eCommerce Blog / PayPal or PayFoul? PayPal covertly hikes fees

PayPal or PayFoul? PayPal covertly hikes fees

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.


Comments (5)

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raed on 20:28 28 Aug
Please Please Please Please can anyone give me alternatives to pay crooks They have f....d my business before and im sure they will do it again Anyone that seems to be a threat or competitor to Ebay just gets the salami Its ok for Power sellers to do what they want and get away with it - because ebay (aka) paypal profit from it so much They had frozen over $20,000 of my funds and gave me no reason other than to say suspucious transactions. I crossed and ticked all the cheques and balances but No it wasnt good enough A very dissapointed reseller
on 7:51 29 Aug
I am an ebay and paypal member, don't have store yet, as I am relatively new at this, but, I was just wondering if PayPal is being unscrupulous or downright dishonest, what does this say about ebay, since they own Paypal? I am so tired of paying money and then being ripped off, by either not being told everything before I purchase something or it being a scam right from the get go. So, I was just wanting to know if we now need to be leary of ebay themselves, or do they just allow the Paypal part of their business take advantage of people and use ebay as the respectable part? Just asking. I am just trying to make an honest living, but it sure is difficult to do that, when we seem to have to deal with others that are just out to get our money. Thank You for letting me vent.
John on 11:24 1 Sep
Well there is always Amazon, talk about sales increase WOW. I sell real good on ebay, but I thought for giggles I would open an Amazon account and just check it out, well my did I get busy so much for checking it out I have been to busy shipping and listing LOL. Ebay is good though, I have made a ton of friends and customer's on it and if you work hard at it they reward you by slashing those fees.
Paula on 10:44 2 Sep
We use ClickBank and have for years.
James R. Henry on 14:09 3 Sep
I have used PayPal for a number of years before I saw them changing policies without announcement. It has caused such a avock with my business and customers that I had to steer away from them, and move on to someone I feel that I can trust as my alternative to PayPal. I use AlertPay. They are just like PayPal, but not with the high fees. I was about to create my own payment processor when I came across this company, so I just wanted to let you know that they seem to be trustworthy. However, with the economic turmoil that is going on around me (it hasn't affected me much) I have seen businesses out to get money, and they'll do whatever it takes. Vitamin companies who have about three or four companies, and charge your card on every one, when all you want is a free sample, plus the cost of shipping. I now have 10 bottles, when all I signed up for was 2 of those companies. So, we're going to see a lot of online companies taking advantage of the consumer. I have been selling online for about 10 years now, and have decided that customer service must be #1 in order for my companies to be successful. To top that off, I also have an attorney who fights those other companies for me. By the way, since I've mentioned it, if you feel that you need some legal guidance and just can't afford the legal fees (just like me), give me a call at (805) 234-6226. I just pay about $30 per month for access to a real attorney who help me fight online thieves. They're out there and they're stealing your money. I just wanted to give you some heads up folks. Yes, I do sell legal service, but its to help the average consumer who just can't afford an attorney like the rich, or make just a little more than the required amount to have one paid for you by the state.


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