2 Jun 2009

Paypal changes come into effect June 3, 2009

Ok, this sucks. I totally missed the boat on this but Paypal has some new policy changes that come into effect June 3, 2009.

Amendment to the PayPal Acceptable Use Policy
Effective Date: June 3, 2009

Beginning June 3, 2009 the PayPal Acceptable Use Policy is being amended to include a new Section 4 as follows:

Prohibited Activities
You may not use the PayPal service for activities that:

"4. involve the sales of products or services identified by government agencies to have a high likelihood of being fraudulent”

Amendment to the PayPal User Agreement


Effective Date: June 3, 2009

Beginning June 3, 2009 PayPal user agreement is being amended as follows:

1. Section 4.2 of the user agreement will read as follows:

“4.2 Receiving Payments for Commercial Transactions and Personal Transactions.
a. Fees depend on whether you are making a commercial transaction or a personal transaction. A commercial transaction involves buying and selling goods or services, and payments received when you send a “request money” using PayPal. A personal transaction involves sending money to and receiving money from friends and family without making a purchase.

b. If you are selling goods or services, you may not ask the buyer to send you a personal payment for the purchase. If you do so, PayPal may remove your ability to accept personal payments.”

2. Section 8 of the user agreement will read as follows:

8. Fees. All fees are in U.S. Dollars unless otherwise stated.

Fees depend on whether you are making a commercial transaction or a personal transaction. A commercial transaction involves buying and selling goods or services, and payments received when you send a “request money” using PayPal. A personal transaction involves sending money to and receiving money from friends and family without making a purchase.

Personal Transactions. Fees depend on the payment source that the sender selects. The amount of the fee will be shown at the time the payment is sent. The Fee is paid by either the sender or the recipient. The sender decides who pays.

Domestic Personal Transactions - U.S. sender and recipient

Ok so if that is confusing to you, here is a site that explains these changes in more detail. Damn, could Paypal/eBay get any greedier? I use Paypal a lot for personal transactions, I might look into signing up for a Google Merchant account now.

7 comments:

  1. Oh that is mega confusing! Why do they have to go and do that, eh!
    Thanks for the blog, I would have had no idea otherwise :) xox

    ReplyDelete
  2. Anonymous3:44 a.m.

    Julia -
    If you send alot of personal transactions, try signing up with your bank for online banking. Alot of banks allow you to send money to other people now, for free. As a canadian, I use TD, and can send it even to customers of other banks. It's really secure, you can't set it up without going into one of your banks branches personally, theres multiple password checks and questions before a transaction can be completed. Not sure if they would have that where you are, but it really comes in handy- no fees whatsoever!

    ReplyDelete
  3. There is a new merchant available on-line and they are FDIC insured. Revolution Money Exchange... http://revolutionmoneyexchange.com issued by First Bank & Trust. Get this...it is free! Check it out.

    P.s. I just came across your youtube tutorials a couple of days ago.

    ReplyDelete
  4. Anonymous12:03 a.m.

    I'm trying to figure out where a "Premier" account lands in all this mess. Will I be banned from using that for commercial transactions? Their FAQs skim over this.

    ReplyDelete
  5. That is not exactly how PayPal’s policy has changed.

    This is addressed in this forum in this thread:
    http://www.modeeworld.com/forums/paypal-discussions/171-paypal-premier-personal-business.html

    the change has to do with FEES on payments not so much that you cannot use a Personal account at all for payments.

    ReplyDelete
  6. Anonymous10:36 p.m.

    Paypal/Ebay is all about the coporate greed, so they raise fees and find ways to stick it to users. This policy caught me off guard to, so I called them up. Basically, the only way to circumvent the fees when receiving money on a personal account is to have the sender click on the send money header, click on "personal", and select any of the options. The rule where it has to come from a bank account or existing funds still applies. If the sender doesn't click on the personal tab, it's treated as a "commerical sale".

    ReplyDelete
  7. Anonymous5:09 p.m.

    Who knows what "government agencies" have identified as highly likely to be fraudulent? They have identified groups that have a conscientious objection to abortion as being likely to be terrorist organizations. I consider Paypal's new policies to be morally unacceptable in a country that claims to be founded on liberty. People are crying about the fees--what about this intrusion into private actions and the free exchange of goods and services?

    ReplyDelete