Mud Pie Mama

Actually, I think the issue here is still cloudy and muddled. There is a difference when using Paypal depending on what the funding source is. It may not make any difference to the person who is sending the money. But there is a difference to the seller who receives the funding.

Per the Paypal web site: www.paypal.com.
Fees for personal accounts when payments are thru cc funded source:
4.9% + $0.30 USD. Also a limit of only 5 transactions per year.

While the fee on a $20 or $30 transaction may be minimal ($1.28 - $1.77). I'd be anxious about the only 5 per year clause.

Hence the stipulation posted by some sellers: "non CC paypal only".

AaronT

Exactly.

Most people have a regular paypal account. This allows one to accept paypal payments from anyone with a paypal account and up to 3 credit card payments per year from persons without paypal accounts. This is the type of account that people refer to when they mention "non CC paypal only." In this case the fee is applied to only the credit card transactions and Paypal will prompt the seller asking if they wish to accept a cc payment.

Some people have upgraded to a premiere business paypal account that allows unlimited credit card payments from persons without paypal accounts. As a seller using this type of account there is a fee for accepting any type of payment, even if it is a paypal to paypal transaction.

Personally, I keep both type of accounts to avoid the unecessary fees, yet still keep the plants I sell accessable to those who do not have paypal accounts themselves.

I hope that clears up some misunderstandings.

MiamiCuse

ok thank you for the clearing up and I am more confused as ever...

if I do have a paypal account and I fund it via my cc, should I even bother to conduct business with those who explicitly stated "non CC paypal only" considering that they may only be able to do 5 transactions per year?

AaronT

No, there is no need to worry in that case if my understanding serves me well. Because you are a paypal member it counts as paypal to paypal. The CC charge is only a concern for premiere account holders if the buyer does not have a paypal account at all.

Logan's Daddy

As I said before, the source you fund your own paypal account with has NO BEARING WHATSOEVER on making purchases with that account. When you use your credit card funded paypal account to make a purchase that purchase is ABSOLUTELY a "non credit card" payment to the seller.

The ONLY thing that sellers who stipulate "non cc paypal only" are saying is that they do not accept direct credit card payments to their paypal account. They only accept payments from the buyer's paypal account to the seller's paypal account - source of funding for the buyer's account does not come in to the picture, period.

The seller could accept 1,000,000,000 transactions a year from other paypal accounts that the buyers funded with their credit card. They can only accept 3-5 DIRECT credit card payments a year (from buyers WITHOUT a paypal account)

- and mud pie mama, good research but you misunderstood what the site is saying, when they say credit card funded source they are talking about the source of the payment actually being a credit card. If a buyer makes a purchase with their paypal account the money is first transferred from the credit card into their account and then from their account to the seller's account. The seller only sees a payment from another paypal account, they will never know where the money in that account came from (cc or bank account).

just trying to help...

bigstick120

Wait a second, to send payment by paypal you have to have an account with paypal. You guys are confusing me and I use paypal all the time!

If a persons paypal is backed by a credit card only, it is a credit card payment. IE charges the seller a fee. Paypal basically passes the fee that they are charged onto the seller.

If the persons paypal account has a balance or linked to a bank account there is no fee to the seller. IE non cc payment.

Logan's Daddy

I just realized something.....

I was basing everything I posted on my premier paypal account, I would pay the same fee (as a seller) regardless of funding source, it appears that I owe an apology to mud pie mama, apparently if you have a personal account only there is a different pricing structure based on funding source. With a premier account it is always a flat 2.9% +30cents each time, no matter the source of paypal account funding.

I gues I took for granted that people selling stuff would have a premier account.....

By the way, if you are selling stuff and have a premier account, you pay a flat rate no matter what source your buyers fund their paypal account with.

Basically everyone so far has been right.... in our own ways.

ponyrandy

I have also wondered about this. My question is if you have a paypal account with no balance and use your credit card to fund it, the cc company charges a fee to the recipient of the money, in this case paypal. I am sure they don't absorb that fee.
Brian

Logan's Daddy

Yeah, the seller absorbs it, it depends on the seller's account how much absorbing they do, with a premier or business account it is a flat fee (2.9% + 30 cents) and the same weather it's from a cc or not.

The structure for a personal account selleris a little steeper.... along the 4.9% + 30cents range... for cc funded, but free for paypal account funded transactions, with a limit on the total number of transactions allowed.

go figure

ingg

Logan, you need to go through and edit out the misinformation you said like over and over, hee! You finally got it at the end there.

If a regular paypal account is funded by a CC only, and has no balance to draw from, it will charge the seller a fee to accept funds from the buyer.

Simple as that.

If the seller accepts the payment, and you can do that as a regular paypal member, a maximum of 5 times in a year - it charges you each time you do it.

Should you upgrade your account, as a seller, you can get a lower charge for accepting CC payments - but you also get charged on every transaction, regardless of funding source.

The problem with being a casual seller and upgrading your paypal account is that now it charges you for EVERY transaction, so there is no such thing as 27 cc/25 non-cc, now it all needs to be 27.



It is simple enough to hook a regular paypal account to your bank account. If you have a credit card, odds are you have a checking or savings account - link it to your paypal, and spare the sellers the headache!