As of December 31st, 2020, PayPal is enforcing SCA (Strong Customer Authentication) requirements for online card transactions in the European Economic Area (EEA), except for the UK region. As a result, Bold Memberships will not be able to offer PayPal as a payment gateway for existing merchants if:
- They have not yet connected PayPal in the app
- They disconnect PayPal from within Bold Memberships after December 31st, 2020
All merchants that install Bold Memberships after December 31st, 2020, will no longer be able to connect PayPal within Bold Memberships. Stripe is available as a SCA compliant payment gateway.
Will this affect my memberships if I’m in the US (outside of the EEA) or my customers are in the US (outside of the EEA)?
Our team does not expect transactions to fail/cancel where either the customer or PayPal’s bank is located outside of the EEA. This means that customers that are located in the United States should not be affected after December 31st, 2020.
This will depend on how frequently your memberships bill or renew via PayPal with your EEA members.
Membership plans which have been purchased via PayPal and fall under the EEA, may fail when the payment tries to reoccur. This will result in a cancellation of the Membership, as SCA is no longer supported for PayPal.
For customers, and PayPal Bank information outside of the EEA area, we expect that memberships will continue to be processed correctly and accurately.
No, Memberships currently does not offer a migration solution at this time. In order for members to move onto a membership plan that is billed through Stripe, the customer will need to re-sign up for a membership plan via Stripe on the storefront.
If you have customers that fall under the EEA area and would like to notify these customers, we recommend reaching out to these customers via email and provide them with a link to your membership plan page to re-sign up via credit card.
Bold Memberships currently does not support the SCA policy for PayPal at this time. In order to be compliant with SCA for EU clients, this would require a lot of additional maintenance for PayPal. This was a difficult decision, however, it was necessary to ensure that we can continue to offer and support Memberships for all merchants.