PayPal closes off popular loophole in business payments system TechRadar Skip to main content TechRadar is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Here's why you can trust us. PayPal closes off popular loophole in business payments system By Will McCurdy published 4 July 2022 PayPal is blocking off a common way to avoid transaction fees (Image credit: PayPal) Audio player loading… PayPal business users will now have to pay transaction fees on all their transfers, regardless of whether they are sending payments to friends and family. All PayPal payments are currently classified into either "Goods & Services" or "Friends & Family", with the latter not being subject to fees However, the party is over for businesses using this loophole to bypass fees; from July 28 only personal PayPal accounts will be able to receive free "Friends & Family" payments. Future of PayPal The announcement comes as PayPal is set to "simplify" its Goods & Services seller fee to 2.99%, with no fixed fee, for US customers. PayPal's current Goods & Services fee is set at 2.89%, plus $0.49. This latest decision also means business PayPal users, using it for its merchant services, will need to set up a separate account if they want to receive friends and family payments. PayPal's stock has taken a hit as of late, falling even harder than the average tech stock in 2022. The company has lost arounds two-thirds of its value over the past year since peaking in July 2021, despite still offering one the most popular payment gateways worldwide. However, PayPal is refining its offering as it tries to grab a piece of the growing BNPL market and other emerging sectors.READ MORE:> Stolen PayPal accounts are seriously hot property right now > That PayPal alert email could just be a phishing scheme > The best credit card processing services The payments giant recently announced it is expanding its service with a new Pay Monthly plan, which will allow US-based customers to spread repayments over periods as long as 24 months. The service is available for purchases valued at anywhere between $199 and $10,000, with interest rates ranging from 0% to 29.99% APR depending on the length of the payment plan. PayPal is also expanding into the cryptocurrency space, adding features that support the exchange of cryptocurrencies between users, effectively turning the platform into a fully-featured crypto wallet.No fan of PayPal? Checkout out guide to the best mobile payments apps Will McCurdyWill McCurdy has been writing about technology for over five years. He has a wide range of specialities including cybersecurity, fintech, cryptocurrencies, blockchain, cloud computing, payments, artificial intelligence, retail technology, and venture capital investment. He has previously written for AltFi, FStech, Retail Systems, and National Technology News and is an experienced podcast and webinar host, as well as an avid long-form feature writer. See more Computing news Are you a pro? Subscribe to our newsletter Sign up to theTechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Thank you for signing up to TechRadar. You will receive a verification email shortly. There was a problem. Please refresh the page and try again. MOST POPULARMOST SHARED1You may not have to sell a body part to afford the Nvidia RTX 4090 after all2It looks like Fallout's spiritual successor is getting a PS5 remaster3My days as a helpful meat shield are over, thanks to the Killer Klown horror game4One of the world's most popular programming languages is coming to Linux5The iPhone 14 Pro is made of the wrong stuff; the Pixel 7 proves that to me1We finally know what 'Wi-Fi' stands for - and it's not what you think2Dreamforce 2022 live: All the announcements from this year's show3Google's new AI lets you turn words into HD videos4'Go small or go home': HTC teases a new Vive VR headset5She-Hulk episode 8 just confirmed Netflix's Daredevil TV show is canon in the MCU Technology Magazines (opens in new tab)● (opens in new tab)The best tech tutorials and in-depth reviewsFrom$12.99 (opens in new tab)View (opens in new tab)