Paypal Money Transfers - how to avoid the 3% service fee.

[cloud_cover]

I've been trying to purchase some pre-loved equipment and it seems the bulk of the deals are from the US.
As you guys know, one of the better ways of transfering money is Paypal, since you might be able to get it back should the item never show up on your doorstep. Unfortunately Palypal generally charges a 3% service fee.
However, if you top up your paypal balance and then use that cash to pay for the transaction, it now becomes a fee-free transaction Only issue is currency conversion attracts a 2.5% service fee, but you'll have to decide which is greater: Credit card exchange rate + 3% or 2.5%+paypal exchange rate
All Singapore banks except UOB can transfer cash into a paypal account, which takes up to 2 working days to complete.
Hope its helpful information!

[andeelym]

Umm I thought that paypal only charges the fees on the recipient? Meaning, if you receive $100, you'll be subject to the fees and you'll end up getting around $3 lesser. But if you send money, you will not pay the charges at all.

Another way to avoid the fees or potentially reduce it to minimal is to use masspay. Its kinda hidden or in the fine print. How you use it is that you specific the email address of the money receipient and the amount etc that you are going to send in a text file. Its intention is for you to masspay out to multiple receipients. The best thing about it is that the fees is only 2% or max $1 per transaction. And you are the one paying, not the receipient. And with that, maybe you can negotiate for some discount.

[orly_andico]

a lot of sellers require that you as buyer add 2.9% to cover their paypal costs.

[andeelym]

Well, if you use masspay, you need not pay the 2.9%. As you can tell them that you can cover that.

More info: https://www.paypal.com/cgi-bin/webscr?c ... ew-outside