Fees

AlanEvans
Contributor
Contributor

Hi, I just bought an item from someone through Paypal. If I wanted to pay them an amount of £55 and take into consideration the fees they'd have to pay what would I have to pay them?

 

My understanding of the fees is anything between £0-£1500 is the 3.4% + 20p.

 

So I work it out to be:

£55.00 * 3.4% = £55.00 * 3.4 / 100 = £1.87

£55.00 + £1.87 + £0.20 = £57.07

 

So why when I sent the £57.07 did they only receive £54.93 instead of the £55.00.

Where is the extra £0.07 gone? This would mean the total fees were £2.14 not £2.07

 

It works for £100 (as shown on the website)

£100.00 * 3.4% = £100.00 * 3.4 / 100 = £3.40

£100.00 + £3.4 + £0.20 = £103.60

 

Can anyone figure this out?

Thanks in advance

Alan

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3 REPLIES 3

PayPal_paula
Moderator
Moderator

Hi AlanEvans, 

 

Welcome to the PayPal community forum. 

 

When a payment is received the percentage charged can depend on the type of funding source used and where the payment was sent. If you send a payment using your bank account or balance, you will be generally charged 3.4% +0.20GBP however if you send a payment using a debit/credit card you may be charged 3.9% +0.20GBP. Also if payments are being sent cross border it can lead to receiving fee being charged at the higher rate. 

 

I have calculated this with the amounts listed below and if my calculations are correct it seems to receive the payment the charge of 3.9% +0.20GBP was applied. 

 

I hope this helps answer your questions

Paula 

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AlanEvans
Contributor
Contributor

I found out the problem. It was a slight mathematical error on my half 😞

 

The real formulae is:

 

=(Price wanted) / (100 - 3.4) x 100 + 20p

 

So when you someone says they want £100 and you absorb the fees your paying:

 

=100/(100-3.4)x100+0.2 = £103.72

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ecoartcards
Contributor
Contributor

hello

 

Could someone please advise how we benefit from a better rate when we process more transactions through Paypal (I mean clients usinf Paypal to purshase our cards through Paypal i.e us receiving monies)

 

Do we get a credit the following konth based on the previous months volumes ??

 

Thank you

 

Nigel

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