Recurring Payment Fees Charged for Bank Transfer to Purchase Subscription.

geeproud
Contributor
Contributor

I've setup a website using UberCart, Drupal and Paypal.

 

I'm currently testing now and I've been wanting to test the site live (not using the Sandbox).

 

There is a subscription of $1 for 12 days ($12 total).

 

A user bought the subscription  and the first day was charged at $1 from his bank account.

 

I recieved the money but I was charged .33 cents for the transaction. The user had no money in his paypal account but had linked to his Paypal account to a bank account. The transfer was made from his bank acount into my Paypal account.

 

Does anyone know why I was charged 33% for the recurring payment? The website clearly states that transfers from bank accounts are free and are not charged at all (unlike credit cards, $0.30 + 2.7%). Was the payment considered a money transfer, or "sending" of money to a friend? I really can't figure it out.

 

Why are there charges for this recurring payment? Any thoughts would be really helpful.

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2 REPLIES 2

geeproud
Contributor
Contributor

I checked and I can confirm that the payment was made through the user's bank account.

 

So, the user paid with a bank transfer (should be no cost).

 

I was charged $0.33 for a $1 transaction.

 

Is this because Paypal charges merchants for transactions that are goods and/or services?

 

Its not clear why the charge was made.

 

Anyone know why?

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WATCHDOG
New Community Member

Hello...I just transferred money into my US bank account from my PayPal account and was charged $150 for the transfer to my own bank.  This was not a sale of any kind.  I called PayPal and was on hold for 40 min. with their representative to find out why.  They gave me some BS story that my bank (CHASE) is a foreign bank.  I told them that their policy states "free bank transfers".  Even in their legal agreement clause, there is no mention of any fees for foreign banks.  I told the representative that they are frauding their customers and NOT DISCLOSING that the major banks like (BOA, CHASE, WELLS FARGO, WASHINGTON MUTUAL, ETC., are US based banks but the OPERATIONS run out of the country.)  For that reason, PayPal is charging assessive fees.  THIS IS FRAUD.  THIS NEEDS TO BE DISLCOSED.  About 99% of PayPal users bank in the US.  However, according to PayPal, it doesn't really matter if you opened your account in the US, what really matters is where the "brains or operation of the bank is". 

 

I have made about four major deposits (thousands at a time) and each time I have to argue for sometimes over an hour to get my fee reversals for transferring money from PayPal to my regular bank account in the U.S. 

 

If anyone is interested in a CLASS ACTION AGAINST PAYPAL for dishonest, fraud, non-disclosure, bait-n-switch, false advertising....I'm in.  Even better, if there is a lawyer out there looking for a big case, this is it.  A huge class action against PayPal for not disclosing these fees.

 

 

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