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  • #985362
    Gizmo
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    Hello,

    I’ve been trying to figure out the cost structure if you were to use Paypal to pay other people with Paypal.
    There appears to be no cost unless you pay via using their API for mass payments.

    We are looking at a cost effective way to pay people internationally and locally.

    I wish Paypal had experts and sales consultants I could call.

    Does any here know of any I can call?

    Thanks for your time fellow Flying Soloians :)

    #1152866
    James Rayers
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    • Total posts: 268
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    Hi Gizmo,

    I attempted to call PayPal recently to try and get some advice but it was pretty fruitless. I believe the number was 1800 729 725.

    Having been on both sides of the PayPal equation (payer and payee) across a few different countries my general memory is that it is free for the payer (if you click the right buttons).

    The PayPal and forex fees then come out of the money received, if the recipient has a Premier account or above. If they have a Personal account there are no fees.

    It is likely that this model has changed now. It’s just what I recall from a few years ago.

    #1152867
    inkable
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    • Total posts: 129
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    Hi Gizmo,

    As James mentioned I wouldn’t bother contacting them, you will have a difficult time getting a hold of someone.

    It doesn’t cost you anything to send money via Paypal. However let me go into some of the total cost of using Paypal and how foreign transaction fees might affect your or the people you are paying.

    Generally you can pay someone via Paypal using a credit card (you don’t even need to have a Paypal account) or you can wire funds to your Paypal account (in Australia dollars) or use existing funds in your account. The next question will be what currency you are paying in.

    If you pay in AUD then there will be no cost however the vendor needs to be willing to accept AUD. If you pay in another currency then you will pay currency charges as follows for the following payment methods:

    – You pay by credit card in a foreign currency you will most likely be hit with a foreign currency transaction fee on your credit card depending on your card.
    – If you exchange money within Paypal they charge roughly 3% (USD is a little cheaper) for the currency exchange. You can check the rates inside your Paypal account under the “manage currency” section. As far as currency exchange goes this is quite expensive compared to typical bank fees.

    Now as for the total fees end to end. Perhaps this isn’t applicable to you as your vendor is willing to absorb these costs. But I will mention them anyway. The person receiving the funds will need to pay 4.4% (this is the base fee for international payments if they regularly accept Paypal they get discounts). If they are receiving AUD they won’t be able to withdraw the AUD in their home country as Paypal will require them to convert to their local currency again at around 3%. So the total cost to them could be as much as 7%. Depending on the amount of the transfer this could be quite expensive. A bank wire transfer might be much cheaper but this will depend on the bank fees for both parties.

    If you need any clarification on the above just let me know. I will do my best.

    Eric

    #1152868
    Gizmo
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    Thanks Guys!

    So paying from an AUD bank account to any other paypal account be it in AUD, USD will incur no fee for the payer.

    However the payee if they do not have a native AUD account will be hit with a “conversion rate tax”.

    Is that correct?

    #1152869
    inkable
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    • Total posts: 129
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    Gizmo, post: 175662 wrote:
    Thanks Guys!

    So paying from an AUD bank account to any other paypal account be it in AUD, USD will incur no fee for the payer.

    However the payee if they do not have a native AUD account will be hit with a “conversion rate tax”.

    Is that correct?

    No problem!

    To clarify:

    If you convert AUD to USD within Paypal their exchange rates include the currency conversion rate. But you are paying the conversion fee which is going to be about 2.5 – 3%. The exchange rate will be much worse than the current spot currency rates and worse than you get from a bank.

    If the payee is is not in Australia they cannot have a native AUD account so they will be forced to convert at Paypal’s currency rates which again include the 2.5 – 3% surcharge.

    #1152870
    Gizmo
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    • Total posts: 731
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    Ok lets use some examples.

    I pay you AUD$100 from an AUD account linked to paypal.

    Now scenarios are:

    1) You have an AUD$ account with paypal too.
    Then there are no costs for either party?
    Is there a transaction fee?

    2) You have a US$ account.
    You first need to accept being paid in AUD$.
    If you do then you get hit with a conversion rate, correct?
    Is there a transaction fee too?

    Under both scenarios above what do I get charged?

    #1152871
    Changed my thinking!
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    Hi
    I am involved in business that is set up to do exactly as you have asked. The cost per transaction of 20c for any transfer local or international. Also we are able to offer 20c flat fee instead of 1 to 3% you pay for Visa, Mastercard
    Etc.
    Contact me if you would like to discuss this further?

    Gizmo, post: 175647 wrote:
    Hello,

    I’ve been trying to figure out the cost structure if you were to use Paypal to pay other people with Paypal.
    There appears to be no cost unless you pay via using their API for mass payments.

    We are looking at a cost effective way to pay people internationally and locally.

    I wish Paypal had experts and sales consultants I could call.

    Does any here know of any I can call?

    Thanks for your time fellow Flying Soloians :)

    #1152872
    Divert To Mobile
    Member
    • Total posts: 2,751
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    Changed my thinking!, post: 175753 wrote:
    Hi
    I am involved in business that is set up to do exactly as you have asked. The cost per transaction of 20c for any transfer local or international. Also we are able to offer 20c flat fee instead of 1 to 3% you pay for Visa, Mastercard
    Etc.
    Contact me if you would like to discuss this further?

    What is your website?

    Steve

    #1152873
    inkable
    Member
    • Total posts: 129
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    Gizmo, post: 175668 wrote:
    Ok lets use some examples.

    I pay you AUD$100 from an AUD account linked to paypal.

    Now scenarios are:

    1) You have an AUD$ account with paypal too.
    Then there are no costs for either party?
    Is there a transaction fee?

    2) You have a US$ account.
    You first need to accept being paid in AUD$.
    If you do then you get hit with a conversion rate, correct?
    Is there a transaction fee too?

    Under both scenarios above what do I get charged?

    There is always a transaction fee paid by the seller/vendor. It doesn’t matter what the currency is. Again this is paid by the seller not the buyer.

    As for your above question. It only depends where I am based. If I am in Australia then I can have a AUD account and and I can withdrawal funds in AUD. If I am not in Australia I can open an AUD balance accept AUD but I will need to take funds out in my local currency. Paypal does not allow you to withdrawal funds in any currency besides that of your home country. So your question above is really a mute point. If I am outside of Australia I can receive AUD but I will pay an currency conversion fee when I withdrawal funds in my local currency or convert that to another currency besides AUD to make a payment to someone else using Paypal.

    As for if I will receive AUD or not, yes I would need to open an AUD balance before you can send me AUD. Otherwise I don’t think it would work.

    Again to clarify the fees:

    – A transaction fee is paid by the seller regardless of what currency it is paid in.

    – If you (the buyer) send me AUD you don’t pay anything. I (the seller) would pay a currency exchange fee to convert into my local currency

    – If you send me money in my local currency (US > USD, Canada > CAD, etc.) you will pay for the conversion. I only pay the paypal transaction fee and can withdrawal the my local currency out of my account at no extra charge.

    Hope this is clear.

    Eric

    #1152874
    Gizmo
    Member
    • Total posts: 731
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    Divert To Mobile, post: 175800 wrote:
    What is your website?

    Steve

    Yes please tell us more about your business.

    #1152875
    eWAY
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    • Total posts: 524
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    Hi Gizmo,

    I’ve been looking at this a little bit recently as well. Sending manually through PayPal the sender won’t incur fees, the receiver will pay standard PayPal fees like if you were buying from them through eBay etc.

    I was chatting to a massive China importer who said he has found the most cost effective way for them was using http://www.ozforex.com.au/ You can also do this kind of transfer through your bank but they tend to charge more.

    Maclean

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