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  1. #1
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    Question Making a PayPal Fee Hook

    Hey everyone,

    Unfortunately I am still using PayPal to process my payments as 80% of my customers use it.

    I was thinking of creating a hook that adds the PayPal Fee (3.4% + £0.20 GBP)to any invoice that uses PayPal.

    I wanted to see what other people thought before I developed it? Is this a good or bad idea?

  2. #2
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    https://cms.paypal.com/us/cgi-bin/?c...eiving%20Money.

    4.6 No Surcharges. You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method. You may charge a handling fee in connection with the sale of goods or services, as long as the handling fee does not operate as a surcharge and is not higher than the handling fee you charge for non-PayPal transactions.
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  3. #3
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    Oct 2011
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    Oh right! I guess I won't be creating a hook after all!

  4. #4
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    This is a common issue with credit cards (not just PayPal). The way I've seen others get around it is by tacking on the fee to every transaction, and then giving a discount to those who pay with your preferred method.

  5. #5
    Just do a 2% handling fee charge then ontop of the bills.

    Like the rule said as long as its not equal or above the 3.4% your good.
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  6. #6
    I have a hosting provider in the UK who charges a 5% fee for paypal payments. They're a reasonably large company so I don't know exactly how they handle the fact that paypal doesn't allow it. That said, the charges for international paypal payments can be pretty extreme so I'm not terribly surprised. When I pay them with my credit card, my CC company charges me the ridiculous international fees, whereas presumably when I pay with paypal, those same charges are eaten by the hosting provider.
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  7. #7
    Put your prices up by 50p and offer a 50p discount for non-PayPal customers

  8. #8
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    Quote Originally Posted by funkywizard View Post
    I have a hosting provider in the UK who charges a 5% fee for paypal payments. They're a reasonably large company so I don't know exactly how they handle the fact that paypal doesn't allow it. That said, the charges for international paypal payments can be pretty extreme so I'm not terribly surprised. When I pay them with my credit card, my CC company charges me the ridiculous international fees, whereas presumably when I pay with paypal, those same charges are eaten by the hosting provider.
    NEO remove Paypal fees from your deposit was well, Paypal didn't seem to care when I questioned the practice.


    Quote Originally Posted by arcon View Post
    Put your prices up by 50p and offer a 50p discount for non-PayPal customers
    That would be a surcharge.

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  9. #9
    Just raise your price a bit to cover it (not a surcharge, but an increase)...if you offer great service and a great product, a small increase won't affect your new business.

  10. #10
    Quote Originally Posted by Hoopla-Brad View Post
    .




    That would be a surcharge.
    No, it would be a discount.

  11. #11
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    Quote Originally Posted by Hoopla-Brad View Post
    NEO remove Paypal fees from your deposit was well.
    I noticed that as well. Surely that is a surcharge?

  12. #12
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    Retailers have been offering "Cash Discounts" for a generation or more, to get by the "No Credit Card Surcharge" issue. Sounds similar.
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  13. #13
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    I would just put a general fee on 2 or 3 % on. That way I don't put a surcharge on, and I don't lose money.

    However, my preferred method would be to just include it in my prices.
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  14. #14
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    Paypal seems to have changed there policy of passing paypal fees to customer.
    If you are using WHMCS you can check this http://forum.whmcs.com/showthread.php?t=46810
    Ritesh Jain

  15. #15
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    Business 101: you should not charge your clients more because they use a particular gateway. What you can do is set your prices in a way that will cover or compensate you for any gateway they would like to use.
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  16. #16
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    1) Charging clients a "tax" because you dont want to pay or did not consider fees in your pricing is bound to turn away customers once they see you doing it

    2) One needs to realize that by charging more to cover fees...... means you pay more in fees.
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  17. #17
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    Quote Originally Posted by HC-Ro View Post
    1) Charging clients a "tax" because you dont want to pay or did not consider fees in your pricing is bound to turn away customers once they see you doing it

    2) One needs to realize that by charging more to cover fees...... means you pay more in fees.
    I haven't used it myself, but looking at the salepage i think text can be customized.

    I agree with you, it is better to include the same in pricing structure, because any additional charge on order page will drive customer away....
    Ritesh Jain

  18. #18
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    Quote Originally Posted by jainritesh View Post
    Paypal seems to have changed there policy of passing paypal fees to customer.
    No, they haven't.
    What that person created adds in a fee for using Paypal, which is against their terms. Places like Enom charge a "convenience charge" that isn't added into the payment, but deducted from the total. This is how they "get away with it" in these cases. You just can't add in a fee so it's *more* expensive to use it, even though it technically is doing it this way.
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  19. #19
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    And this is one of the reasons why there are plenty of paypal account holders are being closed/suspended.

    So, careful there.

    You can't fool paypal.

    Specially 4 U
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  20. #20
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    Quote Originally Posted by HC-Ro View Post
    1) Charging clients a "tax" because you dont want to pay or did not consider fees in your pricing is bound to turn away customers once they see you doing it

    2) One needs to realize that by charging more to cover fees...... means you pay more in fees.
    Yep, it's impossible to cover your fees when they will charge more fees on your fees (yes, that is confusing ).

    Quote Originally Posted by net View Post
    And this is one of the reasons why there are plenty of paypal account holders are being closed/suspended.

    So, careful there.

    You can't fool paypal.
    You can easily fool paypal. Make a business selling virutal products (web hosting). Send emails that contain incorrect information for logging in to recieve such products. Jump ship and paypal will not allow a dispute because it's a virtual good. You fooled paypal. This practice kills this industry.

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