PayPal Lets Apps Accept Credit Cards

PayPal has announced that it now accepts credit cards in apps. The company's payments platform, PayPal X, now has a Guest Payments feature.

"With this new feature, developers will now be able to accept credit card payments without requiring customers to open up a PayPal account," a spokesperson for the company tells WebProNews.


Guest Payments is a product of PayPal's Adaptive Payments API, and has been a heavily requested feature for users. PayPal says Guest Payments eliminates the complications merchants, developers, and startups face in accepting credit cards.

"We're aware that no matter how innovative the ideas are, our developers look to us to provide the features to make it all possible," says Naveed Anwar, senior director of PayPal's Developer Network. " We're thrilled to provide this new functionality to meet this need and look forward to seeing the ground-breaking apps our developer community will create with this."

PayPal Announces Some Pricing Changes

Today, PayPal announced that it is making some changes to its user agreements and pricing. The changes are specifically related to refunds, chargebacks, and Amex payments.

PayPal senior director of SMB Merchant Services Eddie Davis outlines the following changes:

1. Refund Prices – Starting August 10, PayPal will retain the transaction fee (typically $.30) when a seller issues a refund (U.S. and Canada merchants).
   
   
2. Chargeback Prices – Starting August 24, we’ll be increasing chargeback costs from $10 to the typical industry rate of $20 (U.S. merchants only, eBay merchants enrolled in the PayPal Preferred program are exempt).
3. American Express Card Acceptance – On July 13, PayPal and American Express will enter into a new card processing arrangement that requires merchants to establish a direct contractual relationship with American Express. You’ll need to accept a new agreement with American Express if you want to continue to accept American Express cards directly through Website Payments Pro and Virtual Terminal. PayPal will continue to service American Express transactions. As part of this new agreement, the fees we charge for American Express payments will change to be on par with their typical industry rates. You’ll also need to make sure that you comply with other terms in the agreement with American Express. As part of this new agreement, American Express pricing will change to be on par with their typical industry rates. You’ll also need to make sure that you comply with other terms in the agreement with American Express. This only applies to taking American Express credit cards directly. There’s no change if a consumer chooses to pay with PayPal, no matter how the account is funded

Davis notes that standard transaction fees for PayPal payments and direct credit card payments for Visa, MasterCard, and Discover will remain unchanged.