Paypal Fees for G&S and for F&F - Tricky Subject

[magpens]

It seems that the actual fees (not specifying who pays the fees) when sending to Friends & Family (sender pays fees) and when paying for Goods & Services (receiver pays fees) are not the same.

Does anyone know how to calculate the fees in both cases ?

I did a Google search for "PayPal fees" and found this link:

https://www.shopify.ca/tools/paypal-fee-calculator

They present an online calculator for determining how much the seller should invoice in order to receive the full selling price after paying fees.

I think their calculation only works for the Goods & Services payment.

That link also states that the receiver fee calculation is 2.9% + $0.30.

Therefore, if the seller wants to get $1000.00 after fees then she/he should invoice me for $1030.18 according to the shopify calculator.

These numbers work, because $1030.18 x (1 - 0.029) - $$0.30 = $1000.00 after the seller (receiver) fee. (all in USD)

If I go through a "dry run" using F&F to send $1000.00 USD to the seller then I find that for me (using a USD Visa card) my card is actually debited $1039.30 USD, which is close to $10.00 USD more.

Would I be right in thinking that the 2.9% + $0.30 formula only applies if the funds I am drawing from reside as idle cash in my PayPal account ?

Does using Visa (a USD Visa card, please note) account for the extra $10.00 approx ?

I assume that my Canadian residency is irrelevant because I use a USD Visa. The currency conversion is done later when I pay my monthly Visa bill.

This is not a huge deal for me, but if anyone can shed some light on the subject I would appreciate it very much. . It would me nice to know.

 

[Edgar]

F&F fees are determined by the payment method used & the to/from countries involved. The best way to use F&F is to put the money into your pp account or link it to your bank account - using a credit card always has a fee, even within the same country.

Here's a link explaining their fee policy.

https://www.paypal.com/us/webapps/mpp/paypal-fees

 

[eharri446]

For the group buy that I am running, we applied a 4% fee to the total cost of the items including shipping and handling for those who did not want to use Friend and Family. That seemed to work for all those who paid another way without any problem.

 

[zig613]

Mal,

There are PayPal fees when using "Friend to Friend" when you are sending funds to someone in another county. In the last CSUSA group buy I paid about $6.00 Cdn in fees on the F/F transfer.

Wade