Paypal fees to increase for cross border to the US .

[dutchman48]

• US cross-border fees
  
  We have made changes to Section 8.4(b) of the UA and Section 2(e) of the Pro/VT Agreement to update the fees that apply to Canadian Sellers selling to buyers located in the United States. These fee changes will become effective on April 13, 2016. If you are a consumer, these changes will be implemented on March 14, 2016 and will also become effective on April 13, 2016.

1. (b) US Purchase Payments (effective as of April 13, 2016).
    

   Activity	Purchase Payment Fee
   Sending (buying)	Free*
   Receiving (selling)	Standard rate:	3.7% + Fixed Fee***
   Merchant rates**:	Monthly Sales Volume  $0.01 - $3,000.00  $3,000.01 - $12,000.00  $12,000.01 - $125,000.00  Over $125,000.00	Fee  3.7% + Fixed Fee***  3.3% + Fixed Fee***  3.0% + Fixed Fee***  2.7% + Fixed Fee***
   Charity rate****	1.6% + Fixed Fee***
   * Your financial institution may charge fees directly to the card you use to fund a cross-border payment even where no currency conversion is involved.  ** To qualify for our Merchant rates you must submit a one-time application, have qualifying monthly sales volume, and have an Account in good standing.

[dutchman48]

Here is the full link to all the changes.

https://www.paypal.com/ca/webapps/mpp/ua/upcoming-policies-full

If we sell to the US, we will be paying more. Looks like Canada is being separated from the proximity to the US according to Paypal

[musicyouneed]

If I list in US funds and a buyer is from the US, will there be a difference or is it only if I list in Canadian Funds and a US buyer buys from me?

[dutchman48]

My understanding is if your paypal account is in Canada and the payment comes from the US you will pay the new rate. The same as we always had to pay more for any international sale other than the US.

So our postage will go up, Ebay will take a chunk of that increase and Paypal will take a bigger chunk of the whole payment.

[rosscd57]

So if the new rate is 3.7 what are we paying now. I am a bit embarrassed to say that I really don't know.

How much of a difference will it be and is that in Canadian or Us dollars?

[rosscd57]

Ok ignore the last queston its a percentage.

[mr.elmwood]

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@rosscd57 wrote:
Ok ignore the last queston its a percentage.

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Yep, ya gotta add the exchange rates to %. Nice question.

[mr.elmwood]

Alrighty, I'm lost. This is what I found for existing fees.

$0.00 USD - $3,000.00 USD	3.9% + $0.30 USD
$3,000.01 USD - $10,000.00 USD (Merchant Rate qualification required)	3.9% + $0.30 USD
$10,000.01 USD - $100,000.00 USD (Merchant Rate qualification required)	3.9% + $0.30 USD
> $100,000.00 USD (Merchant Rate qualification required)	3.9% + $0.30 US

https://www.paypal.com/us/cgi-bin/marketingweb?cmd=_display-xborder-fees-outside

[pierrelebel]

OK - For fifteen years eBay, then owner of PayPal, helped Canadian sellers by not having PayPal charge the 1% cross border fee when shipping to an American buyer.  In the meantime American sellers were paying PayPal the 1% cross border fee when shipping to Canadian buyers.

That small help will soon be gone.

Mr Elwood you are looking at the .com fee schedule based on shipping from the USA.  Try .ca

[dutchman48]

It is also in my original post

[musicyouneed]

I am totally confused.  What is paypal charging me now?

All in US funds

US funds buyer in US   _______________

US funds buyer in Canada   ______________

What will it be?

[rosscd57]

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@pierrelebel wrote:

OK - For fifteen years eBay, then owner of PayPal, helped Canadian sellers by not having PayPal charge the 1% cross border fee when shipping to an American buyer.  In the meantime American sellers were paying PayPal the 1% cross border fee when shipping to Canadian buyers.

That small help will soon be gone.

Mr Elwood you are looking at the .com fee schedule based on shipping from the USA.  Try .ca

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So can I assume that we are paying 2.7% now?

[treasure.hunter.d]

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@rosscd57 wrote:

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@pierrelebel wrote:

OK - For fifteen years eBay, then owner of PayPal, helped Canadian sellers by not having PayPal charge the 1% cross border fee when shipping to an American buyer.  In the meantime American sellers were paying PayPal the 1% cross border fee when shipping to Canadian buyers.

That small help will soon be gone.

Mr Elwood you are looking at the .com fee schedule based on shipping from the USA.  Try .ca

---

So can I assume that we are paying 2.7% now?

---

Currently we are paying 2.7% + .30 cents per transaction for US based buyers and 3.7% + .30 cents for International buyers.

Welcome to the Third World of Canada where the leading disease cause of death is "monetaryleosis" virus, manifesting in victims being nickel and dimed to death.. Too bad Pasteur didn't come up with a vaccine for that one!

Sigh.

thD

[dutchman48]

We are paying  2.9% now unless you are a humungous seller.

The new rate for cross border will be 3.7 to the US which is a .8% increase

All other cross border remains the same at 3.9%

If you are a huge seller, it will reduce by volume. See my original post.

[nrg_svr]

My e-mail from Paypal noted the following, which has me a bit confused:

".... UA and the Pro/VT Agreement to update the fees that apply to Canadian sellers selling to buyers located in the United States. These fee changes will go into effect on April 13, 2016, but do not apply to you..."

They bolded the NOT....

So come April 13, I guess I get to keep whatever old rate is effective?

Who knows.

Waiting for the correction e-mail to come.

So bottom line, for non-discounted transactions.... it looks like the rate goes from 2.9% to 3.7%

That's a 28% increase in the fee, and a HUGE profit grab for Paypal.

[recped]

We are paying  2.9% now unless you are a humungous seller.

$3000/month is hardly humongous!

Let's see $3000 at 50% gross margin less eBay and PayPal fees leaves you with something a bit shy of $1400/month

If you worked a 40 hour week for minimum wage you would be taking home more money every month than your so called humongous seller!

[dutchman48]

You are probably aware that many sellers on Ebay don't sell anywhere near 3,000 per month. If you do, all the more power to you but please don't use your sales and assume everyone does that. We all know the definition of assume

[nrg_svr]

The reasoning I want to see, is just how Paypal can justify (rightly or wrongly) such a HUGE fee increase.

28% fee increase for average sellers - even more for those with discounts in place!

ie:

2.5% to 3.3% for the $3000+ crowd is a 32% increase

2.2% to 3% is 36.4%

and for those unlikely few (but there are some) with the 1.9% rate, the new 2.7% rate is a 42.1% increase

[ypdc_dennis]

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@musicyouneed wrote:

I am totally confused.  What is paypal charging me now?

All in US funds

US funds buyer in US   _______________

US funds buyer in Canada   ______________

What will it be?

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If your volume is under $3000/mo

Currently --  0.30USD + 2.9% for both Canada and the USA

April new rates: no change for Canada, 0.30USD + 3.7% for USA

[recped]

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@dutchman48 wrote:

You are probably aware that many sellers on Ebay don't sell anywhere near 3,000 per month. If you do, all the more power to you but please don't use your sales and assume everyone does that. We all know the definition of assume

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I never assumed anything!

If you call sellers who have sales at $3000/month humongous, what do you call a seller that does 10,000 or 100,000/month? I'm just wondering how you would categorize those sellers?