It never feels good to pay money to send your money so PayPal is twisting the knife with a $5.99 fee on international transfers to a “friend and family member.”
Now when you make a personal transaction to a “friend or family member” overseas you will have to cough up $5.99. Use a credit card and you’ll have to pay a currency conversion fee plus 2.6 percent PayPal skims off of the top. That small percentage that PayPal takes has itself increased from 2.4 per cent.
It’s getting expensive to move money around with PayPal. Then again, it was never cheap.
This new fee is a part of a number of policy changes that PayPal rolled out on April 5. If you’re anything like me you probably got the email notifying you of these changes and went cross-eyed. Few people actually read Terms of Service agreements so it’s not hard for companies to make changes like this without people noticing until they get stung.
The $5.99 fee only applies to personal transactions sent overseas. The fee does not apply to transactions within Australia or for commercial transactions, which have their own transaction fees you can see spelled out here.
Correction: The article originally used the term ‘transaction’ instead of ‘transfer’ in several instances where it was inappropriate.