Processing Fee TOO HIGH FOR BUYERS!

[jawadaffiliatio]

Dear all,



Does anyone find as me that paying 5% as processing fee every time you purchase a gig is way too much???

Does anyone know of any other payment methods?? I believe that is Paypal’s fee to Fiverr but do you know of another way that you can make the payment to the seller?

In e-commerce sites most of the times I don’t pay more than 3.5-4% it makes me want to look for alternatives…



Thank you in advance,



J

[dukanu]

Hi there,

As a seller, Fiverr part from my earnings is 20% but I am ok with this since I don’t have to invest in marketing or seo.

Keep in mind this is a low budget e-commerce site and 5% is not much at all. For other e-commerce sites where you pay much more money for similar services 3,5-4% is much more in comparison to Fiverr.

All best,

dukanu

[presseditor]

I recommend you not to use alternative payment methods to pay sellers as this can easily get your (and the sellers) account deactivated, as it is against fiverr’s Terms of Service. It’s important that payments are made via fiverr, as they need to generate money too to ensure there is a steady cash-flow to keep things up and running.

Some people believe it’s a high fee, others believe it’s okay, but no matter what, it’s important to stick to the TOS as it’s the only way to keep such a site alive.

[whitehatseo10]

The fiverr fee is too high. I’m a seller and buyer here, but the fiverr fee decreased the purchases I made. I’m not an ass-kisser like many other sellers who are very happy for getting a $5 sale, but since that fee was introduced, my sales (like the entire Fiverr sales) was dramatically dropped.

[jawadaffiliatio]

Reply to @presseditor:

Of course, I didn’t mean saying that I wanted an alternative method “outside fiverr”, I meant inside, is there any other way? I don’t even want Paypal to have access to my details, I want a direct connection between banks. Paypal is not a bank, it’s an alternative method of payment but their fees are much higher than a normal card processing company.

[jawadaffiliatio]

Of course, I didn’t mean saying that I wanted an alternative method “outside fiverr”, I meant inside, is there any other way? I don’t even want Paypal to have access to my details, I want a direct connection between banks. Paypal is not a bank, it’s an alternative method of payment but their fees are much higher than a normal card processing company.

[jawadaffiliatio]

Reply to @whitehatseo10:

I am a recent buyer (only a couple of months) but it is truly discouraging!
When was the fee changed? do you know why did it change?

[jawadaffiliatio]

Reply to @dukanu:

I understand that Fiverr needs to get profits as every other business, so the 20% seems a bit too high for me but fine, as a seller when you get profit fiverr does as well, that’s a good system. However what I’m talking about is the “Processing Fee” added to every purchase, this is like when you go to a physical store and they swipe your card, the business pays a fee, only that in this case Paypal is charging it to the customer, but OK, I can even understand that. What I cannot understand is how in every other online store it is only charged a 3.5-4% per purchase (again, not talking about the seller).

[presseditor]

No worries, I didn’t mean to make it sound negative 🙂 The line below just sounded like it, so I wanted to make sure you are aware of the TOS in case you were not.

jawadaffiliatio said: I believe that is Paypal's fee to Fiverr but do you know of another way that you can make the payment to the seller?

And to answer your question, no there are currently no other ways. Bank transfers would also not work out well as it would add extra load to the system, plus it would take too long. Even fast bank transfers take a day to process and most buyers would not like to wait a day for the money to process and then another day to get their work delivered.

It would also be a bad idea to allow buyers to deposit money into their account because when allowing people to deposit funds, a company like fiverr would need a banking license, as they are storing real money at some place, so people would ask for interests for unused money and so on. Also, banking would add a lot of extra load. Just imagine what happened if a transaction was not booked correctly, if a buyer typed something wrong when doing the transfer or if he even forgot to add the username to credit the funds too. This all would keep customer support extremely busy due to investigations, support tickets and so on.

Other payment options like the ones similar to paypal would be a good idea, but wire transfers are always a pain. I worked for many large companies who offered all this and it was always a pain 🙂