Home  Classifieds PayPal Selling Guide
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Thursday, 09 October 2008 |
Intro:
I
have seen a lot of questions being asked when it comes to using PayPal.
Everything a basic seller will need to know know is here. You will
learn about account types, what they can and can't do, fees, when they
are charged, why, and how to protect yourself from fraud.
This
information will help you a LOT if you sell on eBay or other places
online. If you plan on opening your own online store using your own
server and web software, you may want to read more about using PayPal
(mostly about their IPN or website SDK)
This short information
guide was written by me (GI|Ethan) to help
people know how to sell safely using PayPal. If you decide to copy all
or any parts of this guide please credit me or our business name (Game
Initiation). I do not require this, but no one likes to have their work
copied freely.
Choices:
How
do you want people to send you money? If the person buying from you has
a PayPal account with money in it, you can conduct a PayPal to PayPal
transfer. Its free, no fees, and you can transfer this money to your
bank account (if you added one, which you can do at any time for free).
The downside of this is PayPal has a limit to the amount of money you
can receive per transaction. I don't know what it is, as I never really
used a standard account, but you can easily get around this by doing
multiple transfers.
If you want to be able to accept e-checks and credit cards and not have to worry about a transfer/payment total limitation, you will need a premier or business account. Both account types are free, but you are charged a small fee for receiving money. This fee is very small compared to eBay fees, you will get to keep almost all of your income.
Fees:
If
you choose to go with the premier or business account option, be
prepared to pay fees when receiving money. These fees are only applied
to incoming money, not money you send. Each transaction that takes
place where you are the one receiving money will have USD $.30 cent amount deducted for the transfer, then an additional 2.9% of the total.
An example would be this. Some one pays you $500 for an item(s) or
service of yours. They would deduct $.30 cents plus 2.9% of the total,
leaving you with $485.20 total profit.
A PayPal Calculator
is also available. This calculator is 99.99% accurate when dealing with
US to US payments, but can be wrong some times when doing international
rate quotes due to the many changes PayPal makes to its conversion fee
rates.
PayPal Debit Card:
This card is available to all premier and business account users who are verified (bank account added and confirmed) and have no current high risk disputes.
This card works just like a debit card you would get from a bank, but
only allows access to funds currently under your PayPal account. This
card is free to receive and free to use. You will never lose money when
using this card (other than the price of the items you are buying
ofcourse).
You can also earn money back from using this card
when buying stuff, weather it be on eBay, another website, or even a
store/food service like Best Buy, McDonalds or Circuit City. You will earn 1.0% back
on every purchase you make. You need to be PayPal preferred in order to
be eligible to receive cash back (very easy to get PayPal preferred if
you are an eBay user or operate an online store). Also, in order to
receive cash back, you must use this card as a credit card (where you don't enter a PIN number).
Note: This
card is still subject to any ATM fees an ATM company may charge. This
isn't PayPal charging you, so if you never take out money from an ATM
that charges users then you will never have to worry about any extra
expenses.
Seller Protection:
ALWAYS follow PayPal's seller protection policy!!! This is very easy to do and prevents you from having to deal with fraudulent buyers yourself via court or local authorities.
The
seller protection policy helps you keep money you receive. If a buyer
of yours does a charge back with their credit card company, they will
almost always get their money back (which also means you lose that
much). However, if you follow these steps, PayPal will give you this
money back themselves and fight this person for you. PayPal will not
require you to take any action 99% of the time.
Also, if a buyer
of yours simply files a PayPal dispute (like a credit card charge back
but via PayPal and can be applied to anything such as an
account2account transfer) and you follow these steps, you won't (or at
least shouldn't) even lose the money at first. It will stay there at
all times.
Just be sure to follow these steps and keep records
(most shipping companies will keep these records for you and have them
accessible online).
PayPal's seller protection policy is simple. You must be shipping a physical item
(any item shipped in an envelope or box). The item can't be digital (a
CD sent in the mail counts as a physical item) and can not be a service
(even if in person). You must also ship to a confirmed address. You can set your PayPal preferences to require all buyers of yours to provide a confirmed address, making it so you don't have to check it all the time.
When receiving money, and the total is $249.99 USD or less,
all you need is a tracking number. These are usually available for free
from shipping companies as long as you are shipping a decent size item.
When receiving money, and the total is $250.00 USD or more, you
need both a tracking number for the package you send and must use the
recipient signature service. Thats the service where the person your
sending an item too will only receive their item after signing for it.
If you do not have the user sign for the package, and they sent you
$250 USD or more, you are NOT protected. Remember that at all times.
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