PayPal Quietly Rolls Out Shady New Service Changes That Affect Musicians

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If you are making money in the music industry odds are you are making money through PayPal. Unfortunately they are starting to get a little cocky with their near monopoly over the payment system and quietly unveiling some shady new features. Consumerist has the dirt on two new schemes these guys are up to that you should watch out for!
  1. PayPal Takes Bite Out Of User’s Funds, Calls It ‘Rolling Reserve’ – Taking 20 percent off of monthly sales and keeping it in reserve in case a customer initiates a chargeback.
  2. Assessing A Fee of 2.9% On Purchases – Transactions marked “goods” or services” in personal accounts are now seeing a new fee.

Head to Consumerist for the whole deal!

Jesse Cannon is the editor of Musformation. He produces records at his studio Cannon Found Soundation. Follow him on Twitter at @JesseCannonMusF. For more info please visit his website.

  • http://www.twitter.com/cpeckens cpeckens

    Paypal may have a monopoly, but they are not the best game in town for musicians. Check out http://www.gigpay.com Has better rates than Paypal, and is specifically designed for musicians. Handles deposits, holds the performance fee to make sure its good, and will even draft up contracts for your gigs.

  • http://www.twitter.com/cpeckens cpeckens

    Paypal may have a monopoly, but they are not the best game in town for musicians. Check out http://www.gigpay.com Has better rates than Paypal, and is specifically designed for musicians. Handles deposits, holds the performance fee to make sure its good, and will even draft up contracts for your gigs.

  • Jesse Cannon