Help Understanding PayPal Fees for eBay Transactions

shawnpros
Contributor
Contributor

Hi there - curious to know if anyone can explain why the PayPal fee is charged on the grand total of a transaction inclusive of the tax collected on behalf of eBay.  For instance, I sold an item for $29.50 + $7.95 for shipping, which totals to $37.45.  The tax collected by eBay on that transaction is $2.25, which winds up totaling $39.70 now (37.45+2.25).  I know the fee is 2.9% + .30 per transaction, so I assumed the PayPal fee would have only been calculated on $37.45; however, it was calculated on the total including tax ($39.70) - - - $3[Removed. Phone #s not permitted]45, which is what PayPal charged me as the fee for this transaction. 

 

I'm confused because I don't have anything to do with the tax of the item - eBay handles everything regarding that.  I know this is minimal - we're talking about $.07 here, but I just need to understand why I'm being charged a fee on a portion of the transaction that I have no control over.

 

Any insights you could provide would be greatly appreciated!

Thanks,

Shawn

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2 REPLIES 2

kernowlass
Esteemed Advisor
Esteemed Advisor

@shawnpros 

 

Paypal has no idea what your buyers payment consists of.

You pay paypal for processing any 'payments' made into your account from whichever site you sold on and however that payment is made up.

If the buyer sends you a payment of xxxx then you pay a fee on xxxx as that is the total amount they are processing for you.


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shawnpros
Contributor
Contributor
I thought they knew. My misunderstanding. Assumed they did since the invoice they sent to me showed all the information. Description Unit price Qty Amount 2020 HALLMARK KEEPSAKE Disney Dumbo Timothy Q. Mouse Limited Edition Ornament Item# 284032490541 $29.50 USD 1 $29.50 USD Shipping and handling $7.95 USD Insurance - optional $0.00 USD Tax $2.25 USD Total $39.70 USD Payment $39.70 USD
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