Payment company PayPal has informed their US customers of changes to the way US personal account holders can use and hold a balance with PayPal. Before the end of March 2019, balances will need to be converted into either a PayPal Cash account or PayPal Cash Plus account.
The reason for these changes is a new federal regulation that comes into effect on April 1st, 2019. US personal account holders who want to keep money in PayPal or use other features that rely on a balance will need to have a balance account linked to their personal account. These upcoming changes only impact US-based PayPal users, but if UK or EU sellers have an entity set up in the US with a US PayPal account then they may also see a change. However, chances are that you are already fully verified with PayPal and that you do not have to change anything in your account.
If you have a personal PayPal account and have confirmed your identity with PayPal before the 13th of March 2019, you do not have to do anything. PayPal will automatically link a balance account between the 14th and 25th of March.
If you do not have a PayPal Cash Plus account after the 29th of March and do not want to hold a balance in your PayPal account then you also do not need to do anything. You will still be able to receive money with a personal PayPal account and transfer it to a linked bank account or debit account, but you will not be able to hold and use a balance in your personal PayPal account. If you have not received a PayPal Cash Plus account on or before the 29th of March and want to hold a balance in your PayPal account then you will need to set up a PayPal Cash or PayPal Cash Plus account.
PayPal Cash Account VS. PayPal Cash Account Plus
The features of both account options are listed below:
PayPal Cash Account
- Receive money
- Hold money
- Convert money from one currency to another
- Withdraw money from your PayPal Cash account to a debit card or bank account linked to your personal PayPal account
- Transfer money for purchases of goods and services
- Send money to friends and family
PayPal Cash Account Plus
With a PayPal Cash Plus account, you can do all of the things you can do with a PayPal Cash account, plus:
- Make in-store purchases using a PayPal-branded debit card linked to your PayPal Cash Plus account
- Transfer money into and out of your PayPal Cash Plus account at ATMs using a PayPal-branded debit card
- Set goals for managing the money in your PayPal CashPlus account
- Set up direct deposit of funds into your PayPal Cash Plus account
- Load cash into and withdraw funds from your PayPal Cash Plus account at several retail stores throughout the US
- Transfer proceeds from cheques into your PayPal Cash Plus account using our remote check capture feature.
Full terms and conditions for PayPal Cash account or PayPal Cash Plus account are available online here.