wondering about the paypal 3%

Originally Posted by PaulSage

Um... so why not just factor in the paypal surcharge into asking prices and then offer a cash discount?

Beat you to it, look up.

The price I display on my site is the price I want plus enough to cover any fees like paypal. If someone wants to p/u and pay cash I'll charge them less. Not only does cash allow me to avoid the charge but no packing up the animals and no drive to Fedex.

Originally Posted by DragonCharm

Beat you to it, look up.

I guess I kinda meant it as a rhetorical question ... that and I'm curious as to whether or not that would violate any TOS to be charging two different prices that are dependent upon the method of payment.

Originally Posted by PaulSage

I guess I kinda meant it as a rhetorical question ... that and I'm curious as to whether or not that would violate any TOS to be charging two different prices that are dependent upon the method of payment.

I don't think it would be......it kind of is the same in a roundabout way though. But if you notice some gas stations (very few these days) charge a cash price and a credit price. Since this is legal and flatout charging a surcharge is not I assume in the eyes of the law this is legal. Of course the TOS doesn't have to agree with the law, it might still violate their TOS.

Came across the options buying software today:

CREDIT CARD online now (no processing fee except for Diners Club + 4%)
CREDIT CARD by FAX (+ US $3.00 manual processing fee)
CREDIT CARD by PHONE (+ US $3.00 manual processing fee)
Wire or local money transfer (surcharges apply - see next page)
CHECK by US, CAD or UK checks or International Money Orders (+ US $3.00 manual processing fee)
PAYPAL (+ US $3.00 manual processing fee)

When selling on eBay, I factor in PayPal and eBay fees before setting my minimum bid. Most people use PayPal these days, at least for baseball memorabilia and Native American art, so it's easier just to do it that way. If I'm not selling on eBay, I set a reasonable price and if some people use PayPal and some send a money order, it all seems to balance out in the long run. I'd rather have people use PayPal because it's so much faster to get paid and I can ship quicker.

Originally Posted by PaulSage

Um... so why not just factor in the paypal surcharge into asking prices and then offer a cash discount?

I don't think this is legal either. I know as a retailer I can not legally offer a 2% cash discount. A gas station near me used to do this but was turned in and forcced to stop. Laws may differ from state to state but I think at the very least it is in violation of the TOS of the large credit card companies (visa MC amex etc.) and they can revoke your agreement to accept their cards if you do.

Steve

There's quite a few gas stations around here that offer a 2 or 3% discount for cash over credit card, so it must be legal here.

Then again, Iowa's kinda backwards.

Originally Posted by Cat_72

There's quite a few gas stations around here that offer a 2 or 3% discount for cash over credit card, so it must be legal here.

Then again, Iowa's kinda backwards.

The signs at the pump in some cases are specially made to show 2 prices, cash and credit. It's gotta be legal some places.

I wish I wouldn't have missed it...although there is very little for me to add...

I know in Illinois...the CASH/CREDIT price variation on gasoline is gone...haven't seen it in years...

Paypal WILL ABSOLUTELY check anyone that is reported to charge an extra percentage to cover their paypal fees...as long as someone reports them...and has enough information from their ad or profile to find their account...

I called about someone posting an ad with 3.5% extra to use paypal...on a $1200 dollar animal...just to find out what their policy is...the service rep I talked to seemed VERY interested in finding out who the person was...to "remind" them of the TOS and make sure they were complying...but they couldn't get enough info from the ad or profile to make a positive user id...

Of course there are many places that charge a credit card use surcharge...being legal is all in how you bill it, I'm sure.

Now that I think about it the problem in Wisconsin may come from the minimum markup law that gas stations have to follow. They are required to mark up their gas a certain percentage and that's where most stations run it. If one station offers a discount for cash then they are essentially selling the gas at below the minimum markup making it illegal.

Steve