By the end of July, PayPal will stop allowing fee-free Friends & Family payments for business accounts in the US.
For the fee-free PayPal payments, those who utilize it for business reasons must first set up a personal account.
Friends & Family and Goods & Services are the two payment options that PayPal currently offers. Personal payments fall under the first category, which is free but does not provide fraud protection. Contrarily, Goods & Services for business-related payments are a chargeable service that also offers protection.
The Verge claims that clients frequently use the Friends & Family payment option to make commercial purchases in order to avoid fees. However, PayPal announced a change to its fee-free payment policy that will take effect on July 28, 2022, in a statement on its website.
According to PayPal, “U.S. consumers will now be able to transfer Friends and Family peer-to-peer payments to consumer PayPal accounts,” in the upcoming weeks.
Customers who own enterprises must thus create a separate personal account in order to do business with friends and family. Additionally, the transaction fees have been updated as a result of the new policy. Prior to July 28th, clients had to pay 2.89 percent + $0.49 for every transaction. But after that day, they will just pay 2.99 percent.