Paypal, who pays their fee, us or renter?

How to communicate with your potential renters - how to turn site visitors into enquiries, and enquiries into bookings.
phil_UK
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Paypal, who pays their fee, us or renter?

Post by phil_UK »

I am curious as to how many of you pass on the fees or part of it to your renters for paypal transactions?

Thanks in advance,

Phil
kirkland
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Post by kirkland »

we absorb the fees as it saves us going to a bank etc, add it in the price if you have to, I think it looks a bit mean adding fees.
Hells Bells
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Post by Hells Bells »

I absorb the fees as I factored them into my initial costs at start up.
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LaVilleauTady
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Post by LaVilleauTady »

Phil,

The vast majority of our guests pay via personal cheque drawn on a UK bank, so fees aren't relevant.

When we have guests from abroad, usually USA or Australia, we say they can pay via international bank transfer or Paypal but they pay the fees.

We think this is fair, because we charge a competitive rental fee that does not incorporate payment fees, and don't see why those who pay by cheque should have to subsidise those who choose Paypal.

The easy way to sort it with Paypal is to ask the renter to send you the money, you only need to provide them with your Paypal registered email address. Paypal with ask them how much they wish to send and automatically charge the sender the fees.
A-two
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Post by A-two »

We charge Paypal fees as we offer alternative payment methods that do not incur bank fees, so it is their choice. If we only accepted Paypal, I would not charge, I would build it into the rate, but I do not feel it is appropriate to charge those who do not chose Paypal to pay for those who do.
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Richard D
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Post by Richard D »

We offer other forms of payment too but split the Paypal fee with the customer. We only ask for this on the final balance as 4% of 4000€ = 160€ and I think this is way too much to pay in charges. We let the customers know right from the outset that they'll have to pay this fee if they choose to pay the final balance by Paypal, so it's easy to avoid the surcharge. So far (in 4 years of taking Paypal) we've only had one guy pay the surcharge.
phil_UK
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Post by phil_UK »

Thanks for the replies everyone.

Kirkland I agree, it looks mean adding payment fees.

LaVilleauTady, I agree that guests paying direct from UK bank to Uk bank or cheque payers shouldn’t have to subsidise those who choose PayPal.

When you say “they can pay via international bank transfer” do you mean swift?

PayPal charged me 4% on the first transaction I did with them recently so I’m wondering what it would cost them to pay by swift from France? I know Nationwide charged me 20 GBP fee to transfer money to my bank here in Thailand last year.

You say,

“The easy way to sort it with PayPal is to ask the renter to send you the money, you only need to provide them with your PayPal registered email address. PayPal with ask them how much they wish to send and automatically charge the sender the fees”

I didn’t realise that this could be done that way round being new to PayPal myself.

I’m presently negotiating with a French family who want to book 2 weeks in November this year. I asked them how they wanted to pay and they said PayPal, so I’ve just emailed them to ask if they have a PayPal account, just waiting for the reply now. Will that work the same with their French PayPal account?

A-2, you say you offer alternative payment methods that do not incur bank fees, may I ask which methods are they?

Richard D, may I ask what other forms of payment you offer that are cheaper than Paypal? Also what is 4% of 4000€ based on? I’m lost.

Thanks,

Phil
Musetta
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Post by Musetta »

I would be very put-off by extra fees added on to pay, so I absorb all PayPal charges and tell my guests so (I don't have any "extra" charges though and advertise that fact quite a bit) - it wouldn't bother how I paid...but I would want the option of SOME way to pay without is costing me...I would be worried there would be other hidden fees as well.

I don't have another cc processor right now to handle the US house payments...so guests pay (no cost to them at all) with PayPal or Bank Transfer (costs me about $25 to receive each payment and $25 to return the deposit that way) or, have had Canadians pay by Postal Money Order and Americans pay by Check - since those are free for me, it all comes out in the wash I think.

Most of my guests to the Italy place are Americans...and most to the US are European...and my bank is in the US...but have expenses in Italy to pay in Euros ;-) so it's a bit of a mess...and PayPal lets me keep a Euro balance from here in the US and I can pay my housekeeper, etc. with that...so...it's works for me.
phil_UK
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Post by phil_UK »

After reading Musetta’a reply I’m wondering if it would look a bit mean if I expect guests to pay me from their PayPal account, as LaVilleauTady suggested, so they would pay the charges. Yes/No Anybody?

Phil
Musetta
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Post by Musetta »

I don't think it mean...just a bit cheap really....I'd rather see it added into the total cost if that will be your only payment option. That said...I also think you need to look at your market - It seems to me much more common in the UK to have the extra payment charge than in the US...so..if that's what all your neighbors do, I wouldn't be so worried.
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vrooje
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Post by vrooje »

Whether we book a hotel or buy a soda, where I live we don't pay the extra fee for using a credit card -- the merchant does. So that's the attitude I have taken with our rentals. Just part of the cost of doing business -- and sometimes, yes, it is a lot of money to hand over for the convenience.

In fact, a merchant in the US once told me that it is illegal for him to directly pass on a credit card fee to a consumer or to charge a different price for a credit-card transaction than a cash transaction. The only way to pass on the fee is to raise prices for everyone, he said.

If that's true (and I don't really know), owners with properties in the US might not technically be allowed to ask renters to pay PayPal fees.
Brooke
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Re: post subject

Post by la vache! »

phil_UK wrote:After reading Musetta’a reply I’m wondering if it would look a bit mean if I expect guests to pay me from their PayPal account, as LaVilleauTady suggested, so they would pay the charges. Yes/No Anybody?

Phil

I think it does and personally I would consider not continuing with the booking if this were the case. As Brooke said, you are the merchant, you want the money, if you don't like the charges find another way for the customer to pay easily.
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Mountain Goat
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Post by Mountain Goat »

Many European airlines charge extra for credit cards, even more for charge cards and sometimes zero for debit cards. My only recent experience is BA and EasyJet.

Why does everyone get steamed up about these extra charges?

MG
kirkland
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Post by kirkland »

These payment methods mean I don`t have to go to the bank with a cheque, so I benefit and the customer finds it easier to pay and to not have any extras to pay. I`m sure the airlines that don`t charge have a better relationship with the customers.
Musetta
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Post by Musetta »

Mountain Goat wrote:Many European airlines charge extra for credit cards, even more for charge cards and sometimes zero for debit cards. My only recent experience is BA and EasyJet.

Why does everyone get steamed up about these extra charges?

MG
this must be a UK or EU thing....I have never seen that (yet anyway!) in the US - I believe the cc copmanies actually drop merchants if they find our they are charging exstra for cc (and I have also, like Brooke, heard it is illgeal to charge extra for credit card use - also don't know if it is true though) BTW - what's the difference betwen a credit card and a charge card? (I think here they are the same thing? no?) anyway...totally not done as standard practice at all here.
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