PayPal Announce Upcoming Changes to Goods & Services Payments
In the coming weeks, at PayPal, we will be rolling out two changes to our peer-to-peer pricing structure in the U.S., specifically for Goods & Services payments. We will be simplifying our goods & services fee structure and changing the ways U.S. business accounts can receive payments, effective for PayPal customers in the U.S. on July 28, 2022.
- Do you need a business bank account for your online business? Have a look at our review of the five best bank accounts for sellers, some of which are free with no minimum balance or deposits.
- AI can change your entire social media game today. Learn how you can save time writing engaging content faster. [sponsored]
- How to lower your taxable income and pay less in taxes. [sponsored]
- ‘My Community Made’ is a new marketplace to compete with Etsy and Amazon Handmade.
- EXCLUSIVE: Interview with Chris Prill, VP eBay Motors, discussing the new Guaranteed Fit program.
Updated Peer-to-Peer Goods & Services Pricing Structure
We will be simplifying the Goods & Services seller fee to 2.99%, with no fixed fee, for customers in the U.S. PayPal’s current Goods & Services fee is 2.89% + $0.49 USD.
As an example, if a customer is buying a piece of furniture for $225.00 USD, the seller will now pay $6.73 USD under the new simplified fee structure, versus $6.99 USD under the previous structure. In addition, Goods and Services transactions may be eligible for Purchase Protection which can be beneficial for both buyers and sellers.
Purchase Protection gives customers peace of mind, helping a buyer if they don’t receive the item that they ordered, or if it shows up significantly different from its description, for eligible purchases. We will reimburse the buyer for the full purchase price plus any original shipping costs, subject to terms and limitations. For sellers, PayPal’s Seller Protection Policy can protect online sales, minimize claims and chargebacks and help prevent fraudulent purchases.
Transition of Friends and Family Payments for Business Accounts
PayPal is also evolving the ways customers send money to Friends & Family and make payments for Goods & Services. In the coming weeks, U.S. customers will now only be able to send Friends and Family peer-to-peer payments to consumer PayPal accounts.
This update helps ensure that eligible purchases of Goods and Services will be protected for both parties and will drive consistency on our platform, while also removing confusion around which payments are eligible for buyer and seller protections. This will also enable PayPal to help businesses properly reconcile data-keeping and organize personal and business income.
Business account holders can continue to access business-only features like automated reporting, invoicing, multi-employee access, and more. Business account holders who currently use PayPal to receive non-business-related payments can use or create a personal account to receive personal payments without seller fees while using their business account to receive commercial payments.
Connect with us: Head over to our Facebook Group for Small Business Sellers and interact with other small business owners.
Follow us on Facebook, Twitter, or LinkedIn to stay up to date with relevant news and business insights for your online business.
Subscribe to Our Newsletter
Business Insights for Your Online Business Presented with a Dash of Humor
We do not share your information and you can unsubscribe anytime.
Editorial Note: This post is from a Company Press Release and may have been modified for clarity.