Transaction Fees (receiver)

[thejerryong]

Hi good day,

I just want to ask why was I charged for receiving money?

I receive money weekly without a transaction fee, but this time PayPal charged a fee on my transaction and deducted it from the transfered amount.

I know there are fees for selling or requesting money, but I didn't sell or requested money. That's why I was surprised that I got charged a fee just for receiving money this time.

Thank you,

Jerry

[kernowlass · Accepted solution]

@thejerryong

Depends which option the ''sender'' chose when they sent the funds.

If they sent it via goods / services then paypal would see you as a seller and charge you a fee.

If they sent it via friends / family then you would not pay a fee.

BUT be careful if you are having money transfered for a service etc and using the friends  / family option then you risk your account being limited.

[thejerryong]

Thank you, that's what I thought it was sent as good/services and it charged me.

Also what does it mean if my account is limited? 

[kernowlass]

@thejerryong

Your account may only be limited if you are selling in any way and accepting payments using the friends / family option as that is against paypal rules and used by sellers to evade paying their paypal fees.

Friends / family should only be used for members of your family or close mates to send you cash eg for your birthday etc.

If you are using it to sell then you have no seller protection if a buyer does a chargeback via their credit card etc and if paypal find out your account is limited and you can't use it anymore.

[thejerryong]

@kernowlass

Okay, that clears it up. 

So far, I have not used Paypal to sell anything. 

Thank you so much. 

[kernowlass]

@thejerryong

[jz14]

Hi~

I'd just want to ask regarding this topic. I sent using the family/friends option and I transferred 95.16usd to my friend, however she only received 73.56usd, I paid 4.01usd when I sent the money since it is debited to my bank. Any idea on why this is? I thought the receiver should have the amount I transferred to her since I used the family/friends option.

Hope you can help me with this.

Thank you!

[PayPal_Rachael]

Hi jz14,

Welcome to the community forum and thanks for posting.

If you paid a fee to send this payment to your friend, that would be the only fee involved in the transaction. For a family and friend's payments the receiver does not pay a fee. If your friend is seeing a lessor amount in their balance it may mean that they had a negative amount in their account before receiving your money or maybe they spent some of the balance without releasing. 

If you sent $95.16 USD that is what they would have received.

Rachael
 

[jz14]

Oh hi, thanks for the response. I ddnt know that was possible, what are the instances of having negative balance? I read in the FAQs that there are some other payments like crossborder fees i dont know and im not sure if that thats the reason why she received less Thank you