Paypal fees. Can they really be this much?

WolfeMacleod · 03-02-2007, 01:28 AM

I'm doing some tax stuff tonight, adding up totals and stuff over last year.
To simplify things with nice, round numbers, I added everything up before Paypal take thier hit. (more like a kick! in the nuts!)
I came up with a touch over $70,000.

I downloaded the Quicken File that Paypal provides...looks like it adds everything up post-Paypal fees.
It shows a little over $47,000 in deposits.

Can they really have stolen almost $23,000 in fees from me?

If that's the case, we're dumpng Paypal liek a hot rock for most of my business, and going with Credit Card processing. That amount is just insane.

I'm not good with 10-kay, so I suppose I may have made an adding error, but I don't think so, as I was careful. I'm going to have my wife double check it tomorrow - she's good with 10-key.

YTNUKLR · YTNUKLR's Garage

From the Paypal website, fees for business accounts, the $ amount denotes sales/month . $70k/12~$5800/month, 2.5% rate.

$0.00 USD-$3,000.00 USD 2.9% + $0.30 USD
$3,000.01 USD-$10,000.00 USD 2.5% + $0.30 USD
$10,000.01 USD-$100,000.00 USD 2.2% + $0.30 USD
> $100,000.00 USD 1.9% + $0.30 USD

I don't see how you would get charged $23,000 on $70,000. Do any of your transactions involve currency conversions?

WolfeMacleod · 03-02-2007, 02:01 AM

Quote:

Originally posted by YTNUKLR

I don't see how you would get charged $23,000 on $70,000. Do any of your transactions involve currency conversions?

Yep, I do lots of business overseas. Germany and Sweden host two of my most frequent large-order buyers.

TerryH · TerryH's Garage

Are you shipping through Paypal?

WolfeMacleod · 03-02-2007, 08:50 AM

Quote:

Originally posted by TerryH
Are you shipping through Paypal?

NI, I use US Mail. Priority Mail. Paypal is not involved at all with that.

id10t · 03-02-2007, 08:59 AM

Don't know why you'd trust a group that claims to act like a bank but isn't regulated as a bank with that kind of money...

WolfeMacleod · 03-02-2007, 09:47 AM

Quote:

Originally posted by id10t
Don't know why you'd trust a group that claims to act like a bank but isn't regulated as a bank with that kind of money...

Typically, I take money out once a week or so, and try not to leave a whole lot in there. I always leave some, as I use my Paypal Debit card quite a bit.

on-ramp · 03-02-2007, 09:59 AM

Quote:

Originally posted by WolfeMacleod
Typically, I take money out once a week or so, and try not to leave a whole lot in there. I always leave some, as I use my Paypal Debit card quite a bit.

good idea. I do the same thing to protect myself from charge-backs. Paypal can never take money from your bank account. If there is ever a charge-back , your balance goes negative until the dispute is settled.

LeeH · 03-02-2007, 10:06 AM

How many transactions are you talking about? Do you reconcile your accounts? Paypal should be entered in Quickbooks/Quicken just like a bank account. Somewhere there's an error that's causing this... it's just a matter of tracking it down.

The CPAs that I work for charge my time out at $60/hour to figure out stuff like this. I do it freelance for half that.

Joeaksa · 03-02-2007, 11:02 AM

Quote:

Originally posted by on-ramp
good idea. I do the same thing to protect myself from charge-backs. Paypal can never take money from your bank account. If there is ever a charge-back , your balance goes negative until the dispute is settled.

Excuse me? Where do you get this drivel that they cannot take money from your bank account? They have locked up the bank accounts of thousands of account holders. It usually takes 2-6 months for PP to unlock the account so your money is stuck there until they do it.

I opened my PP account with a bank account then ran it dry with no overdraft protection. Then put an AmEx credit card on it and use it that way. PP does not like it but its legal as I control the system and not them.

Try looking at www.paypalsucks.com sometime. From that site:

That PayPal can, will, and has in the past, completely cleaned out customers' accounts, (including your checking or savings account) with no appeals process available. Instead they bury in the fine print of 37 pages of their "Terms of Service" (ToS) where they disclose to you that PayPal can close your account for any reason what-so-ever, or no reason, and then you have to wait 180 days to get your money. Think that'll never happen? Think again. That's what everyone thinks till it happens to them.

WolfeMacleod · 03-02-2007, 05:43 PM

Quote:

Originally posted by LeeH
How many transactions are you talking about? Do you reconcile your accounts? .

Hundreds and hundreds.

Reconcile? Uhh...

I'm to busy with production to reconcile anything. Money comes in, money goes out. I know how much I have, and that's it. I have zero time to do administrative work because we're so backlogged with orders. I'm lucky enough to have time to breathe.

K.B. · 03-02-2007, 08:07 PM

Time to consider Google checkout. Good by paypal.

LeeH · 03-02-2007, 09:27 PM

Quote:

Originally posted by WolfeMacleod
Reconcile? Uhh...

One of our tax clients used our office for an IRS audit. The IRS agent gave the client a lot of grief for not reconciling his bank accounts. It's not a lot of fun, but the IRS agent called it the most basic accounting function.

WolfeMacleod · 03-02-2007, 09:47 PM

Well, my wife just double checked my work. Boy, was I off!
She cam up with $46k and change.
Which is about $1k less than what Quicken reports, at $47k and change.

Lee...I'm no accountant by far. If the IRS wants me to do accounting, they can hire me an accountant.
I'm lucky to be able to add and subtract, frankly. I don't work well with number at all.

cstreit · cstreit's Garage

So where did it go?!