Paypal fees for selling transaction

Norrie3
New Community Member

I sold an item for $1000, and they buyer agreed to cover costs for the Paypal transaction. I understood those fees to be 3.49% plus .49 - so I charged the buyer 3.5% or $35 for the transaction. When the transaction showed up in my Paypal account, I was charged $52.14 Paypal Fee and $10.35. partner fgee for a total of $62.49. I do not understand how that was calculated, and how I would be able to calculate in advance what to charge my buyer. Was I overcharged by Paypal? And if so, I cannot fand a place where I can dispute their fees.

 

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sharpiemarker
Esteemed Advisor
Esteemed Advisor

@Norrie3 

 

Some of the $62.49 could include sales tax, paypal fee and selling fee of the marketplace platform you used to sell your item. Contact the marketplace you sold item from for explanation of the fees charged. Marketplaces these days are responsible for charging and collecting sales tax from the buyer at point of sale and remit it to the tax authorities for your convenience so you do not have to try and collect sales tax yourself for 50 different states with 50 different sales tax rates.

 

Keep in mind that the PayPal fee is calculated on the grand total of the order including item price, shipping/handing and sales tax because that is the total amount being processed or moved by PayPal to your account and then the sales tax and selling fees are given to the marketplace (partner fee), PayPal takes their fee (3.49% plus .49) and you get the rest. 

Same if the buyer is int’l, and the buyer’s country has a sales tax/VAT mandate, the marketplace will collect it and remit it to the buyer’s local government, the PayPal fee will be increased by 1.50% due to being cross-border and the marketplace will charge you their selling fee.


Kudos & Solved are greatly appreciated. 🙂
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