February 14, 2017
It is getting more expensive for U.S. merchants to accept PayPal, especially if they sell cross-border. Effective March 29, according to PayPal’s website, it is updating its user agreement to increase the fee it charges to convert currency from 2.5 percent over the current exchange rate to 3 percent. Online transactions from outside the U.S. will now cost U.S. sellers 4.4 percent, up from 3.9 percent. A variety of other fee increases are detailed here on the PayPal site.
In addition to higher fees for companies trying to sell in other countries, the online payment pioneer is making several changes to its Seller Protection program, which offers some protection to merchants against friendly fraud and chargebacks. While PayPal does not charge for Seller Protection, there are several requirements a transaction must follow to be eligible. The new user agreement adds donations, financial products, and several others to the list of items that are not covered by Seller Protection. It also has added a $20 processing fee for sellers that win a chargeback but are not eligible for Seller Protection.
For these and other changes merchants accepting PayPal must comply with starting March 29, visit the PayPal website.