5% fee

[ericaeff]

Hi there,

A merchant I'm purchasing from is charging me a 5% Paypal fee up-front. Does this seem correct?

Thanks,

Erica

[Quandary · Accepted solution]

Depends on how that's fee is defined  by the seller - if it's clearly stated that it is a "handling fee" - that is permitted however, if the seller's intent is for you to pay his transaction processing fees which is called a "surcharge", that's not permitted as stated in PayPal's User Agreement.   Here's a snippet from the policy:

No surcharges

You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method. You may charge a handling fee in connection with the sale of goods or services as long as the handling fee does not operate as a surcharge and is not higher than the handling fee you charge for non-PayPal transactions.

My guess is the seller is trying to skirt paying any processing fees by passing that cost on to you - I would search for another seller or merchant.  

[ericaeff]

Thanks! Based on that info I don't think they're allowed to charge me then. Here's a screenshot of the invoice:

[DPCreations]

So you just decide if you want to buy from this merchant or not.  My suggestion is to find a merchant who does not add a surcharge for PayPal.  Or, just use a credit card for payments and avoid merchants who will not accept credit cards.