PayPal Ends Free Payments From Friends And Family For Business Accounts
PayPal limits free payments to friends and family for US business accounts
PayPal is limiting zero-fee payments to friends and family for US business accounts by the end of July. People who use it for business purposes need to create a personal account to make payments free of charge.
PayPal currently offers two payment methods; Friends, family, goods, and services. The first category is for personal payments that do not incur any fees but also do not provide fraud protection. Whereas, goods and services for business-related payments are a charged service along with a protective feature.
According to The Verge, customers often make their business payments through the Friends & Family option to avoid fees. However, in an announcement posted on the website, PayPal mentioned the change in its tax-free payment policy effective July 28, 2022.
According to PayPal, “In the coming weeks, only US customers will now be able to send peer-to-peer friends and family payments to consumers’ PayPal accounts.”
As a result, those clients who have their business need to create an additional personal account to carry out any transactions with friends and family. Additionally, the new policy also revised transaction fees. Previously, the fee was 2.89% plus $0.49 per transaction, but starting July 28, customers will pay 2.99% with no additional flat fee.
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