Paypal Safety - The true cost of selling through paypal

Every day thousands of people using ebay will be buying and selling things using paypal. This is a fast and efficient way of paying via the web. However, there are negative points to both buying andselling through paypal.

Buying Using Paypal:

Buying items through paypal could'nt be any easier and for the most part it is safe and fast. However, there are some sellers (wether you agree with this or not it happens!) that charge their buyers for using paypal. This is usually to cover the listing fees, tax, exchange rate if overseasand the dreaded 'paypal cut' which is explained in the next section. Some sellers do take advantage of this though and hide the fact that they will charge for using paypal. This will then come as a shock to the buyer who then has to pay more than they first thought. In the most extreme cases sellers will charge a paypal charge which they themselves will profit from. I have seen instances where buyers have been charged up to 80% of their initial purchase! This is wrong anda very dishonest practice on the sellers part. Paypal itself places no directfinancial burden on the buyer so if the seller offers a no paypal charge service then it is a very good method of buying items via the internet.

Selling Using Paypal:

When you sell anything through ebay you are subject to an insertation fee and 17.5% tax. Fair enough, Ebay need to make there profit some how. Paying for the insertation fees and taxcan be done by sending a postal order, a cheque or by using paypal. Easy and no hidden charges there then. However, when you sell your item say for a total of 100 and the buyer decides to pay via paypal then you can be very sure that you will not get the full100. Once the ebay sellers feesand taxhas been paid for paypal will instantly take a cut of the ammount that the buyer paid. Then a further charge will be made to withdraw the money and transfer it to your bank account (which with paypal takes in excess of 7 days!). If you decide to keep the money in your paypal account to use on ebay or other sites associated with paypal then every time that money is moved through transactions paypal takes a cut thus eventually ending up with the entire ammount in their pockets. Some sellers are ok with this and to make the point that i am not anti -paypal nor am i pro- paypal i am just trying to give a balanced argument and let people know what to expect.

Paypal is a really good way to pay for things via the internet. It is fast and easy, this guide is just making it clear that there are a lot of charges to consider escpecially when selling through paypal. I hope this guide has been useful and as honest as possible. If this guide was helpful please click the butto below to encourge more guides and reviews like this one. Thank you.