Trade Me - passing on credit card charges

Please note this sub-forum does not provide professional finance advice. You should seek advice from a licensed financial advisor.

To post in this sub-forum you must have made 100 posts or have Trust status or have completed our ID Verification.

If investing please consider our affiliate link for new accounts: Sharesies.

Forums › Finance and wealth management › Trade Me - passing on credit card charges

Geektastic

17942 posts

Uber Geek

Trusted

Lifetime subscriber

#175639 6-Jul-2015 22:04

I just sold something on TM for around $1750 and was wincing slightly at the success fee and the credit card fee, which chomped over $100 out of the total I think. Thereabouts anyway.

Aside from a vague feeling that 'Trade Me never used to be this expensive.." it got me to wondering.

The credit card facility is mainly there for the convenience of buyers so they do not have to mess about doing transfers. And yet...when we pay our mobile bills, buy plane tickets and so on, we get pinged by the sellers of those things to cover the card costs.

How come, then, you cannot automatically have the system charge the buyer a 'convenience fee' (thanks, VF!) so your net receipt is less affected? TM specifically say that you cannot charge more for this, yet almost everyone in NZ now does so.

1 | 2

6018 posts

Uber Geek

Trusted

Geekzone

Lifetime subscriber

#1338170 6-Jul-2015 22:04

Hmmmm. Here we go.

I am the Geekzone Robot and I am here to help. I am from the Internet. I do not interact. Do not expect other replies from me.

These links are referral codes: Sharesies | Mighty Ape

Talkiet

4792 posts

Uber Geek

Trusted

#1338182 6-Jul-2015 22:53

You idiot... All you've done is alert Trademe that they shouyld be charging US a CC use fee when we have to put money into our accounts. I'm amazed they haven't added that already. That's a nice simple 3% revenue hike right there.

Cheers - N

ps. :-)

Please note all comments are from my own brain and don't necessarily represent the position or opinions of my employer, previous employers, colleagues, friends or pets.

insane

3239 posts

Uber Geek

ID Verified

Trusted

#1338186 6-Jul-2015 23:03

They have a fees calculator, just make sure your sale price is set accordingly to compensate....

mattwnz

20141 posts

Uber Geek

#1338188 6-Jul-2015 23:10

Talkiet: You idiot... All you've done is alert Trademe that they shouyld be charging US a CC use fee when we have to put money into our accounts. I'm amazed they haven't added that already. That's a nice simple 3% revenue hike right there.

Cheers - N

ps. :-)

Except it will make things more difficult for them if people pay by direct credit, as they would likely need to employ additional staff to check bank payments. I think they would have to wear the CC fee, as when you charge such a fee, you have to have a free alternative that is just as convenient.

mattwnz

20141 posts

Uber Geek

#1338189 6-Jul-2015 23:12

insane: They have a fees calculator, just make sure your sale price is set accordingly to compensate....

They do, although people paying by non credit card means, are essentially paying the credit card price, if you are pricing in the 3% charge into the sale price. But I guess if you buy from any store that doesn't charge a CC fee, and you pay by cash, you are essentially doing the same thing.

insane

3239 posts

Uber Geek

ID Verified

Trusted

#1338191 6-Jul-2015 23:21

mattwnz:
insane: They have a fees calculator, just make sure your sale price is set accordingly to compensate....

They do, although people paying by non credit card means, are essentially paying the credit card price, if you are pricing in the 3% charge into the sale price. But I guess if you buy from any store that doesn't charge a CC fee, and you pay by cash, you are essentially doing the same thing.

Yeah that is a fair point, but if a seller is offering something with the PayNow option I always take it, must easier than having to transfer $$ into an account etc, and I get a few reward points on my CC. Perhaps I'm just lazy.

Selling with PayNow also attracts buyers who may not have the funds to buy your items with cash - swings and roundabouts.

richms

28168 posts

Uber Geek

Trusted

Lifetime subscriber

#1338194 6-Jul-2015 23:39

Pay now is so much easier than pissing around with emails and bank transfers.

Richard rich.ms

Equinox IT

Cloud spending continues to surge globally, but most organisations haven’t made the changes necessary to maximise the value and cost-efficiency benefits of their cloud investments. Download the whitepaper From Overspend to Advantage now.

Batman

Mad Scientist
29760 posts

Uber Geek

Trusted

Lifetime subscriber

#1338221 7-Jul-2015 06:58

It is very expensive to sell a cheap item and very cheap to sell an expensive item. The fees are inverse logarithmic!

reven

3743 posts

Uber Geek

Trusted

#1338226 7-Jul-2015 07:20

If theres an auction with PayNow for $1 more than a auction without paynow, 99 times out of 100 Ill use the paynow. Just so much easier.

Geektastic

17942 posts

Uber Geek

Trusted

Lifetime subscriber

#1338321 7-Jul-2015 09:49

But why can't you simply have an option where the system passes on the Pay Now fee to the person paying now? You can charge them shipping costs, so why not transaction costs?

richms

28168 posts

Uber Geek

Trusted

Lifetime subscriber

#1338322 7-Jul-2015 09:51

Because trademe say no, and it's their sandpit. Don't like the rules? Play elsewhere.

Richard rich.ms

Geektastic

17942 posts

Uber Geek

Trusted

Lifetime subscriber

#1338352 7-Jul-2015 10:44

richms: Because trademe say no, and it's their sandpit. Don't like the rules? Play elsewhere.

Yes, that is the obvious and therefore unnecessary answer...!

Was hoping we might actually posit some logic behind the rule. As long as TM get their money I fail to see why they should care whence it comes, so cannot deduce a reason for the rule. I hate rules without reasons.

lNomNoml

1807 posts

Uber Geek

ID Verified

#1338378 7-Jul-2015 11:31

Yeah trade me is getting ridiculous.

richms

28168 posts

Uber Geek

Trusted

Lifetime subscriber

#1338380 7-Jul-2015 11:33

lNomNoml: Yeah trade me is getting ridiculous.

Yeah it is. The number of places that have in trade beside the names but still seem to be a disorganized idiot running a part time operation is far too high.

Richard rich.ms

RobDickinson

1524 posts

Uber Geek

#1338415 7-Jul-2015 12:16

I enabled PayNow, sold something with it, chocked at the extra costs and disabled it.

I already sell stuff on TM at a higher cost to elsewhere, I didnt want to just add more on to cover this and penalise cash/bank payers.

TM could easily enable an option to pass this onto the purchaser - everywhere else does.

1 | 2