PayPal Online Check Fee Does Not Impact eBay Sellers

Some eBay sellers are concerned over a new PayPal fee listed in the amendments to the companies User Agreement that went into effect on September 22, 2010, but it appears there is no need for concern. The new payment option, "PayPal Online Checks," incurs an additional fee of 50 cents. Sellers who contacted AuctionBytes also feared that PayPal was backing out of seller protection coverage for transactions completed using PayPal Online Checks. What made it especially confusing is that PayPal has an eCheck payment method funded directly from a user's bank account.

PayPal said the new payment method affects developers and does not affect eBay sellers. Spokesperson Anuj Nayar said, "PayPal Online Checks is part of the PayPal X services pricing that we will begin rolling out later this year. More details will follow once the pricing is launched."

PayPal X is the name of PayPal's Developer program. The new fee described in the User Agreement is part of the fee structure for third-party developers and is specifically for those who build applications in markets that are traditionally served by cash and checks, for services such as rent, consulting businesses or payroll (link). PayPal will provide more information about the new fees for developers at its developer's conference next month in San Francisco.