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Online Payment Processing Discussions concerning topics related to payment processing, such as merchant accounts, gateways, credit card processing options, PayPal, Google Checkout, 2Checkout, etc.


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Old 10-28-2017, 06:02 AM
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Paypal Currency conversion , Cross - border and withdrawal fees

hello guys,

it is my first post here and i'm hoping to find all the answers i am looking for or understand how paypal fees work at least.
however i don't know if this is the right section to place my thread



well , i am very confused by trying to understand what will be the paypal fees in a scenario that i am running in my mind .but it seems that it isn't a simple and clear thing to do. So i opened this thread.



i would like the experts here to find every fee that will be taken from me by paypal



So , let's say i want to start a small worldwide trading business and use paypal for my payments.

i live in greece , our currency is euro ,my suppliers are in china and japan , my potential buyers are from all over the world but lets say for example a buyer is from USA .



the buyer sends me his money in $ ( from USa paypal balance or bank account to my greek paypal balance ) with paypal protection , i should then send part of the money to japan seller in yen with buyers protection also .the remaining money in my pp balance are still in $ i want to withdraw them in my bank account in euro .



As far as i searched it i found that in the above scenario there should be 2 crossborder fees , 2 currency conversion fees and 2 paypal buyers protection fees , as result 18 % on top of my price if my calculations are true.



Could please explain me if my calculations are right ? Could you please propose a best cost efficient way of completing these transactions ?



thank you very much , your thoughts are much appreciated

Last edited by J. H. Rasmussen; 10-28-2017 at 06:35 AM. Reason: Moved to Online Payment Processing section.
 
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Old 10-28-2017, 11:35 AM
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Hi,
Not sure how you got up to 18%. Here is the Fee Structure page at PayPal.

When you sell there is a percentage fee based on volume of sales plus a transaction fee.

Converting currency is not the same as at the bank.

Can you not pay the seller in Japan with USD to save the exchange rate?
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Old 10-29-2017, 06:45 AM
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thanks for the reply , however there are many fees when using paypal furthermore if you make currency conversions payments and i can't pay the japan seller in $

well, regarding the above example i believe that these are the fees

if a seller is from usa and sends $ ,without conversion to euro ,to me in europe ,from his paypal balance and not from credit card, there is a crossborder fee 0.5% plus the paypal protection fee 3.9% + 0.30$.
then if i need to pay my supplier to japan: paypal fees are crossborder fee 1.5% plus buyers protection 3.9% + 0.35 euro plus 2% for conversion fees from $ to japan yen
in this case i have some $ left in my paypal balance which i have to withdraw to my bank account ( euro) so i can use them , so there will be extra currency conversion fees on withdraw in order to exchange $ in my paypal acoount to Euro in my bank account

i hope i am missing something and fees could be lower than my calculations , very unlikely though , hope any paypal experts could help here.
 
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Old 10-29-2017, 10:56 AM
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The seller pays the fees (other than you converting to their currency) not the buyer so your Japanese supplier pays the fees when you buy from them, not you. It's called cost of doing business just like you have costs running your business.
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Old 10-29-2017, 01:10 PM
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I agree that the seller pays the fee but they add it to my total price for example of I want to buy something from them with value of 100 they sell to me for 104
So could you pjease explain the total fees of the above example?
 
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Old 10-29-2017, 02:23 PM
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From PayPal Terms of Service for Sellers:
Quote:
4.6 No Surcharges. You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method. You may charge a handling fee in connection with the sale of goods or services, as long as the handling fee does not operate as a surcharge and is not higher than the handling fee you charge for non-PayPal transactions.
PayPal User Agreement
THIS USER AGREEMENT SHALL BE EFFECTIVE FOR ALL USERS AS OF OCTOBER 10, 2017.
(scroll down to item 4.6)
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