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Retired Content: This article has been retired because it is out of date. I do post about the latest changes to Paypal as they happen.
There seems to be a bit of panic and chaos online about changes Paypal is making – including raising processing fees. Today, I’m breaking down what you actually need to know.
Important Notes About Paypal Changes Effective March 29, 2017
- Non-Discouragement Clause – Paypal is adding a clause that basically says that you, as a seller, cannot try to encourage your customers to use a method other than Paypal. If offering another form of payment, along with Paypal – you must treat them equally. For example, this means that you cannot say, “I accept Paypal but if you don’t like Paypal, I can also take a payment through Stripe.”
- Fee Increases – Paypal is raising fees. HOWEVER – these changes only apply to sellers selling to non-US customers and International transactions.
- Currency conversion spread: Currently 2.5%, New rate 3.0%.
- Standard online transaction fee from non-US buyers: Currently 3.9%, New rate 4.4%.
- Standard in store transaction fee from non-US buyers: Currently 3.7%, New rate 4.2%.
- Restructure of non-profit fees from buyers outside the US.
- Purchase Protection Changes – Purchase protection has been expanded. These items are no longer eligible for purchase protection: financial products or investments, donations, payments sent via “Friends and Family”, Payments sent through MassPay, Paypal Payouts, or guest checkout.
In a nutshell, these are the changes that may affect Silhouette and Cricut small business owners. If you do not process a lot of non-US transactions, you will be unaffected by the changes.
Read the update from Paypal here.
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Since 2015, Christine Schinagl has been helping crafters start and run craft businesses through her blog, Cutting for Business. As a Silhouette and Cricut crafter herself, she has a unique take on what works and what doesn’t work in the craft business world. She also teaches a course on creating digital SVG designs, available at How to Design SVGs.
Suzanne Pawlush
Friday 17th of February 2017
That was the most, "to the point" post to get much needed information in the shortest period of time! Thank you so much for narrowing it down to what we really need to know! Much appreciated!
Christine
Friday 17th of February 2017
My pleasure! No one has the desire to read those legal updates!
Jerri Dyke
Friday 17th of February 2017
In a nutshell is right. Good job Christine. hugxxxx
Christine
Friday 17th of February 2017
My pleasure!
Sheila
Thursday 16th of February 2017
Thanks for the information!
Christine
Friday 17th of February 2017
My pleasure!
Taylor
Thursday 16th of February 2017
Thanks for the info in a nutshell. SO appreciated! Have a great day!!
Christine
Thursday 16th of February 2017
My pleasure, Taylor!
Cindie D
Thursday 16th of February 2017
Thank you for the breakdown!
Christine
Sunday 19th of February 2017
My pleasure!