Candian Fees

[Catatonic]

We just set up a PayPal account for a non-profit. Fees listed were at roughly 2.9 percent. To test, one of my colleagues sent in a $2 donation. The transaction was Canada to Canada. The exchange rate to US is 1.0015 (if that matters). 18 percent was taken off in fees leaving $1.64 cents. On $1000 we’d be paying $180. That’s insane—certainly more than the suggested 2.9 percent. How can that be right? PayPal can charge whatever they like, but why the deception?

[PayPal_Adrian]

Welcome to the Community!

The fee to receive a domestic payment in Canada is 2.9% plus $0.30 CAD. It looks like you may be missing the thirty cents in the calculation.

So, if you receive a payment of $2, the 2.9% would equal out to around 0.06.  Then, add thirty cents, for a total of 0.36.  This would result in a net gain of 1.64.

Our full fee schedule is located at www.paypal.ca/fees.

Thanks!

Adrian

[Gbolanos]

Is this 0.30 cents for transaction? regardles of the amount or am I missing the point?

Thank you...

[PayPal_Adrian]

Gbolans -

Welcome to the Community!

No, you have it exactly right.  Each fee is comprised of two portions:

1)  A fixed fee - the thirty cents

2) A variable fee - a percentage of the total amount received.

So, if I receive $100, I pay a fee of 2.9% + 0.30.  2.9% of $100 is $2.90.  I would then add $0.30, for a total fee of $3.20.

Hope this helps,

Adrian

[dnapresents]

Hi there,

I just performed my first transaction, at $4. 

I receieved $3.53 in my paypal account after paypal fees. 

$3.53+.30 = $3.83

This leaves 17 cents. Isn't 17 cents equal to 4.25%? I'm struggling to get the 2.9% number out of my transaction. 

I'm doing this via a website payment pro account, purchase is simply Canada to Canada. 

[PayPal_Adrian]

dnapresents -

Welcome to the Community, and congratulations on your first payment!

The rates quoted above are for Website Payments Standard - if you're using Website Payments Pro or Virtual Terminal, those rates can vary a little (see here). 

As PayPal staff in the Community can't comment on account specifics - and because you receive expedited and specialized support as a Website Payments Pro customer - I would recommend reaching out to customer service to have them check your fee schedule and review the recent payment received.  They should be able to investigate your tiering further and see where and why the deviation occurred.

Sincerely,

Adrian