Fees Increased with New Payment Method

[kelwalters4kg6]

My fees previously were billed at 10% of the sales price and 10% of the shipping charges.  For example, I had an $8 item with $5 shipping that was assessed a total fee of $1.30.  Since the new payment direct to the bank, it's assessing a fee of 12.38% of the total (taxes & shipping plus sales price) plus $.30.  So a recent $10 item had a fee of $3.06.  Thirty percent on a $10 item is insane.  I called customer service and they said they will get back to me.   Anyone else going through this or can someone explain what's going on?  Definitely will need to move the stuff to other platforms if this is the new norm.

[mtgraves7984]

Don't forget to add the shipping and sales tax to your $10 item price. The 12.35 (+ .30) is assessed on all.

[coastaltechsolution]

I'm not sure how you are coming up with those numbers. 

I just checked on a $21.50 sale and I paid less then 3 dollars in fee's 

[kensgiftshop]

@kelwalters4kg6 

The fee's should be about the same as they were when you were paying both, Ebay and Pay Pal.

[slippinjimmy]

10% eBay + 2.9% PayPal + 30 cents

vs

12.35% eBay + ZERO PayPal + 30 cents

Which is lower?

To muddy the water a bit, with PayPal you only paid eBay fees on the item+shipping and paid PayPal fees on both the Item and on the Sales Tax portion.

Under Managed Payments you pay the 12.35 on the entire amount, the break even point is Sales Tax at about 6.75%, lower or no tax = lower fees, higher tax you pay a few pennies more.

[lacemaker3]

@kelwalters4kg6, you forgot about the sales tax.

Here's a comparison of the fees, if your payments are processed by PayPal versus processed by Managed Payments.

This assumes 6% sales tax, and that the state charges tax on the purchase price plus shipping, which are both pretty common. In this case, 6% is the break-even point, where the fees are exactly the same.

		PayPal			Managed	Payments
			%age of:			%age of:
Price:		$    8.00			$    8.00
Shipping:		$    5.00			$    5.00
subtotal:		$  13.00			$  13.00
sales tax:	6.00%	$    0.78	$  13.00	6.00%	$    0.78	$  13.00
payment:		$  13.78			$  13.78
PayPal Fees:	2.90%	$   (0.40)	$  13.78
	$    0.30	$   (0.30)
	total:	$   (0.70)
sales tax:		$   (0.78)			$   (0.78)
PayPal deposit:		$  12.30
eBay Fees:	10.00%	$   (1.30)	$  13.00	12.35%	$   (1.70)	$  13.78
				$    0.30	$   (0.30)
Total Received:		$  11.00			$  11.00

[kelwalters4kg6]

Yeah, that's what's concerning.  Those are the hard numbers so it seemed exceptionally high on a lower priced item.

[kelwalters4kg6]

Thank you!  This is extremely helpful to see the breakdown.  I'll punch in some old sales and the newer ones to see how it's comparing.  Thanks again.