My hubby and I are both freelancers and we normally receive our salary via Paypal. PayPal is actually the most convenient method in receiving online payments from clients aside from other similar to it. We've received several payments from our clients via PayPal, however there are some that doesn't have any charge and we can receive it in full but there are some that deducts our earnings. I was wondering why is it different and what are those charges for?
I have never noticed deductions from Paypal due to the fact that whenever I make withdrawals, my Paypal balance usually invariably has some cash. However, I noted in another forum that Paypal deducted 10% of the value of the withdrawal amount so that instead of the person receiving $5, view receive $4.5.
The person sending the money chooses to either pay the charge themselves or to charge the receiver. Some companies will pay the charge and others will check the box to get the fee deducted from the amount sent. The fee is the PayPal fee, how else do you think they make money? Banks charge and PayPal is no different.
I guess you have some clients outside the country. I've seen before when I've registered that they charge for the conversion of currencies. I can be wrong but I remembered something like that. Have you noticed this when you've signed up?
I don't know if this is exactly true I learnt if you are in the US you wouldn't be charge any fee to receive money. This is what I think happens the sender of the money chooses to pay the PayPal fee or leave that to be deducted from the receiver. What I would like to know what formula are they using to deduct out their charge.
Paypal is my only means of receiving my online earnings. I was using Paypal for more than 2 years already and I have never had an issue. However, there is a service charge when you withdraw an amount that is lower than the minimum. Over here, the minimum is 7,000 pesos (that's slightly less than $200) so I always withdraw when my balance reaches more than that amount to save me from the service charge. And when my withdrawal goes to my bank account, the bank charges me about $8 for their service.
10%? Wow that was huge. So let's say I'm withdrawing $500, PayPal will charge me $50 just for withdrawing? I'm not sure though if it depends on the country because I think PayPal sets a fix charge in withdrawals. Because we've tried withdrawing $100 and they charged us $5. Same as when we withdraw $20, they also charged us $5. However, there are some banks and VISA cards that when you use to withdraw in PayPal, it will only charge a dollar that's why I was wondering why there aren't the same.
Usually in our country any PayPal transaction attracts a fee which is 4.4% + $.30. So higher the amount lower will be fee as $0.30 is not changing. If I have to withdraw $1 I will only get $0.60 and that is dismal. I think (not sure though) it is based on the nature of account the company has with PayPal. I work in an online site where there is only 2% which is quite comfortable for me. All other site usually charge the above fee.
When your contractor or your employer decides to pay paypal fees you will receive full payment and when the sender choose you to pay the fees, you will have cuts in the amount you receive.
I too get charged sometimes depending on the sender's agreement via PayPal or the location whichever is applicable. It is not 10% but I think 3.4% or something. I have truly never calculated but overall it does make a difference. I wish it would be free someday.
Paypal would always deduct the equivalent of $1 for each withdrawal. I've linked my paypal to Unionbank's Eon card, a visa card which I opened solely for the purpose of receiving online earnings through Paypal. It has an annual fee of $7 but it doesn't charge anything for the withdrawal except for a minimal ATM withdrawal fee of two cents. I can also use it as a debit card and it has no maintaining balance.
Maybe not. Because before to start a freelance job in a website, I checked the payment proof in PayPal from some users and I did not see any fee, they receive all. However, I have received my payments through Paypal and I have payed fees about 4.4 %. Maybe, there is some rule in some countries.
@Vinicius Souza It might not be Paypal charge at all. It might have been the bank you have used to withdraw your funds that's charging the hefty fee. As soon as you make the withdrawal, Paypal tells you outright the amount that will be deducted from your funds so there shouldn't be any surprises. As for @Jasmin Cottontail concern, some companies do charge you for Paypal fees to make the payment and some don't.
I usually use my Paypal account only to receive deposits and make withdrawals. The charges are often very low. Honestly, I hardly realize those charges if I don't look at the financial transactions in a more detailed way.
Paypal is without a doubt one of the best and most convenient payment processors, whether it's their great customer service or their impact and presence in the web. As for the charges there is a possibility that the sender chooses to pay it.
@Jamille Yes I notice that. Perhaps it depends on how they'll send the money. If they send it as payment, I think the receiver will be the one to be charged with PayPal fee. I'm just not sure though but this is what I've noticed whenever I'm receiving and sending money through PayPal.
I have never experienced this problem with Paypal and I have received a considerable of payments through this site. I guess that in all instances the lenders have opted to pay the fees which had exempted me from the fee costs.
