This is a first for me. Anyone else experiencing this? The companies are eleadpros(Josh Williams) and Person to person Quality(Marc Ciagne). It seems these 2 schedulars say were unaware. I hope they correct the shortage. Shop Art

I did not realize Person to Person deducted a fee from their PayPal payments. I don't think I've had a fee deducted in the past by Person to Person. PayPal charges a fee when a payment is made. Some MSCs pay the fee and others charge it to the IC. Second to None and CORI both deduct the PayPal fee from payment if you select PayPal as your payment method; both of these also offer direct deposit with no fee. eleadpros is a new one on me; I don't know that company.

PayPal's fee statement:

"Fees are based on whether you are making a Purchase Payment or a Personal Payment.

For Purchase Payments, the recipient of the payment will always pay the fee.

For Personal Payments, the following applies:

The fee depends on the Payment Method you use.
The fee is paid by either the sender or recipient, not both.
The sender of the payment determines who pays the fee at the time the sender makes the payment.

What is the difference between a purchase payment and a personal payment? This important distinction will determine whether or not it is against the rules to charge the buyer the paypal fees. The ToS clearly state that the fees of a PURCHASE PAYMENT must be paid by the recipient, however, for a PERSONAL PAYMENT the fees can be paid by either party with the sender choosing who pays the fees."

So - if you buy on ebay, you will never be charged a fee. If you are paid as an IC, it is the MSC's choice whether to pay the fee or whether to take it out of what they pay you. I try to go direct deposit whenever I learn my PayPal will be charged - although I prefer PayPal to direct deposit, I prefer not to be charged a fee.

A purchase payment is where you are buying something. In this case, they are buying our services.

A personal payment is a parent sending money to a college student.

Technically, as contractors, our Paypal accounts could become classified as Business accounts. They used to do that automatically if anyone paid you with a credit card more than (I think) three times. Once you were classified as a business account, they took approx. 3% fee on all your incoming payments. I'm not sure what their policy is now, I know they've made some changes, and I know the sender can opt to pay the fees.

I have both a business account (attached to my LLC) and a personal account (attached to my personal bank account and credit card). I have my MS pay directed to my personal account since it is not going through my LLC, but onto a Schedule C on my personal tax return. I've only received one payment for MSing and no fees were taken but I didn't look to see how the MSC "coded" the payment. All payments through my business account have fees taken out of them.

I've been wondering if fees will be taken out of the MS payments. I should be getting a few payments soon so I'll have to look and see what they do. I don't care if they pay by PP or DD but for the pittance many of them are paying, I may just throw a hissy fit if I start losing 3% to Paypal.

Paypal takes the 3% fee for credit card payments, to cover what they have to pay the CC companies. If the MSC's are not using a credit card to pay us, there shouldn't be any fees involved. So maybe that's what happened to OP, the MSC paid by credit card.

I received a PP payment from P2P 10/29. No fee was taken; I was paid the full amount.