You can preview the Merchant Fees page that will be effective on July 28, 2022, following such changes.” Email Sent by Paypal Announcing (But Not Explaining) the Changes This pricing change will result in fee increases for some transactions. The rate for the “Send/Receive Money for Goods and Services” payment type will be 2.99% (with no fixed fee). PayPal accounts will not be able to send personal transactions to U.S. business accounts will not be able to receive personal transactions from U.S. However, if you would prefer to decline them, then you will need to close your PayPal account prior to the applicable effective date, as described in the user agreement.Īmendments to the PayPal User Agreement and the PayPal Balance Terms and Conditions Effective July 28, 2022: Otherwise, no further action is needed from you to accept such changes. By continuing to use our services after the changes take effect, you agree to be bound by those changes. Please carefully review the notices below and familiarize yourself with the upcoming changes. These changes will take place automatically on the corresponding effective date(s) shown below. “We’re making changes to certain agreements (listed below) that govern your relationship with PayPal. Here’s the actual wording, from the Paypal policy update page: Terms of Paypal Rate Hike and Doing Away with Personal Transactions to Business Accounts Your tips via CashApp, Venmo, or Paypal are appreciated! Receipts will come from ISIPP. The Internet Patrol is completely free, and reader-supported. However, it doesn’t take a math wizard to recognize that if all payments made to a business account are classified as business, they will all be subject to Paypal taking a cut, unlike payments that are classified as personal payments.Īnd, oh yeah, their cut for “send or receive goods or services” (i.e. So, why is Paypal doing this? So far they’re not saying, the email announcing it to their account holders just went out about an hour ago. Now, apparently, Paypal has decided that they don’t trust you to classify your payments, so your ability to send a ‘friends and family’ payment to a Paypal business account is being terminated, and all transactions to any Paypal business account will be classified as ‘business’ In fact, that is one of the hallmarks of Paypal, that “are you paying friends and family, or a business?” choice at the time of making the payment. After all, when you send money through Paypal you always have to tell Paypal whether it is a ‘friends and family’ or a business transaction. no grace period to the end of the billing cycle as there is on purchases) and d) are not eligible for cashback.This is going to hit small businesses particularly hard, as many small businesses use Paypal for their business, and many of those small businesses – particularly sole proprietors – use a single Paypal account for all Paypal transactions, business and personal. I now always use the bank account as the source for the transaction and this works fine with no fees being charged at any stage.įrom the link you included in the question, the relevant Ts&Cs clearly show that cash advances a) have a higher interest rate than purchases, b) accrue a fee of 3% or £3, whichever is larger, c) start accruing interest on the date of the transaction (i.e. When I initially set it up (several years ago now) I tried using Amex in this way and it resulted in the transfer being treated as a cash advance. Source: I am in the UK, have a Paypal account which is linked to both my Amex card and my bank account, and regularly transfer money to friends and family members this way. You can transfer money to friends and family this way, and Paypal don't charge any additional fees, but Amex treat this as a "cash advance" and hence charge higher fees / interest on it and it is not eligible for cashback.
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