Those of you who use Paypal for business transactions...
 

Here's a scenario i'd like some opinions. As you well know paypal takes 3% of all incoming transactions.

What do you think is most fair:

1. Charging the client for the extra 3%.

2. Splitting the 3% 50/50.

3. Absorbing the 3% totally. (what we do now).

Obviously, one could just add 3% fee's to the prices... but in the case where this doesn't happen, what do you guys think is most fair?

Absorb it. I mean 3% does at up over time. But adding 3% to the charges seems kinda ... not cool.

Isn't charging the client the fees illegal?

I really don't know, but I had heard that before. We don't, so I never much thought about it.

If you process 1k a month their fee is actually only 2.2% plus 30 cents per transaction. This is not a very big fee as far as processing fees go...:2 cents: :2 cents:

I just absorb the fee. I do ask for the wire fee when people ask to send me wires, though. My bank charges me alot for them :(

I cover the fees... no need to force the client to pay more than already listed.
If you feel it's so hard to figure out just add it to your price.

http://www.paypal.com/cgi-bin/webscr.../terms-outside

5. No Surcharges. Under Visa, MasterCard, Discover and American Express regulations and the laws of several states, including California, merchants may not charge a fee to the buyer for accepting credit card payments (often called a "surcharge"). You agree that you will not impose a surcharge or any other fee for accepting PayPal as payment. This restriction does not prevent you from imposing a handling fee in connection with the sale of goods or services, as long as the handling fee does not operate as a surcharge (in other words, the handling fee for transactions paid through PayPal may not be higher than the handling fee for transactions paid through other payment methods). Nor does this restriction apply to Pound-denominated transactions by sellers residing in the United Kingdom listing items for sale on a UK-based website


Adult Site Traffic, you're probably thinking about the Visa/MC rules. Its not illegal, just against their merchant rules.