Using Paypal for Classified Ad Sales/Purchases

[John Rhoades]

Many FAOL buyers and sellers use Paypal to pay for items bought and sold here, and elsewhere (I'm referring to items other than Ebay transactions).

Some sellers ask for an additional amount (or a % of the selling price) when Paypal is used to cover Paypal's fees. I haven't generally asked for an addional amount on items I've sold, but have simply absorbed Paypal's fees in my net selling price.

However, you can pay for a purchase though Paypal and not incur any fees if you code the payment as a personal payment. There is no Paypal Purchase Protection on personal payments if the buyer does not ship the item after you pay for it, for example, but after reading Paypal's Legal Agreements I'm not sure you'll have this protection anyway.

Do any of you make payments for purchases through Paypal as personal payments? Is there any downside in doing it?

John

[Buddy Sanders]

John,

When I've purchased items through PayPal I've always gone with their 'regular' service. I don't remember seeing 'personal payment' as an option anywhere in the process.

I had one instance where the product was never shipped, and I got my funds returned from PayPal.

As a 'buyer', having this protection has always appealed to me. Remember, though, that PayPal isn't the only recourse that a customer has. If they pay with Master Card or Visa and don't receive the merchandise, they can get their money back from the card company (MC and Vise just deduct it from PayPal).

If, as a sellar, you don't want to pay the PayPal fees, you can always get yourself set up to accept credit cards directly. I've always done that and never used PayPal from the sellars end. There are costs involved, but there are always costs involved in running a business. The overriding factor is being able to conveniently serve your customers. Your bank can help you with that, as can any number of card service companies.

As far as 'adding a surcharge' for folks who use PayPal to pay you, I'd advise against it. I'd not 'pay extra' so that YOU can get paid easier. That starts off the transaction with a bad taste as far as I'm concerned. If the fees are a problem, raise your prices to cover them.

Good Luck!

Buddy

[jimsnarocks]

I've used the personal payment when I send my kids money. It is so much easier and free. All my kids have paypal acccounts and paypal debit cards. Works better than Western Union.

[John Rhoades]

I've used the personal payment when I send my kids money. It is so much easier and free. All my kids have paypal acccounts and paypal debit cards. Works better than Western Union.

I believe that was one of the reasons Paypal initiated these no-fee transactions. You can code these personal transaction payments as "money owed", which could apply to payments for FOAL classified transactions.

[herefishy]

I believe that your seller doesn't have to pay a surcharge if your PP account has a balance in it. True?

[John Rhoades]

I believe that your seller doesn't have to pay a surcharge if your PP account has a balance in it. True?

The person receiving the money pays a fee unless the transaction is coded as personal, regardless of whether they have money in their account or not.