New paypal fee structures

[tigerboyce]

Just recieved an e-mail from paypal listing its new fees structure, starting on July 9th:

We would like to let you know of an important announcement affecting all PayPal account holders in the UK.


Effective from 9 July 2008, PayPal will change its fee structure to make it more attractive for our UK customers to send personal payments. We are pleased to announce that:

PayPal will not charge a recipient (regardless of their account type) of a PayPal payment if that payment was funded by the sender's bank account or PayPal balance and it is designated a Personal Payment


PayPal will apply a fee for payments received for Personal Payments or Commercial Payments if such a payment is funded by a credit or debit card, however for Personal Payments funded by a card, the sender will have the option of paying the fees for that payment


Also, PayPal will no longer require its customers to upgrade from a Personal Account to a Premier or Business Account once it has received a total of £250

Consequently the following amendments to the PayPal User Agreement will be applicable for UK customers:
Clause 8 will be amended (where relevant) to provide that:

Receiving Personal Payments which are also Balance/Bank Funded Payments will be free


Receiving Personal Payments and/or Commercial Payments which are also Card Funded Payments will be charged at these standard rates:

3.4% + Fixed Fee For each domestic payment transaction.
3.9% + Fixed Fee For each cross border payment transaction

Merchant Rates

(based on monthly transaction volume & one-off application)
1.4% - 2.9% + Fixed Fee For each domestic payment transaction
1.9% - 3.9% + Fixed Fee For each cross border payment transaction

The monthly volume tiers applicable to these Merchant rates are further described in the Fees section accessible from every page of the PayPal Website.
The Fixed Fee will be (depending on the payment currency):

£0.20 GBP ¥40.0 JPY 1.35 PLN
€0.35 EUR $0.40 AUD 90.0 HUF
$0.30 USD 0.55 CHF 10.00 CZK
$0.30 CAD 2.80 NOK $0.50 SGD
$4.00 MXN 3.25 SEK $2.35 HKD
1.20 ILS 2.60 DKK $0.45 NZD

UK registered Users who receive payments in Euros from other European User countries will receive a 0.5% reduction in the variable amount of the applicable cross border fee.


The sender of a Personal Payment which is also a Card Funded Payment may choose to pay the Fee applicable to that payment.
Clause 15 will include the following new definitions:

"Commercial Payment" means a payment which is not a Personal Payment (including, without limitation a payment associated with an eBay item and/or other goods or services).

"Personal Payment" means a payment made for the purpose of either your personal, family and/or household affairs.

Clauses 4.1, 4.2, 4.4(c), 4.9 will no longer apply to UK customers.



No action is required on your part and you will be able to continue using PayPal with no changes.

Yours sincerely,

PayPal

looks like most of the fees are gone but some still exist, it would be nice if it was all 100% free.

[explicitlyrics]

Indeed, for residential users this looks like great news from what I can see!

[Stringent]

I wonder whats made them change. Got that email this morning too.

[mikerr]

Reading carefully, they are not removing the fee for all bank-funded payments,
and they are nicely exluding ebay sales if I read this correctly:

"Commercial Payment" means a payment which is not a Personal Payment (including, without limitation a payment associated with an eBay item and/or other goods or services).

"Personal Payment" means a payment made for the purpose of either your personal, family and/or household affairs.

They are still charging premier/business accounts a fee for paypal balance funded transfers - which is the real ripoff...