I need some accurate details about PayPal

[Porte]

Hello guys,

I'm looking for some accurate information regarding a few questions with PayPal, since I can't use it..and I have to build an escrow system based on PayPal fees. I went to their Fees page and It doesn't help a lot since I can't test it myself.

See what you can answer for me here, thanks.

(we are talking about a Premier/Business Account here)

First.. I understand that every country has its own receiving fees, and its reduced depending on monthly statement, but I do not understand this:

Exchange rate includes a 2.5% fee*

Does it mean if the buyer account is in EUR and he is sending money to an account in USD, that account in USD is charged the regular fees: 1.9% to 2.9% + $0.30 USD + 2.5% of the total payment. or how it works? is there any way to avoid the currency exchange? or I'm missing something here..

Second..I don't understand handling fees very well, lets assume that a buyer has to make a payment of 100 USD to a business account in USD, but the seller charged him handling fees around 5 USD so it looks like:

Amount: 100 USD
Handling: 5 USD

Does PayPal calculate the fees from the first amount only, or the total (amount+handling+shipping or any other fees)?

That's all, and I hope that someone can clear up this to me.

Thanks all,

 

[thetzfreak]

I'm not exactly sure, but if you had to pay a handling fee and the regular fee and the shipping, then the money that you send is all of the money added up together. Then, paypal takes away up to 2.9% plus $.30 from the transfer. So, the seller get the total - transfer fee. Shipping, handling, etc is just an add on to regular fee (I believe)

 

[dgaussin]

Ahmed, did you try to ask to paypal directly ? Maybe the best solution to have an accurate and good answer. I use PayPal a lot and I'm always surprised to see the fees amount...

 

[LeeRyder]

hmm.. why can't you use PayPal? that kinda blows... but there are alternatives if thats a viable option for you? (ie, credit cards..etc)

but ya it sounds like thetzfreak is right with his math.

 

[Porte]

Thanks guys, I already use my credit card as alternative, but this is not for me-- let me explain, I'm making an escrow system that depends on PayPal - since its the most popular, widely used payment solution, therefore I have to make my calculations accurate, and perfect to avoid any mistake in fees, commissios, kinda the escrow site will have to handle payment from buyer, and deposit it to seller. So these 2 questions are really important.

Regarding the exchange fee of multiple currencies, it seems to be the left question now.. I want to know, lets say that I have account in USD and sending you 100 USD, and your account is in EUR , they charge regular fee + 2.5% ? or what they mean by 2.5% of total payment for currency exchange fee?

That's the point, I appreciate your help.

 

[Porte]

Any idea?

 

[thetzfreak]

Sorry, I don't know that answer to that one Just e-mail paypal themselves; they'll let you know

 

[Porte]

Good, I was posting here for a quick response though, but probably I'm going to email them right now to get an answer to that question. If anyone has some information/answer he could post it, anything is helpful.

Thanks guys.