PayPal Doubles Fees, Forgets to Tell Customers

PayPalIf you’re a PayPal customer, you may be in for a surprise the next time you look at your account.

Personal accounts are now charged a 2.9% fee + 30 cents to receive payments for “Goods” or “Services”, something that was previously free. No formal announcement about the change was made.

“We didn’t want to make a huge formal communication out of this pricing change, because we weren’t really adding any fees, and we were hoping it would be a more useful experience for people.” — Charlotte Hill, PayPal PR Manager

Read that again. They chose not to announce it because it would be a more useful experience. PayPal’s director of product marketing, Heinz Waelchli was also less than forthcoming on the PayPal blog while trying to spin the story.

This double-dipping — charging both sellers and receivers for transactions — will result in a major increase in fee revenue for eBay Inc. which owns PayPal.

Want to get around this blatant money grab? Get a Premium or Business Account with PayPal. Or just ditch PayPal altogether, and sign up for Google Checkout.