PayPal raises fees 0.5%

PayPal is raising fees for transactions involving a currency change by 0.5%.

https://www.paypal.com/us/webapps/mpp/ua/upcoming-policies-full?locale.x=en

They used to charge 3.9% plus the fixed fee and it will be 4.4% plus the fixed fee.

They are changing the currency conversion spread from 2.5% to 3% over the exchange rate set by their bank.

These should be huge money makers for PayPal. They gain and all sellers lose. It seems a company can get away with this when they are close to a monopoly.

 

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Could be more people or companies may go to google wallet or some of the others. But I doubt it.

I've never had any issues with paypal & I use it religiously.

 

Thanks for the notice. I find myself not using them for international transactions any longer, the foreign exchange just too expensive.

 

The EU recently passed a law effective in 2018 that you will not be allowed to use over 500 Euros cash to pay off a debit. Is this PayPal's version of moving to a cashless society or their greed? Both?

 

What is the alternative?

 

I think you mean "debt" not "debit," and this isn't quite correct factually.

In fact, the EU is phasing out the 500€ note in 2018 since it was associated with money laundering and tax evasion. There is no law that forbids paying off debts of over 500€ with cash.

Here's a link to the correct story:

http://www.independent.co.uk/news/w...ation-european-central-bank-ecb-a7013621.html

 

Of course, PayPal is assuming the risk that an increase in the transaction fee will result in fewer people using the service, as noted by one poster above.

 

I usually used bank wire or credit card for international transactions based upon amount.

 

I though when monopolies were supposed to be good for everybody? People are waking up ever be it so slowly but, they are waking up. These tactics and the corporate types that employ them well, their days are numbered. The answer is use an alternative to someone that gets too big for their collective britches.

 

Thanks. I had just returned to my office and what I said was what the news reported. Not that I really trust the news media. And I did mean debt.

 

General news media reporting of financial news is almost always atrocious. It's not surprising that they got this story wrong.