Avoiding Foreign CC Transactions Through Freight Forwarder & thus Paypal Higer Fees?

[no_zero369]

So I sold an item, packed & shiped it to a USA address and then checked my PayPal Balance and Oh My!  PayPal charged me 4.95% fee on the transaction!   So I looked at the seller's ID and they are located in a foreign country!  I do have whatever checked as to reject foreign sales, so the "ship to" address in Jamacia, NY (with some funky box number or something) must be a freight forwarder.

I have my margins calculated and to be competitive have them as low as possible, so taking an extra 2.05% hit sure doesn't help.

How the heck can I reject these foreign credit card transactions?

[tdumonde2014]

You can block foreign payments in paypal.

Block payments in currencies that you do not hold
Log into your PayPal business account on paypal.com.
Click the settings icon at the top of your PayPal account page and then click Profile and settings. ...
Click Update next to Block payments in the Getting paid and managing my risk section.

[no_zero369]

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@tdumonde2014 wrote:

You can block foreign payments in paypal.

Block payments in currencies that you do not hold
Log into your PayPal business account on paypal.com.
Click the settings icon at the top of your PayPal account page and then click Profile and settings. ...
Click Update next to Block payments in the Getting paid and managing my risk section.

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Thanks!  Do I need to have a "business account" to block those payments?  I'm pretty sure I'm signed up "regular" as an individual?

[reallynicestamps]

From one point of view, a freight forwarder is a Good Thing, good enough that eBay offers its own forwarding service, the Global Shipping Program as a Seller Protection.

But US sellers pay higher fees on non-US PP payments.

On the third hand, you won't find you get a lot of overseas sales, if only because the USA has the largest and strongest economy in the world, and the occasional overseas sale should not make any substantial difference to your monthly or annual profits. 

Think macro.

[lintbrush*]

Did you look at that right?  The int'l rate is 4.4%

You can block payments from non-US PayPal accounts (in your PP settings), but you've got to ask yourself if it's really worth it in the big picture.  It's only 1.5 cents more per $1 so even if the item was $50, you're talking 75 cents.  

Is it a fast moving item?  What about the rest of your inventory?  

[1tuna]

I am unsure of the logic behind blocking certain payments

are you trying to avoid a sale

you are selling to an international  customer who ,

has gone out of his way to figure out how to get what you sell

its like an international sale............all you have to do is ship to the USA

are you selling so much that you really need to turn down more buisness

vintae vixen

[no_zero369]

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@lintbrush* wrote:

Did you look at that right?  The int'l rate is 4.4%

You can block payments from non-US PayPal accounts (in your PP settings), but you've got to ask yourself if it's really worth it in the big picture.  It's only 1.5 cents more per $1 so even if the item was $50, you're talking 75 cents.  

Is it a fast moving item?  What about the rest of your inventory?  

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I think so.  I even hand calculated the rate as a check to the SS calculations.  Sure enough it is 4.95%.

I thought the PP "normal" rate was 2.9% with a 30-cent kicker that bumps the percent up a bit depending on the item's value.  So 4.95% looks to be a full 2% greater than the normal rate and wouldn't that translate to 2-cents per dollar more? 

Perhaps there are other considerations when it comes to PP charges?  Higher rates for "Hoochie Coochie-vile?"

[ittybitnot]

You can block foreign payments in paypal.

Block payments in currencies that you do not hold

 That block only prevents you from receiving Euros, Canadian or Australian Dollars etc. which you would have to pay to convert.  One needs to also choose to block payments from non-US paypal accounts.   

[no_zero369]

I'm no expert, just did some looking and found these...wonder if these are the answer?

https://www.paypal.com/ch/webapps/mpp/ua/feespolicy-full?locale.x=en_CH

"Rest of the World" applies

https://www.paypal.com/bh/webapps/mpp/ua/useragreement-full#exhibit_A

[tamaralea]

I went through this with PayPal, too.  I had to call them and ask them to block foreign currencies.  Apparently only business accounts can do this on their own.   I sell fragile items and would rather not have forwarders involved.  Plus I've had problems with counterfeiters.  Blocking currencies has helped.  

[lintbrush*]

Those are rates for merchants in those countries.

https://www.paypal.com/en/webapps/mpp/paypal-fees

Look there instead.

[pjcdn2005]

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@ittybitnot wrote:

You can block foreign payments in paypal.

Block payments in currencies that you do not hold

 That block only prevents you from receiving Euros, Canadian or Australian Dollars etc. which you would have to pay to convert.  One needs to also choose to block payments from non-US paypal accounts.   

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Just as a FYI...The block currencies block isn’t relevant for eBay sales. Even if you don’t use that block (I don’t)  it’s impossible to be paid in a currency other than the one you listed in.   I list on both the .com and .ca site.  If you purchased an item listed on .ca I would receive payment in $C even though you paid n US$ and I hold both currencies. You the buyer would also pay the currency exchange fee.

[ga-8370]

Wondering if OP actually have a 4.95% rate?

[pjcdn2005]

We would have to see the total cost that they received from the buyer and see what fees they were charged.  It doesn't seem right that they would be charged that percentage but it's impossible to say without the proper info.

[tamaralea]

"4.4% plus a fixed fee based on currency received"  which is very vague.

https://www.paypal.com/en/webapps/mpp/paypal-fees