PayPal Announces New Fee Structure Reiterating Why Cryptocurrencies Are Important Alternatives

PayPal, the fintech giant, has announced a new fee scheme that has raised concerns among the crypto community. The firm informed that it will be keeping seller’s fees when processing a refund going forward. This could have a small impact in the crypto community since merchants could move to Bitcoin (BTC) and other digital assets.

PayPal Announces New Fee Structure

PayPal has not only announced that it will adjust seller’s fees, but it also mentioned that it will be altering international payments. Until now, transferring funds from one country to another had a flat fee, but this time, it will start to be a percentage of the total amount transferred.

Cryptocurrencies will play an important role in this situation. Users that want to perform an international transaction can do so in just a few minutes and paying a smaller fee. According to a recent report released by TechSpot, PayPal will be taking a set fee of 30c from sellers in each retail transaction. At the same time, they will also take a 2.9 percent of the value of the goods or services sold.

With the new old scheme, if there is a refund requested by the user, PayPal will give back the percentage to the seller, but it will not return the set fee. As of May 7, 2019, PayPal will also keep the percentage of the transaction when a refund is requested. That means that the seller will be responsible for the customer changing his mind about a purchase.

That means that every $1,000 requested back, the seller will have to pay $29. This could be a great opportunity for sellers to move to Bitcoin and other digital assets. Bitcoin does not depend on a centralized authority that determines the fee structure of the network.

The new international fee for transfers will be a percentage of the whole transaction. The fee will never be more than $4.99 and no less than 99c. Nonetheless, every single time an international transaction is processed, to extract the funds in the local currency, the exchange rate is usually between 5% and 10% less. Which is also very negative for the seller.

In this case, Bitcoin, Ether (ETH) or Litecoin (LTC) work in a much better way than PayPal, without having to increase their fees unexpectedly.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Carl T
Carl T
Carl is a legend in cryptocurrency space for his long-storied experience, history and insights. He is a digital nomad who fell in love with bitcoin and its offspring for many years now and prides himself on delivering quality perspectives in the emerging world of crypto-assets and blockchain technology.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Chinese Developers to Use Telegram's Open-Sourced TON Blockchain To Launch Their Own Network

Chinese TON developers announce the launch of their variation of the TON blockchain after successive launches by TON Lab’s Free TON platform and...

JP Morgan Chase Set to Pay $2.5 Million in Crypto Class-Action Lawsuit for Overcharging

The largest bank in the United States, JP Morgan Chase has agreed to pay $2.5 million to settle a class-action lawsuit related to charging...

60% of Bitcoin Supply Not Moved in a Year, What Does it Say About the Next Bull Run?

May is coming to an end and bitcoin is looking to stay above $9,500, ending the month with about 8% returns. The market sentiments are...

E-Commerce Giant, Amazon, Patents Blockchain Authentication Of Accepted Consumer Products

The world-leading e-commerce platform, Amazon Technologies Inc., filed a patent on blockchain technology for proving the authenticity of consumer goods in its online marketplace....

Compound Roadmap to Full Decentralization to Begin with Issuance of COMP to Their Community

Compound will now issue COMP tokens to the users of their protocol in a bid to achieve full decentralization. They have released an...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today