Posted by JanetK_CA on 7/22/10 2:38pm
Msg #345979

Dumb question re: using PayPal

I have a PayPal account, but I've never before had occasion to use it to receive payments. I now have an international client who wants me to notarize a couple of signatures at a local company and take care of the Apostille for them, including paying the fees and shipping costs to and from the SOS. I said, no problem, but I'd need to be paid in advance. It's looking like PayPal may be the best way to do that.

My question has to do with how you retrieve your money once it's been added to your PayPal account. Do you leave it there to offset other purchases? If you want to have the funds transferred out, any concerns about providing account information to PayPal? What do they charge to handle the transaction? And if you transfer funds out of the PayPal account, does that happen right away like a wire transfer or are there other delays to be aware of? Finally, any other suggestions or advice for this kind of situation?

I found the info on the PayPal site a bit vague, i.e., no mention of fees, except monthly charges for large accounts - unless I just missed it. (I'm just trying to make sure I have all my bases covered - and that I'm charging enough!)

Thanks, everyone!!

Reply by Mary Ellen Elmore on 7/22/10 2:43pm
Msg #345981

Fees are assessed if you are a seller.

If they do not send you USD there may be a reduction in converting from their currency to USD.

I have used PayPal for years, signed up within the 1st 30 days and have never had a problem.

I have a PayPal Debit card. I have transferred money to and from my bank accounts with PayPal with no problems ever.

Reply by JanetK_CA on 7/22/10 2:53pm
Msg #345985

I assume that if I'm providing a service, I'd be considered a seller. Can you give me some idea of what percentage they charge - or how it's calculated, if that's not how it's done?

I don't have a PayPal debit card - or any desire to have one - so I'm wondering how easy it would be to get access to what I'm paid through them and if there are any other fees associated with transferring funds.

Thanks.

Reply by PAW on 7/22/10 5:34pm
Msg #346008

If you are receiving money from an overseas account, the fee is 3.9% of the total transaction plus $0.30. This assumes they are providing funds in USD (U.S. Dollar).

Most of my clients are overseas, Europe, Asia and Africa. They all provide the funds in USD so the calculation of the fee can be easily calculated. My fees take into account the PayPal transaction fees when I set my prices.

As for what to do with the balance in your PayPal account, you will need to set up a bank account that you use for funding and transfers. (You can have more than one.) Once the bank account is set, you can transfer funds from you PayPal account to that bank account. Takes 3 to 4 days for it to show up in your bank account.

Please note that all the above is based on my experience with PayPal and using a Business Account with PayPal.

Reply by Susan Fischer on 7/22/10 3:05pm
Msg #345988

Not dumb - excellent question. You don't need a PayPal

debit card. Just create a PayPal account. This takes a few days because the process requires using your bank account to receive payments (or make them). Once you apply, they deposit a few cents into your account, when you acknowledge the transfer, voila!

When I receive payments, there hasn't been a fee. The hiring party payed. There are a few SSs that use PayPal, and it's wonderful. Used it for years, never a problem. Well-worth the little effort for instant payments.

Good luck.

Reply by Moneyman/TX on 7/22/10 3:22pm
Msg #345992

Janet, just sent you a PM :) n/m

Reply by Ernest__CT on 7/22/10 4:18pm
Msg #346001

Why a PM?!!!

Another example of hiding information that could be of benefit to everyone!

Reply by JanetK_CA on 7/22/10 4:30pm
Msg #346004

Here's my decision, thanks to great feedback

Good point, Ernest. I'm guessing people just didn't want to clutter up the board.

The wonderful recommendation made to me in that PM (and others) is to use a US postal money order. That way I can cash it immediately at the post office, and then I have money in hand. If anything goes bad, it's on the USPS. My bank had suggested a money order, then wait two days for it to clear. I like the postal money order better and the more I looked into PayPal, the less I liked it. (I also won't be "nickle and dime-ed" on the transaction, either.)

I knew I could count on the gang here!!

Reply by Ernest__CT on 7/22/10 4:42pm
Msg #346005

Thank you for being public! n/m

Reply by Moneyman/TX on 7/22/10 7:44pm
Msg #346023

Re: Why a PM?!!!

Janet is correct. My question to her were a bit lengthy and also wanted to get a little more detailed questions answered to see if I could offer other advice. For the most part, a little info about finding the % info on PP site and a suggestion to call them for more detailed info, but always expect to be on hold a long time.

My intentions were to post, in a much shorter version, some of the key points a little later after my appointments. That's where one of them (the US Postal Money Orders) post came from later in this thread.

Also a warning that if someone pays via PP, PP has a very long history of giving money back to the "buyers" and not standing by the "sellers" at all. Gave her a suggestion to have the buyer actually sign something stating that they have received the services and that they are fully satisfied (also include the email used to pay or PP will not give it any weight at all). Keep on file should they file a complaint to get their money back at a later date. Although this is mostly done with items it is also a wise thing to do in every case involving PP. For the most part, chargebacks for notary services do not seem to be an issue. However, international transactions increase this risk substantially. In the past several years, sellers of online items have been hit very hard by scams and PP has gone out of their way to help the thieves out while at the same time putting the sellers out of business. They will hit every bank account on file to retrieve the money they gave away.

General warning: NEVER accept any international money orders. Within the last 2-3 years there has been a rash of fake ones and by the time one has figured it out there is no way of getting your money, items, or services back. Most banks now have an automatic 10 day hold on any (even US) money orders due to the number of counterfeit money orders floating around.

Reply by JanetK_CA on 7/23/10 1:41pm
Msg #346079

Thanks again, Chris!

The US Postal Money order sounded to me like the perfect solution - and I've already been copied on my new client's email to his US contact asking her to send it to me (in US dollars). I had sent him an email detailing exactly what I had agreed to do for him and what he would need to do for me to complete the work he was requesting. I already have his response.

I have to say that it felt more professional (and much simpler) to me to handle it this way than to suggest something like PayPal, which I'm not a fan of - especially with the international aspect. (I'm just fortunate that he has a trusted US contact.) This guy commented on my professionalism and said he'd pass my name around, so it might even lead to more work! Plus, it was fun talking to someone on the other side of the world!

Reply by Moneyman/TX on 7/24/10 8:57am
Msg #346161

Re: Thanks again, Chris!

Glad to hear that it worked out and good luck on future business in this area. Sounds like you have made a great contact. Have a great day!

Reply by CopperheadVA on 7/22/10 3:38pm
Msg #345994

There are fees associated with receiving credit card payments through PayPal. Per the PayPal website: 2.9% + $0.30 USD

There are fees for accepting international payments. Here is a link to the PayPal fee info:

https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=ua/UserAgreement_full&locale.x=en_US#4.%20Receiving%20Money.

Reply by JanetK_CA on 7/22/10 3:46pm
Msg #345995

Any other suggestions for receiving int'l funds securely?

I want to be sure they can't stop payment, once I've incurred expenses on their behalf. Thanks!

Reply by Moneyman/TX on 7/22/10 4:04pm
Msg #345997

Re: Any other suggestions for receiving int'l funds securely?

Just sent you a PM about pre-paying via US Postal money orders only. They can be cashed the same day at any post office without any fees or 10 day holds.

Leaving for a signing now so I'll check back later.

Good luck!

Reply by Susan Fischer on 7/22/10 11:36pm
Msg #346045

Both USPMO and PayPal are great for eCommerce

andInternational transactions, as are wire transfers, and other means.

I like all the choices meeting myriad needs out here in Producing/ConsumingLand.