Paypal Fees — The Difference Between $1.50 RMAH Listing and $5.00 RMAH Listing

[Håles]

If at any point you determine my statements or math is incorrect, please feel
free correct and discuss. Paypal fees determined from the PPCalc.

Withdrawing Your RMAH Profits — Fees to Consider

At this point, it is known that the Diablo III RMAH will be taking a $1.25 flat fee
per item sold using the RMAH, with a minimum listing price for a item at $1.50.

Withdrawal After 1 Auction @ Minimum Sale Price

$1.50 - $1.25 = $0.50

Paypal fees for receiving $0.50 = 31¢

That's 19¢ profit for (1) successful auction at minimum item price.

-

After 10 Auctions @ Minimum Item Price

$15.00 - $12.50 = $2.50

Paypal fees for receiving $2.50 = 37¢

That's 21¢ profit per (1) successful auction at minimum item price.

-

Withdrawal After 100 Auctions @ Minimum Item Price

$150 - $125 = $25

Paypal fees for receiving $25 = $1.03

That's 24¢ profit per (1) successful auction at minimum item price.

-

Now let's look at what happens if you sell items at DOUBLE the minimum item
sale price ($3.00) and withdrawal it after 1, 10 and 100 auctions and how that
effects total profits per successful auction.

-

Withdrawal After 1 Auction @ 2x Minimum Item price

$3.00 - 1.25 = $1.75

Paypal fees for receiving $1.75 = 35¢

That's a $1.40 profit per (1) successful auction at 2x minimum item price.

-

Withdrawal After 10 Auctions @ 2x Minimum Item Price

$30.00 - $12.50 = $17.50

Paypal fees for receiving $17.50 = 81¢

That's a $1.66 profit per (1) successful auction at 2x minimum item price.

-

Withdrawal After 100 Auctions @ 2x Minimum Item Price

$300 - $125 = $175

Paypal fees for receiving $175 = $5.38

That's a $1.69 profit per (1) successful auction at 2x minimum item price.

-

In summary, what does this mean? It means that the longer you wait to withdrawal
your money the more profit per successful auction you'll make. The difference between
withdrawing your money after 1 auction at minimum sale price, and withdrawing it after
100 auctions at minimum sale price is a 21% increase in profits.

Successful auctions at 2x the minimum item price yield a 18% increase in profits if you
withdrawal your money after 100 successful auctions as opposed to 1.

Yes — there is a 3% difference in Paypal fees associated with withdrawing your money after 100 successful auctions at minimum price v.s. 2x minimum price.

The Bottom Line — withdrawal your money less to make more REAL MONEY from Diablo III RMAH.

[Håles]

I hope a mod can edit the post topic to read: [COLOR=#c0c0c0]The Benefits of Waiting to Withdrawal your RMAH Profits[/COLOR]

Since that's how I actually wrote the article — forgot to change the title as the article progressed. =p

[Bowzer]

Wasn't it stated that you will only have the option to cash out to paypal on a per transaction basis?

If you choose to stash it, it will be made into "Blizzard Bucks" for use on the auction house, which cannot be withdrawn.

[Håles]

Wasn't it stated that you will only have the option to cash out to paypal on a per transaction basis?

Any chance you can reference that?

[Håles]

Here's what I just found from the AH FAQ on Battle.net..

Can players choose to get cash from currency-based auction house sales, instead of having the proceeds deposited into their Battle.net account?

Yes, as an advanced feature, players will have the option of attaching an account with an approved third-party payment service to their Battle.net account. Once this has been completed, proceeds from the sale of items in the currency-based auction house can be deposited into their third-party payment service account. “Cashing out” would then be handled through the third-party payment service. Note that this process will be subject to applicable fees charged by Blizzard and the third-party payment service. Also, any proceeds from the sale of items in the currency-based auction house that have been deposited into the Battle.net account will not be transferrable to the third-party payment service account. Not all regions will support this advanced feature at launch. Region-specific details, as well as details regarding which third-party payment services will be supported and the fee that Blizzard will charge for the cash-out process, will all be provided at a later date.

[Håles]

"...any proceeds from the sale of items in the currency-based auction house that have been deposited into the Battle.net account will not be transferrable to t third-party payment service account."

This supports what you said Bowzer – looks like you can choose for the transaction to go to the third party, or the Battle.net account at the end of (or beginning of) an auction. Hmm... changes things a bit now doesn't it.

[dolicsehrant]

atm the whole fee structure looks incomplete.

the 1.5$ minimum amount obviously is not enought for 1.25$ for blizz and 0.30$ + 2.9% for paypal.

i guess the two will figure out a deal to fix that and let us know in the coming weeks.

then theyll have to translate the final fee structure into other currencies as well.

[Eagle]

The Bottom Line — withdrawal your money less to make more REAL MONEY from Diablo III RMAH.

Your conclusion applies as long as the paypal payout feature involves a fixed component. However as far as I'm aware we have no details yet of the exact paypal costs. You can pretty much guarantee Blizzard will have negotiated rates specific to the RMAH. So your actual numbers probably don't mean much.

[Håles]

Your conclusion applies as long as the paypal payout feature involves a fixed component. However as far as I'm aware we have no details yet of the exact paypal costs. You can pretty much guarantee Blizzard will have negotiated rates specific to the RMAH. So your actual numbers probably don't mean much.

Yes — in truth it's all speculation at this point. And, because patches exist, even with release subject to change. Those numbers above are based on the "general" paypal fees atm. Blizzard might get a specific discount... but that's not to say that discount will be passed on the players.

Yet again — when doing calculations of this nature, we'll have to wait and see...

[AngleWyrm]

1.50 - 1.25 is NOT .50.