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Here’s what PayPal’s weird “non-discouragement clause” is all about

Last week, PayPal updated its user agreement, upping some of its fees and, more interestingly, adding a “non-discouragement clause” that forbids merchants from “mischaracterizing” PayPal or “dissuading” consumers from using the payment method. 

The unusual update has been raising a few eyebrows. Here’s what it’s about: PayPal essentially doesn’t want merchants to tell people not to use PayPal or to denigrate it in any way by prioritizing another payment method. That could be because it just raised its transaction fees. Or the clause and the price hikes may also be related to PayPal’s recent deal with MasterCard and Visa, wherein PayPal agreed to stop discouraging its users from linking their accounts to credit cards

It’s not unusual for companies to have rules about how their logos may appear. In a statement to Fast Company, PayPal said, “We are simply seeking equal treatment by merchants that choose to offer our services to customers.”

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