NEW YORK — Netflix Inc. will stop offering paypal services to customers who have saved and used their accounts for more than $1,000 a year, the company said Tuesday.
Netflix is the largest video streaming service in the United States with more than 200 million subscribers.
The move is aimed at helping its customers with bills that have increased since Netflix began allowing them to earn back their money after they’ve used it.
“As of July 1, 2017, Netflix will no longer be accepting paypal balances or other payment methods from accounts over $1.0 million,” the company wrote on its blog.
“This change is a response to the recent surge in consumer spending and consumer debt that have caused many people to have a harder time making payments.”
The move will cost Netflix $10 million per month in fees and $500 per month for account holders to manage their accounts, according to the blog post.
The change comes after Netflix made the move in August and began paying users back money they’ve saved in recent years.
Netflix said in February that it would no longer accept paypal and debit cards after it lost a court battle to fight against a California law that required it to do so.
The company has said it will no long provide paypal cards or other types of payment cards to its customers.