A couple of times a year I receive a query from someone that asks "why do you charge a PayPal fee when other online transactions don't?"
Let me explain.
PayPal is a good service, fast payments, good paper trail and they accept credit cards and linked bank accounts.
That service comes at a cost to us though. Their current fees for Australian transactions are $0.30 plus 2.4%.
That money has to come from somewhere so either we need to mark-up everything we sell by $0.30 + 2.4% or we can just add it to the transactions that were paid with PayPal. To me is seems silly to gouge everyone on the off chance they will pay with PayPal which is what many other businesses do to save this discussion.
In the BeanBay checkout you get a choice.
Internet Banking (EFT) Transfer for actual cost (no fees added).
PayPal with their actual fees added on.
The two totals are shown on the page in BeanBay and we make the assumption that those that want fee-free will use EFT and those that want instant payment or credit card options will decide if the fees are worthwhile to them.
I think charging only those that use the fee incurring service is the fairest method of cost recovery which is why we have always charged the actual PayPal fees. This also meets the ACCC guidelines Different pricing for different payment methods (credit cards versus cash)
"If I pay today when do you get the payment?"
We receive roughly 9000 payments per year electronically from PayPal and nearly every bank, building society and credit union in the country. Some are worse performing than others, typically some of the smaller credit unions add an additional day to the below figures.
PayPal is less than 15 minutes. They were instant but for some reason there is some lag in there now and often we will receive the email saying we have payment 10-15 minutes before we get it. It's still the only "instant" service but as shown in BeanBay we pass the actual service fees back to you.
Banks / Building Societies / Credit Unions
EFT Mon-Fri business hours:
A transfer made by you Monday to Friday during business hours (3,4 or 5pm depending on the bank) will hit our account the following day.
EFT Mon-Thu after hours:
A transfer made by you Monday to Thursday after business hours will hit our account in two days, eg: Monday at 6pm will appear on Wednesday.
EFT Fri after hours:
A transfer after 5 or 6pm on a Friday will appear in our account on a Tuesday!
Transfers on Saturday or Sunday appear in our account on Tuesday.
Cash over the counter:
Depositing at a branch during business hours will typically be instantly in our account but because its a rare method we typically won't check for it or see it till the next day.
Now the weird stuff.
We currently use Bank of Melbourne, it was opened as a St George account but got rebranded when Westpac bought them. Head office is in Sydney (which might not be where you thought Bank of Melbourne would be based) and as such the bank computer doesn't work on Sydney public holidays! So a transfer on the Monday before Melbourne Cup will appear Tuesday, a transfer on Melbourne cup Tuesday will appear on Wednesday but a transfer on Monday 7th October won't appear till Wednesday because it's a NSW holiday even though my local branch is open.
Bank computers don't work weekends, after hours, Monday's or public holidays (in the state they are based).
Best trick is to procrastinate less, order earlier and then you can stress less about the transfer and shipping times.