Musician's Workshop Group Buy Instructions

  • Thread starter Thread starter Zetajazz44
  • Start date Start date
apl said:
I didn't see antichef's math, sorry.
Click to expand...
But the difference between yours and mine is that (I think) yours is correct :)

so the function would be:

Function AddPPFees(DAmt)

AddPPFees = ((DAmt + 0.30) / .971)

AddPPFees = (AddPPFees-DAmt)

End Function

small difference (what would look like a rounding error under the circumstances, I suppose)
 
antichef said:
But the difference between yours and mine is that (I think) yours is correct :)

so the function would be:

Function AddPPFees(DAmt)

AddPPFees = ((DAmt + 0.30) / .971)

AddPPFees = (AddPPFees-DAmt)

End Function

small difference (what would look like a rounding error under the circumstances, I suppose)
Click to expand...

Yes, in the function there wouldn't be "rounding", but later down in the code, when I use FormatCurrency(), it rounds it... At that point, your figures and mine equal...

In my first, incorrect way, Chance would have been coming up short, 2.9% of the 2.9% of the grand total... Since the PP trans fees were getting applied to the PP trans fees I already added! LOL! This is getting fun!

Just for fun, I did a calculation to see exactly how much Chance would have been "short" based on the currect order amount for the GB... that amount would be $175.15...

BUT, you know, I also thought about this: In the earlier group buys, Chance was using a standalone PPFees calculator, so I'm pretty sure that he's been running short because of this in all the previous GB's... There are acutally 2 fee calculators on the page he's been using, one is a "PayPal Fee Calculator" and the other is a "Reverse PayPal Fee Calculator". If he used the first one, he's been coming up short, if he used the last one, it's been calculated correctly..


Randy
Zetajazz44
Click HERE to Register for the Musician's Workshop Group Buy
Click HERE to See Another One of My Hobbies
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I also thought about pitching this out to the group buy participants to get their feel on it, but never did...and I suppose now it's too late with the deadlines approaching...

I've worked with Visa/Mastercard for several years now, developing transaction software, payment gateways...etc. I can get really good processing rates from them.

I thought of seeing if everyone wanted to use another gateway other than PayPal to do the "checkout"... Calculated with the current dollar amount of the GB the transaction fees alone are: $6131.30. I could probably cut this by a third using another gateway...


Randy
Zetajazz44
Click HERE to Register for the Musician's Workshop Group Buy
Click HERE to See Another One of My Hobbies
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Is the thirty cents taken out before or after the 2.9%? That's the penny's difference between antichef's and my math.
 
apl said:
Is the thirty cents taken out before or after the 2.9%? That's the penny's difference between antichef's and my math.
Click to expand...

Currently the way I'm doing the calculation is:

DAmt: Quantity of Product * Product Price
The above variable "DAmt" would be passed into the function below.



Function AddPPFees(DAmt)

AddPPFees = ((DAmt / .971) + 0.30)
AddPPFees = (AddPPFees-DAmt)

End Function


Randy
Zetajazz44
Click HERE to Register for the Musician's Workshop Group Buy
Click HERE to See Another One of My Hobbies
TnCLogo_WhiteMatte_BlueHalo.gif
 
apl said:
Yeah, but how does PayPal write the function? ;)
Click to expand...

Well, the way that PayPal writes it, really doesn't matter from our standpoint, since that's the way I had it written before and it was incorrect...

PayPal just adds 2.9% + $0.30 to anything you send to them... What "we're" doing on our end now is adding "extra" to the amount we're passing over to PayPal to cover for the processing fees that PayPal charges on top of the processing fees that we're adding...
 
Zetajazz44 said:
Well, the way that PayPal writes it, really doesn't matter from our standpoint, since that's the way I had it written before and it was incorrect...

PayPal just adds 2.9% + $0.30 to anything you send to them... What "we're" doing on our end now is adding "extra" to the amount we're passing over to PayPal to cover for the processing fees that PayPal charges on top of the processing fees that we're adding...
Click to expand...

Wait a sec...

Adding 2.9% + 0.30 is not the same as taking 2.9% + 0.30.

If I send chance $1000, PayPal would take out $29.30, right?

OK, if my total products were $970.70, and I sent chance $1000 he'd get the right amount after fees.

So by antichef's formula, ($970.70/0.971) + .30 = $999.99

By my formula, ($970.70 + 0.30) / .971 = $1000.00

OK, we're splitting hairs.
 
You guys lost me a few posts ago...I new I should have payed attention in math class! :p

Juan
 
apl said:
Wait a sec...

Adding 2.9% + 0.30 is not the same as taking 2.9% + 0.30.

If I send chance $1000, PayPal would take out $29.30, right?

OK, if my total products were $970.70, and I sent chance $1000 he'd get the right amount after fees.

So by antichef's formula, ($970.70/0.971) + .30 = $999.99

By my formula, ($970.70 + 0.30) / .971 = $1000.00

OK, we're splitting hairs.
Click to expand...

Naw, it just then dawned on me what your question actually was... Whether or not the percentage calculation was also applied to the PerTransaction fee... It was my fault I suppose since I've worked in the bankcard industry for so long, and knew this, I just didn't bother to explain it and/or assumed that everyone knew... Sorry about that..


Well, here's how typical credit card transactions work:

The PerTransaction fee gets added AFTER the percentage calculation takes place... The percentage, or INTERCHANGE calculation is (TheTotalPriceofGoodsPurchased * INTERCHANGE RATE) + PerTransactionFee... In PayPal's case, their interchange rate is 2.9%. This is why when you get a credit card processing rate for a merchant account, your fees are displayed such as 2.9% + $0.30. The percentage rate is NEVER applied to the PerTransaction fee... If it operated like this it would start a "loop". You'd add the PerTransaction fee to the price of goods sold, then do the interchance calculation... THEN you'd have to add the PerTransaction fee again, then do the interchange calculation again...infinately.

If PayPal is applying the $0.30 PerTransaction fee to the item amount BEFORE the percentage calculation, they are in violation of interchange laws...yeah, there are laws that govern interchange for bankcard transactions, so I highly doubt they are... If they are, or do, I'll bet they won't for long. ;)

Randy
Zetajazz44
 
Zetajazz44 said:
Naw, it just then dawned on me what your question actually was... Whether or not the percentage calculation was also applied to the PerTransaction fee... It was my fault I suppose since I've worked in the bankcard industry for so long, and knew this, I just didn't bother to explain it and/or assumed that everyone knew... Sorry about that..


Well, here's how typical credit card transactions work:

The PerTransaction fee gets added AFTER the percentage calculation takes place... The percentage, or INTERCHANGE calculation is (TheTotalPriceofGoodsPurchased * INTERCHANGE RATE) + PerTransactionFee... In PayPal's case, their interchange rate is 2.9%. This is why when you get a credit card processing rate for a merchant account, your fees are displayed such as 2.9% + $0.30. The percentage rate is NEVER applied to the PerTransaction fee... If it operated like this it would start a "loop". You'd add the PerTransaction fee to the price of goods sold, then do the interchance calculation... THEN you'd have to add the PerTransaction fee again, then do the interchange calculation again...infinately.

If PayPal is applying the $0.30 PerTransaction fee to the item amount BEFORE the percentage calculation, they are in violation of interchange laws...yeah, there are laws that govern interchange for bankcard transactions, so I highly doubt they are... If they are, or do, I'll bet they won't for long. ;)

Randy
Zetajazz44
Click to expand...

OK, so I PayPal you $1000. How much do you get?
 
Since we are discussing all of this I'll go on to add this:

What would be nice, if PayPal had a parameter that you could pass over, to let them know to that their processing fees had already been added to the TotalAmount being passed them and to NOT apply interchange to it again...only take out that amount.

BUT, it is against PayPal policy for a recipient of money, in our case, Chance, to ask the customer, in our case, the GB participant, to pay the transaction fees... Again, this is a PayPal Rule, not an interchange law. The reason that they won't allow this, is that it goes against their business model of "Send Money Anywhere in the World...FREE" If the sender is paying transaction fees, then it wouldn't be free...

That being said, I'm sure that some of you have been in convenience stores that have little signs at the cash registers saying, "No Credit Card Sales Under $5.00 Allowed". Now, this IS against interchange laws, because the merchant is actually refusing the transaction because of the sale amount. They way that they can get around it though, would be to accept the transaction regardless of how low the sale amount was, but then charge the customer a "Processing Fee" of their choosing...could be $2, $3, $4...ever what they wanted to charge...

The reason that stores do this is that you have kids with prepaid debit cards that their parents have given them, go into these stores and buy a pack of gum on their card... The profit margin on the pack of gum may only be a few cents. After the merchant pays processing fees, they've actually gone in the hole... They'd been better off to have just given the pack of gum away, rather than run a card transaction for it... At least this way they'd only be out of the pack of gum, not the pack of gum plus transaction fees...


Randy
Zetajazz44
 
apl said:
OK, so I PayPal you $1000. How much do you get?
Click to expand...

I'd get $970.70.

Interchange rate, plus the PerTransaction fee would be: $29.30

$1000.00 minus $29.30 = $970.70


Randy
Zetajazz44
 
Zetajazz44 said:
I'd get $970.70.

Interchange rate, plus the PerTransaction fee would be: $29.30

$1000.00 minus $29.30 = $970.70


Randy
Zetajazz44
Click to expand...

OK, then change

AddPPFees = ((DAmt / .971) + 0.30)

to

AddPPFees = ((DAmt + 0.30)/ .971)

Otherwise you're a penny short.
 
Here's another addition that I'll make:

I've heard business owners bragging to each other about who had the lower credit card processing rate...AND the only fee they'd be describing was the interchange, or percentage rate... One would say, mine is "1.83%" the other would laugh and say, they're robbing you, mine is only "1.72%"...

When you sell credit card processing, you have to be careful how you price your product...processing fees.

Here's a senerio to illustrate this...and why what interchange rate you are paying isn't the most important factor in what the merchant is paying:

Let's assume there are 2 stores in town. Each store processes $10,000 per day in card transactions.

Store #1's transactions are comprised of 2 transactions of $5,000 each.
Store #2's transactions are comprised of 1000 transactions of $10.00 each.

Store #1's processing rate is: 2.20% + $1.00 PerTransaction fee.
Store #2's processing rate is: 1.68% + $0.20 PerTransaction fee.

The owner of Store #2 would be bragging to Store #1 owner about how much lower his "rate" is... In reality, the owner of store #2 would be paying much more.

How they'd break down is:

Store #1:
Total Amt. Processed - $10,000.00
$220.00 - Interchange Fees
$2.00 - PerTransaction Fees
TOTAL - $222.00

-----------------------------------------------

Store #2:
Total Amt. Processed - $10,000.00
$168.00 - Interchange Fees
$200.00 - PerTransaction Fees
TOTAL - $368.00

-----------------------------------------------

So at first glance, Store #1's rates may seem high... but depending on your average ticket sales and average volume, all of that can change...

This is how most processing companies sell their products... Making much talk and interest to the merchant about the interchange rate only...

It's a tangled web we weave!


Randy
Zetajazz44
 
what's the word on the paypal/new payment option? i haven't gotten any notices since hearinf there was a problem with paypal

-JV
 
soulofjonas said:
what's the word on the paypal/new payment option? i haven't gotten any notices since hearinf there was a problem with paypal

-JV
Click to expand...

Read the last few pages of the big thread--"Group Buy Interest?" The latest and greatest info seems to be there...
 
trouble logging in to cp

so i was told that shipping payments would be sent to the control panel, but i can not log into mine. my email is correct and so is my password, but it keeps saying incorrect login....has anyone had this problem? any ideas how to solve it? feel free to email me if you have any suggestion! i really want my mics!!:)
 
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