Help!! Seller is trying to charge me extra fees!

Sorry to disagree with you and with Rick, but it's not LEGAL to charge different fees to buyers according to their method of payment. eBay's policy is correct.

Remember a few years ago when gas stations started giving a discount to people who paid cash (as opposed to credit cards)? Remember when they stopped? The reason why they stopped is because they got sued. You can choose not to accept certain types of payments, but you CANNOT choose to pass on the fees those payment processors charge you. Those are YOUR fees, not ours.

So I'm sorry, but you can't raise your fees for Paypal users only. You CAN, however, charge a reasonable "handling" fee to ALL buyers, which would cover your fees if that buyer chooses to use Paypal. You just have to be careful, because handling fees that look excessive will scare off buyers.

And, as a buyer, I can tell you that there are a lot of us out there who won't even bid on your auction if you DON'T accept paypal, just like there are a lot of us out there who won't bid on your auctions if you charge a big handling fee on top of a reasonable shipping fee.

Rick is right when he says that sellers have to make enough of a profit to cover their expenses. Otherwise what's the point of being in business? But you have to be fair to ALL your customers, by stating reasonable fees up front and making them the same for all potential buyers.

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Originally posted by Shirley:
but it's not LEGAL to charge different fees to buyers according to their method of payment.

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Who said method of payment?

TSABTO, you need a shorter name.

Nope, can’t do that.

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eBay:

Shipping and handling fees cannot be listed as a percentage of the final sale price.

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>Click Here< for the whole eBay page.

It's against most state (and definitly California) laws to charge customers extra for using a credit card. Two ways around this.

1. Charge everyone a fixed amount for extimated cost and call it a handling fee.

2. Open another account with PayPal and keep it a personal account. You will still be able to accept PayPal payments (for free), but not using a credit card. You may also down grade your current account back to personal, but only once. If you upgrade again, you can not downgrade a second time.

Also note this rule does not apply to auctions if the buyer and seller are both within the UK and paid for in GBP. They consider it a business expense that can be passed on to the customer, much like everyone does for postage.

Here's a suggestion that Shirley had about this:

>>> Click here <<<

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Originally posted by Rick:

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Originally posted by Shirley:
but it's not LEGAL to charge different fees to buyers according to their method of payment.

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Who said method of payment?

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Two Snipes did.

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However when I have tried to place in my listing that all buyers who use their credit card via Pay-Pal need to add 3% to the overall cost of the item (as this is the fee that Pay-Pal charges me when a buyer uses their credit card I receive an email from eBay explaining that I am violating policy by adding additional fees after the sale. So I guess my reply is somtimes a person cannot list all fees.

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Then he asked "Do you think I as a seller should just absorb the fees or should I try to recoup my cost?"

And your reply said "A seller MUST pass their costs to their buyers."

Sorry if I've misunderstood, but it sure sounded to me like he was saying this was a justification for undisclosed fees that only applied to Paypal buyers. You weren't as specific, but you sure sounded like you were agreeing with him.

Clearer now?

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Originally posted by Shirley:
Sorry if I've misunderstood

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Accepted.

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Also note this rule does not apply to auctions if the buyer and seller are both within the UK and paid for in GBP. They consider it a business expense that can be passed on to the customer, much like everyone does for postage.

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Add Australia to that list We can charge extra for fees etc. In fact they are just bringing in that customers will be charged for using credit cards in stores now. THAT SUX!!

Lexie

I agree, that sux major. So have Debit cards (or "check cards") made it to that part of the world yet, and do they get charged too?

Debit Cards here are the ones that are linked directly to your bank account - so you only use funds that you have available. They do carry a charge - but you can pay a bit more for your bank fees per month so you can have unlimited transactions.

Lexie

Can you use them anywhere, or just at teller machines? Here, most of the debit cards look just like credit cards. The Credit card companies serve as a clearinghouse, so any store that accepts the credit card can also accept the debit. The clearinghouse just deducts it directly from your account instead of sending you a bill at the end of the month. Very convenient, but it turns out they charge the sellers the same fees for debit as for credit.

You can use them anywhere they have the EFTPOS machine and in a teller machine.

Lexie

Just trying to figure out how I'm going to spend all that babysitting money when I get over there...

Well you have to support your ebay habit somehow!!

Lexie

I've found an excellent antidote for my ebay habit -- AS Forums! Like the man says, those who don't, post about it! (grin)

(ok, now I'm REALLY leaving! G'night!)

The exception to the eBay/PayPal prohibition is that sellers in the UK are allowed to assess a surcharge. It is stated in the guidelines, and I have had British sellers (though not all) do so.

Then there was the seller who did not state in the auction that he accepted PayPal. I bid and won, expecting to send a money order or check. His invoice stated that "although the auction terms are for cash, money order or check, I can also accept PayPal, if you pay an additional fee of x." This was a shrewd way to get around the prohibition, since nowhere in his auction did he state he accepted PayPal, and buyers bid, expecting not to use it. When I pointed out that he could not assess a surcharge, his reply was that in that case, I should stick to the auction terms for payment.

Most people who prefer PayPal (which includes me) are used to getting their items more quickly, so most at that point will probably cave and go for the surcharge, so they will not have to wait weeks for shipment. The item was not an immediate need for me, so I sent him a check, LOL!

Were I selling an item, I would definately allow paypal - even when having to pay the processing fee. A few reasons why:

Prompt guaranteed payment.

I'd be able (were I a business) to deduct the processing fees as a business expense.

3rd party dispute resolution.


Accepting credit cards is part of your overhead - just like rent, electricity or employees. Believe me, after 28 years in the hospitality industry, the cost of accepting credit cards is nothing compared to the costs incurred with checks (nsf's, stolen, stop-pays; not to mention collection service fees).

As to the legalities for passing fees along, I believe this vary's from state to state. Here in Washington (state) MANY (many many many) restaurants make thier servers pay the fee on their tips. It wouldn't bother me as much as it does if the restaurant allowed the servers to decide (either individually or as a group 'vote') if they were going to accept credit cards as payment

Mother Mary Says, 'HONESTLY! you're just ruint!'

In my area (Indiana) the live auctioneers get around the law by charging a "buyer's premium" of 3% and then give a discount for those using cash or check. They even put this into their ads in newspapers and national antique newspapers. Is what they are doing, illegal?

I am writing challenged and thus carry cash for these auctions.

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Originally posted by Chatter163:

Most people who prefer PayPal (which includes me) are used to getting their items more quickly, so most at that point will probably cave and go for the surcharge, so they will not have to wait weeks for shipment. The item was not an immediate need for me, so I sent him a check, LOL!

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I'm one of those who would willingly "cave" in that situation. Like I've said before, I generally don't bid on auctions that say they don't take Paypal, but every now and then I find something that I REALLY want to bid on that doesn't take it. Two or three times I've sent notes to the seller, (friendly, complimentary, polite notes) asking if they'll take Paypal if it's bank-funded. I've never had a seller say no -- one of them told me he didn't want to take it because of the fees, but I offered to forego a shipping discount to make up the difference and he accepted.

I didn't realize at the time (until geekline educated us) how often sellers get harassed about this, but I still feel that as long as I'm polite and friendly, the worst they can say is "no". Meanwhile, they get to see how important paypal is to buyers, and maybe if they get enough requests and realize how much business they're losing, they'll change their policies.

Larry, in answer to your question, yes it is legal in Indiana to do that, however, when I lived there it was a big turnoff for me!

Shirley, I like to take paypal. I know it does cost, but that is part of business! I fail to understand any seller wanting to wait on a check to arrive, or maybe never arrive, in the mail when they could have the money right away via paypal!

I think lots of people are very suspicious of any service that requires you to give direct access to bank accounts and credit cards. I'm related to several of them.

I once borrowed some money from my sister, and she was quite happy to let me pay her back with monthly bank-funded Paypals. Other members of our family thought we were crazy, though.

Of course, the same family members wouldn't DREAM of paying their bills online or even using "Check-by-phone"...

Yes, I have a friend that wants to sell something they invented on Ebay, but they won't put any of that info online. I told them that the only time I have EVER had anything stolen from my checking or visa was in my local KMart store!! Gads, I pay everything I can online!

Hey, my mom even refuses to get an ATM card!

Shirley, got a minuet?

Sure, puppy, what's up? Need me to edit your resume? (grin)

resume? nope, not looking.
I owe you an apology.

I once made a suggestion aimed at someone else. I realize (now) that you may have thought it was aimed at you. Poorly written, my fault... you replied after I left...

Let me see if I can find the quote...

Damn! can’t find it now... Oh well, just pretend you know what I’m talking about.

It's ok, puppy, if I even noticed it didn't make an impression. Don't worry about it! You've always been very friendly and helpful. I promise I don't take offense at EVERYTHING! (grin)

But thanks anyway.

Check private.

Done. Thanks!

On a fair national hypothetical labor rate for such service well over a hundred dollars worth of advice has been wasted here. Even eBay's valuable time has been wasted on a buyers error, oversight or misunderstanding.

....you all have been more than resposnse kind. I'm afraid I would have been one to lay out the simple error or oversight of the buyer and drop this subject.

....If it were really a big money deal I would consider but not neccessarily suggest any error here outside of buyer lack of knowlege, onery disposition, lack of ability or a smattering of all three.

Hi docgipe, and welcome to the forum.

Wasted? Nah. We got money to burn. Jabber, can I borrow some more?

Mrs M?

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Larry, in answer to your question, yes it is legal in Indiana to do that, however, when I lived there it was a big turnoff for me!

Thanks for the info, but WHY would anybody want to leave God's country aka Indiana?????

I live in Monticello, where were you?

[QUOTE]TSABTO you need to shorten your name./QUOTE]

How is this Puppy Handler

Thanks to all who contributed to this topic. The replies gave me a lot to think about. As a result I've decided that I will just continue assorbing the additional cost as in the long run at least I no I am getting Paid!

Again Thanks to all!!

Larry, I lived in Richmond.

You can't charge more for credit card purchashes through PayPal, nor can you refuse to accept credit cards if you accept PayPal. But you can offer a discount to those who do not pay through PayPal using a credit card. I know that it really amounts to the same thing, but those are eBay's and PayPal's policies.