Paypal News : No More Fees

A short article but nonetheless, a very important subject. It seems the fellow at PayPal have had a change of heart, and decided to remove fees from their service, or atleast in one aspect. When you click Send Money, a new tab has appeared called Purchase, this is what you “should” use if you make a purchase from someone, and a Personal Tab which is to be used if the money being sent is for personal terms such as to a friend.

If you use the Personal Tab, you will not be charged any fees, nor will the recipient, this will only apply if you send the money from your PayPal Balance - if you pay via Credit/Debit Card, charges will apply. So what does this mean? Well, eBay could perhaps become a more viable solution for business’s online, with a reduction in fees, it means that items can be sold at a slightly cheaper price and still maintain profit margins.

I think PayPal have taken this step due to the major feedback from users in the form of moving to other merchant solutions such as MoneyBookers and Google Checkout. In my opinion, it’s a good choice, although if users abuse the Personal choice when it is actually a legitimate purchase just to avoid paying fees, will there be a lack of protection for buyers and sellers alike should something go wrong.

What do you think about their decision to remove fees, leave a comment in this post to join the debate.