Are gigs now costing 50 cents extra?
I just purchased my 740th gig, through Paypal. I noticed, for the first time, that there is a 50 cent processing fee. I use paypal for my own merchant payment, so I understand how unpleasant Paypal rates are, but still, I eat this as a cost of business. Questions:
- The processing fee is 10% of the cost of the gig, which is pretty steep. Even high-end credit cards charge around 4-5%. How is this 10% surcharged justified?
- Are the gig sellers getting any part of this 10% surcharge, or is it all going to Fiverr?
- Is this processing fee allowed by Paypal’s Terms of Service? In my layman’s knowledge of Paypal, merchants are not allowed to add a surcharge onto their regular prices for transactions through Paypal’s system.
- How are gig buyers warned of this processing fee? I didn’t see it until I had already purchased the gig and was committed.
Somebody at Fiverr (err, make that Fiverr fifty-center) has some explaining to do…