Help. How do I Remove Shipping Charge from Paypal Fee calculation?

[Stenrique]

Having search for this topic in the forum but to no avail, I hope someone can advise me on the way to remove the Shipping fee from Paypal transaction fee calculation.

I just rec'd an order as follows:
Sub-Total: $35.80
Local Delivery: $6.30
Total: $42.10

Paypal's Payment Fee was:
(3.4% X $42.10) + $0.50 = $1.93

rather than
(3.4% X $35.80) + $0.50 = $1.72

The difference this time is small but it would add up when more payment are made using Paypal.

Any advise is greatly appreciated.

[DrByte]

PayPal charges their service fees based on the total amount of money collected on your behalf.

If you don't want them charging you a fee on the shipping, offer the shipping for free.

[Stenrique]

Seems kind of strange, the way PayPal includes shipping fee in their fee computation since I would think most merchants would not make any profit from their shipping fee. At least my store doesn't.

My guess is that this issue are faced by many ZC owners, any advise other than to offer free shipping for products throughout the entire store? My store currently offers free shipping only when customer makes purchase over a certain $ amount.

[DrByte]

Service charges are a cost of doing business.

If you go to your local furniture store and buy something that requires delivery, and swipe your credit card or debit card, that store is going to pay a service charge on the entire amount of money collected from you ... including the shipping.

That's just how it works.

Maybe you need to add twenty-one cents to your shipping rates?

[Stenrique]

Service charges are a cost of doing business.

If you go to your local furniture store and buy something that requires delivery, and swipe your credit card or debit card, that store is going to pay a service charge on the entire amount of money collected from you ... including the shipping.

No doubt about Service charges being part of running a biz. As for the furniture store example, my previous experience paying for a piece of furniture I bought was that shipping/delivery fee was payable by cash, not CC as the delivery was supposedly to be made by a 3rd party contractor. Now I understand why.

Maybe you need to add twenty-one cents to your shipping rates?

I can't quite add a flat fee to the shipping rate as it is calculated base on weight of the order. Hmm...

Thanks for the clarification Doc.

[aeternal]

Hey Stenrique. I noticed your fees you listed were 3.4% + .50 cents? Where is your business located anyways? Here in the states it's 2.9% + .30 for business/premier accounts to start off with. Depending on your monthly sales volume you can get that lowered to as much as 1.9%. while I agree it can be be a bummer to have a fee tacked on for shipping DrByte is correct in that it's just the cost of doing business. However unless you're shipping heavy items (stuff over $20 for shipping) I wouldnt worry about it too much as thats only going to add a miniscule amount to the overall fee. If you're real concerned about it though I'd suggest bumping up product cost to deflect some of that fee, as long as you can still be competitive. I actually made myself an excel spreadsheet that calculates profit from factoring in wholesale cost, shipping cost, paypal fee, and sale price. It's quite effective : )

[Akayss]

Having search for this topic in the forum but to no avail, I hope someone can advise me on the way to remove the Shipping fee from Paypal transaction fee calculation.

I just rec'd an order as follows:
Sub-Total: $35.80
Local Delivery: $6.30
Total: $42.10

Paypal's Payment Fee was:
(3.4% X $42.10) + $0.50 = $1.93

rather than
(3.4% X $35.80) + $0.50 = $1.72

The difference this time is small but it would add up when more payment are made using Paypal.

Any advise is greatly appreciated.

Sorry, As you have done to include fee paypal in total order?

I use the paypal checkout module

Thanks