ebay ,sense at last

[Steve Burke]

Elton:

The new rules mean that sellers can't charge extra for accepting PayPal, eBay's own extortionate way swapping money electronically.

 

However, sellers are allowed to pass on credit card charges.

 

Hmmmmm, methinks eBay is doing this for its own benefit, rather than its users, somehow.

Couldn't agree more. Peggy and I were making the same point last night.

 

What's the betting that EBay, who now own PayPal, will soon put up PayPal charges?

 

Has anyone used any of PayPal's cheaper competitors like Moneybookers?

[Nugg]

Filled in a questionaire about six months ago, one of the points was about being charged for using Paypal, must have taken notice of the results. Didn't anyone else have one from e-bay?

[Chris Goddard]

Steve Burke:

 

Steve Burke:

The new rules mean that sellers can't charge extra for accepting PayPal, Ebays own extortionate way swapping money electronically.

 

However, sellers are allowed to pass on credit card charges.

 

Hmmmmm, methinks eBay is doing this for its own benefit, rather than its users, somehow.

Couldn't agree more. Peggy and I were making the same point last night.

 

What's the betting that EBay, who now own PayPal, will soon put up PayPal charges?

 

Has anyone used any of PayPal's cheaper competitors like Moneybookers?

Was just going to post about that Steve! I was!! Promoting both Moneybookers and Fastpay till last week!! Fastpay have put up there commission to 2.9% on sales and Moneybookers were dearer!! But what annoyed me was that Fastpay did it very sneakily!! They sent out a message banging on about how they were the best and were not going to charge for loading the account and this that and the other!! Then right at the bottom of the message was a bit that said they were increasing the commission to 2.9% and they would also charge to withdraw your money!! Now Pay-Pal charge, but only if you withdraw under £50!! Which as a MERCHANT account I am quite happy with!!

The problem here is that I am sorry to say this but a lot of you live in cloud cuckoo land! Pay-Pal are in BUSINESS and as such have to make a profit. Just as you or I would. Now they operate a "MERCHANT" account, this is exactly the same as any shop who takes card payments on the high street. The high street shop is CHARGED per transaction on each and every card transaction they make. The charges I was quoted were, debit cards 50p per transaction PLUS 1% of total. Credit cards 4.5% of total. On top of this I had to lay out around £1800 to set up the account in the first place. I then had to pay £20 per week rental for the machine. I also had a yearly sum of £350 to pay so i could be a "MEMBER" of the gang!!

So say my turn over was 30 x debit card transactions @ £10 per transaction average, and credit card was say same average spend £10 but I had 40 transactions on that.

With the card machine my outlay would be £54.61 for each week for set up cost and rental of machine (First year only!) Plus a cost of £35.85 for transaction charges. £18 for debit cards and £17.85 for credit cards. Giving a total of £609.54 return from a projected sale of £700.

Now lets look at PayPal, no signing up fees, no monthly rental, same fees charged across the board 4% of total. So £700 less 4% is £693.20 my commission to pay-pal would have been £6.80. OK so I would only be able to draw down once the figure of £50 had been achieved to stop me incurring any charges, but I can draw down at any time as the money would from the card sales be credited to my bank right away. Which in itself is OK if your bank does NOT charge every time you make a deposit? Mine doesn't but I know some do!!

So Which then is better?? Your bank machine at 50p + 1% and 4.5% and weekly charge? Or Pay-Pal at 4% all through?! not hard is it?? And believe me, don't be in any doubt about this at all!! I HATE pay-pal!! But it's easy, it's convenient and it WORKS when selling especially on Ebay but also in your own shops!! It's free to set up again and the only charge is 4%!!

Nochex is another on line payment scheme. Now that IS a good scheme!! BUT it is limited, you are limited as to how much you can pay per day. How much you can draw. How much you can transfer. It costs you 99p if you take money from your account, BUT that is the only charge they make!! 99p!! Again, VERY, VERY GOOD but with limitations! And not enough people use it YET!!?? Perhaps you should start using that??

 

Chris

 

[ 13. May 2004, 01:52 AM: Message edited by: Chris Goddard ]

[Elton]

eBay seem to have started charging 7p per listing today for anyone using anything other than a plain background for their listings.

 

Don't remember an email about that :mad:

 

And buyers should remember - all these added costs will result in less 'bargains' being listed and higher reserve prices being asked.

 

eBay may pretend to be the buyer's champion, but they want to exploit as much as they can from everyone.

 

How long before they charge a 'buyer's premium'?

[Elton]

Chippy:

I like the fact that the *&%$& can no longer charge for payment by paypal!!

No, eBay still do charge for payment by PayPal.

 

Oh, sorry, did you not mean that?

 

Imagine adding about 4% every time you went to pay for something - that's about what PayPal adds up to. I don't think the public would like it.

 

It's a crappy system that, for sellers, is just lining the pockets of a company you've already paid a fair sum to in order to sell a product.

 

I've said it umpteen times before - it's about time a decent company came along and put the frighteners on eBay.

 

Let them cash one of your cheques and then threaten to take you to court for 'non-payment' (without affording you the 'privelege' of a phone number) and you'll realise what a bunch of tyrants they are!!!!