"Request money" fees vs. "sent on own" fees

[roborobyn]

I apologize - I have tried to read through the paypal site info but I am still unsure what is going on.

Each month I get $450 from a company I do some work for. I have a regular account that doesn't take credit cards.

Usually, they would send a regular instant payment and $5 would be deducted by PayPal.

Recently, they switched to e-checks, and I still paid $5 in fees.

This month, they forgot to pay, so I just sent a request for money from my PayPal account. Now I see that I paid the 30 cents plus 2.9% in fees.

Also, it seems like I read on here that sending money using a bank account or PayPal balance should equal zero fees. But isn't paying with an e-check doing just that? So what was the $5 I was paying before?

I guess my question is totally convoluted. I'm just not understanding where the $5 I was paying before was coming from. Can anyone tell me that? I need to figure out the best way to invoice this company. They liked getting the request from me better than remembering on their own, but it has cost me much more.

[lizgrisham1990]

All transactions has fee's unless its sent as a "personal" GIFT or Payment Owed.

Everything else has fee's.

[roborobyn]

Yes, I know. That doesn't really answer my question.

[sandypurins]

$5.00 is the maximum fee for an eCheck payment.  All other Purchase Payments will incur the 2.9% plus 30 cents fee unless you qualify for Merchant Rates..

A Purchase Payment is defined as 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;
• A Micropayment for Digital Goods; or
• A payment that is sent to, or received by, a business or other commercial or non-profit entity.

A Personal Payment is defined as 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.

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@roborobyn wrote:

Also, it seems like I read on here that sending money using a bank account or PayPal balance should equal zero fees.

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That only applies to Personal Payments...  Purchase Payments, which is the situation in your case, will always incur a payment receiving fee.

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@roborobyn wrote:

I need to figure out the best way to invoice this company. They liked getting the request from me better than remembering on their own, but it has cost me much more.

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Looks like eCheck payments will be your best option...  ask the company to pay using an eCheck.

-Sandy

[roborobyn]

Thank you, Sandy! That's just what I was looking for.

[rarestuff4u]

Goodbye $5.00 echecks.

Paypal just updated section 8 for fees effective July 12, 2011

Purchase Payment Fee cap for Sellers who receive eCheck payments. If you are a Seller, your Purchase Payment Fees are set out in Section 8 (Fees). Currently, your Purchase Payment Fee for eCheck-funded payments is capped at a maximum of $5.00. After the effective date listed above, this $5.00 cap will no longer be applied. Your Fee for receiving eCheck-funded payments will continue to be calculated according to the rates set out in Section 8

[lizgrisham1990]

Sure enough....  I think we need to do away with eCheck Totally.  They need to get update api, when someone sends eCheck it throws a authorization hold on the money until charged. Idea 😉 Thumbs up or Thumbs down?