PayPal Stops Personal Payments in Malaysia. What does It Mean to You?

The Original Online Payment Method
The Original Online Payment Method
The Original Online Payment Method (image credit: Charles Crosbie/Flickr)

PayPal Malaysia to stops Personal Payments from 4 June 2013. What does it mean? How will it affect Malaysian PayPal users? Learn more in this article.

Every Malaysian PayPal users should already received an email from PayPal Malaysia about discontinuation of Personal Payments Service.

As PayPal focuses on our business strategy of enabling secure and convenient commercial transactions in Malaysia, we regret to inform you that the Personal Payments service will no longer be available in Malaysia from 4 June 2013. We sincerely apologise for the inconvenience caused.

I am not surprised by the announcement. When PayPal Singapore stops Personal Payments in February 2013, I expected – sooner or later – PayPal will do the same in Malaysia. Here it is.

Now, what is PayPal Personal Payments service? How will it affect your current business or blogshop?

What is Personal Payment?

Personal Payments are the non-business transaction money you send to other person.

You make personal payments when you send money to friends, relatives, or any person or organization not for profit making. You can pay and get paid with personal payments when you pay things such as living expenses, split your lunch costs, or pay back your friends. You cannot use this option to pay merchants or businesses.

There are few types of personal payments: gift, payment owed, cash advance, living expense, other.

Sending and receiving Personal Payments is free of charge, except it is cross-border payments (buyer and seller are in different countries) or it is funded by credit card.

What have changed?

Without Personal Payments support in Malaysia, Malaysian PayPal users…

  • no longer able to send any Personal Payments to users both in Malaysia and overseas.
  • can only receive money from other PayPal users where Personal Payments service is available in the user’s country.

PayPal users still able to shop online and make payments for goods and services. PayPal merchants still can receive commercial payments.

Why the change?

In short, PayPal wants to make sure it receives all the merchant fees that it should.

According to PayPal, you are required to use a Premier/Business account if you want to receive commercial payments for sale of goods and services. PayPal charge a transaction fee on payment received for Premier/Business account.

However, since receiving Personal Payments did not need to pay PayPal fee, it had become a “loophole” for small online sellers — they sell service/goods but receive PayPal money as personal payment, need not pay PayPal fee.

With the increasing of small online sellers (blogshops), the money losing through the loophole is increasing too. Stop Personal Payments will ensure PayPal receives all the commercial transaction fees.

What should you do?

If you are normal personal users who use PayPal to shop online, the new update does not affect you. Continue spend money via PayPal at will. PayPal Premier/Business users are not affected too. They are already paying PayPal merchant fees for money received.

For those are selling online but accept PayPal money as Personal Payments using PayPal Personal account type without paying merchant fees, now is the time to upgrade PayPal account to Premier or Business (under company or group name). You have to start paying for the merchant service you received now.

Ask your PayPal questions in the comment below.

Two Realistic Internet Income Opportunities

Editor’s note: This is a guest post by Holy Adams. If you would like to contribute too, please contact me.

Internet income checks

Whether they want to make and save more money for special vacations or need extra income to pay their bills, more people look to the Internet for opportunities before they search their local newspaper’s Want ads.

Unfortunately, too many of them fall victim to unscrupulous scams and “get rich quick” schemes. While ample opportunity to make money online exists, it often doesn’t come via a spam email.

Read moreTwo Realistic Internet Income Opportunities

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How to Make LESS Money with Chitika Premium

Chitika heavily pushes the Chitika Premium product, does it really make more money than Google AdSense? Read on to find out the simple test result on my own blog.

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AdSense vs. Chitika Premium

I was using the combination of Chitika Premium (450×90) and Google AdSense large rectangle (336×280) under the blog post title.

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With Chitika’s recommendation, I applied the super large Chitika Premium MEGA unit (550×250) just right below the page header. The Chitika earning had a boost but greatly affect the AdSense earning…

OK. How about not apply Chitika Premium at all?

Google AdSense vs. Chitika Premium

As soon as I removed the Chitika Premium from my blog, the AdSense earning had a boost and the total is even more than the previous combination of “Chitika Premium + Google AdSense”!

Read moreHow to Make LESS Money with Chitika Premium

Email from Google AdSense: “Your Payment has been Issued”

I received this email from Google AdSense telling me that my AdSense Western Union payment has been issued (read: Get your money, blogger!).

Google AdSense payment issued notice

The message included the MTCN number which is required to withdraw AdSense money from Western Union and a link to more information on how to pick up your payment.

In the footer, it tells you that the email notice is “mandatory”. Meaning, you cannot opt out (why should you, anyway?).

It was my first time to receive such an email from Google AdSense. I am not alone.

Previously, there was no notice at all. I have to mark “$$$” at the last day of every month in calendar to remind myself to withdraw my AdSense payment. I really appreciate the Adsense payment notice.

Have your received Google AdSense payment issued notice too?

AdSense books: