Forum
Client
Hi all!
I just had a quick question for LT people. I notice that because you are in Canada, you are charging people in CAN$ converted into $US, causing US customers to incur a "foreign transaction fee". But on top of this you also charge a "paypal fee". That doesn't really make sense though...since if you go through paypal, Paypal always charges in USD and customers would never incur foreign transaction fee. So......are you really using PayPal for your merchant processing? Since if so, it should be USD. In any case, it should be charged from your Canada account to credit card w/ transaction fee OR form paypal with paypal fee, but NOT both. Since right now, for a $250 prize, your U.S. customers are paying $15 EXTRA. Appreciate any feedback on this! Thank You!
I just had a quick question for LT people. I notice that because you are in Canada, you are charging people in CAN$ converted into $US, causing US customers to incur a "foreign transaction fee". But on top of this you also charge a "paypal fee". That doesn't really make sense though...since if you go through paypal, Paypal always charges in USD and customers would never incur foreign transaction fee. So......are you really using PayPal for your merchant processing? Since if so, it should be USD. In any case, it should be charged from your Canada account to credit card w/ transaction fee OR form paypal with paypal fee, but NOT both. Since right now, for a $250 prize, your U.S. customers are paying $15 EXTRA. Appreciate any feedback on this! Thank You!
LogoTournament Staff
It should all be in USD, without foreign transaction fee. (We don't have a penny of CAN$ in our Paypal account) I have heard about the foreign fee a couple of times before, which I believe is charged by some credit cards. I'll investigate with my Paypal account manager to make sure everything is setup as expected. LT does not see any of the of "foreign transaction fees".
Client
PP account manager emailed
Thanks for checking into it! I know you guys don't see the foreign transaction fee, and I think it's pretty fair to charge the paypal's fee directly to customer (although for example in my business I just eat it as part of COGS). The issue like you said is indeed the fact that something is wrong with what PayPal is doing! Like for example, when I buy something from a Chinese seller on ebay, and pay them through PayPal with my credit card, I don't get charged any foreign fee. So there is no reason for PayPal to be charging in $CAN or charging "from Canada" when we pay your account.
Btw, the foreign transaction fee is now charged by ALL us credit cards. Used to be some had low or no fees but you cannot find ANY nowdays (believe me I tried, because I travel abroad often and keep looking for a card with low fees). So resolving this issue will be a great service to your U.S. customers.
Hope this gets cleared up soon!
LogoTournament Staff
Coolraz - investigating your specific transaction with our account manager.
Logo Designer
I'm interested in the outcome of this, not the specific details for this contest holder, just a generalization.
LogoTournament Staff
Directly from our Paypal Account Manager:
"The $15.00 he is referring to must be showing on his bank statement and is being applied by his issuing
institution on their end. We cannot apply a fee that will show on his statement."
As stated earlier in the thread LT does not charge this fee, and Paypal does not either. It is the issuing bank. I would ask your bank to reverse their $15 fee, it doesn't seem fair as you are being charged in USD. But if they are all doing that, I would hate to travel with a card like that.
To work around your bank charging you this fee, you could use the Paypal express checkout which would take you to the Paypal site. Although not as convenient, I believe it would avoid your bank charging you this fee. Currently when you pay with credit card directly on the site, it is through our Paypal Pro Merchant account.
I'll investigate if there are any work arounds I can do with our Merchant account.
"The $15.00 he is referring to must be showing on his bank statement and is being applied by his issuing
institution on their end. We cannot apply a fee that will show on his statement."
As stated earlier in the thread LT does not charge this fee, and Paypal does not either. It is the issuing bank. I would ask your bank to reverse their $15 fee, it doesn't seem fair as you are being charged in USD. But if they are all doing that, I would hate to travel with a card like that.
To work around your bank charging you this fee, you could use the Paypal express checkout which would take you to the Paypal site. Although not as convenient, I believe it would avoid your bank charging you this fee. Currently when you pay with credit card directly on the site, it is through our Paypal Pro Merchant account.
I'll investigate if there are any work arounds I can do with our Merchant account.