"No more PayPal payments to businesses outside the US?" Topic

PayPal Policy Updates:

link

"U.S. PayPal accounts will not be able to send personal transactions to business accounts outside the U.S. starting October 31, 2022."

What does this mean? I can no longer use PayPal to buy stuff from companies outside the US?

I hope I am interpreting this incorrectly.

I think it means you can't send "Friends and Family" payments to business accounts, thus avoiding Paypal getting their fee (and vice versa)

I would agree with Mark. PayPal wants to get their cut!

Jim

If a vendor (for any products, period, full-stop) is unwilling to pay the CC company, or PayPal, or any other EFT company, their fees, I do not want to do business with them. If they charge me a higher price to pay with credit/EFT, I know it up front, and I will base my buying decision on whether I am willing to pay the final price -- no one is being stealing from anyone.

I understand they don't like losing money by taking PP/CC/other forms of payment, but it is the cost of doing business: "Render unto Caesar what is Caesar's."

If you don't want to pay the EFT payment company's fees, don't use their services! Any excuse is a way to justify stealing the EFT company's services for free.

If a vendor wants me to be dishonest in such a small thing, how can I trust them with my business? If they cheat the EFT payment company, they are likely to cheat me, as well…

Please, I've heard the complaints, the justifications, blah-blah. If you want to use their services, pay their fees. If not, find an alternative everyone can feel comfortable with.

Back in the mid-90's, I sent cash to a seller in the Philippines, for a gaming rule book. He told ne to wrap the currency in aluminum foil, to prevent postal workers from seeing through the envelope, and stealing it. He got his money, I got my book. Everybody was happy, nobody was dishonest.

Pay the company their fees; the company is worth their fees. Fraud and theft charges are not worth the penalties, nor the worries of the government/EFT company coming after you. Cheers!

Does this have to do with the US government putting a $600 USD limit on profits, forcing PayPal and others to track the transactions and send individual tax forms out to you if they receive over $600 USD in sales in a year now? My bet is yes.

I agree with Mark's interpretation.

I've had some overseas retailers charge me fees for using Paypal, which is IIRC not permitted by Paypal, but still they persist.

Well I will ask this; none of this happened before the current administration put on the new $600 USD limit. Is that incorrect?

We got the same Paypal statement some months ago. I have no problem with it, as its a way people use to deny Paypal their fee for services provided. You get Paypal protection for your fee so if you have a problem with a company, Paypal can step in to help and refund your payment etc.
Nothing politican, just good business sense, and fair!

Well I will ask this; none of this happened before the current administration put on the new $600 USD USD limit. Is that incorrect?

That is incorrect. The changes were part of American Rescue Plan Act of 2021, so legislative, not executive. The $600 USD threshold only applies to Goods & Services payments. "Friends and family" still has no limits. PayPal independently stopped allowing people to pay businesses with F&F. I'm surprised they let people get away with theft of service for so long.

$600 USD does seem rather low, but let's be honest; $20,000 USD was ridiculous. Bear in mind that $20 USDK was just in income through TPSOs (PayPal, Venmo, etc.), not counting cash, checks, etc.

I was saying the law was passed under the current administration, i did not mean as an executive order. Sorry for the misunderstanding.

So the F&F is strictly a PayPal change and not caused by governmental change, thanks for clearing that up.

Yes $600 USD is ridiculous. $5,000 USD might have been understandable if one was truly trying to pursue those using eBay and such as business ventures.

So, is it correct that there will now be a $600 USD limit on personal purchases from companies overseas?

Is that a per company limit?

Is this a monthly, annual, or lifetime limit?

$600 USD is so low that is going to quickly crimp international sales, if true, especially given the high international shipping rates too.

Also, anyone know what the definition of a "personal transaction" is?

On Paypal it's when you;re not buying goods. So, for example, I might send you $50 USD for my half of a dinner you paid for on your credit card.

So, is it correct that there will now be a $600 USD USD limit on personal purchases from companies overseas?

No. It means that:

1) Paypal no longer allows people to use "Friends and Family" to purchase from a business as it avoids their fees and skirts tax reporting.

2) Anyone receiving more than $600 USD/year in Goods and Services transactions will automatically get a 1099-K.

That title is extremely misleading.