View Full Version : "Buyer pays any paypal fees."

26th April 2012, 10:22 PM
I have noticed sales on here which state the buyer has to pay any PayPal fees, just wondering what the stance on that here is. I know it's against PayPal's user agreement, as can be seen here (https://cms.paypal.com/us/cgi-bin/?cmd=_render-content&content_ID=ua/UserAgreement_full&locale.x=en_US#4. Receiving Money.):4.6 No Surcharges. You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method. You may charge a handling fee in connection with the sale of goods or services, as long as the handling fee does not operate as a surcharge and is not higher than the handling fee you charge for non-PayPal transactions.

Does IDNF have any say on the matter? Opinions?

27th April 2012, 12:38 AM
There is no option to do a non-PayPal transaction, hence the "handling fee" can be charged.

27th April 2012, 01:45 AM
Don't bid if you don't like it. Simple. If the buyer is proactive he/she can avoid fees for both parties. Seller doesn't have that ability.

bumblebee man
27th April 2012, 06:41 AM

In a technical sense you are correct.

In an economic sense it's totally irrelevant:
Tax incidence (http://en.wikipedia.org/wiki/Tax_incidence)

This is about taxes but the principle is the same. So I modified the text a little:

The key concept is that the paypal fee incidence or paypal fee burden does not depend on where the revenue is collected, but on the price elasticity of demand and price elasticity of supply.