I have a feeling I’m stepping into nooby territory, but I’ll take a shot at this. As you may recall, I’m in the process of selling my Hackintosh and iPod. Well, today I finally sealed the deal on the iPod, and began the process of payment and shipping. As I waited patiently for the PayPal money to arrive, signaling it was safe to ship, I got an interesting message from PayPal. It said I needed to upgrade to a Premier account to receive the funds the buyer was sending. Apparently personal accounts can’t receive money from credit card sources, which is why I needed to upgrade.
After reading this message I began to look into what exactly I was agreeing to. After looking over the Premier terms of service, I found that there is a service charge associated with a Premier account. On every payment received, PayPal gets 2.9 percent of it. I wasn’t too pleased with that service charge, but what was I going to do? Tell the buyer that his money wasn’t good? I felt that I had to sign onto this Premier account, so I did.
Now, I always knew that PayPal collected a fee somewhere, but always thought that fee occurred when withdrawing money from your account. After thinking about it, I have a feeling most PayPal users have Premier accounts, and I’ve just been the odd one out. I’ve done about twenty PayPal transactions, and I must have just been lucky that I never had someone pay with a credit card. Then again, maybe I got shafted. However, considering I’ve always been pleased with PayPal, and haven’t complained about the high fees like everyone else online, I’ve most likely been the odd one out.
11 Comments
Yea I had a Premiere account soon as i started to sell shit on ebay. not just because of the ability to get larger funds, and take from credits cards, but it looked more professional. and you are able to say what you want on their cards too i believe. i think in the past it was PAYPAL ***USERNAME now you can have what you want.
I’m still on Basic. I think 2.9% is a bit steep.
A similar thing happened to me as well. The reason I had to “upgrade” my paypal account was because I won a bet. The person paying the debt of the bet used his credit card. Ever since then I’ve been getting shafted with the stupid fees that Paypal charges.
The big kicker happens when you’re working on a project as a subcontractor. Paypal takes the fees from the person giving you the work. Then they take the fees from you getting that money. In my case Paypal takes even more fees when they convert the money from US funds to Canadian funds because they won’t let me add my US funds bank account to my paypal account. Bastards!
It is still much much less than typical credit card companies do–though I agree it is unfair, it is still reasonable
That’s a deal compared to most merchant accounts charging 3.5% and higher! This is what we have brought on ourselves by turning the control of our currency over to large conglomerates. When we replace honor and character with a credit score, and substitute legal tender with promisary plastic.
Enjoy!
You might be interested to know that paypal will let you have 2 accounts - one premier or business and one personal. That way you can use the personal account for paypal-to-paypal transfers and the “upgraded” account for credit card payments.
Paypal will steal from you and you allow them to once you agree to their fine print. I had a verified premier business account and also had perfect feedback. A customer didnt like what she bought, and wanted a refund. I stated no refunds, but paypal froze my entire account (all the cash) until the dispute was over. So the buyer gets to keep the item and the seller cannot use the account until it’s resolved. sounds to me like paypal and ebay have made a nice bed together, and they’re getting rich doing it. I have since closed paypal and use a merchant account
Paypal is highway robbery! and they do not have to follow banking regulations! look out!
I had just the same situation! I wonder if I can “degrade” from Premier to Basic accounts.
i am actually confused if I should upgrade to premier account or not. I received a credit card payment and I can’t accept it until I upgrade. With the fee involved I am confused if I should upgrade. I won’t be receiving too many credit card payments in a year.
Is there a difference between premier and personal accounts when you’re all the way a buyer (a fund sender) and not a seller (a fund receiver)? I mean is there a fee with the premier account for this scenario?
Thanks!
paypal are theives i withdrew money to my bankaccount it was just £100 and it reversed for some reason but now they refused to refund me the fee they charged me 14£ for that thats totally unfair how can i degrade my account can any one help?
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