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Paypal add fees module


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But it's an infringement of PayPal rules :-/ They even close accounts if you charge fees to your customers. It's denied even for payments with credit cards with no gateway involved. You could not charge a fee to customer paying by credit card, PayPal etc. I think that in my country it's not only a question of "terms of service" but it should be illegal too if I remember correctly.

Edited by Kian
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Very true it is a direct violation, you can cover the fee in your price, but you cannot charge an extra fee to the costomer to cover the price. Maybe you can turn the module into something else, hate to see all that work go down the drain. But yes you need to change the module to do another service. If you have sold any or do sell any like this (which i do not recommend) i would strongly suggest that you make it very obvious and clear that doing so and using your module as is, is a direct violation of PayPal TOS and could get their account closed.

 

If you have not sold any then dont and save your customers the headache, i will noodle over this as well and maybe some others will too and see if we can help you come up with another service to convert this too.

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Actually, PayPal did previously allow surcharges but you had to have some volume (a special agreement). Looking at their website it would appear this has been changed in several locations to allow anyone to add charges for using PayPal.

 

I found this in their agreement:

4.5 Non discouragement. In representations to your customers or in public communications, you agree not to mischaracterise or disparage PayPal as a payment method. You agree that you will only surcharge for the use of PayPal in compliance with any law applicable to you. You further agree that if you do charge a buyer any form of surcharge that you, and not PayPal, will inform the buyer of the requested charge. PayPal has no liability to any buyer where you have failed to inform the buyer of any surcharge. You acknowledge that if you are permitted to surcharge and your further fail to disclose any form of surcharge to a buyer this may constitute a criminal offence by you.

 

So basically it is allowed by PayPal but you're responsible for it, not them. And it appears to be only available in specific regions so check before adding this :).

Edited by Alex - Arvixe
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Notice how that statement does not use the word fee. I suspect someplace there may still be some legal entanglement for calling it that. Which means that they may still be able to give you trouble legally if you call it a fee and not a surcharge. You can charge tax as long as it is a legal tax sanctioned by your local gov. And as alex said check to be sure about the regs before you sell this to anyone. Some local municipalities do limit surcharges of any kind and they expect it to be charged and reported in certain ways. Even though you should not be responsible for every rule around the world, you will need to provide some kind of disclaimer in that event to cover yourself. So know the facts before you act.

 

You might also work on your price, your better off selling it at a lower cost and sell more of them than you are trying to recoop your work time in a few sales. Also 20 is a bit pricey for such a limited module that really has limited feature growth. And if paypal changes its ruling again which they seem to do overnight at times, your customers will have to just toss this in the can. They may take a risk at 10 but not 20.

 

I would suggest 10, but thats just me.

Edited by durangod
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Notice how that statement does not use the word fee

Yep, for sure you can't call it "fee". Do you remember of Rayanair credit card fees? :-P

 

Anyway it's true what Alex was saying. I can confirm that for example in my country (Italy) you can't charge any fee depending on payment method. In other words let's say that I have to pay 100 euro. I could pay with credit card, bank transfer, wire transfer, PayPal, Skrill (...) but I still pay 100 euro.

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Ethically I don't like it. Seller can increase price to cover paypal fee but directly doing seems odd to me.

 

I tend to agree its out there, eating the fee as a merchant is to me just part of doing the business. I can't tell a customer hey i need a new mouse so im going to hit you up with an extra 20 bucks called a mouse fee lmao... But on the other hand we do make profit and charge for profit in order to buy the things we need for the business and personal. So its all in how you wrap it up for the consumer. Charge a couple of bucks extra for your product to cover your profit margin or go thru all the drama and legal hoops to call it a surcharge or fee or whatever.

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Ok I will explain why I think about add fee to customer we have hosting web site we sell domains the price is 11,99 $ when customer buy this domain and he want to paid with PayPal then I will lost 3%+30 cent if I accept that what can I earn we earn 2$ on this domain but if he want to pay with transfer money with western he will pay all fee to western union and if I add the fee on the domain price in this case I add same fee on customer what the difference between them in all causes I will add fees on customer

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Ok but PayPal and laws of countries don't care about it. I know that it hurts but just increase prices.

 

I decided to remove PayPal for more than 5 years as payment method because 3,5% + 0.35 cents is a robbery. I prefered to use the gateway of my bank (1,8%). Now the funny part is that 1 week ago I have been forced to re-enable PayPal just because my bank no longer provide this service :( Damn. I'll look for other solutions.

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Ok but PayPal and laws of countries don't care about it. I know that it hurts but just increase prices.

 

I decided to remove PayPal for more than 5 years as payment method because 3,5% + 0.35 cents is a robbery. I prefered to use the gateway of my bank (1,8%). Now the funny part is that 1 week ago I have been forced to re-enable PayPal just because my bank no longer provide this service :( Damn. I'll look for other solutions.

 

The fee does go down quite a lot but you need to have volume. You won't get volume with them if you simply don't accept it ;)

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