Paypal’s Policy changed again, why you should be worried.

Once again, Paypal has changed it’s policy. It’s not good. They communicated it via email, which is good but to save you some time.

Disclosure: I’m just copying and pasting the ones I feel are most “wtf.” Please read the above link for full details. I’m also adding my opinion and other info.

tl;dr — .5% increase in fees across the board, allows paypal to hunt for active accounts to bill delinquency on ebay or “affiliates”, even if you win a chargeback, you still lose $20.

Highlights:

In representations to your customers or in public communications, you agree not to mischaracterize PayPal as a payment method. At all of your points of sale (in whatever form), you agree not to try to dissuade or inhibit your customers from using PayPal; and, if you enable your customers to pay you with PayPal, you agree to treat PayPal’s payment mark at least at par with other payment methods offered.

So can’t offer discounts now if customers choose to pay directly with a credit card through their own processor, cash in person, bitcoin or other form of currency.

We are changing the currency conversion spread charged when we perform a currency conversion for you from charging an additional 2.5% over the exchange rate set by our bank to charging an additional 3.0% over the exchange rate set by our bank.”

Granted, Paypal should never be used for currency conversion or ever has been highlighted as having a good interchange rate, but at this point, it’s now become the new Western Union of online exchanges. I am looking for a historical chart of USD, Euro and JPY from Paypal to calculate how much money you would lose by using Paypals’ “bank” + their new 3%. (Also, who is Paypal’s bank? https://www.quora.com/Whats-PayPals-bank )

This one ties in with above most especially, need to be careful now if you cater to non-USA customers:

We are changing the standard transaction fee for sellers selling goods or services online to buyers outside the U.S. from 3.9% to 4.4% plus the existing fixed fee based on the currency.”

They even now hurt merchants who WIN a CHARGEBACK:

We are clarifying that we will assess the $20.00 chargeback processing fee for sellers who win a chargeback but are not eligible for Seller Protection.”

PayPal is updating its set off rights allowing us to debit a PayPal account when an amount owed to PayPal, our affiliates or eBay, Inc. becomes past due by removing the 180 day past due requirement.”

Basically now they can hunt for an active bank account, credit card or paypal balance and charge them for debts. No argument, no asking, just billing and processing.

W”e’ve updated our list of restricted activities to ensure we can protect our customers from attempts to misuse or gain unauthorized access to our systems. We’ve also made clear that these restricted activities include actions to PayPal-operated systems or systems operated on PayPal’s behalf.”

No more bug bounty it seems?

Finally, if you’re using Paypal as your main credit card processor, get rid of it. You can find other processors that charge $0.25 + 2.9%. Paypal just upped rates for inuse:

We are changing the cross-border transactions fee for card present and PayPal transactions from 3.7% to 4.2%.

We are changing the cross-border transaction fee for keyed and scanned transactions from We are changing the cross-border transactions fee for card present and PayPal transactions from 3.7% to 4.2%.

From a quick search it seems Square, Amazon Payments are highly reviewed and have lower fees. If you’re still insure, just hop to https://www.authorize.net/ and get some quotes. You do not need to be paying 4%+ for credit cards.