to use them again.
Re: PayPal Fees Are Insane
#28I have been spoilt using a traditional bank for transactions and the fees are 0. It is insane, I was charged 0 USD to invoice 30,000 USD.
What you did there was make use of a good client relationship. This won’t work selling a tshirt to a stranger. So it is about use cases.
> for large sums over 20K USD and more each time ... invoice 3000 USD
> This won’t work selling a tshirt to a stranger.
If a stranger is paying you 20K USD + for a tshirt then the I wouldnt worry too much about the fees.
Re: PayPal Fees Are Insane
#29Earlier quoted context omitted.
What you did there was make use of a good client relationship. This won’t work selling a tshirt to a stranger. So it is about use cases.
> for large sums over 20K USD and more each time ... invoice 3000 USD > This won’t work selling a tshirt to a stranger. If a stranger is paying you 20K USD + for a tshirt then the I wouldnt worry too much about the fees.
Selling 20k worth of $40 tshirts attract the same fees though.