PayPal fees increasing on March 29

bluedragon

From their website: We are changing the standard transaction fee for sellers selling goods or services online to buyers outside the U.S. from 3.9% to 4.4% plus the existing fixed fee based on the currency.

Domestic transactions remain the same, apparently.

JayB-SoCal

Wow - most CC's are usually in the 2.9% range. Even Swipe is 2.9% last I checked.

bricksinbins

Yeah I'm happy every time a buyer pays via Stripe. PayPal needs way more competition.

XS Bricks

Snag with Stripe is the seven days it takes to transfer to your bank account, at least PayPal only takes 2 days, but with this increase I think I will be preferring Stripe too.

bluedragon

^Stripe only takes 2 days for me.

robernat

@XS Bricks Based on my experiance that is not correct. The first transfer may take some extra days (in my case it actually didn't: 3 days), after that your bankaccount has been fully 'confirmed' and the transfers goes faster on next transfers (2-3 days). If there is additional delay, it's caused by your bank, simple as that. I know my bank is fast, I know Dutch banks are fast, when Dutch buyers send me payments, it's there in 24 hours, when buyers from my own country send payments (mostly larger banks), it's usually 2-3-4 days, I know it's not my bank that delays the transfer, so it's simply most 'other' banks in my country causing it (reason I do no chose them). It's an M.O. from certain banks, and it's hard to have it 'eradicated': during the days they have your payment and don't despatch it to you, well, they 'use' your money...
Paypal is a little more 'established' and has much power, if a client complains it takes too long, rest assured PP is going to 'talk' to the bank. Stripe is not in that position yet, but it seems to be growing quite fast... I like it so far :-)
And their online support is quite professional and extremely fast on top (a true relief compared to PP *sigh*)

Stellar

I think he means that when you capture a payment in Stripe they don't transfer the money to you in 5 days, then they do the transfer and yes it takes 1-2 days to appear in your bank.
That is clearly visible if you choose to transfer each time you receive money to your bank.
If you have this set to weekly or monthly Stripes transfer all the money you captured 5 days before or more that are remaining.

bluedragon

In my case, every payment captured is automatically transferred to my bank account in 2 days. If I mark an order as shipped (captured) on monday, the money will be credited in my bank account on wednesday.

JayB-SoCal

I'm too busy with my regular job to do anything extra beyond contract work but if I were setting up something new to take CC's with I would fully lean toward Stripe as the primary processor, use Authorize.net as a secondary backup (only switched on occasionally to keep active or as a backup in case of Swipe problems), and PayPal is just there for people who don't want to use credit cards but even then I would test to be sure that it was hugely additive to sales - I would rather lose 5-10% of gross revenue than to deal with PayPal - because to me time is money and they are horrible in many ways. I would only deal with them if it meant sales would be impacted more than 10%. Also, a lot of people (consumers/customers) abuse PayPal's less cumbersome allowance for their equivalent of a chargeback - CC banks make it much harder for a customer to file false claims.

XS Bricks

No it's nothing to do with my bank - definitely a Stripe thing. I have transfers set to "Daily" and this is what Stripe says about transfer times:

"Every day, we'll bundle your transactions for the day and deposit them in your bank account 7 days later. The very first transfer Stripe makes to your bank can take up to 10 days to post outside of the US or Canada."

bluedragon

Ah, I'm in the US. Maybe it is different in Ireland.

robernat

@bluedragon
Stripe transfers in Europe are being send by Stripe UK Ltd ;-)
Their 'statement' about 'outside US and Canada' is most likely outdated...
@XS bricks
That's just a general statement including a 'safeguard' as the 7 days rule also includes weekends, holidays and bankholidays... Check next week: If you have transferable balance (remember all new balance is retained for 7 days) on Monday or Tuesday and your overview says money is being transferred on those days, I'm fairly sure it should only be 2 or 3 days when it appears on your bankaccount, if it's longer, I'm quite sure it's your bank delaying the money to appear.

Stellar

What I was meaning is what @RobErNat mentioned

If you have transferable balance (remember all new balance is retained for 7 days)

After that period the transfer is made and yes, i takes just 2 days and arrives the same day as "Expected to arrive on..."

XS Bricks

Maybe it is an Ireland thing, I will check further but after 139 payments I can confirm that as soon as a payment is captured on the transfer screen it will show the amount and the text "expected to arrive on XX" where XX is exactly 7 days from the capture date and so far 139/139 payments have arrived on the exact date specified.

robernat

@XS Bricks Ah wait, You're counting from 'capture date', then it's normal it takes 10 days... Stripe 'blocks' (retains) every fund for a period of 7 days before they 'release' it and send it to your account... So if you get a payment on monday 13, it's available for 'balance transfer' on monday 20, and so on your account around the 22nd/23rd.
This 'retain' is their safeguard for transactions, as in normal circumstances within that timeframe, national orders (and close by international orders) are being received by buyers. Offcourse on long distance orders this becomes pretty useless.

XS Bricks

@RobErNat That explains it, but original point regarding difference between PayPal and Stripe remains, Stripe takes 5 days longer to get access to payments.

Thanks for resolving this as I was not looking forward to a long call to the bank!

robernat

@XS Bricks Well yes, it is a 'small' inconvenience they retain money for 1 week, on the other hand, they allow you to transfer any kind of amount, even if it's just a handfull of Euros (matter of speak), and you can automate it (as you did) so no manual action at all. On Paypal the transfer must be initiated manually, so you need to go check all the time as the 'minimum' for 'free' transfer is 100 Euro... So if you transfer money today, then your balance is zero (or close to that), if you get an order or 2, then buyers wait another couple of days before placing new orders, it's gonna take several days, maybe a week (depending the size of your store offcourse) before you have that 100 Euro again. And if you just transferred money and 10 minutes later you get an order, that money is blocked untill you reach that 100 again (had that twice recently). On top, on PP, buyers can put in a dispute 'online and any time of day' and it instantly blocks the related amount, that is less likely to happen with Stripe, as people need to get in touch with their bank and/or credit card company, and then there is still that 'reserve' (good for you as you have a little 'cash flow' available).
Personally I'm not bothered by the Stripe system in those regards, I just wait untill I have a decent amount, then transfer 'manually' (I do not have the automated system activated, small amounts are a PITA to deal with bookkeeping wise).

Stellar

I don't have minimum PP transfer, It is always free for me...

XS Bricks

@RobErNat Interesting, that must be another regional variation, I have no limits on withdrawals from paypal and no fee applies, I could withdraw 1c if I needed to. I agree having a €100 minimum withdrawal limit could be very inconvenient.

From the Irish PayPal site (.IE) the withdrawal minimum shown for all currencies is 0.
https://www.paypal.com/ie/cgi-bin/webscr?cmd=_withdraw-minimum-amount

robernat

LOL It seems to have been changed over time, and I have been sticking to the 'minimum 100 Euro for free transfer' for years and years. I just tried (after reading the help page) and seems indeed lower amounts are perfectly possible without any cost (I'll doublecheck when the money arrives). Dunno when they changed that, whished I would have known before...
Funny is that each ToS change is notified by mail, but they fail to let users know about a change like that *sigh*.
Ah well, this auto-discards that 'inconveniency' in regards to PP :-)

XS Bricks

Ah well we are at least learning something new about both services.

bricksinbins

I definitely prefer Stripe to PayPal but most buyers use PayPal so I feel it's a necessary ev.... It just seems PayPal has so much small print text and most of it boils down to that I as a seller has no rights whatsoever.

I get it that buyer protection is a good thing but a dishonest buyer will always benefit, no questions asked, the way PayPal handles it. It shouldn't be that way.