Hi, everyone

Just signed up with PayPal today so clients can pay with credit/debit cards or through PayPal. I have three questions I'm hoping someone can answer.

How does PayPal get their fees? I know what they are, the percentage and per-transaction fees, but do they deduct it from my client's payment, deduct it from my cc or bank account, etc?

Do I have to link a bank account or checking account to use PayPal?

Does the client pay a PP fee if they pay me through their PayPal account or just pay with a CC if they don't have a PP account?

Thank you!!

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Pam Deyerle - Transcriptionist in the Richmond, Virginia area
The Perfect Word Transcription Services

How does PayPal get their fees? I know what they are, the percentage and per-transaction fees, but do they deduct it from my client's payment, deduct it from my cc or bank account, etc?
Your client will pay the full amount, you will see the PayPal deduction when you receive notice of the client's payment.

Do I have to link a bank account or checking account to use PayPal?
You should have a bank account where you can transfer the received funds from PayPal.

Does the client pay a PP fee if they pay me through their PayPal account or just pay with a CC if they don't have a PP account?
The fees are deducted from the payee, not the payor - in other words, you!

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

Thanks so much, Lily! That's what I thought, but wasn't sure.

Pam

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Pam Deyerle - Transcriptionist in the Richmond, Virginia area
The Perfect Word Transcription Services

Just a quick note to add that any PayPal fees you pay throughout the year for your business are tax deductible - it really adds up! So do use the monthly and year-end reporting feature they provide to get exact totals.

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Hi Pam, it's a good idea to link a bank account, not only to accept payment as Tess stated, but also to make purchases. So many online vendors and merchants accept Paypal now. If you need something for your business you can just pay via Paypal and it'll come straight out of your business checking account or business credit card if you link that also. I'm new to the VA business, but I've used Paypal for years with my personal account. I really like it.

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Julie Krider
The Legal Support Advantage

Or I guess it was Lilly who made the answer I referred to, sorry about that!

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Julie Krider
The Legal Support Advantage

Tess,

Thanks for bringing up PayPal fees being deductable. It didn't occur to me!

thanks!

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Joy Wilder
Wilder Office Approach

Also, if you live in the US (not sure about other countries), but you can get a Paypal Debit Card (with MasterCard) which you can use just like any other debit Card. Since I"ve had my account for so long I was able to get one even though I'm Canadian (they don't allow it any more) and it's a god-send. The Paypal Debit card also gives you cash back when you use it, any time you make a Mastercard Purchase you get 1.5% of the purchase back, which adds up quickly and balances out the fees you have to pay.

I don't worry about transferring my funds and use my Paypal just like any business account. That being said though I have my business account and a credit card linked to my Paypal account to make processing transactions online easier.

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Renee Shupe, Become a Techie Virtual Assistant
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