Paypal’s fee structure is anti-individual and clearly they only want to serve businesses. Venmo, Zelle, Apple Pay Cash and Cash App are superior and PayPal is dead to me.
The Verge: PayPal is ending fee-free Friends & Family payments for business accounts
“Starting July 28th, only personal PayPal accounts will be able to get funds via Friends & Family, a transaction method intended for trusted recipients.”
The Verge: PayPal reinstates controversial policy of pocketing fees from refunds
“PayPal will begin pocketing the initial 2.9 percent commission fee sellers forfeit during a transaction even when the seller is refunding a customer in full.”
How this is impacting me? I regularly receive payments from people via PayPal and I have for 25 years and it’s for simple things like I will cover an entire road trip and using a Split App, will collect reimbursements from everyone after the trip. I use my credit card for all gas, then tell everyone how much they owe me equally. If they covered dinner one night, that comes out of what they owe me. I recommend SplitWise highly. In other situations, it’s folks gifting me money via online tip programs. I’m not realizing any business taxable income despite the fact my PayPal account has been a business account for 20 years. I set it up that way and therefore, I can no longer accept payments as Friends & Family. Someone sent me $2,000 and it was a $60 charge.
After some back and forth, I told them to just use Zelle/Cash App or Venmo which they did. I did a full refund via PayPal but I noticed that my account was still showing negative $60. It was only when I did some digging did I realize that even though my friend received his full $2,000 back, I was still on the hook for those fees.
I’ll be closing my PayPal account and not accepting it going forward….well, after my transfer from my bank to PayPal for $60 fees when a friend paid me back. I guess that tank of gas is on me?
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