Q&A: How are fees charged by ebay and paypal for penny auctions?
Anne edited the following
Q&A: How are fees charged by ebay and paypal for penny auctions?
Ebay normally takes something like a 9% final value fee and I think paypal takes 3%-4% of whatever goes into your paypal account. How do they handle penny auctions? Do you get like 0.4 cents or how does that work?
The answer in the following:
Answer by Virgy
Are you doing it as an auction or a Buy It Now? Also, some listing fees vary by category.
eBay Final Value Fees do not kick in until the price is at .06.
So if it is an auction you will not be charged anything by eBay. PayPal will only charge the .30 transaction fee, which will be implemented against your PayPal account once the buyer has remitted payment (the 2.9% additional charge by PayPal would not apply in this case). The .29 you then owe PayPal (because you only received .01 from the buyer and PayPal charges .30) will then be taken by PayPal from whatever backup funding source you have associated with your PayPal account (i.e. bank account, credit card).
If it is a Buy It Now, eBay will charge you .50 for listing and PayPal will again charge you .30 for the transaction. The listing fee from eBay will be taken out of whatever funding source is associated with your eBay seller account and the PayPal fee will, as stated previously, be taken out of the backup funding source associated with the account.
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