PayPal Merchants Enjoying Fee Reductions and Loan Reliefs Amid COVID-19

Wednesday, April 22nd, 2020

Late last month, PayPal joined the list of World-known corporations making moves to stabilize the business ecosystem as the Coronavirus threatens to stifle the global economy.

The March 28 announcement saw PayPal Holdings Inc., promise its retailer’s fee cuts and loan-payment deferrals—which merchants have been enjoying and will continue to use up to April 30. Or even longer if need be.

The world-known payment platform offers services to over 24 million firms, small and large.

So what are some waivers and fee reductions all PayPal merchants will enjoy till the end of April?

1. All fees linked to instant transfers from a Merchant PayPal Account to a Card or Bank account. This move seeks to reduce the cost of immediate access to finances.
2. All fees linked to chargebacks (or reverse charges) consumers file to issuers.
3. The payment provider also stretched the chargeback response period (during which a retailer must reply to a customer) to 20 days, from 10 days.
4. PayPal also doubled the money back reward on its PayPal Business Debit Mastercard for eligible purchases only (per the terms & conditions of the card).
5. Lastly, the company offered Loan relief for merchants permitting them to defer payments (at no charge) on Cash advances and business loans.

PayPal boss, Dan Schulman said the move sought to offer instant remedies to micro-businesses who’ve been affected by the COVID-19 crisis.

He also pointed out that PayPal may take further similar steps if the pandemic persists.

“This is only the start of things. We are working closely with the authorities from different nations, and private-sector collaborators, to level the market for businesses during these desperate times,” said Schulman.

PayPal is not the only organization making efforts to improve the business environment amid the COVID-19 catastrophe.

A finance trade group in the United Kingdom, alias UK Finance, announced an increase in the contactless cap by 50 percent so that shoppers can avoid contact-dependent payment terminals.

Wrap up

It’s inspiring to see giant corporations level the playing field for businesses and customers as we suffer under the pangs of the deadly Corona.

It can’t be business as usual because COVID-19 has taken a toll on the economy in ways we never anticipated.