- Mark as New
- Bookmark
- Subscribe
- Mute
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Would someone properly explain why the PayPal fee has suddenly exploded after BigCartel added their Tax Feature?
This is for a small business account.
Before BigCartel implemented a Tax Feature, every national charge was getting fined the standard Paypal Fee: 2.9% + $.30.
Before the Tax Feature:
$35.00 > Product
$5.00 > Shipping
$40.00 > Total
= $1.46 Paypal Fee, which is the expected 2.9% + $.30 of the total price.
OK
Here's what that same product is fined after BigCartel applies tax to the total:
$35.00 > Product
$5.00 > Shipping
$2.90 > Tax
$42.90 > Total
= $4.44 Paypal Fee.
This fee is greater than 10% of the total cost of the transaction, which I can't find an explanation for anywhere. If it were going by 2.9% + $.30, the fee should have been no greater than $1.55 for a $42.90 transaction, a $2.89 difference.
The same thing happened for a transaction that totaled $43.30 ($3.30 in tax) -> Paypal charged $4.86 in fees, which is greater than 11% of the transaction total. The fee should have been no greater than $1.57; that's a $3.29 difference!
Mind you, both of these transactions are for the same exact product as the first one mentioned (not international).
I was expecting the 2.9% + $.30 to be taken from the transaction total, but 10%-11% demands an explanation.
What's going on?
Solved! Go to Solution.
- Labels:
-
Fees
Accepted Solutions
- Mark as New
- Bookmark
- Subscribe
- Mute
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Obviously the sales tax is the factor here with the buyer paying $42.90, the sales tax is deducted along with the PayPal fee from the amount you receive because $1.54 (2.9% + 30 cents) + $2.90 (Sales Tax) = $4.44
$43.30: PayPal fee is $1.56 + $3.30 sales tax = $4.86
The $2.90 then is given to Big Cartel to remit to the state. In your PayPal data report it will be referenced as Partner Tax Collected or similar.
Kudos & Solved are greatly appreciated. 🙂
- Mark as New
- Bookmark
- Subscribe
- Mute
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Obviously the sales tax is the factor here with the buyer paying $42.90, the sales tax is deducted along with the PayPal fee from the amount you receive because $1.54 (2.9% + 30 cents) + $2.90 (Sales Tax) = $4.44
$43.30: PayPal fee is $1.56 + $3.30 sales tax = $4.86
The $2.90 then is given to Big Cartel to remit to the state. In your PayPal data report it will be referenced as Partner Tax Collected or similar.
Kudos & Solved are greatly appreciated. 🙂

Haven't Found your Answer?
It happens. Hit the "Login to Ask the community" button to create a question for the PayPal community.
- Payment Pending but Shouldn't Be in My Money Archives
- Pay in 4...Why Is It Hit and Miss w/ Merchants/Products? in Products and Services Archives
- £0.01 payment notification on mobile for paypal, nothing on account? in My Money Archives
- PayPal credit not working on Mobile Purchases in Payments Archives
- Disabling One Touch devices does not work in My Account Archives