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MikeG
learner
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Important: New 3% Paypal Fees on all Prize Payments

submitted on June 7, 2009 by MikeG in "Buxr Website / Contests"
We received some bad news June 4th from Paypal... The prize payments that we've been making via Paypal as a "service" payment will now be charged a fee of 3% of the amount sent. This fee is charged to the recipient of the money on each Paypal transaction.

I spoke on the phone with a Paypal rep on Friday, and there is nothing we can do to avoid this new charge.

As an alternative, we do offer prize payment with Amazon Gift Cards, which have no fees. You can go to your payment preferences in "My Profile", and select "Amazon" as your preference.

Thanks,
Mike
 

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  • 27671
    Solstice
    professor
    1 6 2
    11 4 1
    Posted by Solstice on June 7, 2009
    [reply] 0 1
    That sucks, but thanks for making the effort to call them to see if anything could be done.

    Have you guys ever considered going over to a pre-paid Visa card or MasterCard system, that could be used at more than one site? I don't know what costs are associated with those, but you might be able to work something out with the provider, and possibly even eliminate the card cost all together.
      27673
    • MikeG
      learner
      Posted by MikeG on June 7, 2009 [reply] 0 0
      If I'm understanding you correctly, Pre-paid Visa and Mastercard would require mailing out new cards?
    • 27682
    • Solstice
      professor
      1 6 2
      11 4 1
      Posted by Solstice on June 7, 2009
      [reply] 0 1
      Some of them are re-loadable, but I don't know the details of those, or how they work exactly.

      I don't know if you could send a card out, and then re-load it later with additional contest prizes.

      However, yes, you would have to send out cards much as you do for Amazon.

      Assuming I understood your question, I think that helps marginally. I wish I could help more, but I don't really know enough, so its probably best that you talk to the bank where you guys keep your business account, or Visa/MasterCard directly.
    • 27691
    • MacGyver
      beginner
      2
      Posted by MacGyver on June 7, 2009 [reply] 0 0
      They don't send out actual "cards" they give you a code to enter into you Amazon account. Wink
    • 27693
    • Solstice
      professor
      1 6 2
      11 4 1
      Posted by Solstice on June 7, 2009
      [reply] 0 1
      Did not know as I've never used the Amazon option, and the payee option says "gift card" not "gift code". I've always assumed that it would come in the form of an actual plastic card.

      Regardless, in either case its still the same issue of having limited use to one site.
  • 27679
    TheBest
    professor
    6 3
    9 1 1
    Posted by TheBest on June 7, 2009 [reply] 0 0
    There is also some extra charge(tax). I purchased $75 pre-paid visa for $80 from my local store.
    BTW there shold be one more option at payee information like "release my money when it reaches $50 or $100" so i can get $50 amazon card or $100 card or more.
      27683
    • Solstice
      professor
      1 6 2
      11 4 1
      Posted by Solstice on June 7, 2009
      [reply] 0 1
      I know banks offer better rates for the cards, and sometimes banks waive the card fees if you have an account with them. However, policies vary from bank to bank.
  • 27689
    redsoxrokk
    professor
    1
    Posted by redsoxrokk on June 7, 2009 [reply] 0 0
    That is a good idea, like wait till a user gets $150 before sending out a Visa card.
  • 27690
    overaged
    apprentice
    1 1 1
    Posted by overaged on June 7, 2009
    [reply] 0 1
    or you could send out checks and if postage is a problem, you can deduct the cost of postage which is like 42 cents or so per letter from the prize amount.
  • 27698
    MikeG
    learner
    Posted by MikeG on June 7, 2009 [reply] 0 0
    Any type of payment method that requires mailing would greatly increase our overhead and definitely decrease the frequency of payment for winners.
  • 27699
    MikeG
    learner
    Posted by MikeG on June 7, 2009 [reply] 0 0
    Here's an interesting idea..

    https://www.obopay.com/consume.....elcomePage

    It is a 25 cent fee no matter what the amount.. To access your money you need to get an Obopay Debit Card..
  • 27700
    overaged
    apprentice
    1 1 1
    Posted by overaged on June 7, 2009
    [reply] 0 1
    the 25 cent fee is charged to you guys or us? also do i have to have text messaging enabled to receive the money or notification of it?

    I havent read the full details on this but what are all the pros/cons of this service?
      27703
    • MikeG
      learner
      Posted by MikeG on June 7, 2009 [reply] 0 0
      I just found Obopay, so I don't know what the pros/cons are.. But if someone has used it here, I would love to know.
  • 27704
    MikeG
    learner
    Posted by MikeG on June 7, 2009 [reply] 0 0
    Amazon has a payment system, and apparently there is no fee at all..

    https://payments.amazon.com/sd.....dReceive/o

    I haven't really investigated in depth, but it looks promising.
  • 27712
    Solstice
    professor
    1 6 2
    11 4 1
    Posted by Solstice on June 7, 2009
    [reply] 0 1
    Thanks for investigating options, and I know you will get back to us if anything turns out to be viable.

    Just as a suggestion though, you might want to always keep PayPal as an option since its so prolific.
  • 27762
    llocomotive
    apprentice
    1
    1
    Posted by llocomotive on June 8, 2009 [reply] 0 0
    Pre-paid visa and MC debit cards have a service charge of around $3.95
  • 27797
    redsoxrokk
    professor
    1
    Posted by redsoxrokk on June 8, 2009 [reply] 0 0
    Maybe a user could save up money, utill the user wants to cash-out. Then they could request a check for the amount saved -$1 for shipping and processing. I think that this is a good idea.
  • 27801
    Solstice
    professor
    1 6 2
    11 4 1
    Posted by Solstice on June 8, 2009
    [reply] 0 1
    I've gotten the impression they are trying to avoid being a "bank" where people can stockpile winnings.
  • 27802
    redsoxrokk
    professor
    1
    Posted by redsoxrokk on June 8, 2009 [reply] 0 0
    Oh yeah, where someone saves up $1000 and cash-out all at once. If many people did that then they would be hurting. Sad
  • 27825
    phunkeey
    teacher
    Posted by phunkeey on June 8, 2009 [reply] 0 0
    I thought paypal was already taking 5%. Or does it depend on the type of paypal account you have?
  • 27912
    emma123
    professor
    1
    3 1
    Posted by emma123 on June 9, 2009 [reply] 0 0
    It depends upon the type of account you have.
  • 27913
    emma123
    professor
    1
    3 1
    Posted by emma123 on June 9, 2009 [reply] 0 0
    My Employer gives gift certificate and we can redeem it for any stores. You have a lot of choice.

    https://www.hallmarkinsights.c.....wards.aspx

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