Took a donation of $1.00 through Ko-Fi, and I only received $0.46 - why?

[Renelie89]

I recently opened a Ko-fi for donations and I set it up with Paypal, which said that PP's fee was 2.9% + $0.30.

However when I received a $1.00 donation I only received $0.46? Paypal only should've taken $0.36 which should've left me with $0.64? The math doesn't add up.

I checked the transaction on Paypal and the donation was considered a product transaction that asks for shipping info, which is odd since there is no product being delivered. I marked the transaction as "Completed" regardless.

So my main concerns are:

1) Why did Paypal deduct over 50% of my Ko-Fi donation? 

2) Why are intangible donations being marked as physical product transactions? Is there any way to change that?

[PayPal_Bindu]

Hello @Renelie89 

Thank you for joining the PayPal Community!

I understand your concern about the fees charged for receiving donations. When you accept the PayPal User Agreement or the PayPal Fundraisers Terms and Conditions to send or receive funds using one of the payment types such as 'Donate Button', 'PayPal Fundraisers' etc., that is called as a “donation” and the standard rate for receiving domestic and international donations can be found here.

Please be informed that funds sent or received through other products or services are not “donations” and standard rates will apply for receiving payments. You can learn more by clicking the Fees page at the bottom of PayPal page. 

Here are the articles with information about Payment holds and speed up process to release the payments :

Why is my payment on hold or unavailable?
How can I release my payments on hold?

Hope this information helps you,

Bindu