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Donation fee?

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PayPal Employee

Re: Donation fee?

dondiego,

 

I would strongly recommend against urging your donators to do so.  Donations are not considered personal payments, and any mis-use of the personal payments system can not only result in the removal of the ability to send and receive personal payments, but they may also result in retroactive fees being applied to your account (at the standard rate) or even account closure. 

 

Personal payments only apply to transfers between friends and family, such as paying an office co-worker for the portion of your lunch they covered, or sending money to your child who is at college.

 

If you are accepting donations, and you qualify as a 501c3 entity, the best advice is to complete the application process listed above in order to qualify for the discounted rates.

 

Hope this helps,

 

Adrian

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Contributor

Re: Donation fee?

Thanks, Adrian, that's helpful. I did not know that donations did not qualify - but I had my suspicions, which is why I asked the question. Is there an explicit prohibition written in the rules that I can refer to for future reference?

 

thanks again...

PayPal Employee

Re: Donation fee?

dondiego,

 

You can view the legal agreement by clicking on Legal Agreements at the bottom of any page, then PayPal User Agreement on the next page. 

 

Hope this helps,

 

Adrian

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New Community Member

Re: Donation fee?

I just created a website for donations. If someone donates on this website are they charged the fee or I am? I read on the getting started section of creating a website that the fee is as follows: 

Pricing

No setup costs or monthly fees. 4.95% + $0.30 USD per transaction (ex: $5.25 fee on a $100 donation).

 

Is this correct? for Each donation made using the wesbite I created? or is it the 2.9% + $.30 fee that each person is charged?

 

Thank you!

PayPal Employee

Re: Donation fee?

djh24,

 

You would pay the fee to receive the donation; buyers don't pay money to send payments (barring currency conversion costs).

 

The current standard receiving fee in the US is 2.9% plus 30 cents; an additional 1% fee may apply if your buyer is outside of your country.

 

Once you've logged into your account, click on the "Fees" link at the bottom of any page to see the appropriate fee schedule in full.

 

Hope this helps,

 

Adrian

 

 

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New Community Member

Re: Donation fee?

I am not a merchant, but still looking to get help from friends of my loved one.... If I were to get 50 personal payment donations(first I would be shocked of that number) would I still be getting charged for these friends trying to help me with memorial services??

 

Im just trying to figure this out, and soon.  Thx

~Junior

Contributor

Re: Donation fee?

Well, guess I jumped the gun. I missed something and I owe Pay Pal an apology. The member who sent $1.00 and only got $.67 cents actual donation. I rechecked and you must know by know that PayPal charges $.30 for transaction fee and then 2.9% of  transaction. So, you $1.00 was a single transaction. If you'd sent more like $2.00 you woud have seen $1.70 minus the 2.9%  Okay, that makes sense and that's not bad at all. I could send $100 and they would only $.30 cents minus the 2.9% would be $97.00  I aplogize to Pay Pal

PayPal Employee

Re: Donation fee?

dbhensley -

 

It's ok Smiley Happy  FYI if most of your donations are going to be under $10, you might look into setting up an account under the micropayments rate.  You can learn more about micropayments here: https://micropayments.paypal-labs.com/

 

Micropayments have a higher percentage fee but a lower fixed fee - and on the small payments, it is the fixed fee that takes the most out. 

 

Hope this helps!

 

Adrian

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New Community Member

Re: Donation fee?

Because we don't have online calculator to show the difference between two rates, let me see if I got this correct:

 

For $15.00 -- PayPal Fee is $0.73 and MicroPayment Fee is $1.30?

 

 

For $20.00 -- PayPal Fee is $0.88 and MicroPayment Fee is $1.05?

 

The above amounts are our membership fees. So it makes sense for us to use PayPal Fee. However, if we going to sell T-Shirt for $10, is it possible for us to use MicroPayment while keep PayPal for membership fees?

 

Dave

PayPal Employee

Re: Donation fee?

DeafDavid -

 

Welcome to the boards!

 

Only one rate structure can be applied per account - so whichever rate you go with will apply to all payments, big or small.

 

The best recommendation I could make would be to compare your current payments and choose which rate would be best for the payments you are receiving.  If most of them are over $10, it's generally best to stick with the standard fee.

 

Hope this helps,

 

Adrian

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