Paypal is a great way to send funds instantly to people without the hassle of credit cards, or giving up your banking information.
One of the down sides to this system is the roughly 3% Paypal takes off the top for each transaction. If you’re sending $10, not that big of a deal. But when people send you $10,000 (like a client told me about today) she lost over $400 in the transaction.
Most people don’t know that this fee is completely avoidable!
Here’s all you need to do:
When someone tells you they’re going to send you money via Paypal, request that they select the “Personal” tab, and click the “Other” option.
That’s it! Instead of your friend absorbing the fees (or worse- passing them on to you!) Paypal eliminate the fee.
Did this article save you some future funds? Why not buy me a latte at Starbucks as a thank you?