Seller charging customer PayPal Sellers Fee as Tax

TwoPercent
Contributor
Contributor

Hello,

 

From PayPal’s Terms of Service:

 

“No surcharges

 

You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method. You may charge a handling fee in connection with the sale of goods or services as long as the "handling" fee does not operate as a surcharge and is not higher than the handling fee you charge for non-PayPal transactions.    ("Handling fees" -are common in the ticket sales world.) “

 

What do I do if a vendor is found to be breaking this rule by implementing a fake tax on sales to cover this fee and advertising a 3% only for PayPal purchases on their website? Would this payment be eligible for refund by PayPal if the merchant refuses? What penalty occurs to the merchant if this is reported to PayPal?

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sharpiemarker
Esteemed Advisor
Esteemed Advisor

@TwoPercent 

 

Contact customer service for assistance:

Click HELP at the top menu, scroll down to click CONTACT US, and then scroll down to click CALL US.

 

Call early, during business hours, west coast time to try to get a US rep. Say "Live Agent" to the automated recording.


Kudos & Solved are greatly appreciated. 🙂
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