[walt17]

When using Paypal to make purchases, and the funds come from a credit card, does Paypal charge an additional fee in addition to the credit card fee? For some reason on the Paypal site I can't seem to get a clear understanding.

[morgaine300]

There shouldn't be any credit card fee to begin with. There might be exceptions, but that doesn't seem right. It might be how you're doing it. If you are funding your account with a credit card -- that is, if you're just putting funds into your account for future use and not purchasing something specific, then that will get treated as a cash advance. And that will create credit card fees based on your credit card's policies.

If instead you are actually making a purchase, and you link into Paypal through wherever you're making the purchase from (like eBay or some other place accepting Paypal), the charge on your credit card is "connected with" that purchase, and is treated like a purchase. That shouldn't create a fee any more than charging something right in the store. (Again, unless there's something unusual about your credit card. If you've been charged fees, you might call them and find out what that's about.)

This means don't just stick money into your account for future use using a credit card. Wait until you actually make a purchase and tie it in with the purchase. (If you have some reason for wanting money in there for future use, or to just send cash to someone you know, you can fund it with your bank account. But you should call your bank and see if that would have a charge attached to it.)

Now, as for Paypal themselves charging any fees, no. Paypal is partially funded from incoming payments on premium accounts, and also from business accounts but I don't know how those work. For instance, I have a premium account for use on eBay. So if you purchased one of my items and you paid through Paypal, the fees would be charged to me, not you. And that has nothing to do with the credit card. The fees don't go to the purchaser. (Unless there's an exchange rate charge.)

In fact, with a personal account, you can even take payments in without any fees, cause personal accounts are totally free. Like your friend in California could send you money this way for free. But it has limits -- they figure if you're getting money in too much, you're now "doing business."