Important - uk paypal account holders

[CoolBee]

There has been a policy update which kicks in on 1st June. That email you got from them today is not a spoof!

Anyhow, here's the bit I find totally confusing and do not understand. I wish they gave a couple of examples of what the heck they mean!!!

"Restricted Activities

A new Section 9.1.ff is being added to make it a restricted activity to request or send personal transaction payments for commercial transactions. Section 9.1ff will read as follows (presented in context with its root clauses):

“9.1 Restricted Activities. In connection with your use of our website, your Account, or the Services, or in the course of your interactions with PayPal, a User or a third party, you will not:

ff. Request or send a personal transaction payment for a commercial transaction.”

What does that mean? What counts as a commercial transaction? I invoice my coaching as 'services' through my paypal account which is a premium account 'trading in my own name'. My clients pay by paypal as well presumably through a personal account.

I'd be ok with the not requesting money for a commercial transaction through a personal account (Paypal take a fee off me for all payments received that way), but it's the implication that people can't PAY for commercial services with a personal account? What does that mean?

Like many people, I pay for stuff online using paypal eg bits of software and stuff - does that mean those with only a personal account can not pay that way or what?

It is the most unclear item I have ever read!

[NewSimon]

I don't think it's anything to do with personal accounts. They just don't want people paying for commercial goods and services using the personal payment option which they can't get fees for.

[CoolBee]

Oh yes sorry been so side tracked with my computer problems!
I emailed them a few days ago and they emailed me back - what they apparently mean is that if you send a payment from a personal account for commercial services/goods, then you cannot say it's a 'gift' or whatever, you have to say it's payment for services/goods.

[NewSimon]

You can use a Personal Account to send a Personal Payment to someone with a Business Account though presumably? In which case you would avoid (evade!) fees.

[CoolBee]

No that is what they are trying to stamp out - the evasion of fees.

I guess if it is a genuine personal payment to someone regardless of type of account, then that is ok. I have a 'premier' account (trading under my own name) and I raise an invoice for 'services' and the client pays the invoice, so I guess it is totally clear then. I guess if my sister wanted to send me personal payment for personal purposes, that should also be ok.
Here's the exact email reply I got:

"Thank you for contacting PayPal.
To begin with, I would like to sincerely apologise for any inconvenience
this may have caused you.
There are two different types of payments that can be sent using PayPal - 'Purchase Payments' and 'Personal Payments'.

Let me explain these payment types further:

? Purchase Payments (Commercial Payments): These are the payments we have always offered, where there is a commercial relationship between the sender and the recipient of the funds. For example, a person pays for a purchase of an item on eBay or for a service, such as music downloads.

? Personal Payments: These are payments between individuals for no
commercial reasons, i.e. for the purpose of personal, family and/or
household affairs. For example, a person sending money to their brother to buy their parents a gift and everyday exchanges of money between friends and family.

Services fall under the 'Purchase or Commercial Payments'. Please note the restriction will be applied if you receive a 'Personal' type of payment
that is intended to be a Commercial one. I have noted that you have been receiving payments for 'Service' and these are being assessed with the receiving fee.

Regardless of the type of account that your customer has, whether Personal, Premier or Business PayPal account, as long as your client uses the Commercial type of payment to send the funds for your services, it will not be classed as a restricted activity.

Thank you for choosing PayPal.

Yours sincerely,
Charles
PayPal "

So basically, my clients MUST say it's a Commercial Payment (and for which I pay a fee) and not say it's personal (but using an invoice probably gets over that).

[NewSimon]

Yes. They don't state that it isn't possible to pay a Business Account using Personal Payment or a Personal Account. Your clients mustn't use the Personal Payment option.

I dare say that they monitor transactions and too many Personal Payments would be regarded as suspicious. Paypal like to suspend and withhold money without much regard apparently, so it's not worth the risk.

[Sparklymoocow]

I know it's not linked to your circumstances, but I think a popular auction website (that will remain un-named) might have had a little something to do with this.

Thers is a loophole that some sellers use to avoid the 'final value' fee of their sale by asking the buyer to pay privately rather than put it through as a commercial transaction.

I'm just wondering what action Paypal are planning to take if commercial payments get put through as private?