PayPal sneakily hikes prices and legally prevents sellers from criticising its service

The company has updated its list of User Agreements in the US, to include an unusual 'non-discouragement clause for sellers'

PayPal's changes will come into force next month (REUTERS/Beck Diefenbach)

PayPal has updated its list of User Agreements to include an unusual “non-discouragement clause for sellers” designed to prevent sellers from criticising the service.

It has announced a number of price hikes too, which are detailed further down the page.

“In representations to your customers or in public communications, you agree not to mischaracterize PayPal as a payment method,” reads the new non-discouragement clause, which only applies to US users.

“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.”

PayPal has also told The Independent that the price changes detailed in its updated User Agreement only apply to US users.

They are as follows:

• The standard transaction fee for sellers selling goods or services online to buyers outside the US is rising from 3.9% to 4.4%, plus the existing fixed fee based on the currency 
• The standard transaction fee for in store transactions received from buyers outside the US is rising from 3.7% to 4.2%
• Micropayment fees for in store transactions received from buyers outside the US are rising from 6% to 6.5%, plus the existing fixed fee based on the currency
• Cross-border transactions fee for card present and PayPal transactions are rising from 3.7% to 4.2% for PayPal Here
• Cross-border transaction fee for keyed and scanned transactions is rising from 4.5% + US$0.15 to 5%+ $0.15 for PayPal Here
• The additional fee for cross-border payments received from buyers outside the US is rising from 1% to 1.5% added to the transaction fees under the PayPal Website Payments Pro and Virtual Terminal Agreement.
• The tier-based fees charged to nonprofits who receive payments from senders outside the US is being replaced by a flat rate of 3.7%, plus the existing fixed fee based on the currency for all such transactions

The changes will will come into effect on 29 March.