Understanding 'EXACT' PayPal Fees: Sending invoices in USD to US Clients from Canada

[JeffaCubed]

Hi,

I could really use some 'seasoned PalPal' experience help here, as I'm gearing up to start a software devlopment project with a US client - I'm in Canada. I sent a 'test' PayPal invoice to my US client for $10 (USD). The payment was recieved into my Cdn PayPal acc't for $10 USD - $0.59 (PayPal) fee for a net USD of $9.41

So, $0.59 = a 5.9% PayPal 'fee', though my understanding was the PayPal fee (to me, the seller of services) would be ~ 2.9%?

Either I'm really missing something here, or I'm going to have my software devlopment cheques physically mailed from the US & deposited into my USD business banking account with Vancity.

Any insight &/or explanation would be fantastic. I can understand a 2.9% PayPal fee for enablying the transaction, but a 5.9% Paypal fees seems excessive. I 'must' have done somethign wrong, as 5.9% does not make sense (or cents) to me!

-Jeff

Vancouver, Canada

[snowshoe · Accepted solution]

The fee is 2.9% plus $.30 per transaction.

$10.00 x 2.9% = $.29 plus $.30 = $.59

[JeffaCubed]

Snowshoe!

My goodness, you are absolutely correct. Thank you so much for pointing that out!!

I was thinking about the whole '$10 test transaction' breakdown the wrong way & my 'inocrrect' assumption was on a $1000 invoice I'd be paying a 5.9% PayPal fee.

Thanks again, for clarifying what should have been obvious.

-Jeff

[snowshoe]