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system is set up so ebay/paypal profits
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system is set up so ebay/paypal profits

Original Post
warchief_z (56 ) View Listings
warchief_z
(1 of 7)
system is set up so ebay/paypal profits
Jun 14, 2012 10:53 AM

The way the process for donating using Giving Works is set up, ebay/paypal gets to charge you money no matter what.  I ended up losing money on a charity auction!

 

Rather than send the percentage donations to MissionFish directly, the money goes to your paypal account then you are billed by MissionFish. Even though ebay fees are pro-rated/waived for the donation percentage, they still charge the 2.9% paypal fee on the total amount!

This means that if you set up an auction to go 100% to charity, ebay/paypal still skims their 2.9% cut off the top!

I literally owed money to paypal after auctioning something 100% to a charity!
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system is set up so ebay/paypal profits

(6 Replies / 1,423 Views)
warchief_z (56 ) View Listings
warchief_z
system is set up so ebay/paypal profits
Jun 14, 2012 10:53 AM

The way the process for donating using Giving Works is set up, ebay/paypal gets to charge you money no matter what.  I ended up losing money on a charity auction!

 

Rather than send the percentage donations to MissionFish directly, the money goes to your paypal account then you are billed by MissionFish. Even though ebay fees are pro-rated/waived for the donation percentage, they still charge the 2.9% paypal fee on the total amount!

This means that if you set up an auction to go 100% to charity, ebay/paypal still skims their 2.9% cut off the top!

I literally owed money to paypal after auctioning something 100% to a charity!
Last Post
Mar 26, 2013 07:33 AM
by clothescloseouts4u (4141 ) View Listings
help_this_vet (3) View Listings
help_this_vet
(1 of 6)
Re: system is set up so ebay/paypal profits
Jun 23, 2012 05:05 AM
I agree with you, as I too lost money in my auction to raise money to assist veterans and their families in need, as for starters many of the people who tried to bid on my item did not get to and in the end I lost money on the item, as it was an item valued at over $500 and sold for $200 and my attempts to deal with EBay were useless, but to add to the problem they turned around and charged me a fee for selling it and to make matters worse PayPal comes along and hits me with their fees, so the money I was hoping to raise to help a veterans and their families became far less then I was hoping for, but you know I give it to God and trust him to deal with it, as the Bible says "What you sow, so shall you rip." and I know that sooner or later both EBay and PayPal will pay for what they are doing.

God Bless,

Help This Vet


Veterans and their families sacrificed for us, join with us to say thank you to them for their sacrifices
shi_ni_ke (78 ) View Listings
shi_ni_ke
(2 of 6)
Re: system is set up so ebay/paypal profits
Jul 9, 2012 12:58 AM

PayPal still had to pay their merchant processor to process the payment to you. You still have to pay your fees for processing the payment. PayPal is not a non or not-for profit company. If you processed that through your bank's or any other merchant account you would still have been charged any applicable processing fees for that auction.

Both eBay /PayPal is a business and they do have to make a profit. 

Check with a tax specialist to see if you can count that fee as part of the donation or as a business expense if you are a small business.

Now you are aware and you can adjust the percentage of the sale that goes to giving works in the future to be able to account for this.

Nike
ibblesd4real (316 ) View Listings
ibblesd4real
(3 of 6)
Re: system is set up so ebay/paypal profits
Jul 20, 2012 11:43 PM

I may have been on Ebay for nearly 7 years and I am still learning. I sell a few things, stay off awhile then I come back. But recently I am trying to figure out why I only made Not even $500.00 and owe Ebay over $80.00. I guess I am calling them Monday morning to get them to explain to me. I haven't got into donating to charities yet because I basically sell used items that I own to rebuy things my kids need for school and such.

Just thought I would throw my 2cents in on the fees because on top of Paypal and Ebay, I ALWAYS get ripped off on shipping I dont want to list my items too high,, I just want to make a LITTLE profit.

When I start doing that, then I will donate to charity GLADLY.

:)

Ibblesd
texashickabilly (366 ) View Listings
texashickabilly
(4 of 6)
Re: system is set up so ebay/paypal profits
Jan 3, 2013 06:58 AM

HUH???

My bank's debit card cost me NADA-ZILCH to use for a puchace last time I looked...I think your point is MOOT!!!

 

The ONLY fee I ever pay is if I withdraw money out of a ATM...
mamalynn (2498 ) View Listings
mamalynn
(5 of 6)
Re: system is set up so ebay/paypal profits
Mar 26, 2013 04:20 AM

remember eBay owns the football -if you want to play you have to play by their rules.
clothescloseouts4u (4141 ) View Listings
clothescloseouts4u
(6 of 6)
Re: system is set up so ebay/paypal profits
Mar 26, 2013 07:33 AM
shi_ni_ke wrote:

PayPal still had to pay their merchant processor to process the payment to you. You still have to pay your fees for processing the payment. PayPal is not a non or not-for profit company. If you processed that through your bank's or any other merchant account you would still have been charged any applicable processing fees for that auction.

Both eBay /PayPal is a business and they do have to make a profit. 

Check with a tax specialist to see if you can count that fee as part of the donation or as a business expense if you are a small business.

Now you are aware and you can adjust the percentage of the sale that goes to giving works in the future to be able to account for this.

Nike

 

Yeah, just because someone else is giving money for charity doesn't mean Ebay and Paypal have to help.  Heaven knows they can't afford it.   The charitty system on  Ebay  has been messed up for years, and they show no inclination to improve it and make it more fair or transparent.  It's a shame ya get ripped off trying to help someone in need.  With new sellers on Ebay all the time there is someone who decides to be nice and give to charity all the time, - too bad they don't know to just donate directly to their charity.
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