[Mike Seddon]

PayPal are changing their rates from 9th July.

You used to be able to pay through paypal directly from your credit card without any charges being applied.

Now they plan to charge. Here's the details scraped right off their email this morning.






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 Fee For each domestic payment transaction. 3.9% + Fixed Fee For each cross border payment transaction
  Merchant Rates
  
  (based on monthly transaction volume & one-off application) 1.4% - 2.9% + Fixed Fee For each domestic payment transaction 1.9% - 3.9% + Fixed Fee For 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):
£0.20 GBP ¥40.0 JPY 1.35 PLN €0.35 EUR $0.40 AUD 90.0 HUF $0.30 USD 0.55 CHF 10.00 CZK $0.30 CAD 2.80 NOK $0.50 SGD $4.00 MXN 3.25 SEK $2.35 HKD 1.20 ILS 2.60 DKK $0.45 NZD UK 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

[Fuzzy]

and in plain ole Fuzzy english this means what Mike

[Mike Seddon]

Some people (I'm one!) use there credit cards as payment when using paypal to buy something. It used to be at no extra charge for both you and the person you were buying from.

Now PayPal will charge the buyer for the credit card transaction.

SO if you sell stuff through PayPal you may now find yourself paying more in charges than before.

[RawRob]

Originally Posted by Mike Seddon

Some people (I'm one!) use there credit cards as payment when using paypal to buy something. It used to be at no extra charge for both you and the person you were buying from.

Now PayPal will charge the buyer for the credit card transaction.

SO if you sell stuff through PayPal you may now find yourself paying more in charges than before.

That's not my understanding at all. If you are making a personal payment to someone using a credit card, the payer now has the choice of paying the fee (but doesn't have to).

As far as I can see, there is no new fee, just one fee removed - if you make a payment using a bank transfer or from funds in your account to a personal account, they will no-longer charge a fee.

Rob

[Fuzzy]

Originally Posted by Mike Seddon

Some people (I'm one!) use there credit cards as payment when using paypal to buy something. It used to be at no extra charge for both you and the person you were buying from.

Now PayPal will charge the buyer for the credit card transaction.

SO if you sell stuff through PayPal you may now find yourself paying more in charges than before.

Fuzzy confused, you talking their own credit cards ?

[boxby]

You can now accept paypal through protx as well.

Although, that does beg the question "Why would you want to?" Apparently it's becuase Paypal is soooooo popular (!!!!!)

Anyway, you have to physically opt-in, so no panic for any protx uses out there.

Kind regards
Sandra

[domainzaar]

thanks for the info will have to look into this a little more.

[HuggyBear]

Sorry to ressurect an old thread, but I have just been reading through the amendments and there doesnt seem to be any change if you use PayPal to accept commercial payments - I have always been charged 3.4% + 20p - all that seems to have changed is personal payments depending on how they are funded - Direct Debit = free, card funded = a charge at the 3.4% +20p

This is my understanding of it anyway,

If anyone knows of anything different then let me know

HB

[da8iwr]

Hey thanks for this info, as i am paid almost completely through PayPal by customers etc so this could have a huge effect on me.

At the moment i am building a massive website ,with a colleague of mine which will be a comparison site for payment gateways.

search for the site on Google, we are top for "Payment Gateway Comparison" it will bring up paymentgatewaydirectory dot com then add
/demo2/
to the end of the URL, it will then show you a static non working version that we cobbled together from a joomla template.

It asks you to add in the estimated amount of transactions you will have per month, and the average transaction cost how much you spend on Google AdWords, and then it will work out for you what will be the cheapest solution for you as an individual. There is of course another advanced search that asks for more info, like do you want recurring billing, or will you be using it on adult or gambling sites, them kinds of things to filter it down even more.

It should be launched in about 2 - 3 weeks and has taken roughly 2 years to design, plan and build.

It is a completely non money orientated project, we may make a tiny amount back on a couple of affiliate links, but in general it is just a help site that has all gateways, affiliated or not.

This makes it a real comparison site, not just what makes me money as i dont want the user to think the ranking of the results are influenced in any way, as they wont be apart from what the gateway will cost you. For example in most cases, Google will win, as if you use Google AdWords, its very hard for other gateways to keep up. But Google UK have no affiliate scheme, only the states have, so i will loose anything from there, but they will still be involved.

There will be an IFrame system in place, that allows you to add in a small form to your website, that is syllable with CSS. This means it will look like part of your site, and will be a free way for you and your clients to check up to date info on your website.

Sorry mods, I'm truly not trying to spam, I'm just trying to show a new tool that will be there to help many many others find a cheaper solution, and it is very much a non income run project as i explained above.

Of course income would be nice as well, but i cant see it making much if any especially with Google not have the affiliate system in place