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PayPal will undoubtedly pass new fees on to its customers

One thing every user of PayPal is certainly familiar with its fees. It now looks as though the company famous for its user fees will have the tables turned. Visa CEO Charlie Scharf recently suggested that the credit card company could impose a fee on digital wallet operators such as PayPal.

MasterCard has already announced it plans to charge a fee to digital wallet operators starting in June. Fears that other major credit card operators could start charging PayPal fees for transactions have hurt PayPal shares. PayPal currently pays standard credit card fees to Visa and MasterCard, as well as American Express. These fees are paid whenever a PayPal purchase is made with a credit card bearing one of the companies’ logos.

The new fees that are being considered are in addition to these standard credit card fees.

During the Barclays Emerging Payments Forum this week, Scharf said, "I think it is totally appropriate to do that."
 
PayPal has been making a big push into the retail market allowing users to pay for items in stores using their PayPal account. Some analysts believe that as a payment option in physical stores PayPal could be a threat to major credit card networks such as MasterCard, Visa, and American Express.

Yesterday, eBay announced that it was reducing its fees in an effort to better compete with Amazon.com. While PayPal has yet to announce a fee increase, if PayPal begins getting charged more for transactions it would undoubtedly raise fees for customers.

Source: Reuters



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Empty Threat
By Yeah on 3/22/2013 9:43:44 AM , Rating: 2
I think this is just an empty threat from some of the CC companies. They make MILLIONS of dollars off of us daily. Remember not too long ago they got in trouble for changing when your payment was due without notifying you so that the next time you went to make a payment like you may have in a previous month the payment was already late -- woops late fee. Yeah CC companies are dirty dirty players. Now- when I get a credit card statment the payment due date doesn't change, but I dont get the bill until like 2 days before its due how many of you does this happen to? I think PayPal is probably Rofl'ing right now about this threat because I could see a huge lawsuit coming from PayPal/eBay. And Google.

disclaimer: < I used to work for paypal- (still think its a great company) >




RE: Empty Threat
By MadMan007 on 3/22/2013 12:07:38 PM , Rating: 2
It's not Visa or Mastercard doing things like shady billing practices, it's the issuing financial institution. Visa and MC do not issue accounts directly.


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