CARD FEES - THE NEW LAW

[Pcrevamp1]

I just want to know where we stand in terms of the new law being introduced on January 13th in regards to card fee's. So i understand that we (the shops) are no longer allowed to add on fee's or surcharges to card transactions. Now i don't know about others, but we pass on card fee's to our customers. When we're selling something for £40 and we're getting charged £1.10 paypal fee, it seems a bit harsh that this dips into our already low profit margins. Most of our customers understand and happily pay, or choose to pay cash. So..... Going forward, if we're no longer allowed to pass on these fee's, is PayPal allowed to still charge us card fee's? At the end of the day, no matter which way you look at it, this is a payment fee added on to card transactions which is being outlawed, regardless of the fact that we pass these fee's on, some don't. But its still a fee PayPal add on.

[kernowlass]

@Pcrevamp1

Paypal charges you a fee to provide you with a service that allows you to accept instant payments from buyers.

Those payments can be 'funded' via a debit or credit card OR bank transfer OR echeques OR funds from the buyers paypal account balance.

[Pcrevamp1]

Cool. So PayPal are calling this a service fee however this is a set % PER TRANSACTION!!!!!!!! Which looks to me like a card transaction fee. If PayPal want to charge a service fee, this should be a set fixed monthly amount..... Not per transaction. I'm not allowed to add a fee to my card transactions anymore regardless of what i call it. I can't say to my customer "this isn't a card payment fee, its a service charge". In a nutshell, I'll 100% be switching my provider if PayPal don't introduce a new payment plan. I pay over £1500 per year in card fees. Which is passed to my customers, which I'll shortly no longer be allowed to do. Why should i foot the bill?

[kernowlass]

@Pcrevamp1

How can it be a card fee it you pay when the buyer has not funded their payment via a card?

How can paypal charge you a monthly fee when you may do 2000 transactions a month and I may do 2?

It has to be per transaction.

You are paying paypal for a service, to be able to receive instant payments from buyers HOWEVER they are funded.

As for whether it works for you that is your concern and not mine, neither is whether you use paypal or not, you have to do what is right for your business.

You just asked about the fees and i told you what we pay a fee for.

[Pcrevamp1]

What do you mean how can PayPal charge you a monthly fee? Simple...... They charge me say £50pm on a 18 month to use their services. Easy as that. I agree, if i pass these fees to my customer is my concern and its not compulsory to do this. But how i see this is simple and it goes like this My customers can't be charged a card fee regardless of how they pay. That being a PayPal terminal or a WorldPay or iZettle terminal. So why do I (a customer of PayPal) have to pay their card fees? Again, it doesn't matter which way you look at it, or how you want to word it, this is a fee based on % PER TRANSACTION. This is a perfect definition of a card fee transaction. If i do 2000 sales per month and you do 2 sales per month, that's your concern. If i charge £40 for a sale, i should see £40 in my account, not £38.90. Clearly we see this on different levels, or maybe you need to go read the news and the way the new laws are being rolled out. At the end of the day, I am a customer to PayPal, and they're charging me a % per transaction to take a card payment. Its the same principle as selling goods to a consumer and then adding on a card fee. How else can you word it or spell it out,?????

[kernowlass]

@Pcrevamp1

So in your opinion everyone should pay the same amount per month even if they may make 2 transactions x1 month and 2000 the next month..........thats a real winner.

Do what you want, its your business and I could not care less to be honest, but you are not going to change paypal policy just because YOU don't like it.

[Pcrevamp1]

Oh my. You really are a bit slow aren't you? You didn't actually answer any of my concerns. All you've done is present your opinion. You've totally disregarded the whole concept of this thread. ILL USE CAPITAL LETTERS SO YOU UNDERSTAND. THE NEW LAW FORBIDS CARD FEES, SURCHARGES, ADMIN FEES, TRANSACTION FEES. If you only do 2 card sales a month, you're not doing too good and should probably opt out of paying for ANY monthly accounts. May be go away, read the news, then come back with some constructive feedback rather than the typical rubbish like "PayPal won't change it just because you don't like it". If i can still charge MY customers a card fee per transaction then no, i couldn't care less. But from 13th I can't do this, so why should paypal be able to charge me? If they want money from me to use their services, then it should be a set price each month. Like a contract.

[kernowlass]

@Pcrevamp1

Yep I gave my opinion and you gave yours.

And i don't have to answer ANY of your concerns and couldn't care a bit about them.

All i can say is WHY paypal charge you a fee per transaction and it has nothing to do with it being a card payment as you are charged a fee HOWEVER the buyer funds that payment.........bit slow to grasp that aren't you.

The law forbids card fees (with or without capital letters) so to re-state for you PAYPAL ARE NOT SURCHARGING YOU FOR A CARD PAYMENT, THEY ARE CHARGING YOU TO PROVIDE YOU WITH A SERVICE OF BEING ABLE TO RECEIVE INSTANT PAYMENTS FROM BUYER HOWEVER THEY ARE FUNDED.

That enough capital letters for you??

And again they can't provide a set amount per month as it would be unfair to non-business sellers that also use their service and sellers that sell a small volume of items etc. Some 'private' sellers only sell infrequently so why should they pay a monthly fee that is ridiculous.

As i said do what you want, I really don't care less.

[ebbandflowtatto]

PayPal can charge you because you're a business. Businesses can still be charged. 

What I would like to know is if receiving a PayPal transaction online via Goods & Services counts as a "card transaction" or not? Can we pass on the 3.4%+20p?