PayPal has discontinued fee-free friend and family transactions for business accounts
Description:
PayPal has discontinued fee-free Friends & Family transfers for business accounts in the United States.
PayPal will discontinue fee-free Friends & Family transactions for business accounts in the United States by the end of July.
People who utilise it for business must open a personal account in order to make fee-free payments.
PayPal now accepts two types of payments: Friends & Family & Goods and Services. The first type is for personal payments, which are free of charge but do not provide security against scammers. Whereas Goods & Services for business payments and is a chargeable service with the benefit of protection.
According to The Verge, users frequently use the Friends & Family feature to avoid expenses when making business payments. However, in a website release, PayPal noted a change in its fee-free payment policy that will take effect on July 28th, 2022.
"In the coming weeks, U.S. consumers will no longer be able to send Friends and Family peer-to-peer payment to consumer PayPal accounts," according to PayPal.
As a result, clients who own businesses must open an extra personal account to make payments with friends and family. Furthermore, the new policy includes changed transaction fees. Customers previously paid 2.89 percent plus $0.49 per transaction, but beginning July 28th, they will pay 2.99 percent without an additional flat fee.
