MicrostockGroup
Microstock Photography Forum - General => General Stock Discussion => Topic started by: mtkang on December 07, 2011, 21:07
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hi, i just received a payment from a company and i notice there is a paypal charge..under the estimated fee, I happened to get a payment from a website too, i notice there is also a charge for it.
Why there is an fee for receiving payment? is there a way I can avoid it? i notice i paid nothing for all the other agencies payment.
Amount received:
xxxx
Estimated Fee:
-xxx
Net amount:
xxxx
Note: This is the estimated fee for this transaction. It is calculated based on your account status at the time you received the payment.
Amount received:
$12.00 USD
Fee amount:
-$0.77 USD
Net amount:
$11.23 USD
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Mktang,
When I get money from clients through Paypal a fee is deducted from the ammount received. There's no way to avoid this. Paypal is a service, so they charge a fee when you receive money.
When it comes to microstock agencies, most of them seem have some sort of agreement, where they send us money with paypal and we don't get charged a fee.
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Microstock agencies use Paypal's masspay feature where the agencies pay for our fees. This is to make us contributors happy.
Other than that, Paypal always charges fees from the person who receives funds. This is how Paypal makes money.
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please delete my post
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I checked paypal site, and found these:
*** If your transaction involves a currency conversion, it will be completed at a foreign exchange rate PayPal obtains from a financial institution, which is adjusted regularly based on market conditions. This exchange rate includes a 2.5% processing fee above the exchange rate, and the processing fee is retained by PayPal. The specific exchange rate that applies to your multiple currency transaction will be displayed at the time of the transaction.
maybe this is the reason, the agencies send me the money in foreign currencies..
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I checked paypal site, and found these:
*** If your transaction involves a currency conversion, it will be completed at a foreign exchange rate PayPal obtains from a financial institution, which is adjusted regularly based on market conditions. This exchange rate includes a 2.5% processing fee above the exchange rate, and the processing fee is retained by PayPal. The specific exchange rate that applies to your multiple currency transaction will be displayed at the time of the transaction.
maybe this is the reason, the agencies send me the money in foreign currencies..
What? Like, you live in the US and Shutterstock sends you British Pounds? What are you talking about?
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more likely he doesn't live in the US. Paypal will only pay in the currency of the country you live in (at least they used to). I'm in Canada and Paypal wouldn't allow me to get paid in US currency to a US dollar account (i.e. a US dollar account at a Canadian bank). I opened an account in the US to get around the conversion fees (not just Paypal's but the bank's as well).
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maybe this is the reason, the agencies send me the money in foreign currencies..
You can keep multiple balances in PayPal. If you activate all major currencies (USD, EUR, GBP) automatic conversion upon receiving funds won't happen.
You'll still have to convert money sooner or later - and pay the conversion fee - but at least you can choose the best moment. Or avoid (double) conversion at all, if you need to buy something from abroad.
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maybe this is the reason, the agencies send me the money in foreign currencies..
You can keep multiple balances in PayPal. If you activate all major currencies (USD, EUR, GBP) automatic conversion upon receiving funds won't happen.
You'll still have to convert money sooner or later - and pay the conversion fee - but at least you can choose the best moment. Or avoid (double) conversion at all, if you need to buy something from abroad.
Interesting! So if I "activate all major currencies" then when I get paid by Rodeo in euros, the money will sit in Paypal as euros? And I can buy things from European sites, which offer Paypal, and pay them in euros?
And, I suppose, I would have to pay my US taxes on the money according to the euro-to-dollar exchange rate at the end of the year?
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That is interesting, I didn't know you could do that either. So presumably once you have balances in more than one currency it gives you the option of which one you want to pay in? I live in the UK, but am thinking of buying a new camera sometime next year. These are often cheaper posted from the States, so saving the double conversion would suit me very well.
ETA - Just found how to do this on the paypal website:
Go to Account Overview > Profile > My money > Currencies beside ‘PayPal balance’
Very cool, thanks for this
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Interesting! So if I "activate all major currencies" then when I get paid by Rodeo in euros, the money will sit in Paypal as euros? And I can buy things from European sites, which offer Paypal, and pay them in euros?
Indeed.
I live in the UK, but am thinking of buying a new camera sometime next year. These are often cheaper posted from the States, so saving the double conversion would suit me very well.
Just be careful that Customs duty and import VAT may apply on expensive items bought from outside the EU. See here:
http://www.hmrc.gov.uk/customs/post/buying.htm (http://www.hmrc.gov.uk/customs/post/buying.htm)
But it may still be cheaper in some cases.
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Yeah yeah, I know thanks.