Using PayPal to for inbound invoice payments

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Forums › Finance and wealth management › Using PayPal to for inbound invoice payments

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graemeh

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#442757 23-Feb-2011 14:25

dclegg:
graemeh: Don't forget to tell your customer you are going to have to charge them 3.4% more to cover the pay pal fees!

It may not be as simple as that, and I may have to write this off as a cost of doing business with them. I've also not charged previous clients for fees incurred for having invoice payments transferred to me.

That's obviously a business decision that you need to make. You did say that your original agreement with them was for a wire transfer. If they want to change that part of the agreement then the whole agreement is up for renegotiation and that includes the price.

Is it an option for you to get a US bank account? Depending on the amounts involved there are better (i.e. cheaper) methods for moving money than your standard TT.

dclegg

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#442771 23-Feb-2011 14:49

graemeh:
dclegg:
graemeh: Don't forget to tell your customer you are going to have to charge them 3.4% more to cover the pay pal fees!

It may not be as simple as that, and I may have to write this off as a cost of doing business with them. I've also not charged previous clients for fees incurred for having invoice payments transferred to me.

That's obviously a business decision that you need to make. You did say that your original agreement with them was for a wire transfer.

It wasn't a formal agreement, but was discussed as part of the initial discussions.

Is it an option for you to get a US bank account? Depending on the amounts involved there are better (i.e. cheaper) methods for moving money than your standard TT.

Possibly. It may be something to look into. I'm not sure how easy it would be to remotely open a bank account over there though.

LittleGreyCat

153 posts

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#443119 24-Feb-2011 17:03

Just looked at my UK Paypal account and I see:

"When is sending money free?It?s free to send money to friends and family when you use your PayPal balance or bank account as your funding source."

This is for domestic transfers, of course, not for currency conversion, but how do they decide if it is 'friends and family'?

Presumably if there is a high transaction rate with different people then they will decide they are commercial transactions?

For a commercial transaction there seems to be a charge of 3.4% + 0.20GBP.
There is the same charge for a cross border transaction.

Does this mean that if you are paid for example in USD and take the money out in NZD then you will end up paying 6.8%?

It might be an idea for the OP to establish what the charges are for a wire transfer.
If they are less than Paypal then it might be worth agreeing to have the charge deducted from the invoice.

Cheers

LGC

dclegg

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#445447 4-Mar-2011 10:56

Does PayPal have the notion of an "account number" or similar. I've got my business account all set up, but all the payment options there seem to be centered around having a "Pay Me" button on a website, or initiating an invoice.

All invoicing for this contract is handled via the clients invoicing software, and they are asking for my PayPal details so they can pay me. Can this be done, or do I have to initiate a payment request from PayPal by generating an invoice or similar?

freitasm

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#445448 4-Mar-2011 10:57

They will send a payment to your email address associated with your PayPal account.

dclegg

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#445450 4-Mar-2011 11:04

freitasm: They will send a payment to your email address associated with your PayPal account.

So all I have to give them is my email address, and they'll be able to initiate a PayPal payment using that?

bazzer

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#445454 4-Mar-2011 11:11

dclegg:
freitasm: They will send a payment to your email address associated with your PayPal account.

So all I have to give them is my email address, and they'll be able to initiate a PayPal payment using that?

Yep.

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dclegg

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#445457 4-Mar-2011 11:16

bazzer:
dclegg:
freitasm: They will send a payment to your email address associated with your PayPal account.

So all I have to give them is my email address, and they'll be able to initiate a PayPal payment using that?

Yep.

Thanks, I'll let them know.

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