SAN JOSE, CA — Buying and selling items on the internet is about to get a bit more expensive if you use PayPal to transfer money.
The San Jose-based digital payment platform announced it will be increasing some of its fees starting on March 29, 2017.
Among the increased fees is a currency conversion charge increase from 2.5 to 3 percent on top of the exchange rate established by PayPal’s bank. Meaning customers will pay three percent more than the bank’s currency conversion difference when exchanging money internationally.
- The standard transaction fee for sellers selling goods or services online to buyers outside the U.S. will jump from 3.9 to 4.4 percent plus the existing fixed fee based on the currency. The standard transaction fee for in-store transactions received from buyers outside the U.S. jumps from 3.7 to 4.2 percent.
- Nonprofits who receive payments from senders outside the U.S. and are charging a flat rate of 3.7 percent plus the existing fixed fee based on the currency for all such transactions.
- Micropayment fees for in-store transactions received from buyers outside the U.S. from 6.0% to 6.5% plus the existing fixed fee based on the currency.
PayPal is also increasing some of its fees for PayPal Here and the Pro and Virtual Terminal.
While the half percent increases for most transactions won’t impact buyers and sellers who only make a handful of transactions a year if you have a business that sells products all over the world it could result in a significant impact on business owners.
In the updated terms, PayPal tells users who do not agree with the changes that they can cancel their account before March, 29.