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Thread: Why are Paypal's fees higher in some countries?

  1. #1
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    Unhappy Why are Paypal's fees higher in some countries?

    Paypal recently raised its fees for receiving payments from 3.9% to 4.4% (+ $0.30) in my country (I live in SE Asia, but have online customers around the world). Compare this with the standard US rate of 2.9% + $0.30 and you'll see that I have to give Paypal and extra $1.50 for every $100 of sales I make simply because I live outside the US! This doesn't seem fair to me, so I'm thinking of finding a different payment processor that doesn't discriminate!

  2. #2
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    I doubt its "discrimination", PayPal is a financial business and wouldn't just make some companies pay more. If anything the bulk of PayPal users are US based so making them cough up more money would make more sense. That said the reason why you have to pay more is probably due to PayPal having to provide services to an area which has a whole lot less customers or legal financial regulations providing them to pay a tax perhaps?

  3. #3
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    Quote Originally Posted by greengrass View Post
    Paypal recently raised its fees for receiving payments from 3.9% to 4.4% (+ $0.30) in my country (I live in SE Asia, but have online customers around the world). Compare this with the standard US rate of 2.9% + $0.30 and you'll see that I have to give Paypal and extra $1.50 for every $100 of sales I make simply because I live outside the US! This doesn't seem fair to me, so I'm thinking of finding a different payment processor that doesn't discriminate!
    Some countries are more expensive to do business in. There are a lot of different reasons for this, but the two biggest are fraud and regulations. If there are a lot of regulations and fees that PayPal must pay, they pass that cost on to the end user. It isn't discriminating too much - McDonalds also charges more for food in SE Asia because the cost of doing business there is greater.
    Last edited by Collin1000; 01-26-2014 at 09:39 PM.

  4. #4
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    I don't think they are discriminating. I think it has to do with conversion and they have to pay a higher fee to convert the funds. It's a pain, but I just dealt with this last week when I tried to cash a check from Canada in the U.S.

  5. #5
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    There are extra costs involved with getting money from the US to Asia as opposed to US to US.
    It's sad but true. There are also liability risks with sending money overseas and to countries where you have no control over it anymore.

    You could try other services and compare the different fees.

  6. #6
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    That's part of their business, almost every business based on the U.S. charge higher fees for international customers.

  7. #7
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    Discrimination.. hahahahahahahah.

    Transferring money across different countries is callee cross-border payments. There are certain costs for Paypal to perform/allow this and therefore they have to raise the fees.
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  8. #8
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    Have taxes changed in your country recently? That can be one reason. Cross-border transfers are expensive, banks determine the costs of those and not Paypal, if banks raised their fees (hmm banks wanting more money, who'd be surprised) Paypal had to either follow or swallow the cost. Guess which one they'd rather do.

  9. #9
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    I think this happens because of the exchange rate differences. Anyway you can look for PayPal alternatives to do your business at a much lesser cost per transactions.

  10. #10
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    Quote Originally Posted by sillylucy View Post
    I don't think they are discriminating. I think it has to do with conversion and they have to pay a higher fee to convert the funds. It's a pain, but I just dealt with this last week when I tried to cash a check from Canada in the U.S.
    This. The conversion rate has a lot to do with it so as much as it sucks, it's necessary depending on where you live.

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