By Chris King •
Published: 18 Nov 2022 • 0:37
Image of the Paypal app in a mobile phone.
Credit: Ink Drop/Shutterstock.com
In a statement published on its website today, Thursday, November 17, PayPal announced that it will soon begin to debit its users a commission if their account is inactive. The payment platform explained that the funds accumulated by this process will be used to ‘maintain’ the accounts that are active.
It explained that the commission will only be applicable to those accounts that have been inactive for a period equal to or greater than 12 months.
“As the value we provide to our customers has expanded, PayPal has continued to invest in our services, giving customers greater opportunities to buy and sell around the world. We have introduced an inactivity fee to maintain accounts that are inactive. The applicability of the service fee is limited and only affects accounts that have not been active in the last 12 months”, read the message.
They detailed that the amount to be debited from the users’ account will be US$10o (approx €9.64) or the equivalent of the total balance of the account, depending on which of these is lowest. They also said that inactive accounts that remain with a zero balance will not be affected since the charge will not be applied to them and therefore they will not have any negative balance.
PayPal also announced that if after having charged the inactivity fee an account remains with a zero balance for another 60 continuous days, it is possible that it will be automatically closed.
“If an account no longer has a positive balance after this fee has been charged and remains inactive for another 60 days, it may be closed after those 60 days have elapsed. Notifications for inactive accounts begin on September 30, 2022”, the statement said, as reported by laopinion.com.
It is estimated that at the end of 2020 PayPal already had a total of 375 million active accounts. That allowed them to post a net profit of more than $4.2 billion (approx €4.05,) that same year. This shows that the platform is one of the most widely used electronic payment options around the world.
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Originally from Wales, Chris spent years on the Costa del Sol before moving to the Algarve where he is a web reporter for The Euro Weekly News covering international and Spanish national news.
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