Hello,
For years of time, I do not charge 4% of fees from my clients for their paypal payments.

If I say my server is $150. Then client will pay $150 only.

I am not adding $150 + 4%

I need your suggestions about it. Because I never made this fees before. So my existing clients may think i am doing dishonest ?

The prices of our hosting plans/products have the fees included, this makes things easier for us so we don't have to end up charging the clients the paypal fees or any other fees from a 3rd party gateway.

Fees are a part of doing business. I wouldn't recommend simply increasing prices just to cover the fees without other new features or benefits.

It is against PayPal's Terms Of Service to pass the fees onto the clients.

Some companies do it anyway and call it a "Handling charge" (applying to PayPal payments only), although this is risky.

Plus, as others have said, fees are part of business. Clients don't expect hidden fees and all.

EDIT: It's section 4.6 of PayPal's User Agreement.

As others have said it is against paypals TOS.

That said, just factor the fee's into your price. For example when setting your prices take into consideration that you will lose x amount due to fees and price your services accordingly.

While it is higher then other credit card processors or something you would find at a retail store, it is a part of business. Everyone gets a fee for doing it at some point, just have to accept it.

You need to factor the fees into the price you charge for the item, just like you also factor in your cost of the item, staff wages, overheads etc...

No, PayPal fees are our responsibility and we don't pass them to clients like I've seen other sites do. I didn't know it was against PayPal's ToS, though.

I don't think the fee's should ever be passed on to the customer. Good to know though that it's again their TOS, didn't know either.

just like everyone said, just have it in your fees
already

Hello,
For years of time, I do not charge 4% of fees from my clients for their paypal payments.

If I say my server is $150. Then client will pay $150 only.

I am not adding $150 + 4%

I need your suggestions about it. Because I never made this fees before. So my existing clients may think i am doing dishonest ?

Are you reselling servers or having own dedi to rent ? If you are reselling you have work out the prices with the margin amount and with the paypal fee, normally as per TOS of Paypal the amount may not be passed on to clients but some companies like Volumedrive adds this paypal fee additional to the charge for their servers.Like that work out some price format convenient to you.

Are you reselling servers or having own dedi to rent ? If you are reselling you have work out the prices with the margin amount and with the paypal fee, normally as per TOS of Paypal the amount may not be passed on to clients but some companies like Volumedrive adds this paypal fee additional to the charge for their servers.Like that work out some price format convenient to you.

I am having own dedis to rent. I havnt charged my clients in the name of "fees" in last 3 years. If I do it then I may lose my good name. Most of my clients are from "word of mouth". They trust me very much. So better I drop my plan to add fees.

Thank you friends for the valuable replies :)

I don't think the fee's should ever be passed on to the customer. Good to know though that it's again their TOS, didn't know either.

Agreed. On the internet, and especially for hosting services, processing fees should be included. After all, there are very few cash customers.

But, at the grocery store, there is something to be said for passing on the fees. After all, why should cash customers subsidise air miles and credit cards for non-cash customers?

This thread actually brought up something funny. Everyone in the US who ever goes to a store has had fees passed onto them. Even if you buy a service or anything. And no one complains or blames the store(with exception of vending machines I guess). Why? Because they are taxes :) A lot of other countries just incorporate taxes into the price(It really is great too, never have to calculate if I think I will have enough money if im paying cash)

In the end my point is, I guess it really does not matter, the fees are passed on to the customer one way or the other. Its just a selling point. If the government taxed all online sales regardless of origin, I dont think a lot of companies would take the "high road" and not change their prices or not not include a separate sales tax.

I do not add fees onto the customer. The price they see is what they pay.

I'm a little confused with the fee, but i'm assuming it's the 2.9% that paypal charges?

We typically charge to help to setup the whole paypal process and/or the database on the actual website. But the financial transactions is all handled through Paypal so we don't charge a fee for that.

Nor do i see why anyone would want to pay for it. It's not really an "added value" service. :)


Lawrence

I'm a little confused with the fee, but i'm assuming it's the 2.9% that paypal charges?

We typically charge to help to setup the whole paypal process and/or the database on the actual website. But the financial transactions is all handled through Paypal so we don't charge a fee for that.

Nor do i see why anyone would want to pay for it. It's not really an "added value" service. :)

Lawrence
He's not referring to it in a scenario where he's selling a solution or site to someone for ecommerce.

"They" are the ecommerce site, he was wondering whether he should be passing on the ~3% fee +$0.30 Paypal charges him to accept the payment to his customers.

He's not referring to it in a scenario where he's selling a solution or site to someone for ecommerce.

"They" are the ecommerce site, he was wondering whether he should be passing on the ~3% fee +$0.30 Paypal charges him to accept the payment to his customers.

Ah.. that makes a little more sense.

Most businesses i've dealt with (including buying computer hardware), the costs are just blended into the price.

Unless you give them the 3% cash'n'carry option. :)


Lawrence

Add me as another voice against adding PayPal fees.

If I were to sell, no, I would not add an additionnal fee.

We are eating the fees ourself. So yea, against adding fees to clients.

Well i agree with HS nick as he says, it should be part of early business planning and take this into account. Or your prices should cover the fees. Its not just paypal there are also banking fees when customer sends payments via wire.

P.S Paypal violates its own ToS

Well, not only PayPal, but all major credit card providers have clauses against usage fees. It's a cost of doing business and needs to be factored into your pricing.

Paypal fees are a cost of doing business like all other expenses.

Well i agree with HS nick as he says, it should be part of early business planning and take this into account. Or your prices should cover the fees. Its not just paypal there are also banking fees when customer sends payments via wire.


I agree. I should be built into your fees, unless you're doing massive volume with thin margins (like reselling concert tickets or something)

P.S Paypal violates its own ToS

How so?


Lawrence

Nothing worse as a customer than seeing fees tacked onto a payment. Even though they end up paying the same psycologically if it's in orporated into your product there is less resistance.

I have never seena host pass on these fee's to any customer and I think it would look bad on a host and create more work. Including it within the price like everyone else has said here is the best option and the safest long term for reputation

Standard practice is the incorporate any fees into your displayed pricing, I can't see any other model becoming popular.