PayPal Raises Rates and Offers Chargeback Protection for a Fee

by: Silver Ice King

I already have a stripe account and can seem myself moving more and more of my business to that option as I feel this increase is truly being made because of losing Ebays business and getting into the cryptocurrency business.  I will admit I have truly enjoyed the ease of using Paypal but personally I feel that is to hefty of an increase to shove on Sellers all at once, especially the increase of almost 50% on the transaction fees.  If I have to use Paypal I will definitely pass the increased cost on to the customer, but will now offer the use of Stripe as my first payment option.

Any ideas how soon Ebay suddenly matches or comes very close to matching this price increase?  They never have an original idea, at least not any that are worth their weight in salt, but with desperation having set in with them I look for Mangled Payments to have a similar announcement very shortly.

by: Rexford

Looks like a certain company is trying to make up for the losses that they encountered when eBay moved to Managed Payments.

ALWAYS on the backs of sellers.

I will not pay PayPal one red time for chargeback protection and I will raise my fees for any transaction associated with PayPal.

by: The End

Dump PayPal IMMEDIATELY !
NO EXCUSES. (WAH, I have PayPal money to spend, BLAH BLAH BLAH....)
BAIL OUT.
It is a wholey UNnecessary third wheel.
The credit card company is the chief arbitrator.
Can't peddle on Ebay without PayPal ?
LEAVE EBAY.
My business is Through the ROOF > NO PAYPAL !
My own website is SMOKIN' .
Never had a Summer so good  :o)

by: ShortSeller

Paypal has always offloaded fraud analysis to themselves for any transaction where you are using their payment gateway. What a crock of shit.

by: Vigilant Eye On eBay

The impact will be negligible because I no longer sell products on eBay, the majority of my customer orders are over $100.00, and my domestic orders are shipped for free, once the aforementioned figure has been reached.

As long as my average selling costs for sales do not exceed fifteen percent, I have nothing to gripe about.

On the other hand, once the cost of PayPal's rate increase is passed down to eBay sellers (i.e., whether or not buyers use PayPal as their payment method), they are certainly going to feel the pain.

by: Vigilant Eye On eBay

Having established extremely strict risk management policies (i.e., in order to deal with troublesome eBay buyers) many moons ago, given that I have never had a charge-back in the twenty or so years that I have been using PayPal, there is no compelling reason for me to opt into their Charge-Back Protection Service.

by: Vigilant Eye On eBay

Upon reviewing the June 18, 2021 Upcoming Changes for Some US Businesses posted in the PayPal Newsroom that Ina kindly provided a link to, I suddenly realized the my fees will actually decrease if not opted into Charge-Back Protection, or very negliably increase if opted in.

How is this possible?

''Credit and Debit Card payments:  Online credit and debit card transactions will be 2.59% + $0.491 per transaction without Chargeback Protection, or 2.99% + $0.49 with Chargeback Protection.''

Rather than signing up for, or using a PayPal account, with PayPal setup as my sole payment gateway, the majority of my customers checkout using a credit or debit card.

In addition, it appears that the in person payment rates might also be lower, or nearly unchanged.

''In-person Payments: For PayPal and Venmo QR code transactions over $10, the rate will be 1.90% + $0.10, and for such transactions $10 and under, the rate will be 2.40% + $0.05. For certain in-person debit and credit transactions the rate will be 2.29% + $0.09.''

The large fee increase is for PayPal Digital Payments (e.g., PayPal Checkout, Pay with Venmo, PayPal Credit, Pay in 4, PayPal Pay with Rewards, Checkout with crypto).

''PayPal Digital Payments: For PayPal payment products (such as PayPal Checkout, Pay with Venmo, PayPal Credit, Pay in 4, PayPal Pay with Rewards, Checkout with crypto), which include Seller Protection on eligible transactions, the rate for online transactions will be 3.49% + $0.491 per transaction.''

The rate increase includes Seller Protection, which apparently cannot be opted out of.

by: Covid-20

@THE END
i have to say, Everything you stated. . . .   is 100% accurate.  
Can't survive on Ebay without paypal? That's right.  Get off of it.  
Same thing with manged payments.  i wasn't submitting.  See ya.

As for a website, I am in the same situation.  Business is FAR beyond Ebay.  
IF YOU HAVE  A SALEABLE PRODUCT . . .  You will do just fine!

by: pace306

My question is - who needs Paypal in 2021?

Maybe someone who has their own website has a good answer ?

If you are on eBay - chances are you already are in MP - so you "dont need the pigs"

If you have your own site - you can get Stripe (not pigs ... yet)

So what does anyone need Paypal for?

I have an account still (goes back to 1998), and all its good for is eBay trying to pull money for shipping corrections - which all turn out to be in my favor (funny how when I argue/fight them suddenly Im right).

They are just using smaller sellers to fund their operations/eat losses from somewhere else ... DUMP THEM, they are the horse and buggy of the automobile era.

by: shut1968

Seems more like another dig at Ebay for switching to managed payments since most people still use PayPal to pay for stuff on Ebay..

Wonder how long it will be before we get an announcement from Ebay that they are blocking PayPal from being a payment processor on the site and force credit/debit cards...

You know it's coming.

by: Shanna

Please note large users, like Walmart and Home Depot, already pay less than the standard due to large volume, probably as low as 0.9%. Ebay has to still be Paypal largest user, so they are paying no more than the 0.9%. So when they charge sellers 2.9%, they are still making money on the transaction. For eBay to try and pass this increase onto sellers will be a sham.

by: RL15

@Shanna

"For eBay to try and pass this increase onto sellers will be a sham."

Everything the walmart dopes do is a sham. So, be prepared for the increase.

by: RKTOYS

PayPal is over for me as soon as eBay shuts me out.  I have only ever used it when I was forced to by eBay.  Any time I have a choice, there are better options including cash.  Considering the clowns in Congress were already planning to attack me in 2022, I already made the decision to avoid these middleman "services."

by: Silver Ice King

Since anything I buy on Ebay is paid for using Paypal I fully expect Ebay to either get rid of Paypal as a payment source (which they already found hurt big time when they first went to Mangled Payments and for some stupid reason could not accept Paypal payments) so I wonder how they will manage to pass on any fee adjustments that they wind up having to pay?  I still buy some on Ebay but will only use my Paypal account as there is no way in heck that Ebay is going to get any of my CC in their files to keep even when I say not to keep the information.

@Pace - I am shocked to see that you still use Ebay shipping program when there are so many others available that do not constantly have issues like Ebay does.  I use Stamps.com and just use my Paypal debit card to buy the postage since they do not accept Paypal and get the 1% refunded to my Paypal account for using the card.  There is no way in heck I would ever change back to using Ebay shipping after what they stole from their sellers back when there was that issue with overcharges happening on the first 4 ounces or under FCP and all of the other shipping programs adjusted their pricing but Ebay refused for 2 months until they saw how much their shipping revenue was dropping, then came the "You Spoke and We Listened" but as far as I was concerned it was 2 months to late and they didnt even offer to refund the overcharged amounts to Sellers who never changed.

by: TiredJustTired

During the pandemic, retailers and bricks & mortar stores felt the downturn  in in-person sales and ended up going out of business.  So now payment services are putting the squeeze on online selling sites that were able to survive?  If PayPal does this, other payment services will follow suit.  They always decide get on the bandwagon.  What's left?  Accepting personal checks?

by: Eagle

So I guess applying refunds back to the customer will now cost the seller $.49 instead of $.30

by: cvsharkey

Strike 3 for PP.
First they make changes unannounced and without explanation (invoicing changed significantly this past week.) They don't put anything in the HELP files about the changes.
Then, they make it nearly impossible to find the answer without the need to call them. They've set up a help robot who can only spew the information in the current HELP files, which you've already checked before reaching for help. I've gotten the root to let me send a message once--never rec'd a response. The service contacts are sympathetic, but no one above them is listening.
Now it's announced a hefty increase in fees?

Enough is enough.

by: cvsharkey

Must comment one more time.  These online selling venues & payment options seem to have unsustainable business plans. They completely lose focus on who their customers are.

A sustainable business plan would address increases to their customer, explain the need and offer some type of additional benefit to ease the pain.

As for PayPal, I never received notice of increases, I never received notice of the changes being made to invoicing, and they are non-responsive. When I attempted to email a message today--their bot told me they were closed & try again later.

These services act like an old aristocracy--they crush you under their boot & you seem to have no other place to go as they are in cahoots.

by: pace306

Re: still using eBay shipping….

I use what ever service is cheapest/best for my buyer.

eBay has all my info from way back. It points to an account that gets emptied daily, and the cc used has strict controls.

I was just considering canceling Paypig altogether- I can’t see a personal use for them anymore….. my bzz as no does everything they do cheaper and better.

by: iheartjacksparrow

If PayPal is raising their fees, I wouldn't be surprised if all the other payment processors do the same. I use Stripe exclusively for my transactions on eCrater, and they charge the 2.9% plus 30 cents. I was looking at a comparison of the different payment processors, and almost all of them charged the same. The other companies are probably thinking, if PayPal can raise their fees, we should, too.