Paypal Donations take fees

  • In the GiveWP form settings I have chosen Paypal Donations as the payment gateway. To enable the Paypal Donations payment method I needed to create a business account in Paypal and now PayPal takes fees off my donations.

    Here is a screenshot of my account settings in GiveWP Paypal Donate payment gateway.
    https://snipboard.io/i1VZnQ.jpg

    And here a screenshot of payment Gateways in use in the donation form:
    https://snipboard.io/ZYmWFz.jpg

    This is what I was told by PayPal Support:

    “I understand you’re looking for assistance regarding a payment that has a fee, which should really be a donation. No worries—I’m here to help! After reviewing your PayPal account, it looks like the payment was processed as “goods and services” instead of as a donation, which is why a fee was applied. When transactions are processed this way, there is typically a charge associated with it. To resolve this, I recommend issuing a refund to the sender and kindly asking them to resend the funds as a personal payment. This way, you can avoid any fees!”

    I have multiple donations already and I can’t refund them all and ask for new donations, also I don’t know how to set up the integration with WpGive Paypal Donation and Paypal account setting correctly to avoid fees, as to enable the WpGive Paypal Donations I was asked to change my paypal account to a business account.

    Can you please help resolve this issue in a way that the payments made via Paypal woud be without fees? I don’t know how to fix it. Thank you.

Viewing 1 replies (of 1 total)

  • Hello @minnalina.

    I’m not from the support team, but let me tell you that what PayPal told you is confusing and partially false.

    PayPal, as any other payment gateway on the planet, applies transaction fees on EVERY transaction, donations included.

    The only difference is that if you verify your status on PayPal as a Non Profit Organization, they may apply lower fees on your transactions marked as “donations”.

    In your scenario, you were using a personal account to collect donations, and in that case fees don’t apply because it’s like if you are exchanging money between friends… It was like me sending you (not your organization, but you as an individual) 10€ via the PayPal app… But I’m not sure that’s 100% legally/fiscally correct ??

    So the real difference here is that you were using a PayPal personal account, where transacation fees are never applied, and now you are using a PayPal business account, where transaction fees are always applied.

    Kind regards.

Viewing 1 replies (of 1 total)
  • You must be logged in to reply to this topic.