I noticed in one of kiki's sales posts he mentions something about Paypal "clamping down" on gift payments.
Does anyone know what he's referring to?
Yep, there have been a few posts about this - one extensive, but as the search function is AWOL, it's hard to find.
Basically: If you do a lot of gift payment, PP don't like it, so they may restrict your account, asking for ID clarification etc.
There are also issues with sending/receiving large amounts (like £4k+ p/a), which require ID certification to fall within EU money laundering regulation.
That's the gist.
What I do is simply pay the %age if someone requests gift.
I see. So KIKI is receiving too many gifts then. ;-)
Cheers for your help guys. I had to verify the account years ago as I was selling lots and lots of brass instruments on ebay. I think over 100K went through in about 2004. (Not mine i hasten to add) They asked tons of questions and i had to do the whole bank account thing but I've had no issues since. Maybe thats the key. And don't have lots of gifts.
Might be that he's been sending too many gifts, not receiving.Originally Posted by jrpippen
Noted. :bom:Might be that he's been sending too many gifts, not receiving.
I haven't personally had a problem, but have heard stories from others about accounts being suspended without warning, so thought it might be a good idea to get into the habit of simply paying them their fees :wink:
Better being safe than sorry 8)
Absolutely, and thanks for the heads up.
My take is that PayPal is entitled to a decent fee for providing the convenience and safety of their money transfer. 3% or so seems like a fair 'cut' to me. The fee that DOES piss me off though is eBay. I used to pay about 3% to them on my sales, but now they're gouging me for nearly 10%. Too bad they don't have a worthy competitor. :cry:
How do you manage to pay Ebay fees of 10%? i've sold 3 watches on ebay in the last six months of around £1000 each and payed ebay around £45 in each case, as a rule ebay + paypal is about 8%, unless we are talking lower cost sales where the fees are disproportionately high.
Business sellers pay a 10% final value fee, excluding a few categories.
Why do you think they all use SC :wink:
I have done it myself but using paypal gift to buy something is a bit dodgy really! Can't blame paypal for wanting the fees for the service they offer. GRRR still hate paying it though!
Just used paypal gift for a couple of watch related transactions of £500+ which seems to have annoyed them as as of this morning that are asking for a load more info from me and are restricting my account unti I provide it. Maybe they are clamping down on this little loophole...
Regarding paypal, I think that their exchange rates are a bigger problem than their fees... :evil:
/Erik
Gift on large transactions (eg watches) makes no sense. The buyer gets no protection, and the seller should be pricing in Paypal fees if they want to receive payment that way.
If you don't play fair with Paypal you can hardly cry foul when they call you on it.
On ebay.com (U.S.) the Final Value Fee is 9% of the selling price, capped at a $100 FV fee. Add to this the nominal fee amounts for listing the item.How do you manage to pay Ebay fees of 10%? i've sold 3 watches on ebay in the last six months of around £1000 each and payed ebay around £45 in each case, as a rule ebay + paypal is about 8%, unless we are talking lower cost sales where the fees are disproportionately high.
I still don't understand why its a bad thing to accept a paypal gift.
??
yup big brother is watching.
They sent me a message stating if I received another gift payment, they'd deactivate my account. :(
They monitor all transactions and they want their cut of their fees.
When you do many transactions, this gets noticed.
I see.
as well as avoiding the fees Paypay gift is seen as having less chance of a charge back,which is true.I would never sell a high value item using Paypal,there are just too many ways you can get scammed with it.
By accepting a "gift" through PayPal, you avoid being charged a fee (about 3%) by PayPal. A lot of sellers do business that way to avoid the hit. However, by accepting funds as a "gift" when the money is really for commerce (i.e., buying and selling merchandise), you are cheating PayPal out of their legitimately-earned fee for developing and maintaining their system of money flows. You get a free ride, but in the end others must pick up your slack to deliver a decent ROI to PayPal.
(NOTE: by "you" I don't mean YOU personally. :lol: )
I use PP gift for a small holding deposit then pay via BT or FTF cash, 3% £5000 is a lot less that a train ticket to London return and a nice day out to boot. And a chance to admire my new watch without crashing the car :D
I don't get it.. How is the fee wavered as the sender normally picks up the fee on gift payments ? Or am I missing something here ?
Nope your not missing anything I can see. SometImes when I make a small
Ish payment using a debit account it says "no fee" but that not a gift.
gift payments can also have a small fee,depending where it's going,how the payment was made, a payment made as gift being paid out of your PayPal balance,going to a "friend" in the same country will not be charged a fee,whereas a gift payment made with a credit card will have a fee and if sent out of the country you also pay around 4% too,there is also an option for the sender to pay the fee or pass it on to the receiver.
So I don't have too much sympathy for PayPal as most transactions attract a fee,and those that don't are paid out of a balance already in your account which will be making interest for PayPal anyway.
(not sure of the details but thats how I understand it)
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