Help me understand this fee.

[TimCA]

Goodmorning,

I am the treasurer of a small soccer team, I set up paypal to help with the collection of fees.  I sent a request to a family for $51.38.  They received the request and paid it immediately.  They have their paypal account linked to their credit card.  In my account it states there is a $1.79 fee, so we only received $49.59 from them.  So,

1) By using the "request money from" through paypal does it cost?

2) Where is the fee from?  We both have paypal accounts.

3) If the fee is because they have a credit card linked to their paypal account do I need to know that before requesting money???

4) Why is the fee deducted from my request instead of charged to them??

Thanks

Tim

[kernowlass]

@TimCA

Your best bet would have been to set up a 'money pool' OR asked them to send the payment using the friends / family option as you are not selling anything.

Then you would not have paid a fee.

A 'money request' is not a friends/family payment its a goods/services payment.
An 'invoice' is not a friends/family payment its a goods/services payment.
'Send money > goods/services' is not a friends/family payment its a goods/services payment.
A 'business account paypal.me' is not a friends/family payment its a goods/services payment.

A 'send money > friends/family payment is a friends/family payment.
A 'paypal.me personal account' is a friends/family payment.

So to answer your questions.

1. Yes as your money request showed that you were a 'seller' and sellers pay fees.

2. The fee is charged to anyone that is selling and by using a money request you were a seller.

3. Nothing to do with their funding source, just the way the payment was SENT or REQUESTED.

4. The only time the sender pays the fee is when the friends / family option is used and the funding source was a debit or credit card was used, if they used funds in their balance OR bank transfer then it would be free.