End of PayPal explanation?

[hevydevy]

Hi everyone. I have just heard from my accountant that the Canadian government is cracking down on PayPal and locking client accounts.

She said that if I want to keep using my secondary PayPal account “we will need every document that PayPal is asking for which consists of incorporation documents, credit card statement/CRA documents.” None of these I have as it is a side entity and not my main business. I do pay taxes on the income but it is not a registered company.

She has clients with over $70,000 locked and seemingly irretrievable. PayPal refuses any action without the proper documentation.

Maybe Ebay heard of this and are actually trying to protect sellers? (Well, really, they are protecting themselves, I doubt they are being altruistic). I can’t imagine Canada is the only country doing this.

Thoughts?

[davidelliott]

That’s a new one on me. Haven’t heard of anything similar in Australia but as Ebay are moving away from Paypal it may turn out to be a non-event here.

David

[Antiquesdesign]

This just in from Paypal :
When a merchant processes a refund to one of their customers, PayPal will now retain all fees paid by the merchant when the merchant received the original payment from that customer.

For example, the $100 AUD you received, $2.90 AUD total fee from the 2.6%+0.30 cents AUD transaction fee will be deducted still by PayPal. To make it short, the buyer will get the full amount they paid for, you will lose the amount equal to the transaction fee if the transaction with the buyer is unsuccessful.

I hope this answer your question. Please let me know if you need further clarification in regards to our updated policy.

Thank you for choosing PayPal.

Sincerely,
Janice
PayPal

PayPal Australia Pty Limited.
Copyright © 1999-2019 PayPal. All rights reserved. PayPal Australia Pty Limited ABN 93 111 195 389 (PPA) holds an Australian Financial Services Licence, number 304962. Any general financial product advice provided in this email is provided by PPA and has not taken into account your objectives, financial situations or needs.

Thank you for the response.

I am concerned that the policy is not very clear and I did answer my specific questions.

Let me give you an example:

I am a seller on ebay AU.

Ebay require mandatory acceptance of paypal as a payment system.

If I sell an item on ebay for $100 to a buyer….

The buyer pays $100 for it by paypal, and then changes their mind….or fails or refuses to pick it up…

if I refund the buyer the purchase price of $100…what are the new charges/ fees that paypal now demand?

[davidelliott]

Just as expected Tracy. Has it been implemented yet in Oz? Thought it was time in early May.

[fedege96]

Concerning Tracy matter, I can confirm for direct experience that PayPal has specific (hidden…) security criteria that might bring to block your account although you have money on it. I also know that PayPal policies are totally different from country to country. Just consider that they asked me documentation to prove that I am not seller in the US …

Concerning this matter:

@Antiquesdesign

if I refund the buyer the purchase price of $100…what are the new charges/ fees that paypal now demand?

Before the new fees policy, when you refunded 100$, PayPal refunded you the fees over that amount. Now, if you refund, 100$ will go back from your account to customer’s one, but you won’t get back the fees PayPal obtained from you when the customer purchased the good. In other words, PayPal fees are just one direction: from you to them, no more reversible.