PayPal, the popular online payment system, has updated its user agreement effective from July 31, 2020. The new agreement applies to all PayPal account holders around the world. The update covers a wide range of topics, including the use of PayPal services, fees, and payment processing.
One of the most significant changes in the new PayPal agreement is the introduction of a new fee structure for merchants. Under the new structure, PayPal will charge sellers a flat fee of 2.9% plus $0.30 per transaction for sales made through PayPal. This fee will be applied to sales made through PayPal`s website or mobile app, as well as sales made through third-party platforms.
Another significant change in the new agreement is the introduction of Seller Protection for unauthorized payments and items not received. This protection covers eligible transactions for sellers who meet certain criteria. To be eligible, sellers need to follow PayPal`s Seller Protection Policy.
The new agreement also includes updates related to PayPal`s services, including changes to how payments are processed. PayPal has introduced a “currency conversion spread” which means that when converting one currency to another, PayPal will apply an additional charge as a percentage of the exchange rate. This will affect users who frequently make international transactions.
In addition, PayPal has updated its user agreement to provide clarity on its policies on refunds, chargebacks, account suspensions, and account closures. The new agreement sets out the circumstances under which PayPal may suspend or close a user`s account, such as for suspected fraud or violation of its policies.
As a professional, it is important to note that the changes in the new PayPal agreement may impact the way merchants conduct their business. Merchants need to be aware of the new fee structure and Seller Protection Policy to ensure they are compliant with PayPal`s terms and conditions. It is also important for merchants to review their business practices and take advantage of the new features that PayPal has introduced to enhance their payment processing.
In conclusion, the new PayPal agreement reflects the company`s continued efforts to improve its services and provide clarity to users on its policies. Merchants need to review the changes and ensure they are in compliance with the new terms and conditions. Failure to do so may result in account suspension or closure by PayPal.