applicable fees from January 2018

[Gilly1969]

I run a small business and if customers want to pay via paypal I add on the fee that Paypal deducts to the payment so I don't lose any money when they choose to pay via Paypal  But I have been told from January 2018 I can no longer do that,  as the UK are extending the removal of card surcharges to include paypal, and that my business has to absorb the fee, is that right?

[kernowlass · Accepted solution]

@Gilly1969

Its against paypal rules to surcharge a buyer UNLESS of course they know the surcharge before they commit to buy from you.

Having said that as a buyer i would never choose a seller that surcharged if i use paypal, but thats your call of course.

Also i have to say that it is also against paypal rules to ask for f/f payments for receiving payments from buyers, if you do so then you risk your paypal account being limited.

I think you will have to absorb the fee, but you could just up your prices a bit to cover those costs.

[colin99]

Same problem here.  Putting up prices for everyone is not an option, since most of my customers pay by bank transfer, but still there are a few who do want to use Paypal.  But if I am not allowed to calculate and include Paypal fees from January, then I'll simply have to remove the Paypal option for all but trivial payments.  If I absorbed the costs, I would be making a loss on some transactions, that's simply not going to fly.

Paypal need to push back against this new rule or they will lose a lot of business.

[Gilly1969]

It's very annoying.  I offer other payment options as well as Paypal, like bank trasfer, cash or cheque,  and always tell the customer that if they use Paypal there will be an additioanl fee before they go ahead with an order.  But I can't afford to take the costs come January so I'll have to remove the option to oay with Paypal.  As you say, they are going to lose a lot of customers.

[Coincidental]

I have just spoken to a representative from PayPal who told me that we can still charge our customer for using the service.

It would be great to get some clarity on this asap. 

[kernowlass]

@Coincidental

Really? Not according to the user agreement 

>>

If you are a User resident in the UK, you shall not surcharge for the use of PayPal. Otherwise you agree that you will only surcharge for the use of PayPal in compliance with any law applicable to you and not in excess of the surcharges that you apply for the use of other payment methods. You further agree that if you do surcharge a buyer, you, and not PayPal, will inform the buyer of the requested charge. PayPal has no liability to any buyer where you have failed to inform the buyer of any surcharge. You acknowledge that you could be committing a criminal offence if you surcharge and/or fail to disclose any form of surcharge to a buyer.

If you are a User resident in the UK and your Account has Merchant rate status and, at any of your points of sale (in whatever form), you:

1. dissuade or inhibit your customers from using PayPal;
2. fail to treat PayPal’s payment mark at least at par with other payment methods offered; or
3. apply a surcharge for the use of PayPal,

PayPal may permanently downgrade your Account to the Standard rate (without prejudice to any other rights and remedies PayPal may have).