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New PayPal T&Cs prevents sellers trash-talking PayPal

Better not run our logo smaller than MasterCard's, pal

By Simon Sharwood, 13 Feb 2017

PayPal's released a new batch of User Agreements that includes a new “non-discouragement clause for sellers” that prevents them from talking down the service, plus price hikes a-plenty.

The new new clause reads as follows:

“In representations to your customers or in public communications, you agree not to mischaracterize PayPal as a payment method. At all of your points of sale (in whatever form), you agree not to try to dissuade or inhibit your customers from using PayPal; and, if you enable your customers to pay you with PayPal, you agree to treat PayPal’s payment mark at least at par with other payment methods offered.”

Why has PayPal added that clause? The Register guesses it is because it has also hiked fees, likely to levels that match or exceed those charged by other payment options. If that's the case, it's in PayPal's interests that its users be required not to point that out to punters.

Those price hikes include : The standard transaction fee for sellers selling goods or services online to buyers outside the U.S. will rise from 3.9 per cent to 4.4 per cent, on top of the existing fixed fee based on the currency. The standard transaction fee for in store transactions received from buyers outside the U.S. will rise from 3.7 per cent to 4.2 per cent; Micropayment fees for in store transactions received from buyers outside the U.S. will go from 6.0 per cent to 6.5 per cent plus the existing fixed fee based on the currency; Cross-border transactions fee for card present and PayPal transactions will rise from 3.7 per cent to 4.2 per cent for PayPal Here; Cross-border transaction fee for keyed and scanned transactions from 4.5 per cent + US$0.15 to 5.0 per cent + $0.15 for PayPal Here; Cross-border payments received from buyers outside the United States from 1.0 per cent to 1.5 per cent added to the transaction fees under the PayPal Website Payments Pro and Virtual Terminal Agreement.

Not-for profit organisations do a little better: PayPal has erased tiers of fees and applied flat rate charges.

The new T&Cs come into force on March 29th, 2017. As usual, if you clicked “I Agree” to PayPal agreements at any point in human history, chances are you'll be bound by the new legalese. ®

The Register - Independent news and views for the tech community. Part of Situation Publishing