PayPal alteration to charging Policy

[JohnDotCom]

Notice of PayPal Policy Updates

Dear

We would like to let you know of an important announcement affecting all PayPal account holders in the UK.

Effective from 9 July 2008, PayPal will change its fee structure to make it more attractive for our UK customers to send personal payments. We are pleased to announce that:

• PayPal will not charge a recipient (regardless of their account type) of a PayPal payment if that payment was funded by the sender's bank account or PayPal balance and it is designated a Personal Payment
• PayPal will apply a fee for payments received for Personal Payments or Commercial Payments if such a payment is funded by a credit or debit card, however for Personal Payments funded by a card, the sender will have the option of paying the fees for that payment
• Also, PayPal will no longer require its customers to upgrade from a Personal Account to a Premier or Business Account once it has received a total of £250

• Consequently the following amendments to the PayPal User Agreement will be applicable for UK customers:

Clause 8 will be amended (where relevant) to provide that:

• Receiving Personal Payments which are also Balance/Bank Funded Payments will be free
• Receiving Personal Payments and/or Commercial Payments which are also Card Funded Payments will be charged at these standard rates:

• 3.4% + Fixed FeeFor each domestic payment transaction.3.9% + Fixed FeeFor each cross border payment transaction
  Merchant Rates
  
  (based on monthly transaction volume & one-off application)1.4% - 2.9% + Fixed FeeFor each domestic payment transaction1.9% - 3.9% + Fixed FeeFor each cross border payment transaction
  The monthly volume tiers applicable to these Merchant rates are further described in the Fees section accessible from every page of the PayPal Website.

The Fixed Fee will be (depending on the payment currency):
£0.20GBP ¥40.0JPY 1.35PLN€0.35EUR $0.40AUD 90.0 HUF$0.30USD 0.55CHF 10.00CZK$0.30CAD 2.80NOK $0.50SGD$4.00MXN 3.25SEK $2.35HKD1.20ILS 2.60DKK $0.45NZDUK registered Users who receive payments in Euros from other European User countries will receive a 0.5% reduction in the variable amount of the applicable cross border fee.

• The sender of a Personal Payment which is also a Card Funded Payment may choose to pay the Fee applicable to that payment.

Clause 15 will include the following new definitions:

"Commercial Payment" means a payment which is not a Personal Payment (including, without limitation a payment associated with an eBay item and/or other goods or services).

"Personal Payment" means a payment made for the purpose of either your personal, family and/or household affairs.

Clauses 4.1, 4.2, 4.4(c), 4.9 will no longer apply to UK customers.

No action is required on your part and you will be able to continue using PayPal with no changes.

Yours sincerely,

PayPal

[black olive]

the assimilation continues

[JohnDotCom]

Originally Posted by black olive

the assimilation continues

But I don't want to be part of the collective.

[black olive]

the way ebay is going it will soon be the only way to pay

[Raistlin]

I'm a very infrequent seller on fleabay and recently setup a sale only to discover that Paypal can "quarrantine" incoming payments until the buyer leaves positive feedback or for 21 days, whichever occurs first.

Sounds to me like that is just a way of earning interest for Paypal on their customers' money

[r44712]

Originally Posted by Raistlin

Only to discover that Paypal can "quarrantine" incoming payments until the buyer leaves positive feedback or for 21 days, whichever occurs first.

Sounds to me like that is just a way of earning interest for Paypal on their customers' money

Possibly it is, but more likely is that the buyer paid by "eCheque" that caused the delay. This has happened to me once or twice.

[Raistlin]

Originally Posted by r44712

Possibly it is, but more likely is that the buyer paid by "eCheque" that caused the delay. This has happened to me once or twice.

No

It actually tells you now when you are setting up the sale

[tourerfogey]

Re: Payments witheld for 21 days

Why might my payments be held?

PayPal will hold payments in transactions where the vast majority of seller fraud occurs. Here are the most common instances in which a payment may be held:

You have been on eBay less than six months and sell an item above £50
You have a feedback score of less than 98% and sell an item above £50
More than 5% of your transactions result in dissatisfied buyers*
You have an average Detailed Seller Rating (DSR) of 4.5 or less
You have received less than 20 Detailed Seller Ratings
You are listing your item in a higher-risk category

PayPal will not hold payments for eBay items if you meet the following criteria:

You have been an eBay member for more than 6-months, and
Your total Feedback score is greater than 100, and
Fewer than 5% of your transactions result in dissatisfied buyers*
Or
Your average DSR is greater than 4.5, and
Your have received more than 20 DSRs in the last 12 months

What will happen if my payment is held?

If you receive a payment that is held by PayPal, the amounts held will show as “Pending” in a separate PayPal balance on your account page. You will still have access to all other funds in your PayPal account.

Your funds will immediately be released when one of the following occurs:

The buyer leaves you positive feedback
21 days pass without a dispute, claim, chargeback, or reversal filed on the transaction.
If you receive a dispute, claim, chargeback, or reversal on the transaction subject to the hold, PayPal may hold the payment in your Account until the matter is resolved, even if the claim, chargeback or reversal is made after the hold is released.

I am a new seller, will my payment be held?

If you are a new seller and have a record of good performance, you will receive your payment instantly in the vast majority of cases.



Additionally - the email in post one re charges on payments relates only to personal payments - i.e. when you use Payplop to send money to a friend etc. not for business transactions such as buying / selling on ebay.