PayPal Transaction fee

What is the best way to deduct the PayPal transaction fee from an affiliate's commission?

Thanks

  • Zyniker
    • WordPress Warrior

    If, as I believe, your goal is to have the affiliate bear the costs of a PayPal transaction instead of you, then the easiest way would be to configure your affiliate payouts such that they take into account the cost of PayPal processing. I don't believe there's any other particularly easy way to accomplish this.

  • Zyniker
    • WordPress Warrior

    I would tentatively second Imperative Ideas' recommendation. I considered that thought when I was typing my reply, but wasn't certain on the law relating to affiliates (I know here in California you cannot charge credit card processing fees to customers).

    If you want to avoid the potential for liability altogether, I would recommend you just work the cost of processing into your affiliate structure (i.e., pay out slightly less to everyone because of the costs you incur in process). This setup is legal.

    DISCLAIMER: None of the foregoing is legal advice.

  • 11 Plus for Parents
    • The Incredible Code Injector

    Do let me say that I am not charging affiliates anything. Rather I am paying out commissions to affiliates.

    It would definitely be pure madness to try to bill back affiliates, but allowances have to be made for the transaction fee. I figure guys with more experience in these matters than I could offer advice on where in the process is the best place to make the calculation as I could not seem to find a simple way to do it in the affiliate program.

    There are other mitigating factors, but not everything should be said in public.

    Thanks

  • 11 Plus for Parents
    • The Incredible Code Injector

    By the way Imperative Ideas,

    The affiliate is not a customer in the same sense as a paying customer.

    Even in my neck of the woods where there is often a lag in following international trends, one can get into hot water for billing customers credit card fees.

    Thanks for your input.

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