PayPal Changes!!!

PayPal Makes Important Changes To Policies Effective June / July 2009


There are several new PayPal policy updates that were announced today.

(1) Effective June 3, 2009 you may not use PayPal service for activities that “involve the sales of products or services identified by government agencies to have a high likelihood of being fraudulent”. Not sure what that means? Neither am I and neither is the PayPal representative I spoke with today. PayPal informed me that they cannot answer any questions about policy updates unless they are submitted by email. So, if you want some details you will have to email PayPal.

(2) Personal PayPal accounts, where all payments except those funded by credit card, are free for the receiver. However, beginning June 3, 2009, personal PayPal accounts will no longer going to be available for use by anyone who sales goods or services no matter the amount. If you sell a $1 item then you must convert your personal PayPal account to a commercial account and pay fees on all transactions no matter the funding source used. This is a major change and many very small or part-time online sellers won’t see this one coming.

(3) Beginning July 1, 2009, PayPal Preferred Rewards (Cash Back) for debit card purchases will be paid out at the end of each calendar month rather than after each transaction. It looks like PayPal wants to hang on to your money just a little bit longer.

(4) Pilot program that will change your default payment sources beginning June 8, 2009 (quoted from policy updates):

Some PayPal users will receive an email from PayPal informing them that they have been selected to participate in a pilot program that will change their default payment sources for a 12 month period. If you are selected to participate in this pilot, your default payment sources will be changed as follows:

1. Not “required” to use your Balance when sending a payment. Right now, if you have a Balance in your PayPal Account, you are required to either withdraw your Balance, or use it to fund your payment. If you are entered into this pilot, you will have the option of changing your payment source at the time you make a payment even if you have a Balance.
2. Bank before Balance. Right now, if you have a Balance in…

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