Luis Hernandez

SimMarket now charging a fee for Paypal usage?

Recommended Posts

I did a bogus order in Simmarket (funds very tight for now, just for curiosity, never placed order), when I found this rather nasty surprise:

Simmarket-PaypalWTF.jpg

(Highlighting is mine)

I'm thankful to SimMarket for meeting a big part of my FS needs but, honestly, this looks like nickel & diming.

I don't feel like giving my credit card details to an additional vendor. Looks like I'll be voting with my wallet next time I feel the itch for payware...

 

EDIT: forgot to add, this fee wasn't there before, or at least it wasn't applied in October 2016 (my last order)...

  • Upvote 2

Share this post


Link to post
Share on other sites
Help AVSIM continue to serve you!
Please donate today!

Yeah, that's right. If you don't want to be charge a fee, you can either pay by credit card, or buy the same item at another store. What can I say, it's a business, and services do cost.

Share this post


Link to post
Share on other sites

Paypal is a pain in the @$$ for many vendors so this is no surprise, I gave up on them years ago

  • Upvote 2

Share this post


Link to post
Share on other sites

Same in many places. e.g. Booking flights and hotels. Most will change extra for the convenience :/

Share this post


Link to post
Share on other sites
9 hours ago, Luis Hernandez said:

I did a bogus order in Simmarket (funds very tight for now, just for curiosity, never placed order), when I found this rather nasty surprise:

Simmarket-PaypalWTF.jpg

(Highlighting is mine)

I'm thankful to SimMarket for meeting a big part of my FS needs but, honestly, this looks like nickel & diming.

I don't feel like giving my credit card details to an additional vendor. Looks like I'll be voting with my wallet next time I feel the itch for payware...

 

EDIT: forgot to add, this fee wasn't there before, or at least it wasn't applied in October 2016 (my last order)...

I recall making purchases at Sim Market, in the past, but I have no need for it, since there are plenty of other E-Tailers I can purchase from that won't charge extra for PayPal.  Nickel & diming is a good way of putting it.  Shopping online was supposed to be the fastest, most convenient way of purchasing anything online, but now Sim Market is making it a little more 'inconvenient'.  I have to laugh that another one of their payment methods is cash...who the heck sends hard cash through the post these days?  While we're on the subject of online payments, how is it they'll allow credit card transactions, without a fee, but Paypal has one?  Credit card companies obviously charge fees too, so this doesn't make sense.

  • Upvote 1

Share this post


Link to post
Share on other sites

Thanks for the heads-up, Luis.

 

Simmarket charge in EUR, so Paypal doesn't have to do any currency conversions for my EUR account. Purchases in USD or AUD can easily be 4% more expensive when payment is provided through PP (due to the way PP calculates those conversion rates).

So Simmarket would still have an edge here but, unfortunately, they have to charge 19% VAT each and every time I buy from them, which is not what vendors outside of Europe usually do.

The combined effect of 19% VAT and 1,5% Paypal fee is almost 21%, as opposed to 4% for me when I get charged in dollars. Sorry, Simmarket, it looks like you're losing me as a customer "a bit more" now ...

Share this post


Link to post
Share on other sites
1 hour ago, Jimm said:

I recall making purchases at Sim Market, in the past, but I have no need for it, since there are plenty of other E-Tailers I can purchase from that won't charge extra for PayPal.  Nickel & diming is a good way of putting it.  Shopping online was supposed to be the fastest, most convenient way of purchasing anything online, but now Sim Market is making it a little more 'inconvenient'.  I have to laugh that another one of their payment methods is cash...who the heck sends hard cash through the post these days?  While we're on the subject of online payments, how is it they'll allow credit card transactions, without a fee, but Paypal has one?  Credit card companies obviously charge fees too, so this doesn't make sense.

+++1

Intend to give them a wide berth from now on, despite having bought loads of add-ons from them. It's like you line up to get concert tickets, you pay the asking price, and then discover you've paid 2% for the privilege for lining-up yourself as the box office rakes in a tidy 'little earner' for ripping us off. Likewise with simMarket

  • Upvote 2

Share this post


Link to post
Share on other sites
1 hour ago, vc10man said:

It's like you line up to get concert tickets, you pay the asking price, and then discover you've paid 2% for the privilege for lining-up yourself as the box office rakes in a tidy 'little earner' for ripping us off. Likewise with simMarket

I think that's a little unfair given that PayPal charge almost 5% (plus a currency conversion fee) per transaction outside the US (and even inside the US it's still about 2.5% + fees). It's very convenient for buyers, but as alluded to above expensive and not very convenient for sellers. I doubt SimMarket are making any profit on that extra fee: it is an attempt to incentivise customers to use an alternative payment method. In the same way the box office you compare it to would rather you booked online using the automated service which means they don't have to employ so many people on the desk: I doubt a couple of percent covers the cost of an actual human printing and handing you your ticket.

It would probably be easier for SimMarket to withdraw PayPal as a payment method altogether, as increasing numbers of online retailers have done.

  • Upvote 1

Share this post


Link to post
Share on other sites

I stopped using PayPal

 

Their exchange rate is highway robbery

  • Upvote 1

Share this post


Link to post
Share on other sites

I thought credit card companies charge store owners a service charge too but the store owner eats the service charge in order to continue to do business with a customer or the credit card company will add the charge to your credit card statement.  PayPay is a very secure way of paying for a purchase via your bank account or credit card company.  I like security and don't like giving everyone my credit card numbers and debit card numbers and bank information to every store owner I deal with.  PayPal prevents this from happening.  SimMarket has no idea where your money came from by using PayPal.  PayPal has other services they provide too. 

Best regards,

Jim

  • Upvote 3

Share this post


Link to post
Share on other sites
3 hours ago, skelsey said:

In the same way the box office you compare it to would rather you booked online using the automated

I did that for a recent Bob Dylan concert in LIverpool. Guess what? Got charged £7 for what was supposed to be a Special Delivery of that ticket. And what happened? Ripped off by the online box office purchase with a bog standard 2nd Class mail delivery!!!! Were I to have lived in student digs, that much-sought after could very easily have gone 'astray'.

AFAIC, if that's simMarket's policy after having bought from them for years, then it's their loss as I'll direct my CC elsewhere.

Share this post


Link to post
Share on other sites

 

3 hours ago, Jim Young said:

PayPal has other services they provide too. 

One of the neat features is the fact that, if you have a PayPal account and a friend or family member has an account, they can send you hundreds of dollars to your account via PayPal just by typing in your e-mail address in PayPal.  Can a bank do this?  Can a credit card company do this?  Maybe but not as fast and slick as you would want the money super fast.  When one of your favorite friends or family member gives you money to buy, say, P3DV4, they can instantly send it to you. If LM uses PayPay, you just tell PayPal what funds you want to use.  If not enough money was received from your favorite friend, you can tell PayPal to withdraw a portion of the money you received and tell PayPal to use one of your credit cards.  No charge for this service.

Best regards,

Jim

Share this post


Link to post
Share on other sites
7 hours ago, Jimm said:

I recall making purchases at Sim Market, in the past, but I have no need for it, since there are plenty of other E-Tailers I can purchase from that won't charge extra for PayPal.  Nickel & diming is a good way of putting it.  Shopping online was supposed to be the fastest, most convenient way of purchasing anything online, but now Sim Market is making it a little more 'inconvenient'.  I have to laugh that another one of their payment methods is cash...who the heck sends hard cash through the post these days?  While we're on the subject of online payments, how is it they'll allow credit card transactions, without a fee, but Paypal has one?  Credit card companies obviously charge fees too, so this doesn't make sense.

In my business, MC and Visa charge me between 1.49% and 1.9% per transaction depending.

Interact is a flat $0.12 cad per transaction.

American Express wants over 4%, so they can get stuffed, I won't accept American Express.

I don't know what PayPal's rate is, but if it  is similar to American Express I don't begrudge Sim Market. The ######ing should be towards PayPal.

Paypal charged me 4% conversion rate on a (personal digital entertainment software) foreign currency transaction. I Won't make that mistake again. My bank only charges 0.5% 

Every so often in my business I convert $50,000 - $100,000 from CAD to USD and I usually pay about 0.2% through a currency broker.

PayPal IMHO is a little too greedy

Share this post


Link to post
Share on other sites
3 minutes ago, Jim Young said:

One of the neat features is the fact that, if you have a PayPal account and a friend or family member has an account, they can send you hundreds of dollars to your account via PayPal just by typing in your e-mail address in PayPal.

speaking of which Jim, can you loan me $50? I'll send you my Paypal link. :biggrin:

Share this post


Link to post
Share on other sites

Hi Jim,

No, I don't need your PayPal link, just your e-mail address and the knowledge you have a PayPal account.  Just $50?  You're not getting P3DV4?  :laugh:

AVSIM uses PayPal for donations and advertising and we have to pay a fee too but they deduct it automatically.  So, if you donate $25 (and you have donated much, much more than that - thank you very much), we don't see the whole $25.  Wish they didn't have a service fee but it's a major, major business and they have to pay their employees.  I don't know of any credit card or bank that doesn't have fees.  It is strange that SimMarket is asking for an additional fee from PayPal users as they ARE paying the credit card companies a service fee but not telling you they are paying a fee.  Me thinks SimMarket does not like PayPal. 

Best regards,

Jim

Share this post


Link to post
Share on other sites

I don't think Simmarket is to blame here. Just Paypal getting increasingly greedy.

From a third party dev perspective, they are the most efficient.

They always pay on time.

 

 

Share this post


Link to post
Share on other sites

I'm not seeing shere PayPal is getting increasingly greedy.  This is the charge they have been making for years.  Only difference is that SimMarket is letting you see the charge.  Not sure why they are not doing the same for credit card purchases too as the credit card companies have charges too.

Best regards,

Jim

Share this post


Link to post
Share on other sites
5 minutes ago, Jim Young said:

I'm not seeing shere PayPal is getting increasingly greedy.  This is the charge they have been making for years.  Only difference is that SimMarket is letting you see the charge.  Not sure why they are not doing the same for credit card purchases too as the credit card companies have charges too.

Best regards,

Jim

I'd have to agree with your observations Jim.  What many people may not realize is that Paypal is actually a bank, and as such, they do have to deal with a great many other banks around the world.  Paypal is a massive institution nowadays, and has taken on a lot more financial responsibility, so like any business, they have to offset costs.  For what they charge isn't necessarily unreasonable, considering that they do offer a rather high level of security to protect their customers.  While any 'extra' charge is never a welcome one for the consumer. there is a lot of protection backing the purchases made.  I can attest that in the past, I had some troubling issues arise from transactions made, but Paypal went to bat for me, and I got very satisfying resolutions so I can't turn a blind eye or condemn what Paypal does.

Let us not forget that there are plenty of other online venues to choose from, for making our purchases, so if one doesn't appeal to our principles, there is always an alternative.

  • Upvote 1

Share this post


Link to post
Share on other sites
1 hour ago, Jim Young said:

I'm not seeing shere PayPal is getting increasingly greedy.  This is the charge they have been making for years.  Only difference is that SimMarket is letting you see the charge.  Not sure why they are not doing the same for credit card purchases too as the credit card companies have charges too.

Best regards,

Jim

Whats PayPals percentage?

Share this post


Link to post
Share on other sites

"Through an online transaction

And the funds you are receiving are coming from a PayPal account:then you pay:

In the U.S.a fee of 2.9% of the transaction amount plus a fixed fee based on the currency.

Outside the U.S.a fee of 4.4% of the transaction amount plus a fixed fee based on the currency.

In your store location

In the U.S.a fee of 2.7% of the transaction amount

Outside the U.S.a fee of 4.2% of the transaction amount"

 

Since my business is in Canada, PayPal is more than double the rate of the two credit cards. Interact is a flat fee to the vendor of 12 cents per transaction. PayPal charges the customer an atrocious 4% exchange fee at the same time charging the vendor a fixed fee based on currency. Double Dipping IMHO

MasterCard and Visa charge my small business 1.49% for in person transactions and 1.87% for internet and/or phone transactions. Those credit card companies also offer their cardholders and vendors quite an offering of services and protections. They also employ many people and incur costs just like PayPal. 

Sim Market seems to be charging a fee for the difference in their costs of PayPal vs Credit Cards.

IMHO Sim Market should explain to their customers why they are charging the extra fee regarding PayPal. It would be enlightening to their customers.

I don't know about the Flightsim Addon Retail business, but in my business of manufacturing and fabricating an extra cost of 2%-3% is no small potatoes and would cut significantly into my modest profit margins.

Share this post


Link to post
Share on other sites

I also do not think that Paypal's "greediness" is an issue here. Paypal not only provides a service to buyers, as already mentioned here - convenience, security - they also provide a service to the merchant: they create more business for them and increase sales. Many people will not purchase online, or are reluctant to do so, if they have to give out their credit card or debit card details to yet another merchant. I guess SimMarket will just have to decide of they think Paypal's fee is worth the increased sales.

  • Upvote 2

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now