If you take payments for your products through PayPal, strap yourself in for the online payment platform’s new transaction fees.
PayPal recently announced their updated user agreement which stipulates, among other things, an increase in several of their fees.
Their currency conversion rate will increase from 2.5% to 3%, while the standard transaction fee for sellers who are selling goods or services online to buyers outside the United States will go from 3.9% to 4.4%, plus the existing fixed fee based on the currency.
On the other hand, PayPal’s standard transaction fee for in-store transactions received from buyers outside the US will jump from 3.7% to 4.2%.
That’s not all as PayPal also tweaks their fees for PayPal Here.
The cross-border transactions fee for card present transactions will go up from 3.7% to 4.2%, while keyed and scanned transactions fee will be adjusted from 4.5% + $0.15 to 5% + $0.15.
Under the PayPal Website Payments Pro and Virtual Terminal Agreement, an additional 1% fee is currently charged on top of transaction fees for cross-border payments received from buyers outside the US; this too will increase to 1.5%.
PayPal’s Additional Terms
Aside from their price hikes, PayPal also added a new clause on non-discouragement to their user agreement.
The non-discouragement clause prevents sellers from offering buyers other payment methods besides PayPal.
Here’s a verbatim text from the said clause:
“In representations to your customers or in public communications, you agree not to mischaracterize PayPal as a payment method. At all of your points of sale (in whatever form), you agree not to try to dissuade or inhibit your customers from using PayPal; and, if you enable your customers to pay you with PayPal, you agree to treat PayPal’s payment mark at least at par with other payment methods offered.”
However, with their new fees far exceeding what other payment gateways are offering, can PayPal blame anyone for having a change of heart?
PayPal’s updated user agreement starts to take effect on March 29. A line on their website says you may close your account before the said date if you don’t agree to their amendments.
What’s your take on this issue? Share your thoughts in the comments below.
To your continued success,
Dave & Matt