Just received my council rate notice and intending to pay via Post Billpay - Paypal option (Paypal funded by credit card). I have confirmation from council that a 1% credit card fee will apply even though the payment is done through Paypal. Can someone please enlighten me on this :- for purchases, Paypal doesnot discriminate among different funding methods (eg Paypal cash balance, credit card or bank transfer) . Why do I have to pay 1% fee for using credit card whilst other Paypal funding methods are free?
1% credit card fee on council rate payment via PayPal (funded by credit card)
byo on 25/07/2014 - 15:21
Comments
Apparently the 1% credit card fee is imposed by council not Paypal. It will cost council the same Paypal service fee no matter what is my "source of fund"
Councils are greedy.
Which council is charging this fee ?
Baulkham Hills, NSW
Paypal have some policy that states merchants are not to charge additional fees for paypal and is to be included in their price.
I know this happens all the time but if you want to annoy the council back abit maybe ask them (and paypal) about it, especially if you have it in writing they are charging you the fee. With any luck paypal might even freeze their account while they investigate.
Wouldn't do it to a legit small business, but fcuk councils anyway.
https://www.paypal.com/webapps/mpp/ua/useragreement-full?cou… - 4.2 D "Sellers may not charge a surcharge for accepting PayPal as a payment method."
All the council has to do is say its a "handling fee" not a "processing fee" and they can get out of it anyway, but worth a shot :)
Paypal charge the merchant a fee, no matter what the "source" of funds is. I presume Paypal love people who make payments out of their PayPal balance, as they then don't have to pay out a credit card merchant service fee.
https://www.paypal.com/au/cgi-bin/webscr?cmd=_display-receiv…