Personal payments now could be free
PayPal are changing the fee structure for UK users to make accounts more attractive for non-commercial users. They are making a new distinction between types of payment:
- commercial payments, including all eBay item payments, and
- personal payments, “a payment made for the purpose of either your personal, family and/or household affairs.”
And the fees have changed like this:
- Personal payments funded by bank account (echeque) or PayPal balance will be fee-free, regardless of account type
- Personal account holders will be able to receive credit- or debit-card funded commercial payments, at a fee of 3.4% + 20p per transaction for domestic and Euro payments from within the EU, or 3.9% + 20p for other cross-border transactions.
- Senders of personal payments will have the option of paying the fees themselves.
- Personal account holders will no longer be required to upgrade to a Premier or Business account once they have received Â£250 in payments.
From this, I can see PayPal’s use in the personal payments area expanding massively. Even the hiked 3.9% fee will compare favourably to international bank transfer fees for smaller amounts: wait til my brother in Canada hears about this 😆
PayPal must be offered by UK eBay sellers
In parallel with eBay’s new policy announced earlier this week, eBay sellers must accept PayPal from all funding sources “including but not limited to eCheque and credit cards”. In other words, don’t even think about trying to make all your eBay payments come through as personal, balance-funded payments!
If a seller lists postage to a country and PayPal permits transactions from that country, then the seller must accept cross-border payments from that country.
And a seller must “accept PayPal if the eBay listing includes PayPal as a payment method:” you may not list with PayPal because eBay say you have to, and then refuse to accept the PayPal payment.
Buyer Protection Program
This has been amended to exclude airline tickets, eBay classified advertisements and customised or made to order items. Can we assume that some people have been using PayPal chargebacks for fee-free plane ticket cancellations? 😯