What is the difference between a

[Morisato]

I'm having a debate that seems to be very common across the internet regarding charging fees to the buyer and whether or not it is against Paypal's terms of service.

According to the terms of service:

8. Fees.

8.1 Fees Overview.

Fees are based on whether you are making a Purchase Payment or a Personal Payment. 

For Purchase Payments, the recipient of the payment will always pay the fee. 

For Personal Payments, the following applies:

• The fee depends on the Payment Method you use. 
• The fee is paid by either the sender or recipient, not both.
• The sender of the payment determines who pays the fee at the time the sender makes the payment. 

What is the difference between a purchase payment and a personal payment? This important distinction will determine whether or not it is against the rules to charge the buyer the paypal fees. The ToS clearly state that the fees of a PURCHASE PAYMENT must be paid by the recipient, however, for a PERSONAL PAYMENT the fees can be paid by either party with the sender choosing who pays the fees.

[sandypurins]

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@Morisato wrote:

What is the difference between a purchase payment and a personal payment? This important distinction will determine whether or not it is against the rules to charge the buyer the paypal fees.

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It's against the rules to charge the buyer for PayPal fees, and it's against the rules to ask the buyer to send a Personal Payment.

The "Receiving Payments" section of PayPal's User Agreement states...

4.1 Receiving Personal Payments.

If you are selling goods or services, you may not ask the buyer to send you a Personal Payment for the purchase. If you do so, PayPal may remove your ability to accept Personal Payments.

https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=ua/UserAgreement_full&...

The "Definitions" section of PayPal's User Agreement states...

“Personal Payment” means amounts sent between two individuals (not to or from a business) without a purchase. Examples of Personal Payments include sending a gift to a friend or paying a friend back for your share of a lunch bill.

“Purchase Payment” means a payment received for any of the following:

• A payment for the sale of goods or services;
• A payment you received after using the “Request Money” tab on the PayPal website;
• A payment you received for a donation; or
• A payment that is sent to, or received by, a business or other commercial or non-profit entity.

https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=ua/UserAgreement_full&...