Honeyfund and PayPal, the good and the bad

Hello from Sara at Honeyfund!

This is an open letter to all Honeyfund users: past, present and future. My goal here is to spell out all there is to know about using Honeyfund with PayPal. The good and the bad.

First a little background: Honeyfund’s goal is to bring brides and grooms the opportunity to take the honeymoon of their dreams, without paying ridiculous fees! As you all know, our major competitors are charging 7-10% on the transaction amounts, which we disagree with in principle. For us that fee would have amounted to another night on our honeymoon! Unacceptable.

Our solution was to offer a simple, offline payment solution. By bypassing credit card systems we could offer our Honeyfund solution entirely free of charge! However, some of our couples really wanted their guests to have the convenience of paying online. We searched high and low for a cost-effective way to do this. The best we found was PayPal, where the payments go directly to you. PayPal deducts a fee of 2.9% + $.30 per transaction. We offer the interface free of charge. By  removing the middle man, we cut the fees by more than half of our competitors–win! What’s more, some guests will still pay offline, making the overall fees our couples pay even lower.

With PayPal, you can withdraw your money at any time, free of charge. The money takes about three business days to get to your bank account. And you can withdraw as often as you like.

That’s the good. 95% of the time this system works beautifully for all parties. Another win!

Now, here’s the bad: PayPal can be very finicky and difficult for guests who have an existing PayPal account but don’t know how to access it. About 5% of our gift givers run into this. Our solution is pretty simple, they e-mail us, and we walk them through the payment or help them access their PayPal account. We also offer them alternate payment options, like paying offline for example. It takes about five minutes on the phone to resolve. (Yes we personally get on the phone, even though we have an e-mail-based customer support system. 🙂

Another common situation is this: The couple’s PayPal account must be configured to take guest credit card payments. Sometimes brides and grooms need a little help figuring it out. Again, we are happy to help and it takes about five minutes to resolve. We’ve been doing it for six years.

Finally, we have a dedicated support team at PayPal that helps us on a case-by-case basis when other wonky things come up.

All in all, what we want our users to know is, we’ve got the experience and the resources to tackle the PayPal beast when it rears it’s ugly head. 🙂

And here’s a tidbit of exciting news…while we plan to continue to offer PayPal as a wonderful and cost effective solution for our brides and grooms, we are working on more online payment solutions that will make gift giving via Honeyfund cheaper and easier for all parties. Some of these solutions are 100% online and 100% free of charge!! This is a very exciting development for us as it brings us closer to our vision, a free honeymoon registry for all. 🙂

Would love your comments and feedback!

– Sara Margulis, CEO, Honeyfund.com

49 Comments, RSS

  1. Josh February 13, 2014 @ 5:02 pm

    Sorry for any confusion Laura. There are no additional fees. The only fees you pay are those of PayPal (2.9% + $0.30/transaction) or WePay (2.8% + $0.30/transaction). We do not charge any additional fees. 🙂

    • Ali Rodriguez February 4, 2015 @ 10:37 am

      What is Wepay? I’m confused on this answer? We have an account with you and PayPal and are worried we will be getting about 5% + per transaction on fees. Is that what you’re saying? Or is it one or the other?
      What will the total fees be in the end?


      • Sara February 10, 2015 @ 10:51 pm

        Hi Ali,
        Sorry for the confusion. WePay is another processor we’ve worked with. With your Honeyfund linked to Paypal, the only fee is 2.8% + $0.30.
        Sara & Josh

  2. Diana August 3, 2014 @ 4:11 pm

    I’m confused about the 2.8% + $0.30/transaction on paypal? I have a paypal account and whenever I send money to friends or family there is no fee if you use your PayPal balance or bank account for domestic transactions. The only time I’ve been charged a fee is for a service. But since this friends and family sending us money as a gift there shouldnt be a fee if I’m not mistaken. Unless that 2.8% + $0.30/transaction fee is if they send it to through credit cards?

    Thank you

    • Sara August 3, 2014 @ 4:43 pm

      Hi Diana,
      Thanks for your e-mail. Yes the integration we have with PayPal allows guests to checkout with a credit card, without needing their own PayPal account. Only your online gifts will incur the nominal fee, offline gifts are always free. 🙂


  3. Rebecca August 9, 2014 @ 4:04 pm

    I’m confused about having to register for a paypal business account rather than using my existing personal paypal account. According to the paypal website, there is an additional fee to use (free to set up, fees to use) a business account rather than a personal account. Was this taken into consideration with the agreement with paypal? Or do you have any further insight as to whether or not we can use our own personal account instead of having to opt for a business account?


    • Sara August 9, 2014 @ 5:00 pm

      Hi Rebbeca, thanks for reaching out. The PayPal business account allows guests to pay with their credit card, without needing their own paypal. Josh and I would love to allow personal accounts and no-fee transactions, but alas credit card checkouts always carry a fee. Paypal Business allows us to offer a discount to our customers (2.8% + $0.30 vs 2.9% + $0.30) and the convenience of cc checkout to guests. Hope this helps! 🙂 – Sara

      • liz bernstein February 6, 2015 @ 1:24 pm

        In regards to Rebecca’s question, I wasn’t thrilled in setting up a business account either. Do we get taxed at the end of the year on the money we get for our honeymoon gifts since it’s through a business account?

        • Sara February 10, 2015 @ 10:52 pm

          Hi Liz,
          No taxes on Honeyfund gifts! Hope that helps. 🙂
          – Sara

          • Raymond July 16, 2016 @ 3:35 pm

            I now have an issue with my ‘business’s account being locked until I submit a declaration from my ‘company’ on letter headed paper and signed by relevant HR department or CEO. I do not have a business though and now my funds are locked within PayPal and unable to retrieve until said document is submitted to PayPal. I have tried emailing them to no avail, can anyone advise how I can resolve?
            I am beginning to lose my patience with this as PayPal customer service appears to be non existant and I need my money.
            Kind regards, Raymond

  4. Kim August 17, 2014 @ 7:13 am

    With a Paypal business account, will we have to pay taxes for the funds we receive through paypal (ie. claim it as income on our taxes)?

    • dc February 10, 2015 @ 6:56 pm

      The 1099-K threshold is $20,000 per year AND 200 transactions or more. Just thought you would like to have the correct information.

      • Sara February 10, 2015 @ 10:48 pm

        Thanks DC!

  5. Mike January 21, 2015 @ 12:59 am

    This is somewhat of a side topic – but is there any way to make your honeyfund page password protected? We don’t want our page to be google searchable or accessible to anyone. Thanks!

    • Sara January 21, 2015 @ 1:32 pm

      Hi Mike! Yes that feature is available with our Elite option. Cheers! – Sara & Josh

  6. John February 5, 2015 @ 3:41 pm

    I just want to confirm that if a wedding guest makes a donation through their personal PayPal account (balance or bank transfer) that there is no fee, i.e. standard PayPal policy. Thanks for putting together a great site.

    • Sara February 10, 2015 @ 10:53 pm

      Hi John,
      Via the Paypal interface on our site, all gifts are assessed the 2.8% + $0.30 fee, regardless of funding source. If the giver goes to their own PayPal and “sends money to friends”, then PayPal’s policy you are referring to would apply.

  7. Amelie March 12, 2016 @ 12:45 pm

    So what if someone just wants to go to the linked item, buy it, and ship directly to us? We have had several people do this, but the Honeyfund site does not get updated. There should be a way to mark that the item has been purchased (and leave a note from gift giver) without going through the purchase process. Thanks!

  8. Christian March 16, 2016 @ 10:54 pm

    Hi guys,
    I’m not the most i.t person around but I’m having trouble sething up the PayPal Business Account. It keeps asking me to copy the HTML to my website. I just want to be able to accept credit cards for my honeyfund. Please help.


  9. Brittany March 22, 2016 @ 9:38 pm

    I am a bit confused on the fee. I understand the fee for the WePay version. When we withdraw the funds, is there a transaction for that?

    • Sara Margulis March 22, 2016 @ 10:28 pm

      No fees for withdrawing! 🙂 – Sara

      • Brittany March 23, 2016 @ 3:50 pm

        Awesome thank you!!

  10. Courtney Baze March 23, 2016 @ 6:15 am

    So at this point would you recommend WePay or Paypal?

    • Sara Margulis March 23, 2016 @ 6:55 am

      Hi Courtney, thanks for your question. We recommend WePay for US and Canada, PayPal for other countries. 🙂

      • Courtney Baze March 24, 2016 @ 5:23 am

        Thanks for getting back to me. Our situation is pretty much international in that I’m from the states but my fiance is from Spain. Would you recommend signing up for both options?

      • Rebekah April 4, 2016 @ 7:55 am

        May I ask why you recommend WePay for US instead of PayPal?

        • Sara Margulis April 10, 2016 @ 8:46 pm

          Hi Rebekah – WePay is an easier, integrated checkout experience for guests with a higher success rate. Hope that helps! – Sara

  11. Astin Brown March 31, 2016 @ 7:39 am

    Can guests opt to pay the extra fee themselves on your site? I know other donation sites do this.

    • Sara Margulis April 10, 2016 @ 8:48 pm

      Hi Astin – We believe guests should never pay a fee to give a cash gift. Hope that helps!

  12. Shonna Kaye April 10, 2016 @ 3:19 pm

    Hey Sara and Josh! We will probably use WePay and link a card or bank account for withdrawals. Just to be 100% clear, the guest is not charged an additional 2.8% + $0.30; instead, the money that they send to us via Honeyfund (through WePay) is deducted that amount, and then that amount is what we see on our WePay account balance? So, someone sends us $100 online, we see about $96.90? We just want to do this right! Thanks 🙂

  13. Fabiola Garcia April 13, 2016 @ 11:26 am

    So the fees are the same with either paypal or wepay? I have a paypal account already, but forgot. So I opened a wepay account, I am a bit unsure about providing my account number and social security. However, my question is really wanting to know if there is a difference in fees with going either with paypal or wepay?

    • Sara Margulis April 13, 2016 @ 6:41 pm

      Hi Fabiola. The fees are the same! Both PayPal and WePay require bank account and SSN due to federal regulations. 🙂 – Sara

  14. Alinda April 16, 2016 @ 7:46 am


    I did not see an option for PayPal and would have prefers to use that instead of wepay. I’m concerned because wepay asks for very personal and sensitive information. How can I change from wepay to paypal?

  15. Jeanette May 5, 2016 @ 2:18 am

    I am unable to put my bank name on the space provided, right above the bank info like bank account info. Been trying and trying but nothing, keeps saying bank name I entered was invalid or missing. I’m pretty sure I’m typing in my banks name correctly. Help por favor!

  16. Jennifer May 13, 2016 @ 6:57 pm

    I’m a lil confused after reading all of these previous comments? 1. Will Honeyfund show when a donation has been made and continue to update? 2. We, the bride and groom- NOT the guests- pay fees, correct? 3. And when/how are they paid? 4.I’ve not heard of WePay, should I set that up along with PayPal? Thank you Sara.

  17. Gideon May 30, 2016 @ 4:01 pm


    I am trying to use PayPal for my honeyfund site and I went through the process that you have listed on your site to set up a business account. Now PayPal wants me to use an e-commerce solution before I can start using my business account. Your set up guide has nothing about this on it and looks different from paypal’s website. I am very confused as to what I am supposed to do here

    • Meredith February 26, 2017 @ 1:38 pm

      I’m having the same issue here. Is Honeyfund the e-commerce solution? If so, do you have an integration guide? If it’s not, which e-commerce solution do we need to sign up for? I’m very confused with how to get my upgraded Business PayPal Account linked back to the Honeyfund site.

  18. Holly Begley September 10, 2016 @ 9:56 pm

    When do you plan on offering the additional online payment services? My wedding is next June. If I could wait until that is finished before letting everyone see it that would be terrific.

  19. Ray October 2, 2016 @ 7:58 pm

    We have been married 14 years, we just celebrated our 14th year Sept 21st. We never went on a honeymoon and it’s exactly the money challenge that prevented us from doing it. Can the honeyfund be used to fund a belated honeymoon, say when we turn 15? What’s to prevent people from abusing this with illegitimate weddings?

  20. Ana Magliolo December 6, 2016 @ 8:37 am

    Hello, I received a gift and it shows up as (offline) and I’m unable to withdraw it with wepay. All the other gifts worked fine but this one is not, help please.

  21. Jessica N February 23, 2017 @ 7:58 am

    I set up a Honey Fund account. My future mother in law gave a gift through WePay, when I log into my Paypal account it is not showing any money to withdraw.

    My accounts are linked but it is not showing any money, just the gift sitting in the HoneyFund. Please help!

    Thank you!

  22. Benjamin Borrello March 20, 2017 @ 4:10 pm

    I have a pending gift that was charged back to my honeyfund after a problem with wepay occured. I switched to paypal and upgraded to a business account but I dont see the payment in my paypal. Can you help?

  23. Victoria April 2, 2017 @ 5:14 pm

    I need some clarification, is PayPal and Wepay the only way for people to ‘buy ‘ honeymoon items? Can they pay with a debit or credit card? Are there fees for that? Is the only way for us to receive the ‘gift’ is through PayPal?

  24. Violet September 21, 2017 @ 3:17 pm

    What is an “offline” gift???

    • Jess June 1, 2018 @ 9:34 am

      I am also wondering this…

  25. Antonia Kirksey February 3, 2018 @ 11:02 am

    I have 4 questions:
    1. I read a lot of bad reviews on WePay holding funds from people, is this true?
    2. I read on one of your forms that we could use a premier account instead of business, is this still true?
    3. I’m confused on the business account for PayPal, it asks so many questions that I don’t have answers to because I don’t own a business, can someone help?
    4. Why do we get charged a fee for a business account with PayPal when we are just using the business account to use your website?

  26. Casondra July 31, 2018 @ 2:15 am

    How long does it take for the money to show in my bank account when using WePay???

  27. Helene October 9, 2018 @ 9:51 pm

    The last few questions from Gideon May 2016 on would be great to answer Sara from Honeyfund. I am also wondering about all that was asked but they are not being answered. I setup a Honeyfund account and I’ve emailed about such concerns but the reply was how to setup the business account but it I don’t have a business and a lot is being asked that I don’t have. May you please answer the above questions so that we can use Honeyfund and not go to another company? It is has been more difficult then expected. Thank you!

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