PayPal Policy Updates for March 5, 2020
PayPal has announced updates to the PayPal policy due to entered into force on March 5, 2020. The good news is that there is no change for UK users on the fees, but the bad news is with refunds where PayPal will keep the original fees.
PayPal Policy Updates – Fees
The standard rate for receiving payments from domestic business transactions remains at 2.90% + fixed charge for the UK, but for some countries it is increased to 3.40% + fixed charge.
PayPal Policy Updates – Refunds
If you refund a Business Transaction payment, there is no charge to make the refund, but the charge you originally paid to receive the payment is not refunded to you. (For some reason this does not apply to users registered with PayPal as residents of Ireland who still recover their fees).
“If you are refunding a Business Transaction payment, any fees you originally paid to receive the payment will not be refunded to you. “
– Pay Pal
PayPal Policy Updates – January 2, 2020
It should be remembered that the last round of fee changes announced by PayPal began on the first business day of the year. PayPal has reduced the fees charged for receiving card payments using the PayPal virtual terminal product and (as part of the Custom Card Fields product) the PayPal virtual terminal card online payment service.
PayPal merchant rate
It should be remembered that the old PayPal merchant rate has been withdrawn and a new program is in place for which you must apply. It offers what PayPal now calls tiered rates. You can apply when you are logged into your PayPal account at paypal.com/businesswallet/applymra
The form will only appear if you are eligible and PayPal seems to do its best to hide the eligibility requirements if you are not eligible! All PayPal reveals is that to be eligible, your account must be in good standing and not be investigated and have received more than the Level 1 cap amount (in the opening currency of origin of your account) in commercial transaction payments in the previous calendar month, but they don’t say what the level 1 cap might be… (we think it might be different for different people).
(edited to emphasize that PayPal will now retain all charges on refunds)