Does Paypal have any fees?

What do you do when people won't send payment through PayPal Business Payments on Freshbooks, and send you payment directly through PayPal instead, forcing you to absorb the fees you're trying to avoid?

• I like that the PayPal Business Payments fee is only 50 cents, but my clients without PayPal accounts don't want to fork over their bank log-in information or PIN, for obvious reasons. I'd rather not add an additional fee to absorb the costs of the percentage PayPal takes (which really adds up for those 2K, 3K, etc. transactions)--and even if I did want to, I don't know how people will pay, so I can't automate it anyway. Usually people who have a problem with it will just mail me a check, but lately they've just been sending payments to my e-mail address through PayPal directly (rather than Freshbooks), and I'd hate to say "Oh, sorry buddy, you owe me an additional $116.30." Would love suggestions on this.

• Answer:

  Unfortunately you'd be violating PayPal's terms of service if you did add an additional fee. Your best course is to spell out your payment terms on your invoice. They can "Pay Now" using business payments through PayPal or you're happy to wait while they send you a check. Might also be a good idea to spell out your payment policy with a little added explanation in your contract/agreement with clients. Generally, if you put it in terms of "in order to offer you the best price possible, I'm unable to absorb credit card processing fees" clients like that. You're looking out for their money after all. If this does become a big pain, or a big pain with certain clients, then it may be time to raise your rates so that you can absorb those fees.