PayPal Hits Back Hard after Being Punched In the Eye By Amazon

Posted on July 30, 2008. Filed under: Amazon, Paypal | Tags: , , , |

The Big News this week, of course, is Amazon’s new Payment Processing Offerings.  However, Paypal has some news of its own.

For a limited time, PayPal is offering a new pricing structure (to select customers) that could save them up to 34% on PayPal fees for the next 12 months. Compare rates:

  Current rate New rate
Receiving fees 2.9% + $0.30 1.9% + $0.30
Transfers to bank account 0% 1%
PayPal Debit Card*

*Only applies to customers with a PayPal Debit Card
1% cash back No cash back

For example: If you receive $10,000 a month, you could save $1,200 in one year by keeping the money in your PayPal account or using it to shop or send money.

 

The following is the New PayPal Pricing Agreement copied exactly from the PayPal Website:

This Agreement (“Agreement”) is a contract between you and PayPal, Inc. (“PayPal”) regarding the New PayPal Pricing Program. You must read, agree with, and accept all of the terms and conditions contained in this Agreement. This Agreement applies to you in addition to the PayPal User Agreement and other applicable agreements and policies. To the extent that this Agreement contradicts any other agreement, this Agreement shall apply.

  1. General. The New PayPal Pricing Program (the “Program”) is a program that allows you to take advantage of a new PayPal pricing structure.
  2. Eligibility. To qualify for the Program, you must receive an email invitation directly from PayPal to participate in the Program, and sign up for the Program by following the instructions in the email invitation. You must meet all of the requirements detailed below, and have a PayPal Account that is in good standing.
  3. Program Details. The following terms will apply to your PayPal Account through which you sign up for the Program.
    1. Transaction Fee. Your Fee for receiving payments will be reduced by 1%. (For example: Instead of paying 2.9% + $0.30 per transaction, you will pay 1.9% + $0.30 per transaction under the Program.)
    2. PayPal Debit Card. When you use your PayPal Debit Card to pay for purchases, you will not receive any cash back rewards per section 5 of the PayPal Debit Card agreement.
    3. Withdrawing your PayPal Balance. When you transfer money from your Balance to a bank account or when you withdraw money from your Balance using a physical check, you will pay a 1% Fee, plus any applicable Fees.
    4. Limit on Sending. You may not send more than $500 per month from your Account to a PayPal Personal Account. If you exceed this limit, PayPal reserves the right to immediately terminate this Agreement.
  4. Duration of Agreement. This Agreement shall last for a 12-month period, unless you or PayPal terminate the Agreement.
  5. Termination. You may terminate this Agreement at any time, for any reason, by notifying PayPal by phone at our customer service phone number: 1-888-221-1161. Your participation in the Program will end within 5 Business Days of the day PayPal receives your notification. PayPal in its sole discretion may terminate this Agreement by providing you with a 5 Business Days prior written notice at the email address associated with your PayPal account.

You can take a look at the new PayPal Offering at the following URL:

https://www.paypal-promo.com/newpricing/index.html

Make a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

3 Responses to “PayPal Hits Back Hard after Being Punched In the Eye By Amazon”

RSS Feed for TheBrewsNews Comments RSS Feed

That was fast!

It really wasn’t much of a secret that Amazon was working on something, so they could have had this ready to go in the event of an Amazon launch.

I have never had a problem with PayPal until the latest changes in the User Agreement. I kept a large part of my savings in their Money Market account because the rates were good. All my eggs are now in Vanguard.

They can hand out carrots by select invitation only until the cows come home. PayPal is no longer a safe place to keep any amount of money you would miss if you lost it.

I will continue to offer PayPal on my website because some customers like it and are comfortable with it, after all, pleasing the customer is what makes them come back, but I will make it plain I prefer Google Checkout by offering discounts for using it and as soon as I have it set up I will offer Amazon Payments too.

eBay and PayPal have done a bit too much throwing their weight around recently and it doesn’t look as if they have learned anything from it yet.

I tried to implement Amazon buttons on my website yesterday as I already have Paypal buttons and wanted to give my customers a choice. After setting up all the buttons, I realized that a customer can only order a quantity of 1 with these buttons which won’t work for my site. The Paypal buttons allow the customer to up the quantity. So, I had to remove all the Amazon checkout buttons and I don’t know fancy programming to do much else. Oh well, I tried.
As far as the Paypal offering.. I wouldn’t even want it because I use my debit card for everything and I get 1% cash back. I use it for all my shipping labels and UPS costs etc.. I get a lot back from that 1% and also I can’t see getting charged 1% just to transfer funds to my bank account. I do that just about every other day so I don’t leave too much cash in Paypal. If I got charged 1% for each of those withdrawals, that would kill me. Paypal’s offering isn’t good for me at all and Amazon’s new system isn’t either. Oh well, I’ll just stick with what works today. thanks for the great post.


Where's The Comment Form?

    About

    The BrewsNews information blog about online sales, eBay, Amazon, Bonanzle and oh so much more!

    RSS

    Subscribe Via RSS

    • Subscribe with Bloglines
    • Add your feed to Newsburst from CNET News.com
    • Subscribe in Google Reader
    • Add to My Yahoo!
    • Subscribe in NewsGator Online
    • The latest comments to all posts in RSS

    Meta

  • Archives

  • Top Posts

  • Most Recent Comment

  • Calendar of Posts

    July 2008
    M T W T F S S
    « Jun   Aug »
     123456
    78910111213
    14151617181920
    21222324252627
    28293031  
  • Topics

Liked it here?
Why not try sites on the blogroll...

%d bloggers like this: