Question about renting points

[Kickstart]

I'm a new DVC member looking to rent out my 2021 points, and I had a question on payment fees....

If using paypal or venmo, is it typical for the renter to pay the transaction fee (appears to be 2.9% plus $0.30 for paypal)?
Looking at sample contracts it appears this is typically the responsibility of the renter to pay the payment fees, but those same sample contracts don't explicitly show the payment fees in the total cost calculations.

For those of you who rent, how do you handle these fees?

Thanks,
Kickstart

 

[starry_solo]

I rent from an owner and pay the fees.

 

[Marionnette]

I'm a new DVC member looking to rent out my 2021 points, and I had a question on payment fees....

If using paypal or venmo, is it typical for the renter to pay the transaction fee (appears to be 2.9% plus $0.30 for paypal)?
Looking at sample contracts it appears this is typically the responsibility of the renter to pay the payment fees, but those same sample contracts don't explicitly show the payment fees in the total cost calculations.

For those of you who rent, how do you handle these fees?

Thanks,
Kickstart

Everything is negotiable between owner and renter. Some owners use PayPal friends and Family to avoid paying fees. A few use escrow accounts. It is up to you whether you absorb the cost or pass it on to the renter.

 

[EYL]

I give a couple options, including PayPal which may have a fee, and Zelle, which typically has no fees.

 

[Kickstart]

I give a couple options, including PayPal which may have a fee, and Zelle, which typically has no fees.

Ah... I was looking at Zelle, but my credit union doesn't participate... I'll have to see if I can use them without fees.

 

[the.wizard]

I found this about PayPal Fees: Sending money domestically to friends and family via a PayPal balance or linked bank account is free. Sending to friends and family, also domestically, via a credit card, debit card or PayPal credit is subject to a charge of 2.9% of the amount sent through this method, plus a fixed fee of $0.30. (International transfers are subject to transaction and funding fees, plus a fixed fee for sending in other currencies.)

 

[Kickstart]

I found this about PayPal Fees: Sending money domestically to friends and family via a PayPal balance or linked bank account is free. Sending to friends and family, also domestically, via a credit card, debit card or PayPal credit is subject to a charge of 2.9% of the amount sent through this method, plus a fixed fee of $0.30. (International transfers are subject to transaction and funding fees, plus a fixed fee for sending in other currencies.)

Yeah, I think there can be both a senders fee (if the sender uses a credit or debit card) and a sellers fee (another 2.9%) if it's for a service or product.

If the sender uses a PayPal balance or linked bank account AND specifies they're sending money to friends/family - there are no fees on either side. But (I believe) even if the sender is using a PayPal balance or linked bank account the recipient (seller) is still charged a 2.9% fee if it's a payment for product or services (i.e. not sending money to friends an family).

I wouldn't want to ask someone to send money as a friends/family as payment for renting points, as I'm not sure if that would violate Paypal policy and I'm pretty sure there would be some buyer protections they'd forfeit.

 

[Yinn]

Yeah, I think there can be both a senders fee (if the sender uses a credit or debit card) and a sellers fee (another 2.9%) if it's for a service or product.

If the sender uses a PayPal balance or linked bank account AND specifies they're sending money to friends/family - there are no fees on either side. But (I believe) even if the sender is using a PayPal balance or linked bank account the recipient (seller) is still charged a 2.9% fee if it's a payment for product or services (i.e. not sending money to friends an family).

I wouldn't want to ask someone to send money as a friends/family as payment for renting points, as I'm not sure if that would violate Paypal policy and I'm pretty sure there would be some buyer protections they'd forfeit.

You can also try Venmo ($5000 limit) and Apple Pay ($10000 limit) both have no fees as long as they're taken from a bank account, or debit card/Apple Cash. Use a credit card on either and it'll trigger a fee

 

[Kickstart]

You can also try Venmo ($5000 limit) and Apple Pay ($10000 limit) both have no fees as long as they're taken from a bank account, or debit card/Apple Cash. Use a credit card on either and it'll trigger a fee

Yeah, I should probably get with the program and look into other payment methods besides paypal

I'm not sure about Apple Pay, but it looks like Venmo does not "approve" using it for products or services unless they explicitly authorized it. At least not for personal accounts.

I'm sure some people use Venmo for purchases all the time, and haven't had any problems, but there's a risk to both the buyer and seller. Per Venmo's website
"

• If you send a Venmo payment to someone for a good or service, you could lose your money without ever getting what you paid for.
• If you accept a Venmo payment from someone for a good or service and we later review the payment, we may reverse the payment, meaning you could lose both the payment and the item sold. This review process may not occur until after you attempt to transfer the funds out of Venmo.

"
So, basically there are no protections for the buyer and the seller could have the payment reversed just on technical grounds. (at least that's how I read it)

I suspect Venmo doesn't care about small transactions (like paying the babysitter), but a large transaction may get their attention.

 

[Yinn]

Yeah, I should probably get with the program and look into other payment methods besides paypal

I'm not sure about Apple Pay, but it looks like Venmo does not "approve" using it for products or services unless they explicitly authorized it. At least not for personal accounts.

I'm sure some people use Venmo for purchases all the time, and haven't had any problems, but there's a risk to both the buyer and seller. Per Venmo's website
"

• If you send a Venmo payment to someone for a good or service, you could lose your money without ever getting what you paid for.
• If you accept a Venmo payment from someone for a good or service and we later review the payment, we may reverse the payment, meaning you could lose both the payment and the item sold. This review process may not occur until after you attempt to transfer the funds out of Venmo.

"
So, basically there are no protections for the buyer and the seller could have the payment reversed just on technical grounds. (at least that's how I read it)

I suspect Venmo doesn't care about small transactions (like paying the babysitter), but a large transaction may get their attention.

That's correct, Venmo doesn't offer any purchase protections and isn't backed by a large bank. They're owned by Paypal - which prefers you to go through their fee based service of course to get those. However, even going through Paypal doesn't offer those protections for timeshare or real estate transactions.

That being said, I've used Paypal, Quickbooks, Venmo, Zelle, and Apple Pay for transactions - both large and small with the bulk via Paypal so far. It also happens to be the only place I've had a dispute against me - and lost despite having done nothing wrong and providing all the proof. Since then I shifted to using some of the other methods to at least save on fees but I do still use Paypal for the bulk of my payment processing when my buyer/renter prefers it.