Anyone who’s a prolific PayPal user will tell you how annoying it can be to be charged extra fees whenever you use your E-Wallet account.
For those not familiar or for anyone who’s never had additional charges added to a purchase, you’ll normally incur these fees if you do any of the following: sending or receiving cash from international accounts, withdrawing cash using a specific method that might incur charges, receiving money in exchange for goods or services and using any foreign currencies that need to be converted.
So if you take part in any of these activities on a regular basis you can see how annoying it can be to get stuck with charges every time. Fortunately there’s a few methods you can try that will let you circumvent extra charges onto your account. So you can transfer cash or purchase items from sites with PayPal payments without worrying about having to spend any extra cash.
Not having to pay extra charges is important for anyone that makes business transactions using PayPal as you’ll normally have to pay fee that’s based on a percentage of your revenue with each sale. The amount you’ll have to pay up is usually around 3.4% of your return on each transaction and if you run a popular business it can cause quite a revenue hole if you’re not careful.
You can work your way around this charge by using just one clever and simple method. First you need to log into PayPal and give your buyer your email address. They then enter your email address when they’re making a payment and select the ‘Gift’ option. This causes the cash to be sent over as a present so it won’t register on the site as a retail transaction. Therefore additional charges will not be applicable.
Although it’s a simple and sneaky way of working around the PayPal system there is one downside to it. The problem with it is that customers making ‘Gift’ payments have no way to chase up sellers they send payments to so unless the retailer is trustworthy or very reputable there’s always a chance that they might take the cash and run.
As a retailer this issue can cause your customers to either flat out refuse to pay in this way or remain very wary of sending their money.
Also when you’re accepting cash from your sales try to go for either direct bank transfers or E-Cheque as these options tend to be free of additional charges. If you pick a card payment option you’ll normally be charged a small percentage of your revenue.
These alternative options are normally found inside the ‘more funding options’ tab of the payments window so it shouldn’t take you too long to find and set up. However E-Cheques will usually take around 14 days to clear so you’ll have to wait quite a while before you can get your hands on your cash.
Unfortunately there’s no way to avoid fees when you make international payments as PayPal will charge you no matter what you do. Your only real option for buying items is to try and stick to sellers that are in the same country or location as you are.
There’s also no real way to work around currency conversions; you’ll be charged every time. The only way you can make the most of your money is to keep an eye on exchange rates and if there’s a dip or increase that works in your favour you should make your payments whilst you still can.
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Personal Capital lets you see all of your accounts in one convenient place. Sign up now for free.These are just a couple of tricks you can try to avoid extra charges when you’re making PayPal payments. Of course you’ll still have to pay fees at some point but at least with these tips you won’t be paying out as often.
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