PayPal is increasing two transaction fees next month.
Are you a U.S. resident selling a domain name to someone overseas? PayPal is about to be a more expensive option to receive payment.
PayPal has updated its user agreement and is raising fees in two ways that will make these transactions more expensive.
First, it is increasing the payment fee for sales made to people outside the U.S. from 3.9% to 4.4%. This is in addition to a small fixed fee per payment.
Second, it is increasing the currency conversion fee from 2.5% to 3.0% over the exchange rate set by PayPal’s bank.
Those numbers start to add up.
You can see a summary of PayPal’s changes here.
The increased fees go into effect March 29, 2017.
JZ says
i don’t see why there is fee when selling to someone outside of your country.
HG says
Maybe because it’s a business and not a charity?
JZ says
i was just wondering if there is an expense for them in this, or if it was just a completely made up fee..
Andrew Allemann says
There’s a fee for selling to everyone.
JZ says
I know that, i should of said additional fee.
Andrew Allemann says
I suspect higher fraud is their justification. Or they know that it costs more to wire money overseas and that’s their competition.
On the fee for currency conversion, I know that most credit cards charge a 3% fee for this.
So, I guess I understand the additional fees, but I’m not happy about them raising their prices.
Thomas Cannon says
there is significant expense not reflected in base fees. Back office is not free. PayPal delivers a great product
Dan says
More reason for bitcoin, and crypto currency to thrive, this is greed onto of something that is generous already.
Stan says
It’s important to note that transaction fees are tax deductible. So the actual cost to the company isn’t actually 4.4%.
Steve says
Bitcoin
Stan says
Have you seen the bitcoin transaction fees lately?
Danny says
Don’t use Paypal to sell domains. Just saying…
Ron says
Well Escrow has become a major pain for buyers, I had a $5K transaction almost walk as she had sent so much info for her business, and escrow was not ok’ing some document, and she had just had it.
We need to find a better solution for sure.
John says
Paypal currency conversion fees were already ridiculous. Hope Escrow.com gets their act together soon.
Ron says
They have not, emails need to be assigned tracking codes. You get an email response at like midnight, you respond the next morning, and have to wait another day to get another response, nothing gets done like this.
Buyers are rejecting ID verify for a single transaction, we are having to choose different options based on closing price to close transactions now.
No way we can send a buyer to escrow for $2K, where they have to upload their Passport, and banking info. It is just not happening.
Domainer says
Because of the increase in cost and add’l ID hassle, people should consider using sedo instead of E. Going from memory, it cost 3% for escrow and 3% for credit card.
However, you can not use them for escrow if the domain is already loaded in their sales database.
Andrew Allemann says
I just checked and your numbers are accurate.
https://sedo.com/us/services/domain-transfer-service/
Tyler Rice says
One reason that Paypal might be increasing fees could be due to people taking advantage of the service. Many times when I hear of people sending money for a service, they opt out for payment to friends and family rather than a “transaction”.
Anghuman Paul says
What is the Paypal charge for Indians ? ( To transfer money to Axis bank )
What is the currency conversion charge in paypal ?
What is the transactional charge and currency conversion charge by Axis bank ( Indian bank)