PayPal Policy updates for 5th March 2020

By Chris Dawson January 6, 2020 - 10:35 am

PayPal have announced the PayPal Policy updates due to come into effect on the 5th of March 2020. The good news is that there are no changes for UK users on fees but the bad news is on refunds where PayPal will keep the original fees.

PayPal Policy Updates – Fees

The standard rate for receiving domestic commercial transaction payments stays at 2.90% + Fixed Fee for the UK, but for some countries it changes to 3.40% + Fixed Fee.

PayPal Policy Updates – Refunds

If you refund a Commercial Transaction payment, there are no fees to make the refund, but the fees you originally paid to receive the payment are not returned to you. (For some reason, this does not apply to users registered with PayPal as residents of Ireland who do still get their fees back).

“If you carry out a refund of a Commercial Transaction payment, all of the fees originally paid by you to receive the payment will not be returned to you.”
– PayPal

PayPal Policy Updates – 2nd January 2020

It’s worth remembering that the last set of fee changes PayPal announced kicked in on the first working day of the year. PayPal reduced the fees they charge for receiving card payments using the PayPal Virtual Terminal Product and (as part of the Custom Card Fields product) the PayPal Virtual Terminal Online Card Payment Service.

PayPal Merchant Rate

It is worth a reminder that the old PayPal merchant rate was retired and there is a new programme in place which you have to apply for. It offers what PayPal are now calling Tiered Rates. You can apply when logged into your PayPal account at

The form will only appear if you are eligible and PayPal appear to be doing their best to hide eligibility requirements if you don’t qualify! All PayPal do reveal is that to qualify your account must be in good standing and not under investigation and have received more than the Tier 1 ceiling amount (in the original opening currency of your account) in commercial transaction payments in the previous calendar month, but they don’t say what the Tier 1 ceiling might be… (we suspect because it may be different for different people).

(edited to emphasis that PayPal will now keep all the fees on refunds)

  • 1 year ago

    I think this article is incorrect Chris. Paypal have traditionally kept the 20p (now more) fixed fee if you carry out a refund, but I read their update as they are keeping ALL fees if you refund a transaction.
    Tell me I’m wrong because if this is the case then it’s VERY bad news with the amount of people that buy car parts from us on eBay without checking if they’re correct for their car.

  • 1 year ago

    So really now that you don’t get all your fees we are allowed to do a Restocking Fee to cover all costs?
    We get customers who say they ordered by mistake so we should be allowed to refund minus the fees.

    • Your story was fantastic and I think you are couldn’t have said it any better

  • Jonah
    1 year ago

    This is absolutely outrageous on the behalf of PayPal. Furthermore is it legal?
    We sell large ticket items on eBay- sometimes people buy in the late evening and regret their purchases in the morning. Loads of times we have refunded without fuss when they have asked for cancellation.

  • 1 year ago

    BREXIT !
    Tell you what, the reason Ireland is exempt is that the EU will probably not stand for this, do you think it’s a co-incidence that they’ve pushed the date back so it’s after Alexander Boris Defeffel Johnson’s (his real name) proposed Brexit date ?, no it’s not.

  • 1 year ago

    Bad move on their part I think.

    Ebay sellers are trapped for now like it or not, but how many of those sellers have their own websites and will consider ditching them over this? If you have a constant high level or returns, eg. in fashion, you’re going to be thinking about it.

    • 1 year ago

      Exactly what we did. Ever since the change in Paypal we moved everything to Square Payments and Stripe. As we in the UK Square Payments are next day and Stripe has moved to 3 day payments from 5 recently and the actual payments are so much cheaper.

  • Bob
    1 year ago

    Interesting how ebay will play this when everyone is moved over to ebay in house payments system, they couldn’t really be seen to force you to accept returns and then profit from it as well ? PayPal taking the piss a bit I feel, it won’t go down well and will for sure cost them as merchants opt out.

  • 1 year ago

    Unexpected when account asking for more information (even though 100% orders with tracking and sign delivery) after review account is permanently limited it is really very bad for business account holders suddenly business stop for that. It should be stop asking invoice all the time when increase customers payment PayPal call significantly change.

  • Mike
    1 year ago

    Thats USA for you greedy monster destroying our world

  • Mark
    1 year ago

    Great idea more people posing as individuals will appear on ebay now.

    • 1 year ago

      how right you are

      The problem is that eBay will see this and think ‘well, we can now do this too’

  • NorthCrystal
    1 year ago

    I’m afraid ebay will ‘follow’ with similiar idea once they have their ‘own’ payment system. Did anyone else notice ebay order no is similar pattern to Amz’s? (I know i’m late on this..)
    I’m also afraid ebay will get away with all those pesky moves as long as there’s… no competition. Online auctions are so 90’s anyway. My OH buys/sells second hand clothes on there. Quite happy. She’s not even bothered if some other items like phone cover comes from China. There’s plenty of folks who just want their stuff and prefereably cheap/quick. Most of us here are genuine ebay sellers and we see the platform differently.

  • Erwyn
    1 year ago

    Daylight robbery. Supposedly managed the FSA under European regulation, but after 31st January? Hurrah ‘Brexit the land of opportunities…. opportunities to get ripped off even more’.

    • 1 year ago

      that’s why Ireland is not included in this change, because they’ll still be part of the EU.
      Strange, Boris Johnson said everything would be better after Brexit but it looks like these large firms are lining up to shaft us in the UK.
      Ah well, blue passports eh

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