PayPal question

I usually Google to find answers to my questions, but I couldn’t find an answer and don’t have much time. I’m selling a car, it’s $4,200. The buyer wants to pay me through Paypal so he can use is credit card. Is this possible? If so, is he going to be charged a lot to use his credit card? I assume there’s not a fee for me if we do the transaction as sending money to a friend.

 

Yes it’s possible, yes there’s a fee, no don’t do it.

 

If he objects, tell him to PayPal his friend the money and then the friend can give you cash.

 

They (PayPal) will charge him the 3% (roughly) fee to send money via Friends and Family to you with a credit card. If he runs the transaction like a purchase then you will be charged the fees. Paypal may also delay access to this money for a short period give the amount of money being transferred as well.

 

I believe you may have restrictions on how much you can withdraw each month.

 

Don't do it. PayPal has been known to chargeback even on Friends & Family transactions, and if that fails, the credit card company can chargeback if there is any dispute reported, leaving you without the money and the vehicle. Courts can take a long time to settle disagreements.

Just accept cash only. Let the buyer get a cash advance on his credit card to pay you in cash.

 

Cashers check or certified check. My CC’s have a checking function. He should be able to pay the bank with a CC check.

 

I don't even respond to people suggesting use of paypal.

You want it, bring cash, or meet me at the bank for a transfer.

 

Nope. Too easy to forge these days. The only way you can even close on real estate around here is by wire. Instant, secure. Yea, more $ than we're talking, but the point is they don't do ANY type of check any more.

At the bank. Buyer either brings cash, or if it's his bank, makes a withdrawal.

If they bring cash, let bank count and check bills for counterfeit.

OP, as others have said, ixay nixay on the PayPal.

 

Thanks for all the advice and information, I appreciate it. The transaction would be with a relative, otherwise I would have definitely said no way from the beginning. I do require cash to purchase the car for anyone else. They should be able to get cash from their card but I'm sure it will be expensive and I think the credit card companies charge more interest of cash advances. I don't know, I never carry a balance on my credit cards.

 

You're asking for trouble. Especially bad within your family. Chances are he doesn't have the money, and/or can't get it any other way. Even if he got a legitimate cash advance on whatever credit card, there's no guarantee you would ever see it. Run screaming away from this.

 

family deals are the worst. unless they want to do a deal at the bank, I'd avoid it. plus, you then still have to deal with them the rest of your life. PASS

 

I like PayPal. Especially with a invoice. With an invoice yes there is a fee but there is protection. Send someone a cashiers check, and that money is gone. Some people just add the fee % to the total cost to the buyer.

 

Do it like a normal transaction (not gift or friends/family) thru PayPal but add the PayPal fee onto the price. There’ll be a max you can withdrawal each month so it’ll be a few months, at least, that you’d get all your money. Why doesn’t he just get a loan thru his bank? If he doesn’t have the credit for that then I wouldn’t be having business transactions with him.

 

As stated above, it's not a good idea to use Paypal for this kind of transaction.

Always remember: Paypal is not a bank, it is a corporation.

 

Why does the buyer want to use a credit card?

If he earns 1-2% rebate on the credit card, it would be a bad idea because the Paypal fees will exceed the rebate amount.

If he doesn't have $4200 up front and wants to use the credit card to pay in installments, it would be a bad idea because credit card interest is typically ~20% per year. It would be better to get a personal line of credit at a bank.

 

He can't afford the car. Do your relative a favor and tell him to put a bus pass on his credit card.

 

If your relative can’t afford the vehicle they should be the ones wondering if they should be doing this.

 

Are you saying Banks are:
1) Not corporations or
2) Gouge you less than Paypal?