Pay, pal or eBay at the moon
Ebay owns PayPal. Until not long ago, you could sell stuff on Ebay and collect funds on PayPal via direct bank transfers with no fees. Then they tightened it so that you could not sell more than $1,000 in any month without incurring fees. Then it was $500. Mind you, this was for a Personal account, the casual seller, not the big boys and girls who make a living on Ebay. So, I always listed my stuff for sale that I would take PayPal (but only a direct transfer and no credit cards) since I did not want a business account nor did I want to incur fees.
Over the last two months, I have sold all my model railroad stuff. My first shock was to find out that there was a limit to how much I could collect in a month without being forced to upgrade to a Premier or Business account or having buyers' payments refused. I do not remember getting any notice from PayPal that they were going to a $500 limit. Well, I had no choice but to upgrade my account since I had lots of sales. This means that PayPal collects $0.30 per transaction and 2.9% on all funds paid (which include payments for shipping) regardless if the funds come from a direct bank transfer or from a credit card. I was told I could downgrade my account once and only once back to individual and had planned to do this since I only sell a minor amount of stuff normally and would not hit the $500 monthly limit.
About three weeks ago, I listed another model railroad item with the standard language I have been using regarding accepting PayPal, but no credit card payments. Ebay sent me an automated message letting me know they could not list my item since that if I accepted PayPal, I had to accept all forms of PayPal payments. Here is part of their email response:
"Effective August 19th, 2005, sellers who offer PayPal as a payment option on eBay (either via logos or through text in the item description) must accept *all forms* of PayPal payment including account balance, bank transfer, e-checks and credit cards.
"For example, it is *not* permitted to state the following:
""I only accept cash transfer via PayPal (no credit cards or echecks)."
""My Paypal account is not set up to accept payments funded by credit cards or debit cards."
"Sellers must have a Premier or Business PayPal Account or be willing to upgrade from a Personal PayPal Account to a Premier or Business Account if sellers receive a credit card payment. Sellers may not communicate to buyers that they accept, or will not accept, specific forms of PayPal payment."
So, here is the Catch 22: You can have a Personal account (no fees for direct transfers of funds of $500 or less in a month), BUT when anyone who is a buyer charges a purchase on a credit card, you are forced to upgrade to a Premier account and must accept this form of payment----and be charged fees on any and all transactions from that time forward and forever more.
So:
1. Ebay gets to collect from you twice (listing and sales fees and then payment percentage).
2. No one seems to notify members about changes in policy
3. The Personal account at PayPal is a sham
Ah, well.
Over the last two months, I have sold all my model railroad stuff. My first shock was to find out that there was a limit to how much I could collect in a month without being forced to upgrade to a Premier or Business account or having buyers' payments refused. I do not remember getting any notice from PayPal that they were going to a $500 limit. Well, I had no choice but to upgrade my account since I had lots of sales. This means that PayPal collects $0.30 per transaction and 2.9% on all funds paid (which include payments for shipping) regardless if the funds come from a direct bank transfer or from a credit card. I was told I could downgrade my account once and only once back to individual and had planned to do this since I only sell a minor amount of stuff normally and would not hit the $500 monthly limit.
About three weeks ago, I listed another model railroad item with the standard language I have been using regarding accepting PayPal, but no credit card payments. Ebay sent me an automated message letting me know they could not list my item since that if I accepted PayPal, I had to accept all forms of PayPal payments. Here is part of their email response:
"Effective August 19th, 2005, sellers who offer PayPal as a payment option on eBay (either via logos or through text in the item description) must accept *all forms* of PayPal payment including account balance, bank transfer, e-checks and credit cards.
"For example, it is *not* permitted to state the following:
""I only accept cash transfer via PayPal (no credit cards or echecks)."
""My Paypal account is not set up to accept payments funded by credit cards or debit cards."
"Sellers must have a Premier or Business PayPal Account or be willing to upgrade from a Personal PayPal Account to a Premier or Business Account if sellers receive a credit card payment. Sellers may not communicate to buyers that they accept, or will not accept, specific forms of PayPal payment."
So, here is the Catch 22: You can have a Personal account (no fees for direct transfers of funds of $500 or less in a month), BUT when anyone who is a buyer charges a purchase on a credit card, you are forced to upgrade to a Premier account and must accept this form of payment----and be charged fees on any and all transactions from that time forward and forever more.
So:
1. Ebay gets to collect from you twice (listing and sales fees and then payment percentage).
2. No one seems to notify members about changes in policy
3. The Personal account at PayPal is a sham
Ah, well.
posted by Bud Hirsch at 10:37 PM
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