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.
Share this post: