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.

[pierrelebel]

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

Until now, PayPal has given Canadian sellers a 1% "break" when selling to the USA.

While PayPal charges 1% cross border to everyone shipping outside their borders, Canadians did not pay it when selling to the USA.

Now, Canadians will be paying 0.8% cross border fee, still a slight discount from what American sellers are paying when shipping to Canada (1.0%).

If you sell $1,000 a month to the USA, the cross border fee increase represents $8.00 per month; if you sell $500 a month to the USA, you will pay an extra $4.00.

[cumos55]

Does not the Paypal fee apply to the price of the item plus shipping?

[pocomocomputing]

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@cumos55 wrote:

Does not the Paypal fee apply to the price of the item plus shipping?

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PayPal fee applies to the total $ of the PayPal transaction, which is the ebay item price, ebay shipping charged, sales taxes (if you charge).

[rosscd57]

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@pierrelebel wrote:

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

Until now, PayPal has given Canadian sellers a 1% "break" when selling to the USA.

While PayPal charges 1% cross border to everyone shipping outside their borders, Canadians did not pay it when selling to the USA.

Now, Canadians will be paying 0.8% cross border fee, still a slight discount from what American sellers are paying when shipping to Canada (1.0%).

If you sell $1,000 a month to the USA, the cross border fee increase represents $8.00 per month; if you sell $500 a month to the USA, you will pay an extra $4.00.

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Yep it does not sound like so much when we take it individually.

However:

I have not done the exact math - but increasing fees by 1% to an existing 2.7% sounds like it is somewhere in the neighborhood of a 30% increase in their total Canadian fees. I figure my whole extended family could retire on one days profit and likely all our friends as well and perhaps all their family's and friends as well.

That is indeed a huge increase.

[recped]

The 1% cross border fee is universal throughout the credit card processing system, it was a nice bonus while it lasted.

Might have to open a US PayPal account.

[decal-fx]

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@recped wrote:

Might have to open a US PayPal account.

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Assuming that is even possible would you not still pay the percentage when exchanging to Canadian Funds? I'm Not sure exactly how at this works, I do have a US Bank account I transfer a small amount of my sales into weekly.

[pocomocomputing]

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@rosscd57 wrote:

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@pierrelebel wrote:

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

Until now, PayPal has given Canadian sellers a 1% "break" when selling to the USA.

While PayPal charges 1% cross border to everyone shipping outside their borders, Canadians did not pay it when selling to the USA.

Now, Canadians will be paying 0.8% cross border fee, still a slight discount from what American sellers are paying when shipping to Canada (1.0%).

If you sell $1,000 a month to the USA, the cross border fee increase represents $8.00 per month; if you sell $500 a month to the USA, you will pay an extra $4.00.

---

Yep it does not sound like so much when we take it individually.

However:

I have not done the exact math - but increasing fees by 1% to an existing 2.7% sounds like it is somewhere in the neighborhood of a 30% increase in their total Canadian fees. I figure my whole extended family could retire on one days profit and likely all our friends as well and perhaps all their family's and friends as well.

That is indeed a huge increase.

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Current rate is 2.9% not 2.7%. New increase is 0.8%, not 1%.

[recped]

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@decal-fx wrote:

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@recped wrote:

Might have to open a US PayPal account.

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Assuming that is even possible would you not still pay the percentage when exchanging to Canadian Funds? I'm Not sure exactly how at this works, I do have a US Bank account I transfer a small amount of my sales into weekly.

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I sell in US Dollars, exchange occurs regardless of the payment processor and I don't use PayPal to do fx conversions.

[treasure.hunter.d]

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@pocomocomputing wrote:

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@rosscd57 wrote:

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@pierrelebel wrote:

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

Until now, PayPal has given Canadian sellers a 1% "break" when selling to the USA.

While PayPal charges 1% cross border to everyone shipping outside their borders, Canadians did not pay it when selling to the USA.

Now, Canadians will be paying 0.8% cross border fee, still a slight discount from what American sellers are paying when shipping to Canada (1.0%).

If you sell $1,000 a month to the USA, the cross border fee increase represents $8.00 per month; if you sell $500 a month to the USA, you will pay an extra $4.00.

---

Yep it does not sound like so much when we take it individually.

However:

I have not done the exact math - but increasing fees by 1% to an existing 2.7% sounds like it is somewhere in the neighborhood of a 30% increase in their total Canadian fees. I figure my whole extended family could retire on one days profit and likely all our friends as well and perhaps all their family's and friends as well.

That is indeed a huge increase.

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Current rate is 2.9% not 2.7%. New increase is 0.8%, not 1%.

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Sorry my bad, you are correct. I'm not entirely sure why I typed 2.7 and 3.7 but as soon as seeing your response just now I realized my error.

Sorry for the mistake.

Cheers,

thD

[decal-fx]

OK, what would be required to open a USA Paypal account? Would you  not need an American SIN #?

[gorillascalesca]

You would need a US bank account and possibly a mailing address. I am looking into it.

I would also like to mention that I fully expect there to be a listing fee increase coming very soon to Canadians.

[Anonymous]

The one good thing I note, is that the 1% discount on currency conversion for $3000+ in a month is (still) in effect. Which makes the FX rate from Paypal for USD to CAD about 1/2% to 1% better than the TD Borderless rate. I lost it for a month or two, but it's back again now in January.

1 USD = 1.386765 CAD is what I received today when withdrawing USD. I sometimes put my USD into a US bank, but generally, if I have the better FX, I just cash it from Paypal beyond whatever I might want to use with my Paypal debit card. One thing I do, is NEVER buy anything with my PayPal balance online. I'll withdraw, and then use my credit union USD card to make the purchase (even within Paypal), because at least some money flows back to another semi-local entity.

Interesting - I was not aware that US buyers were paying 3.9% to sell to a Canadian. As to why this is even justifiable in 2016 is beyond me. The money changers still want their money I guess.

[gorillascalesca]

I recently noticed a good exchange rate as well, but I just checked again today..

PayPal exchange rate:1 USD = 1.37268  CAD

And I do enough volume to qualify, so thats not the reason.

[sniper10000]

It may not sound like much but between Ebay and Paypal they are making all the profit. after they are done with fees and conversion I am looking at 20-25% gone on smaller sales. Not even worth listing unless you can sell for well over double.  That is the rate of some auction houses and they market and advertise your items. 

[teenytrinkets]

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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

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Yes, and this virus is most prevalent where I live, in Vancouver, where taxes are sky high and house prices are ridiculous.

Ugh...and here I thought I was going to take advantage of the rotten exchange rates and sell more stuff in US$ and now PayPal comes in and has to skim some off the top of that...grrrrr...

[recped]

The PayPal "skim" as you call it has nothing to do with selling in US or CA Dollars.

[gorillascalesca]

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@sniper10000 wrote:

It may not sound like much but between Ebay and Paypal they are making all the profit. after they are done with fees and conversion I am looking at 20-25% gone on smaller sales. Not even worth listing unless you can sell for well over double.  That is the rate of some auction houses and they market and advertise your items. 

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Well, ebay is actually advertising and promoting your items (maybe not as much as we would like) .. how else do you think things sell on this site?  If you had a stand alone website you would be spending at least that much on marketing.

[femmefan1946]

What about micropayment accounts?

Do the lower rates on those change?

Do the rates change when a seller who usually has small sales ($10USD for example) has an unusual large sale ($100USD for example)?

[recped]

If you use a Micro Payments account and sell higher priced items you need to use a different account/email for the high value items. The rate is set by the account you use not the final amount.

[mpmckinnon]

It's a bigger tax deduction now.

Yeah, that didn't make me feel any better either...LOL.