Sad, Sad news for all those who regularly used Paypal’s cheap MassPay option to send regular payments and save huge fees, in contrast to the other paypal funds sending options.  The sad & bad news is that, the liberty of sending payments via Paypal Masspay will be further limited and will greatly impact those people, who were very much dependent of this former cheap option.

Old Paypal Masspay Fee(s):

Minimum: 2% of amount OR 1 USD

Maximum: 2% of amount OR 1 USD

Which means, as per old policy, the Maximum charge on almost any amount of MassPay transaction was USD 1. Which indeed was a great facility and service for both small scale and large scale publishers, buyers and sellers as well.

New Paypal Masspay Fee(s): Effective October 12th 2011

Minimum: 2% of amount OR 1 USD (example: 40$ transaction gets a $0.80 fee charged).

Maximum: 2% of amount OR 50 USD (example: $200 transaction gets $4 fee charged).

If one sends out USD 2500 via Masspay, than a maximum of USD 50 will be charged as FEE.

As a result of this updated Paypal payment policy, this will greatly impact almost everyone who does depends on Masspay option, and does sends over $50/transaction. This will include small publishers, buyers and sellers and almost all those Freelancers who do hardworking projects for little fees and work at competitive prices. On the other hand, this change will result in atleast Paypal’s 5x (5 times) more profits than what they were making earilier.

Whatsoever, i am truely sadened by this change in fee policy, and assume that Paypal is taking maximum advantage by enforcing a blackmailing Fee, mainly due to its monoply and no other competitive options.