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Is Paypal owned by eBay?

Hello,

I recently opened an account in ebay to sell items. After completing several transctions, I noticed that eBay fees are high enough as they are; but later began to think of why does Paypal charges fees when receiving a payment too.

 

First eBay charges us a listing fee (wich is understandable) then they charges us a commission based on the final price you sold your item (Once again, its undersatandalbe) but when you get to paypal; there is an additional fee for receiving our money. Why does paypal charges the fee, if we have already been charged by ebay; after all they are the same company right?

 

I truly feel that Paypal should not be charging any fees to us; after all it is ebay policy to establish an account with Paypal to complete our transactions.

 

I am really confuse here!!

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PayPal_Kevin
PayPal_Kevin PayPal Employee
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Re: Is Paypal owned by eBay?

Hello ricardorichardo

 

You have some very valid concerns and I am happy to answer them for you.  eBay does own PayPal but we are completely separate entities.

 

eBay charges you a fee to list your item and a percentage of what the item sells for.  This is the cost to provide exposure for you as a merchant.  PayPal is a payment processor and we process payments not only for eBay merchants but for many non eBay related transactions.

 

As a payment processor we incur fees to process payments from one person to another.  The fee you pay to PayPal allows you to accept any type of payment from anyone in the 190 countries we support.  As opposed to going to the bank and applying for a merchant account which not only costs you a per transaction fee but also charges a per month fee, PayPal is much cheaper and convenient.  To put it in perspective, if you owned a brick and mortar store, you would have advertising costs (eBay) and you would have payment processor costs (PayPal) as part of your business.  The same holds true for doing business online.

 

I hope this helps and if you have any further questions or concerns please let me know.  Take care and have a good day.

 

KB

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Treasury772
Treasury772 Contributor
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Re: Is Paypal owned by eBay?

Paypal is basically a merchant credit card company. So if you know anyone who owns a business with a credit card machine, its the same concept. The CC company gets a small % in what they call fees.

 

Paypal does the same. You are using their credit card servers to process payments.

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gcjohnpaul
gcjohnpaul New Community Member
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Re: Is Paypal owned by eBay?

That's all well and good, but this is not a credit card.  This is money in the bank.  My money sits in paypal hands until I use it, and I'm not gaining any interest on my money.  Paypal is, right?   So why the fees?  If I'm paying the fees, I should get the interest on my money.

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polishprince
polishprince New Community Member
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Re: Is Paypal owned by eBay?

I have tried to contact eBay in regards to what I feel is misleading advertising on a product for sale . But it is impossible, no matter what I try there is no category that lets me contact them .

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ookayumsoyousay
ookayumsoyousay Contributor
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Re: Is Paypal owned by eBay?

Yes, eBay does own PayPal.

 

But in response to the other posters, I wouldn't waste your brain cells in trying to figure out the worldwide monopoly of it all. And I can guarentee you will not only NOT get ansers from Ebay, but you may get something worse--something you wish you never asked for--something you actually never asked for.

 

Hate to be cryptic. Just heed...

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