PayPal have emailed US customers to inform them of changes to the way US personal account holders can use and hold a balance with PayPal. Balances will need to be converted into either a PayPal Cash account or PayPal Cash Plus account by the end of March.
PayPal are making these changes to comply with a new federal regulation that comes into effect on the 1st of April. US personal account holders who want to keep money in PayPal or use other features that rely on a balance will need to have a balance account linked to their personal account.
Whilst these changes only impact US based PayPal users, if UK or EU sellers have an entity set up in the US with a US PayPal account then they may also see a change, although the chances are that you’re already fully verified with PayPal and there’s nothing you need do.
What do I need to do to get a PayPal Cash or PayPal Cash Plus account?
If you have a personal PayPal account and have confirmed your identity with PayPal before the 13th of March 2019, there’s no action you need to take. PayPal will automatically link a balance account between the 14th and 25th of March.
If you don’t have a PayPal Cash Plus account after the 29th of March and don’t want to hold a balance in your PayPal account then you don’t need to do anything. You will still be able to receive money with a personal PayPal account and transfer it to a linked bank account or debit account, but you will not be able to hold and use a balance in your personal PayPal account.
If you have not received PayPal Cash Plus account on or before the 29th of March and want to hold a balance in your PayPal account then you will need to set up a PayPal Cash or PayPal Cash Plus account. After the 29th of March, if someone sends you money and you don’t yet have a balance account, you’ll see an Accept the Money button. Once you click on it, you’ll see two options: “Transfer it to your bank” and “Keep it in a PayPal Cash account”. Click Keep it in a PayPal Cash account and follow the steps to get set up with PayPal Cash.
PayPal Cash Account Features
- Receive money
- Hold money
- Convert money from one currency to another
- Withdraw money from your PayPal Cash Plus account to a debit card or bank account linked to your personal PayPal account
- Transfer money for purchases of goods and services
- Send money to friends and family
PayPal Cash Account Plus Features
With a PayPal Cash Plus account, you can do all of the things you can do with a PayPal Cash account, plus:
- Make in-store purchases using a PayPal-branded debit card linked to your PayPal Cash Plus account
- Transfer money into and out of your PayPal Cash Plus account at ATMs using a PayPal-branded debit card
- Set goals for managing the money in your PayPal CashPlus account
- Set up direct deposit of funds into your PayPal Cash Plus account
- Load cash into and withdraw funds from your PayPal Cash Plus account at several retail stores throughout the US
- Transfer proceeds from cheques into your PayPal Cash Plus account using our remote check capture feature.
Full terms and conditions for PayPal Cash account or PayPal Cash Plus account are available online here.