PayPal clarification on the fee changes
Confusion reigned when it came to PayPal’s fee changes announcement on log in yesterday. And we were confused too. What did it all apply to and what was the right choice? Here’s the original article.
It’s good to offer some clarification and PayPal have also been in touch with us to give some additional information.
Firstly, to be clear, the changes only apply to these services: PayPal Website Payments Pro, PayPal Here and Virtual Terminal.
There is no change when it comes to bog-standard eBay/PayPal payments. The changes only apply when you’re taking card payments directly. Here’s the PayPal statement:
“The European Commission is making changes to card processing practices in order to create a common market across the EU and European Economic Area (EEA) states. One requirement of the new Interchange Fee Regulation (IFR) is that PayPal and other payment providers must offer an unblended fee structure for card payments. Therefore, this regulation only applies to PayPal’s card processing services. This is why we are introducing Interchange Plus, a different fee structure for receiving credit and debit card payments through PayPal Website Payments Pro, PayPal Here and Virtual Terminal. Previously, PayPal only offered a blended fee structure. We let our merchants know this was coming through an update of our User Agreement on 5 April 2016. What our merchants are seeing now is information about both pricing structures so they can choose the option that works best for their business before the regulation comes into effect on 9 June 2016.”