PayPal has recently found another way to take their piece of their user's pie. They recently announced... oh wait, no, actually they didn't announce the fact that they were making changes to fees on private accounts. From now on, when payments are sent to personal accounts marked as being for “Goods”, “Services” or payments which come from a debit or credit card, the recipient will not only be charged a 30c transaction fee, but PayPal will hit users where it really hurts by also slicing 2.9% off the amount transferred (or 20p plus a massive 3.4% for the poor souls in the UK). Making such payments were previously free for PayPal members.
Now don't get me wrong, I understand that price increases are a normal part of running a business and I also understand that under the current economic climate and with commodity prices on the rise, these increases are due, but what I just don't get is that PayPal failed to give notice of these price changes.
PayPal's PR team have said that an email was in fact sent out to inform member's of the changes, but we have heard differently! In fact, all we have heard is this nervous comment made by PayPal's PR manager: “we didn't want to make a huge formal communication out of the pricing change...”. Hmm, I'll bet you didn't! I consider this to be dishonest and irresponsible of PayPal, but hey, should I be surprised? These are the same people who regularly freeze funds and ignore pleas for better customer service and simpler processes in place for dispute resolution.
I have recently noticed a lot of people moving away from PayPal and onto more user-friendly payment-option providers. I want to hear your thoughts on PayPal and the recent changes made, how they might affect you, and what other payment options you are using so let me know by leaving a comment below.