I was wondering...is it illegal, or against Paypal's rules to charge buyers extra who buy through Paypal?
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14 replies to this topic
#3
Posted 25 July 2004, 04:42
It's entirely legal, and within the PayPal agreement (at least last time I checked), to have two prices for your product - a "cash" price, and a "credit card" price. You can have a discount for paying in cash...but not a fee for paying with PayPal or credit card. I for one consider it to be pretty poor business practice, and I wouldn't be likely to by from you. However, it's not against the law.
Disclaimer - I'm not a lawyer. Nor am I a PayPal expert. Don't take my opinions as gospel - consult your agreement with PayPal or your friendly local lawyer.
Disclaimer - I'm not a lawyer. Nor am I a PayPal expert. Don't take my opinions as gospel - consult your agreement with PayPal or your friendly local lawyer.
Chris Dunning
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#4
Posted 25 July 2004, 05:59
BlueNoteMKVI, on Jul 24 2004, 08:42 PM, said:
It's entirely legal, and within the PayPal agreement (at least last time I checked), to have two prices for your product - a "cash" price, and a "credit card" price. You can have a discount for paying in cash...but not a fee for paying with PayPal or credit card. I for one consider it to be pretty poor business practice, and I wouldn't be likely to by from you. However, it's not against the law.
Disclaimer - I'm not a lawyer. Nor am I a PayPal expert. Don't take my opinions as gospel - consult your agreement with PayPal or your friendly local lawyer.
Disclaimer - I'm not a lawyer. Nor am I a PayPal expert. Don't take my opinions as gospel - consult your agreement with PayPal or your friendly local lawyer.
#5
Posted 25 July 2004, 06:18
https://www.paypal.com/us/cgi-bin/webscr?cm...n/ua/policy_spp
https://www.paypal.com/us/cgi-bin/webscr?cm...policy_payments
Quote
Surcharging for any PayPal payment is prohibited outside of the U.K. For a transaction to be eligible for the Seller Protection Policy within the U.K., the buyer may not be surcharged.
https://www.paypal.com/us/cgi-bin/webscr?cm...policy_payments
Quote
No Surcharges. Under Visa, MasterCard, Discover and American Express regulations and the laws of several states, including California, merchants may not charge a fee to the buyer for accepting credit card payments (often called a "surcharge"). You agree that you will not impose a surcharge or any other fee for accepting PayPal as payment. This restriction does not prevent you from imposing a handling fee in connection with the sale of goods or services, as long as the handling fee does not operate as a surcharge (in other words, the handling fee for transactions paid through PayPal may not be higher than the handling fee for transactions paid through other payment methods). Sellers residing in the United Kingdom and listing items for sale on a UK-based website may impose a surcharge, but only under the following conditions:
1. Both the buyer and seller reside in the United Kingdom;
2. The purchase price is paid in pounds sterling;
3. The surcharge imposed by the seller is no greater than is necessary to recover the receiving fees incurred by the seller;
4. The seller clearly indicates to the buyer prior to the buyer's submission of a bid or (in non-auction transactions) prior to completion of the purchase that a surcharge will be incurred and the amount of the surcharge.
1. Both the buyer and seller reside in the United Kingdom;
2. The purchase price is paid in pounds sterling;
3. The surcharge imposed by the seller is no greater than is necessary to recover the receiving fees incurred by the seller;
4. The seller clearly indicates to the buyer prior to the buyer's submission of a bid or (in non-auction transactions) prior to completion of the purchase that a surcharge will be incurred and the amount of the surcharge.
#6
Posted 05 July 2005, 01:32
I want to thank Bluenote for making that statement. I don't believe it is good pratice to pass along every little charge to the customer! I feel the same way about all these tax questions. I am based in Wisconsin and we all know there tax levels.! Wether or not I charge tax to my customer.! I take it out of my profit and PAY IT! we are talking pennies here when it comes to getting an audit or looked at by the IRS. I feel I have enough profit margin that this is just a small insurance premium in my eyes.
Edited by ronf12, 05 July 2005, 01:33.
#8
Posted 10 July 2005, 05:32
I can't say anything about Mc D's or your local gas station. They may be big enough that they can get away with it.
Regardless, the PayPal terms and every merchant account terms of service I've ever seen specifically prohibit it.
I am not a lawyer, and I have not seen YOUR terms and conditions on YOUR merchant account. It's entirely possible (and even likely) that the terms are different from state to state and even from one account to the next.
Regardless, the PayPal terms and every merchant account terms of service I've ever seen specifically prohibit it.
I am not a lawyer, and I have not seen YOUR terms and conditions on YOUR merchant account. It's entirely possible (and even likely) that the terms are different from state to state and even from one account to the next.
Chris Dunning
osCommerce, Contributions Moderator Team
Please do not send me PM! I do not read or answer these often. Use the email button instead!
I do NOT support contributions other than my own. Emails asking for support on other people's contributions will be ignored. Ask in the forum or contact the contribution author directly.
osCommerce, Contributions Moderator Team
Please do not send me PM! I do not read or answer these often. Use the email button instead!
I do NOT support contributions other than my own. Emails asking for support on other people's contributions will be ignored. Ask in the forum or contact the contribution author directly.
#10
Posted 04 October 2005, 20:37
Bntbrl, on Oct 2 2005, 11:33 PM, said:
HA, EVERYWHERE her in Kalifornia charges you at least .45 cents for using a credit card. I cant see how its illegal. But if it is, one could be in court suing until they retired...
There are some unscrupulous merchants in CA that are charging fees for credit card use. Authorities are apparently too busy to take action, so you have to complain and take action civilly to get your money back. In most (that's nearly all) US states (including California) it is illegal for merchants to surcharge customers for credit card purchases of product. However, for bank/check card purchases there is often a fixed fee charged by the banks for that service - For instance, in the case of using one banks ATM with a different banks card. Gas stations in CA and most other states should not be surcharging CC use, but I believe MickeyD's bank card machines do charge a fixed bank fee for check card use.
Checkout this Michigan article ..
http://www.retailers.com/eduandevents/ask/...eforcredit.html
Garry
#11
Posted 05 October 2005, 04:19
I was in California not long ago, I got charged a fee to use my credit card at a conveinence store. And I thought it was illegal in the state of CA, what about Debit PIN keyed in? Thats entirely different though.
I just got my merchant account recently, the operating proceedures explain that under no circumstances am I allowed to charge a surcharge regardless of the type of transaction it is. However, I can and will charge NSF (on e-check or paper checks).
I just got my merchant account recently, the operating proceedures explain that under no circumstances am I allowed to charge a surcharge regardless of the type of transaction it is. However, I can and will charge NSF (on e-check or paper checks).
#12
Posted 11 October 2005, 13:24
mynetdude, on Oct 5 2005, 04:19 AM, said:
I was in California not long ago, I got charged a fee to use my credit card at a conveinence store. And I thought it was illegal in the state of CA, what about Debit PIN keyed in? Thats entirely different though.
I just got my merchant account recently, the operating proceedures explain that under no circumstances am I allowed to charge a surcharge regardless of the type of transaction it is. However, I can and will charge NSF (on e-check or paper checks).
I just got my merchant account recently, the operating proceedures explain that under no circumstances am I allowed to charge a surcharge regardless of the type of transaction it is. However, I can and will charge NSF (on e-check or paper checks).
In one way or another you're going to pay the convenience fee not the merchant. Whether he adds 3% to the price, the shipping or an added fee you still have to pay it. I personally don't think it's fair to make the re-seller pay for something that he's doing for your convenience.
#13
Posted 11 October 2005, 15:24
thessrtech, on Oct 11 2005, 09:24 AM, said:
In one way or another you're going to pay the convenience fee not the merchant. Whether he adds 3% to the price, the shipping or an added fee you still have to pay it. I personally don't think it's fair to make the re-seller pay for something that he's doing for your convenience.
In retail, all business operating expense is ultimately paid by the consumer. So really the reseller isn't pay for it unless they haven't factored that into their overall pricing.
In some ways I agree that it seems unfair that everybody pays for the convenience of those that choose to pay by a certain method. But that is not without precedent. All credit card processing has direct fees no matter what the method used. Additionally, if you have a merchant account there are monthly fees. Processing checks or money orders is not without expense. Many banks have additional charges for processing more than a given number of check deposits per month. And if one of them fails to clear, there are more charges and outright loss that the merchant may have a very hard time recovering from that customer and ultimately finds its way into what eveyone pays.
Even aside from card processing there are plenty of examples. Take real world stores. When they double coupons, only those who present coupons benefit, but the cost of that program is covered in the prices everybody pays. Likewise if they give trading stamps, run an affiinity program, or even deep discount ad specials. So all of us as shoppers or shop keepers are exposed to such "unfairness" every day.
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#14
Posted 01 April 2008, 22:53
Branden, on Jul 24 2004, 10:09 PM, said:
I was wondering...is it illegal, or against Paypal's rules to charge buyers extra who buy through Paypal?
It is illegal to charge in the USA to charge the customer any charges for credit purchases. However, debit charges are a different story. Most of the fast food places and gas- are charging for debit purchases.
just do a google search to find your answer
noppie
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#15
Posted 02 April 2008, 00:45
Most places are not charging a "Surcharge" but are giving people a "Cash Discount"
"Cash Discounts" are Legal, it is all in the wording...
As it applies here you should have to set your displayed prices at (retail + paypal) then if they paid by a Check you would write a Discount in to that Module instead of a surcharge in to the paypal module...
Then Advertise you offer all people a X% discount for paying by check....
Most Gas Stations I have seen do the same thing, they display a Cash Price and a CC Price, this is not a "Surcharge" they are merely give you a "Cash Discount" Semantics I know, but welcome to the legal Realm, everything is Semantics
"Cash Discounts" are Legal, it is all in the wording...
As it applies here you should have to set your displayed prices at (retail + paypal) then if they paid by a Check you would write a Discount in to that Module instead of a surcharge in to the paypal module...
Then Advertise you offer all people a X% discount for paying by check....
Most Gas Stations I have seen do the same thing, they display a Cash Price and a CC Price, this is not a "Surcharge" they are merely give you a "Cash Discount" Semantics I know, but welcome to the legal Realm, everything is Semantics
Edited by The_ancient, 02 April 2008, 00:46.
