PayPal TIPS : When NOT to use Friends Option

[Robev]

I had to Pay Billy today for some Chips I purchased from him and Paid him using PayPal Friends Option

The Total amount I had to Pay Billy was US$46 and I was charged a further $4.99 by PayPal for the Privilege of sending my friend the money, which is a fee of more than 10%

This got me thinking so I checked on my costs for Receiving Money Internationally via the normal PayPal Fees.

So I have done up a spreadsheet that I will be using when I send invoices for payment on sales made on CPU-World.

It will be cheaper for buyers to pay me on sales of less than US$111.00 by the standard Payment method rather than the Friends Option.

I am attaching a Screen Shot of the spreadsheet but it will only show transactions up to $22 however I have done up the spreadsheet to $150 so if anyone wants a copy of it just send me a PM with your e-mail address and I will send you a copy.

As PayPal fees may differ from country to country you may need to adjust the figures slightly to allow for the fees you are charged.
ie percentage, fixed cost fees and the amount the seller has to send if there is a fee variation for your country.

The Fees for each country can be found in the PayPal User Agreement which I found here
https://www.paypal.com/nz/webapps/mpp/ua/useragreement-full#exhibit_A

[bccwchan]

I just know that if I pay by paypal balance the fee will be less than paid by credit card.

[Robev]

[bccwchan]

In that case I will start receive paypal payment without friend option to save the payment fee in my next sales.

Hope that Paypal can decrease the fees some day.

[Robev]

I have just sent Billy a copy of the spreadsheet modified to reflect his costs to receive money in Hong Kong.

It took me all of 5 minutes to make the changes

I strongly suggest other sellers in the forum take up my offer of the spreadsheet that will see buyers here saving money on international payments.

[bccwchan]

To be hones, I don't spend much time on cost-saving. My time all spend on hunting cpus as well as selling cpus LOL.

[Robev]

[debs3759]

If you want to add the full spreadsheet as an attachment, I can pin this post. I know it will vary slightly depending on country of origin and receipt, but it will give us a basic idea.

Personally I would now prefer to do bank transfers via http://xe.com, as they are the cheapest option now. It will mean paying sellers in their local currency though.

[Robev]

I have added the file as a .tar file in the 1st post for those who wish to download it

[debs3759]

It looks like moderators don't have the ability to pin a post

[Guest]

[Marcin]

So from 111 USD and up it Gift/Friends option is profitable. Very useful calculation sheet Thanks.

[Marcin]

I have discovered another useful tip when using PayPal. When you have account balance in other currency than you need to send don't let PayPal calculate autotomatically. Go to currency manager and change it manualy at better rate !

Example I have 100 EUR and need to send 100 USD. Before I prepare payment I go to currency manager and change in manual calculator xx EUR to get 100 USD account balance.

[CPUShack]

Oh wow thats good to know

[Marcin]

Do the same same trick when you are paying for eBay items. Do not agree for their auto currency change from your balance. Before making payment prepare requested ammount in your PayPal account.

I have sent funds via bank transfer to my PayPal account. When I get them I will check diffrences between conversion funds to foreign currency from MasterCard and PayPal account balance.

I have read about settlement mechanisms in foreign currencies by MasterCard and VISA - they are different and varies in many situations. MasterCard in some cases use double conversion what makes your vacations very expensive