Paypal fee by user for wholesale accounts

thameema · **Joined:** Sun Jan 21, 2007 1:33 am **Posts:** 22

I have installed 1.3.2 stable and enabled paypal. I noticed that the paypal fee is paid by the seller and there is no option to enable/disable the fee for particular user. Sometimes for wholesale accounts the fee should be paid by the Buyer and this is what everyone is following in other billing systems.

Asiby replied to the other post saying that paypal is not allowing you to do this which is not true. Actually paypal by default takes the fee from the receiver but websites can update their customer's account after deducting the fees from the customers payment.

Please let me know is this possible to add to a2b.

Thanks,
Thameem

asiby · **Posted:** Mon Feb 04, 2008 4:00 am

I hope you have gone carefully through their user agreement before using Paypal. If that was not the case, then please follow this link: https://www.paypal.com/us/cgi-bin/webscr?cmd=p/gen/ua/policy_pbp-outside

Here is quote from the content found at that link:

User Agreement for PayPal™ Service wrote:

...

11.3 Qualification Requirements. In order to qualify for coverage under the Seller Protection Policy, you must meet the following requirements:

a. You must have a Verified Business or Verified Premier Account at the time of the transaction,

b. The transaction must be between a US, UK or Canadian buyer and a US, UK or Canadian seller,

c. The payment must be listed as Seller Protection Policy Eligible on the Transaction Details page, or cleared by PayPal through Payment Review,

d. You must accept a single payment from one PayPal Account for the purchase,

e. You must not charge a surcharge for accepting PayPal,

f. You must ship the purchased item to the address listed on the Transaction Details page,

g. You must ship the item to the buyer within 7 Days of receiving payment,

h. You must have trackable online proof of delivery from an approved shipper to the address on the Transaction Details page. For transactions involving $250.00 USD or more, you must provide a proof of receipt that was signed or otherwise acknowledged by the buyer and can be viewed online, (If you paid in a currency other than US dollars, the following amounts apply for this section: $325.00 CAD, €200.00 EUR, £150.00 GBP, ¥28000.00 JPY, $350.00 AUD, 330.00 CHF, 1,600.00 NOK, 2,000.00 SEK, 1,500.00 DKK, 800.00 PLN, 55000.00 HUF, 6,000.00 CZK, $400.00 SGD, $2,000.00 HKD, $380.00 NZD), and

i. You must respond to PayPals requests for information within the time period PayPal specifies.

Additional qualification requirement for unauthorized payments:

a. The address on the "Transaction Details" page that you ship to must be a Confirmed Address. This requirement does not apply to Chargebacks due to non-receipt of merchandise.

Please note that in order to qualify for our Seller Protection Policy you must ship the item as required in this section. If you hand deliver an item, or provide delivery in any manner other than required in this section, your transaction will not qualify for the Seller Protection Policy.

...

thameema · **Joined:** Sun Jan 21, 2007 1:33 am **Posts:** 22

Hi Asiby,

I have gone thru the agreement. If you notice, point 11 is only applicable for "Seller Protection Policy" and not applicable to everyone.

Quote:

11.3 Qualification Requirements. In order to qualify for coverage under the Seller Protection Policy, you must meet the following requirements:

a. You must have a Verified Business or Verified Premier Account at the time of the transaction,

b. The transaction must be between a US, UK or Canadian buyer and a US, UK or Canadian seller,

c. The payment must be listed as Seller Protection Policy Eligible on the Transaction Details page, or cleared by PayPal through Payment Review,

d. You must accept a single payment from one PayPal Account for the purchase,

e. You must not charge a surcharge for accepting PayPal,

f. You must ship the purchased item to the address listed on the Transaction Details page,

g. You must ship the item to the buyer within 7 Days of receiving payment,

h. You must have trackable online proof of delivery from an approved shipper to the address on the Transaction Details page. For transactions involving $250.00 USD or more, you must provide a proof of receipt that was signed or otherwise acknowledged by the buyer and can be viewed online, (If you paid in a currency other than US dollars, the following amounts apply for this section: $325.00 CAD, €200.00 EUR, £150.00 GBP, ¥28000.00 JPY, $350.00 AUD, 330.00 CHF, 1,600.00 NOK, 2,000.00 SEK, 1,500.00 DKK, 800.00 PLN, 55000.00 HUF, 6,000.00 CZK, $400.00 SGD, $2,000.00 HKD, $380.00 NZD), and

If you read point 11.3 (b) it says, the transaction should be between US, UK and Canadian buyers and sellers... if Rule e) applies to people from other countries then they violate Rule b).

So, charging extra fee (other than paypal fee) may be illegal as per Paypal agreement but if the user is willing to pay the fees then it should not be illegal.

Thanks,
Thameem

asiby · **Posted:** Mon Feb 04, 2008 5:16 am

thameema wrote:

if Rule e) applies to people from other countries then they violate Rule b).

Where do you see that? I think that you are rephrasing it and changing its meaning. If rule d) and rule e) were directly related, if would have been stated like this (under the same rule):

Code:

The transaction must be between a US, UK or Canadian buyer and a US, UK or Canadian seller, and you must not charge a surcharge for accepting PayPal in these countries.

At least, that's what I think. But hey, I am probably wrong. I have re-read the text and I really couldn't understand it the way you did. I was merely warning people here. But if you are willing to risk loosing your Seller Protection Policy for that, feel free to do it.

thameema · **Joined:** Sun Jan 21, 2007 1:33 am **Posts:** 22

I was quoting that if Rule e) applies to all Paypal users then user from other countries violate Rule b). Because one of the Seller Protection Policy rule (which is b) states that the buyer and seller should be either US, UK or Canadian users... This is not clear about users from other countries.

If I decided to customize this part for my requirements,
ie, i need to deduct the fee before I apply the credit to the card, How should I implement it? I am sure paypal should be returning the "fee" as one of the response parameters.

Suggestions:
----------------
I also noticed that once the customer returns from paypal site, he should land in a page saying "your card is recharged with $$ amount" so that they will know the transaction is applied to their account. And you should provide a page from where they can check the history of payments.

Thanks,
Thameem

asiby · **Posted:** Mon Feb 04, 2008 5:40 am

I was having brain fart. I understand what you mean now. So basically whenever a customer or seller does not geographically meet rule b), then can go ahead a spit on rule e) cause they would have lost the protection anyway. :lol:

I am thinking that if you have a very customer verification rules, you may not even need this seller protection and you will save yourself some money depending on the volume coming through paypal.

Added after 8 minutes:

Wait a minute, check point 4.7 of the Paypal Agreement

User Agreement for PayPal™ Service wrote:

4. Receiving Money.

...

4.7 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.

thameema · **Joined:** Sun Jan 21, 2007 1:33 am **Posts:** 22

I got you now...

So the alternate way is to charge the handling fee... :-)

Please let me know how do i do that...?

krzykat · **Posted:** Mon Feb 04, 2008 6:34 pm

They have no seller protection for our business. I've spent hours on the phone bitching them out and its of no use. That and the bastards don't even do a good job of fraud control on their side. I mean someone in Egypt uses an american credit card from someone living in Colorado, and they don't RED FLAG it ??? PayPal doesn't give a crap - they just want to process transactions and take their cut.

thameema · **Joined:** Sun Jan 21, 2007 1:33 am **Posts:** 22

Are there any plans of implementing the handling fee or service fee??

Thanks,
Thameem

stavros · **Posted:** Mon Feb 04, 2008 7:15 pm

thameema wrote:

Are there any plans of implementing the handling fee or service fee??

As this is explcitly forbidden by the Paypal T&Cs I doubt anyone will be interested in investing the necessary effort.

Rabon · **Joined:** Tue Jun 20, 2006 3:23 pm **Posts:** 153

yes, paypal doesn't have seller protection for VoIP [minutes] selling business. But if you sell VoIP products [hardware], then its different concern.

Anyway, when our kind of business is not supported by them. then why we can not implement like "transaction fees or service fees" option [so we can choose to deduct from buyer or not].

If paypal can charge to us cross border fees, as they need to pay to their provider cross border bank. So, its between us and buyer, isn't it?

stavros · **Posted:** Tue Feb 05, 2008 3:36 pm

Not according to their Ts&Cs. As has been pointed out four times already in this thread, Paypal explicitly forbid passing these charges on to your customers, regardless of whether or not you're selling a product that may be covered by their Seller protection. This makes Paypal seem competitive with other payment gateways from the buyer's perspective at the expense of the vendor, not Paypal themselves.

awoof · **Joined:** Wed Feb 21, 2007 11:52 pm **Posts:** 56

You have your platform and you send business to paypal...we are just making stuff hard. I f i present $5.45 to paypal for charge on a customers credit card as part of goods purchased, whats paypals business here? I dont think that someone will call you or email you asking why you are presenting a $5.45 charge to a product. That's how much it cost simple.
Where can we possibly adjust the rates to reflect that change. I am just using paypal as a payment gateway and I am not charging "surcharge".
cost+0.45=charge

Thank you.

asiby · **Posted:** Tue Mar 04, 2008 10:30 pm

This is a good opportunity to create a payment gateway that charges a flat rate for transactions. I am thinking about it.

krzykat · **Posted:** Wed Mar 05, 2008 4:59 am

You know the old A2B 1.2.3 DID take off the paypal fee before crediting the users account. So just go lookup that code.

provided by Star2Billing S.L.

Paypal fee by user for wholesale accounts

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