Business Transaction Fee Tenant - Platform - Host

[Darwinr08]

Hello All,

I am the owner of small platform which offers accommodations through out South America. One of our Payment gateways is PayPal, but We been having to pay double transaction fee when it comes to transaction among all parts [Tenant Payment (Transaction Fee) -> Platform PayPal Account (Transaction Fee)--> Host] .Paypal is charging me transaction fee when I receive the money from the user and charging me transaction fee  when I send the money to the property host. I don't agree with this double transaction payment fee. has anyone go through a similar scenario? How did you resolved it? Any help would be appreciated. can anyone from Paypal offer a solution? Thank you all in advance!

[DPCreations]

What is the "host" you keep mentioning?

When you send a payment you send it to a PayPal member email address.   There is no "host" involved.  My guess is that the fee is because of this "host" you are using or it has to to with international currency issues and that's a totally different fee than a service fee.

For you business, you need to take into consideration all fees when you establish your pricing to buyers.

[Darwinr08]

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@DPCreations wrote:

What is the "host" you keep mentioning?

When you send a payment you send it to a PayPal member email address.   There is no "host" involved.  My guess is that the fee is because of this "host" you are using or it has to to with international currency issues and that's a totally different fee than a service fee.

For you business, you need to take into consideration all fees when you establish your pricing to buyers.

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@DPCreations host = property owner. what we are trying to implement is something similar to AIRBNB payment system, where they receive the payment from the user hold the money (platform) till arrival date  and release it to property owner(host) once the tenant gets to their final destination(property). But from what I understand once AIRBNB sends the money to the property owner, the full amount is transferred to the owner with no fees or international fees charged.(I understand that AIRBNB's volume is extremely high and in not way compared to what a small start up could be). I was just trying to figure out, if there is a way that this could be done for smaller platforms like ours. 

[DPCreations]

@Darwinr08

So what is the intermediate host?  Does it have it's own PayPal account?

How do you send PayPal funds?  Do they go to an email address of someone or something?

What is the intermediate host?  A "platform" does nothing to explain in technical details what it is or how it operates.

Technical details are lacking and they are extremely important.

[Darwinr08]

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wrote:

@Darwinr08

So what is the intermediate host?  Does it have it's own PayPal account?

How do you send PayPal funds?  Do they go to an email address of someone or something?

What is the intermediate host?  A "platform" does nothing to explain in technical details what it is or how it operates.

Technical details are lacking and they are extremely important.

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@DPCreations.

User choose its payment method as PayPal the funds are transferred to our platform(Our business Paypal account) and then from here we transfer the money to the property owner(Property owner's Paypal account).  does that give you a better picture? I apologize If I did not make myself clear about this process and thank you for your input.  

[DPCreations]

Yes, that helps; it what I was assuming.  The 2 sending transactions are totally separate as far as PayPal is concerned.  You receive funds into your business account and you pay a fee.  You now transfer funds into another account (international) so you pay the cross border fee.  The recipient would be paying the goods/services fee.

When you send funds out of your business account to the recipient how are those fees shown for the transaction?

Does the recipient of those funds pay a fee?

[Whac-A-Mole]

review Paypal fee schedule,recipient always pay the transaction fee and discount fee ,not the sender.

but there is a 3% conversion fee if you are sending foreign currency,

if you want to avoid the conversion fee,then send payment in your currency and  let the recipient either keeps the payment in your currency or convert,if convert ,he will pay 3% conversion

[Whac-A-Mole]

recipient receiving goods and service payments pay 30 cents transaction and 2.9-4.4%

if currency conversion is involved,there is a 3% conversion fee,who pays?

if you the sender is in US,your local currency is US $ AND if you want to send in foreign curency,you pay 3% plus the fee above.

if you want to send US $ to a foreign recipient,first he must state in his profile he accept US $,then he wants to keep them as US $,THEN he pays no convesion fee.

if he said no,I will accept but I want to convert to my currency,then he pays 3%.

there is more involved,all paypal members should go to p aypal fee schedule and understand fees.