PayPal's 'Policy Update' Includes Price Hikes (paypal.com)

"Buying and selling items on the internet is about to get a bit more expensive if you use PayPal to transfer money," reports MLive, noting that some of PayPal's fees will be increasing on March 29. Slashdot reader turbotalon also complains PayPal is disguising news of the price hikes as a "policy update". Roughly one quarter of the "policy changes" are rate hikes, yet their emailed summary glosses over the rate hike, focussing instead on a few of the "policy changes" with one sentence at the end about "changing some of the fees we charge". Additionally, they have added a "non-discouragement clause" for sellers that provides:

"In representations to your customers or in public communications, you agree not to mischaracterize PayPal as a payment method. At all of your points of sale (in whatever form), you agree not to try to dissuade or inhibit your customers from using PayPal; and, if you enable your customers to pay you with PayPal, you agree to treat PayPal's payment mark at least at par with other payment methods offered."

Comments

Is it a payment method or isn't it?

[dgatwood]

... you agree not to mischaracterize PayPal as a payment method. ... you agree to treat PayPal's payment mark at least at par with other payment methods offered.

So it is a mischaracterization for us to call it a payment method, but PayPal calls it a payment method. More to the point, if it isn't a payment method—a means of transferring money to someone in exchange for goods or services—then what the heck is it and why would anybody want to use it?

Somehow, this contract seems invalid to me, or at least guaranteed to reduce PayPal use significantly by preventing it from being characterized in any meaningful way.

Re:Is it a payment method or isn't it?

[Blue Stone]

They mean, don't mischaracterise Paypal, not that calling it a payment method is a mischaracterisation.

I think they just don't want you to say Paypal is shit and doesn't do this or that, or gives the seller some disadvantage. I guess even if those things are true, they're claiming it as 'mischaracterisation'.

Re: Not use it?

[Traxton]

In Sweden, we have something called "Swish". All transactions are done on your smart phone using the sellers mobile phone number. Both buyer and seller has configured which bank account the money gets transferred to and from. Only thing that gets shared is your phone number. The service is 100% free for both buyer and seller. This has replaced paypal and cash in almost all transactions (Sweden is estimated to be 97% cash free).

PayPal is not as good as other payment methods

[pubwvj]

I actively discourage customers from using PayPal because PayPal costs me money. I will continue to do so for this reason - it's truth. I pay no fee for receiving cash or checks, PayPal sometimes withholds funds, delays payments, makes life generally difficult and is insecure for me as the seller. When PayPal is on par with cash or a check, costing me nothing more and being just as secure for me the seller then I'll treat PayPal the same.

Re:PayPal is not as good as other payment methods

[JustAnotherOldGuy]

All forms of payment cost money. Ever tried to deposit $50k at a national bank account? Fee.

Bank Of America is a scumbag organization run by scumbags, but no, they won't charge me a fee for depositing $50k.

Call them yourself and ask them, "Is there a fee for depositing $50,000", and they'll confirm that they do not bill you for depositing money.

Foreign currency or wire transfers, maybe, but a US check for $50k or $50k in US cash will be accepted without a fee. It'll get you put on a watchlist, of course, but there's no fee for that either.

Re: Not use it?

[arth1]

Sweden, like most of Europe has a payer initiated system. USA doesn't. Here, all transfers are started by the receiving side (payee), and then the payer (or bank or credit institution on behalf of the sender) have to approve it.
So a giro system isn't possible, and bank account numbers becomes private information to be guarded.

Yes, it's pretty damn backwards. Hell, a large portion of Americans still pay by cheque. And credit and debit cards still have a magnetic strip. Even those that have a chip still have the magnetic strip. And raised letters. As late as last year, I paid in a store where they rolled carbon paper over the card to get an imprint. No, I'm not kidding.
The bank I use (one of America's largest) doesn't even have two-factor authentication for its online banking, something my European bank had back in '98.

It's by far the most antiquated banking system I have encountered anywhere in the world, yet Americans believe they're the most advanced nation on the planet...
To Americans, PayPal seems like a miracle of convenience...

:-P

[Anonymous Coward]

yeah well fuck potheads. drug dealing is still a federal crime. state govs are fucking stupid. when I read about pot sellers getting robbed, I cheer.

You sound like a wound-up, aggressive sort of guy. If only there were a substance that could help you chill out, man...

Re:Not use it?

[jenningsthecat]

Unless you use ebay. That is the only reason I bother with PP.

The only reason I don't bother with eBay is that, except for the occasional seller set up to take debit or credit cards, the only way to pay is with PayPal. I simply refuse to do that. Ever. Because of PayPal, eBay is dead to me.

Paypal dying?

[roman_mir]

Just a couple of days ago I bought something on eBay and had to pay 520USD. To my surprise the system demanded that I had to contact PayPal customer support. Amazingly enough I was able to get through the maze of call answering menus and eventually had a human on the phone. She asked me to confirm the visa number (interestingly enough it seems they have the access to the unencrypted visa numbers) and eventually said I had to log out, log back in and try again. This time the transaction went through. I asked her what this was all about, she replied that they have to confirm large transactions ?????????? (520usd is a 'large transaction'???????) to avoid fraud. Immediately I thought that PayPal is in trouble. If they have to confirm transactions of that type and amount by hand, it seems to me their transaction costs have to grow significantly and they will become uncompetitive compared to visa and such. Seems to me PayPal is dying.