PayPal update policy - Affect Hosting company - Effective Date October 19, 2016


Staff member
Recently PayPal update a policy which can affect many hosting company who give priority to their Payment gateway like charging less fees on Bitcoin transaction.

You don't need to worry If you do not charge extra transaction fees on any Payment gateway like giving less value to PayPal and trying to force user to use Bitpay and give discount or anything which encourage users to use specific payment method.

Here is new policy of PayPal but it will be effective on October 19, 2016 means currently you can charge extra transaction fees on PayPal and did not charge any fees on other Payment gateway.

1. Changes to the form of consent required for merchant surcharging (Section 3.4)
You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method without our prior written consent. You may charge a handling fee in connection with the sale of goods or services, as long as the handling fee is not higher than the handling fee you charge for non-PayPal transactions.

2. Amendments to Seller Protection (Section 9.5)
The following are examples of items/transactions not eligible for PayPal Seller Protection:
- Intangible items, including Digital Goods and services.

3. Changes to the list of Restricted Activities for your account (Section 10.1)
- Provide false, inaccurate or misleading Information;
- Engage in potentially fraudulent or suspicious activity and/or transactions;

4. Changes to the personal payments fee (Exhibit A Section 5) for sending or receiving personal payments in Brazil from 5.99% + Fixed Fee, to 7.4% + Fixed Fee


Full Policy update is scary, Seems they can take strict action on seller or buyer for using Proxy/VPN, etc so beware and never use Proxy, etc to access your PayPal account for security reason otherwise maybe they can close your account for violation.

Bitcoin for hosting company is like heaven.