Buyer/Seller Protection Fees

[thegrub78]

Why are commercial transactions subject to the same rates even when according to PP's policy, only tangible goods (physical items that can be shipped) are eligible for Protection, and not services (Section 3.3 under Eligibility of Buyer Protection Policy)? I am based in Europe, and I have recently received  payment from a US Paypal account for a service I provided and incurred a 3,9% + 0,35 euro fee (1,9% commercial transaction fee + fixed fee + 2% cross-border fee). A bit steep to be paying that much cross-border fee on top of the merchant fee.

Wouldn't it be more fair if PayPal charged a separate, lower fee for commercial transactions which are not eligible for Protection such as services?

[kernowlass]

Your not paying for seller protection, you are paying to be able to receive national and international instant payments from buyers including from credit cards.

You pay a cross border fee as paypal have to convert currency and you have to pay the fee for that as well.

[thegrub78]

Currency conversion fee despite the US Paypal account having the capability to send the same currency as the receiver (i.e. both PP accounts manage dollars and euros)?

Also, let's say for the sake of clarification, someone with a US Paypal account (funded by his US bank account in dolalrs) sends me a payment (payment needs to be in euros), I as receiver would incur the fee instead of the sender paying for conversion from US to Euros?

[sandypurins]

Does your PayPal account have a payment receiving preference which allows you to block payments in a foreign currency or a currency which you do not hold in your PayPal account?

-Sandy

[thegrub78]

@sandypurins

Yes, I believe I have the capability of denying payments in currencies which I do not hold, however, I manage both dollars and euros. For now, it is set to "Ask Me", which is to deny or accept payments individually. I was never asked however,  to accept or deny anything, only a message that a payment had been received which was in Euros.

Are cross-border fees automatically charged as long as the origin of payments differ from the recipients' countries despite there not being any multi-currency processing involved (i.e Euro-to-Euro payments from US to Europe) ?

Furthermore, if I had received the payment in Euros, would that not possibly mean that it was originally sent in Euros as I was not charged any conversion fees on top of a cross-border fee? 

[sandypurins]

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thegrub78 wrote:

Yes, I believe I have the capability of denying payments in currencies which I do not hold, however, I manage both dollars and euros. For now, it is set to "Ask Me", which is to deny or accept payments individually. I was never asked however,  to accept or deny anything, only a message that a payment had been received which was in Euros.

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The "Ask Me" would apply only if you were receiving a payment in a currency you don't hold.  If you manage (hold) both dollars and euros currencies, the "Ask Me" will not kick in when you receive payments sent in dollars or euros.

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thegrub78 wrote:
Are cross-border fees automatically charged as long as the origin of payments differ from the recipients' countries despite there not being any multi-currency processing involved (i.e Euro-to-Euro payments from US to Europe) ?

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Yes, the cross-border fee is charged when the sender and recipient are in different countries.

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thegrub78 wrote:

Furthermore, if I had received the payment in Euros, would that not possibly mean that it was originally sent in Euros as I was not charged any conversion fees on top of a cross-border fee? 

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The buyer may have had euros available to send, or... the buyer may have paid the currency conversion fee to convert his funds to euros during the send process.

-Sandy