Sending money with Paypal is easy. They even advertising it as send money for FREE through Paypal and all you need is just an email address.
But is it really free or does it cost money? How do you send money using Paypal?
There is nothing free in this life. Paypal is owned by Ebay and as we know corporations aren’t giving their services away for free. Either you as the sender or the receiver party have to pay the Paypal fee.
How to send money with Paypal:
You will need an email address and a bank account, or a credit card or access to someone who do have them if you don’t. You also need to sign up with Paypal and include those bank or card details. The recipient will also need to sign up with Paypal and include his/her bank account. Without a bank account you can’t receive money and without a bank account or credit card you can’t send money.
How much it cost to send money with PaypalPaypal fees:
Sending money to someone with Paypal will cost 3.4% + £0.20 pence (penny). So if you send £100 pounds, the fees that will come out of it will be £3.40 pounds + £0.20 pence = £3.60 pounds.
Paypal say this fee can be paid by the sending or by the receiving party, but it is very difficult to find the little tiny square check mark where you supposed to mark who will pay this fee.
Why? Because Paypal probably makes a few million transactions per day and if I want to send say; £85.29 for whatever reason to someone the fees will come out of it so I need to send a little bit more which generates higher fees and that generates a few million extra dollars per year.
If you happened to find the check mark square, than you can mark it as you, the sender pays the fees than the recipient will receive the exact amount.
Most people can’t calculate the exact fee on the amount they send so they send a bit more just in case.
If you just add the 3.4% + 0.20 to the amount you send, than after the fees the recipient will get less money than agreed upon. So to find the exact amount, you need to do some calculations and most people don’t know how to do it.
Paypal know this and takes advantage. I think the little check mark square should be prominently displayed to avoid this kind of fraud.
This is fraud because the way they are hiding it and the unsuspecting sender can’t do nothing about it. By the time they would find it, the site’s security feature kicks in and close the connection and they have to start again. So to avoid it the second time they rather send more money and eat the loss. Because if the recipient would send the extra money back to them, the Paypal fees would eat up some of it and they wouldn’t get the full amount of difference back.
It’s all simple behavior psychology they employ.
When you buy from Ebay that’s a different story. The fees are 1.4% to 3.4% + £0.20 GBP* depending on the purchase.
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