When you send money through Paypal, there are two different options - pay for goods or services, or send money to family and friends. With the pay for goods or services option, the guy getting paid always gets a percentage taken off. But if you do the send money to family and friends option, it's completely free as long as the money is coming from a bank account or Paypal balance... if it's coming from a credit card, the sender gets charged a fee. As I understand it, it doesn't cost Paypal anything, and they end up with a lot of money sitting in Paypal accounts because of it, so they're still going to make something off of it.
If you're getting paid for services, I'm pretty sure you should be getting charged a fee... but it's fairly unlikely you'll be going to prison for it. On Sat, May 27, 2017 at 1:56 AM, Carlos Alcantar <[email protected]> wrote: > you also have to think there is a % of people who just let the money sit > in paypal, and they go make money with your money just like a bank, even if > it's overnight type of investment transactions. > > > > > Carlos Alcantar > > Race Communications / Race Team Member > > 1325 Howard Ave. #604, Burlingame, CA. 94010 > > Phone: +1 415 376 3314 <(415)%20376-3314> / [email protected] / http:// > www.race.com > > ------------------------------ > *From:* Af <[email protected]> on behalf of Colin Stanners < > [email protected]> > *Sent:* Friday, May 26, 2017 10:04:52 PM > *To:* [email protected] > *Subject:* Re: [AFMUG] ot: paypal payments > > You're not a merchant or those are friends/family type no-fee > transactions. For business recipients they take a few %, that adds up > really quickly. > > https://www.quora.com/How-does-PayPal-make-money-1 > > On Fri, May 26, 2017 at 11:57 PM, Steve Jones <[email protected]> > wrote: > >> How does paypal make money outside paypal buyer credit? I remember way >> bac in the day, it was two things to take a payment or make a payment. I >> prefer to pay with paaypal, I actually will opt not to donate to certain >> causes (dick that I am, a big percentage of my income goes to donations, >> like don't tell the old lady how much of those random paypal expenses >> aren't to "buy gear for work") >> I never felt good about it cause in the day there were fees to the >> recipient. but recently Ive found a lot of my folks I do 1099 work actually >> prefer to pay me paypal. I dig the shit out of it, I get free transaction >> documentation (this is the sole reason I started taking those payments, it >> costs me anywhere I log a a payment) but I haven't got a transaction fee or >> anything, no balance percentage, nothing. I just dump 30-35 percent into my >> tax account on any payment depending on the gig. >> How do they stay in business since it appears outside buyer credit its >> fre, or am I just small enough they don't charge me? >> > >
