Bastards !

https://www.paypal.com/us/webapps/mpp/ua/upcoming-policies-full?utm_source=epsilon&utm_campaign=A_OW_EM_AH_HR_NI_NI_202206_253394_No_Group_US_GS_Offcycle_update_MER_LR_US_en_US&utm_medium=email

"The rate for the “Send/Receive Money for Goods and Services” payment type will be 2.99% (with no fixed fee). This pricing change will result in fee increases for some transactions. You can preview the Merchant Fees page that will be effective on July 28, 2022, following such changes."

Comments

  • 14 Comments sorted by Votes Date Added
  • They spend pages and pages making certain that we can't understand any of it.
  • I agree, Phil. Clear as mud. If I understand this it looks like PayPal is going to charge a customer 2.99% for any payment made to a seller. Is that your understanding?
  • I don't know what it means. I don't have an ounce of clue...
  • I have no clue either.
    It does not make any sense to me.
  • Word salad. And I don''t much care for regular salad. Sounds like Charlie Brown's teacher talking.
  • The only phrase that really matters is "...will result in fee increases for some transactions."
  • It is a bunch if dribble to confuse anyone who does not understand lawyer speak.

    Basically it involves people who have business accounts and PayPal covering their but.

    It all boils down to 2 things.
    Business accounts can not receive any money under friends and family which has no fees involved and does not get reported on a 1099.
    Second is they are raising the fee for a business seller to 2.99% from 2.89% but no $0.49 transaction fee for US transactions.
    The fees will be going up for out of country payments though further making it not worth selling to another country.
    There will be other fees which basically have no bearing on most of the sellers here.

    They could have said all of this in a single page instead of the multi-page garbage that the lawyers drew up.
    They also have to justify their job as all of the IT idiots have to do.
  • Should this part bother me?

    U.S. business accounts will not be able to receive personal transactions from U.S. PayPal accounts.
    U.S. PayPal accounts will not be able to send personal transactions to U.S. business
    accounts.

    Does this mean if you have a personal account, you can't buy from someone with a business account?

    Don't most buyers have personal accounts? Do I have a business or personal account? Where does PayPal tell you that? I couldn't find it. I receive a 1099, so does that mean I have a business account?

    If they eliminate the $0.49 fee, it sounds to me that the fees would be going down on sales transactions under $500. I believe for most of us , this would be a good thing, but that "sounds" too good to be true. Why would PayPal willingly forgo the transaction fee on the millions of small sales they process?
  • As Bill said, this fee change does not affect HS sellers. We utilize PayPal Checkout, which is integrated into the HipStamp purchase process.
    The fee increase is for sellers such as those who sell in Facebook Buy/Sell groups, Craig's List, or other venues, where the seller requests payment from the buyer. Using the Request/Send money process, you specify whether the payment is for Goods and Services (fee charged, has seller/buyer protection) or if it is for Friends and Family, i.e. personal payments (no fee, no seller/buyer protection).
    The new rule eliminates business accounts from sending or receiving Freinds and Family payments. None of this affects any dealings between HipStamp dealers and HipStamp customers.
  • As Ted says.
    It is for people that sell on all of the other sites.
  • Or use your PayPal account for more than just Hipstamp...
  • edited June 2022 0 LikesVote Down
    Sounds to me like they are just closing a loophole. You can no longer use Friends and Family if you OR the recipient of a payment are a business. I'll admit that I once used the Friends and Family option to refund a buyer for the postage he spent on a return so that he would not be charged a PayPal transaction fee. This was an abuse of PayPal policy. I guess PayPal is trying to limit these kinds of transactions in the future by prohibiting businesses from using this option to avoid fees like I did.
    If you are a business and you want to transfer money to a family member, you'll have to make a free transfer from PayPal to your bank account first - then make a transfer from your bank to their bank
  • John,

    What PayPal is doing in you question, is closing a loophole where sellers and buyers were bypasing PayPal fees by sending money to each other as a "friend", etc.. PayPal is saying if you send money to a business account, then it is a business transaction, and the seller will be charged the fees. If a seller sends money to a non-business account, PayPal will consider that a business transaction, and fees will apply.
  • Thanks all for the clarification. Hadn't occurred to me that others had found a way to avoid PayPal fees. Seems like they should also pay the "transaction fee" too like everyone else does who is honest. We don't like it, but we are stuck with it.
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