Bye, bye Paypal for Shop Orders
A change in Terms and Conditions in January 2018 did not allow online businesses to charge extra for payment provider handling fees. Every electronic payment provider charges a handling fee for Credit Cards, Paypal or other electronic transactions.
When selling products with a high margin, this “little“ fee of 1.70 to 3.0% is not hard to absorb for the merchant who offers electronic payment methods.
But if you trade in low margin products, such as physical gold bullion the payment fee would cause severe losses on processing the order. The solution was simple: Add a paragraph in the Terms and Conditions and make it visible for everyone to see that a handling fee will be charged when using Paypal.
This way the payment process would have allowed transparency. The customer who paid by bank transfer would not be at a disadvantage because of a higher selling price (2% is huge in terms of one gold coin). And the Paypal payer would have known the additional charge is solely linked to the convenience of using an electronic payment provider.
Paypal closed out High-value clients… and lost business
After the Terms and Condition change Paypal closed out all high-value clients, such as all bullion companies throughout the EU and as a result PayPal has lost significant business. So they eased off, secretly allowing bullion companies to sur-charge the handling fee in order to get back the business.
Some bullion companies did switch-on the Paypal API, some did not.
PayPal Payment business down 90%
No surprise actually that the Paypal business is down over 90% as many customers cannot use Paypal for shop orders anymore.
Paypal will be permanently switched off in the CelticGold Checkout.
A current court ruling of Flixbus arguing that when selling low-cost bus tickets throughout Europe, the payers using cash or bank transfer are at a disadvantage compared to Paypal. Therefore the added Paypal charge has to be passed on in order to keep ticket prices low was not heard properly. Flixbus lost the case and is no longer allowed to add Paypal charges on top of ticket prices.
Paypal accepted for Storage Invoices and other bullion related services
You can continue to use Paypal to pay storage invoices, storage shipments, screening fees and other bullion related invoices. There will be no surcharge added.
Orders for gold and silver cannot be paid with Paypal.
Crypto Payments on the Rise
Instead of Paypal you can also use Crypto Payments for Gold and Silver orders. We accept all 20 major tokens, the process will be become easier and easier the more people opt-in for Cryptos.
Learn more about Crypto Payments here
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