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I've got the impression that people aren't keen on having royalties paid to Paypal, as Smashwords do. I just had a poke around my Paypal account and discovered you can link any bank account to it, and then do same-day free transfers from your Paypal account to that bank account. (True for UK accounts, anyway.)

Mentioning in case people weren't aware of this; I certainly wasn't. I'll be using Paypal for my new Draft2Digital account - better than waiting for a check and paying a foreign currency fee to cash it!
 

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I'm not a Paypal fan because even though it's free to transfer money from your Paypal account to your bank account, you can only transfer $500 per month (if I recall correctly), and that can be a problem when using it for royalties because many authors receive larger payments than that.

Also, Paypal takes a cut of the money you've received, which can be sizeable when we're talking large sums.

I don't dislike Paypal -- I definitely have a Paypal account. I just prefer to be paid by electronic transfer. If I had to get paper backs and pay a foreign currency fee then I'm sure I'd be singing a different tune. :D
 

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My distaste for Smashwords royalty payment methods is not that they send it to Paypal (though my wife, who is also my accountant, dislikes that because it messes with her orderly income/expense tracking process) but that it is paid quarterly rather than monthly. So, for example, my Apple royalties for October, which were over $600, will not be paid until later this month. Not that I'm in a desperate hurry for it or anything, but if I can choose between whether it occupies space in SW's account or mine, I pick mine.
 

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RobertJCrane said:
If I can choose between whether it occupies space in SW's account or mine, I pick mine.
Absolutely.

Same thing with taxes. I know tons of people who get all excited because they get a large tax refund, but what that really means is that you had too many withholdings and should have fixed that problem all year long. The government was taking out too much money, and thus they got to hold onto your money rather than you. Personally, I'd rather have my money all year long rather than let Uncle Same have it interest-free.
 

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Amanda Brice said:
I'm not a Paypal fan because even though it's free to transfer money from your Paypal account to your bank account, you can only transfer $500 per month (if I recall correctly), and that can be a problem when using it for royalties because many authors receive larger payments than that.

Also, Paypal takes a cut of the money you've received, which can be sizeable when we're talking large sums.

I don't dislike Paypal -- I definitely have a Paypal account. I just prefer to be paid by electronic transfer. If I had to get paper backs and pay a foreign currency fee then I'm sure I'd be singing a different tune. :D
Not true. If you validate your account with a credit card and link a bank account you can transfer as much as you want. I've used paypal forever for our art business. It's the #1 way people pay us.

However, they do take 3.5% of the money paid to you, so that can be a sizeable amount. I'd much prefer direct deposit.
 

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RobertJCrane said:
(though my wife, who is also my accountant, dislikes that because it messes with her orderly income/expense tracking process)
I agree with your wife. Paypal really needs to update their reports. It's a mess.
 

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Deanna Chase said:
Not true. If you validate your account with a credit card and link a bank account you can transfer as much as you want. I've used paypal forever for our art business. It's the #1 way people pay us.
Hmmm...I've had my Paypal account validated with both credit card and bank account for years now, and yet I still see the $500 limit.

Edited to add: Wait a second...just checked and that limit is now gone from my account. I switched to a merchant account back in December because I did a signing where I accepted credit cards, so maybe that's it?

But regardless, I still prefer direct deposit because the bank doesn't take 3.5%. :D
 

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Amanda Brice said:
I'm not a Paypal fan because even though it's free to transfer money from your Paypal account to your bank account, you can only transfer $500 per month (if I recall correctly),
That's not entirely correct.

There's no limit once you verify your account. All that involves is them depositing two or three micro-amounts, generally less than a $1 each, and you telling them the exact amounts when they show up. You're giving them your info anyway, so this tiny step is no big deal. I transferred at least $500 a week for almost a year when one of my clients paid me through them, no problem.

ETA: Repetition. Fast typists here. ;)
 

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Amanda Brice said:
Hmmm...I've had my Paypal account validated with both credit card and bank account for years now, and yet I still see the $500 limit.

Edited to add: Wait a second...just checked and that limit is now gone from my account. I switched to a merchant account back in December because I did a signing where I accepted credit cards, so maybe that's it?

But regardless, I still prefer direct deposit because the bank doesn't take 3.5%. :D
Ahh, it probably is because of the merchant account.
 

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For everything that is kind of gross and skeevy about Paypal, they don't ding me with ridiculous overdraft fees if I should happen to go a dollar over with my paypal debit card. That's more than I can say about my credit union.
 

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Discussion Starter #11
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I have a Paypal Business account. I have no limits on withdraws or transfers. I also have a debit card linked directly to my PayPal account so I can access my money anywhere.

The fees are actually reasonable compared to credit card companies. Particularly for micro-payment processing. Most credit card processors charge both a monthly service fee and have minimum fees that are charged regardless of the size of the transaction.

PayPal is a little like Amazon, however. They provide a great service most of the time, but they also have a reputation for being heavy handed and not always making rational decisions. The entire debacle involving erotica authors and digital retailers is one of the more heinous examples. Their decisions are often arbitrary when dealing with chargebacks. They tend to side with the customer, which would be great in theory. In practice, they have been known to really screw over some vendors by issuing refunds to people who did not deserve them despite the vendor producing all needed evidence.
 

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Dan Harris said:
Also, withdrawals do look like they're free for UK accounts: "PayPal does not charge for withdrawing funds from your PayPal account to your UK bank account".

No withdrawal limit + no withdrawal fee = happy Dan.
Yes, I was wondering about this when someone mentioned. My day job is a copywriter, and I've been paid via PayPal for years with no limits and no fees. Obviously a UK thing! For once we seem to have the positives. ;D
 

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FYI, There isn't a withdrawal fee in the US either. The only fees are on payments received unless it's a gift.

Julie's post pretty much sums Paypal up perfectly.
 
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Amanda Brice said:
But regardless, I still prefer direct deposit because the bank doesn't take 3.5%. :D
This isn't true for everyone, depending on the type of account they have. Many banks still charge fees on direct deposits and wire transfers. Or if the bank doesn't charge for direct deposits per se, they may charge per transaction when determining your monthly service fee. So folks should make sure that they understand their bank's policies, particularly on micro-payments.
 
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Amanda Brice said:
True, but knowing your bank's policies should go without saying.
Oh, Amanda. You're so silly sometimes. Next you'll be saying that people should read the Amazon TOS before uploading a book. :eek: :D
 

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Rlyon said:
I'd love Amazon to pay me by Paypal. If I get a cheque for $100 (about £62, give or take), my bank charges £10 to cash it! I'd happily pay 3.5% instead of, erm... *counts on fingers* about 16%!
Paypal is owned by eBay. Amazon and eBay aren't exactly friends, so I don't see Amazon using one of their big competitor's services anytime soon...
 
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