Why does Pay Pal keep 33% of donations given to me?

[mediaplays]

I set a DONATE button from Pay Pal and added it to my free web site. I received a donation of $1.00 but Pay Pal only gave me .67 cents. That is a fee of 33%. I thought they only keep 3%. What gives??? 

[cbard]

You are absolutely right. The method used by Paypal and eBay discriminates against the low amounts, and the "Little Guy". This is very unfortunate because the spirit of personal computing and the Internet (originally) was to help the common people and the Little Guy.

A straight  percentage would, of course, be more fair...

Vote with your feet! (Use another service that has fairer rates and less greed.)

[Peachiekeen]

$1.00 x 2.9% does not equal $.30.   Your math is worng.  It's 1 x .029 .  It equals $.03.  (plus the standard 30 cent charge)

[StarPower]

Its this type of stuff that just makes you sick. I cant believe paypal charges on charities! I too thought about creating a donate button but after reading this I definitely will not use PayPal or will find better means for sure! Anyone that says there a so called 'happy customer' hasnt sold anything themselves or tried to use PayPal as a middle man. I recommend doing more research before you say good things about them. Start by looking at there fees section.

[azhawgrider]

I agree that it is a shame that PayPal feels it necessary to collect fees on valid, charitable donations made to an account. My son's friends set up an account on PayPal to collect donations to pay for his rehab/therapy after suffering two severe strokes. Unfortunately the state has cut off his insurance for his therapy. We're hoping he'll be able to walk, talk and eat again someday. His friends all around the country are donating to his recovery fund but as you all know PayPal is taking their cut of every donation made for my son.  Shame on PayPal. But if you think about it, when you donate to the Red Cross or just about any other charity a good portion is taken out for "Admin" expenses. Nuff Said....

[forgottenpaws]

I have sent in my nonporfit paperwrrok from the IRS 6 times now over the last 2 years and they continue to charge me the full % rate for a normal person.  There is no way to actually contact them and get a response. They have stolen thousands of dollars from homeless pets and the more they take the more pets die b/c we can't afford to save them

[Duffman]

Those homeless pets should just get a job and stop being a drain on the system, I bet you their all Chacolate labs.

But seriously Paypal you **bleep** for doing this.

[Empowermom]

For the record, I am NOT an employee of PayPal.  I am, however, a happy customer after many years.

Most people join PayPal because of convenience and because they either

A) can't afford  or

B) won't pay

for an account with the major credit card companies to accept "their" plastic. (Frankly, it's my opinion they should "pay" us to accept and process customers for them!  Every time a customer uses their product, we are making them money.  But I diverge.....)

Western Union costs an arm and a leg to send money.  Let's face it, if you accept the real thing like cash, check or money order (the old, slow way), you wouldn't be here.  So PayPal is an "option."  They tell you up front how much things cost.  It's your choice to accept their terms.  Once accepted, why complain? 

That being stated, it still costs to transfer money.  PayPal has reasonable rates.

The solution is to accept a MINIMUM donation which makes it worth your while to go through the motions of  accepting the transaction.  If you have another, more economical way, use it.  You can always accept checks and money orders, or have money directly transferred to your account with a handling fee tacked on (extreme turn-off to your customer).  When you check the fees your bank charges for these things, you'll find the amount charged by PayPal is chump change.

The other option is to thank God someone thought enough of you to MAKE that donation, however small. 

And that 33 cents you paid?  You can be proud to know you have an entire staff of people who track your transactions, make sure the money is transferred to the proper accounts and provide you with stellar service.  They are respected and well known world-wide  AND provide guarantees to help avoid expensive litigation over billing, accounts receivable, statements and collections.  Finally, your 33 cents is supporting people who need their jobs right now until you can find a less expensive option. 

In short, with PayPal, "You got people!"  (Sorry H&R Block, but it's true here too!)

Hope that helps you put things in perspective.

Carol a.k.a. Empowermom

[jonjon]

i laugh a bit and throw up a little in my mouth when i read things like once you agree why complain. thats abserd. to say once dupped why mention it is not only ill minded but leads me to belive the honest business man is an anchient rellic.  as a sole survior of the ill fated fore mentioned,  i cant believe  some of the things ive read and heard from friends.. the tou read like a used car contract written by trumps lawyers. i really dont want to bite the hand that feeds but im starting to re think the practically brand new account i ust opened. oh and to the guy that said once agreed.... reading this is a willing and binding agree ment to give me your house and liquid assets. thanks for agreeing. kinda shady no?