Policy Updates

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Past Policy Updates

 

This page shows important changes that were made to the PayPal service, its User Agreement, or other policies.

*For past policy updates earlier than December 2013, please view this PDF.

*For past policy updates between Jan 2014 and Dec 2018, please view this PDF.

 

Notice of Amendment to PayPal Legal Agreements

Issued: September 29, 2020

Please read this document.

We’re making changes to the legal agreements that govern your relationship with PayPal.

We encourage you to carefully review the notices below so that you are familiar with these upcoming changes.

There is no further action needed from you as these changes will take place automatically on

January 4, 2021.

 

In the event you would prefer to decline these changes and close your account, you can do so prior to January 4, 2021 without incurring any additional charges.

Amendments made for linguistic adjustment, to correct or remove orthographical and grammatical mistakes, or changes to the formatting are not mentioned in this document. This does also apply where we have corrected or standardized numbering and references.

 

UPDATES TO THE PAYPAL USER AGREEMENT

Effective date: January 4, 2021

  • Please click HERE to view an updated copy of the intended changes.

You can find the current PayPal User Agreement by clicking here or accessing it via the “Legal” or “Legal Agreements” footer on most PayPal site pages.

About Your Account – Opening an Account – Commercial Entity Status

We have amended the wording in the section to reflect that upon reaching certain thresholds or involving certain business segments or activities, the Commercial Entity Agreements can apply to any type of PayPal account you hold.

About Your Account – Opening an Account – Safe use of your PayPal account

In this section, we have added the requirement to keep the number of a phone to which you are the primary user current in your PayPal account profile.

Making A Payment – General provisions for making a payment – Your payment instruction

We added a new paragraph at the end of this section about giving you the option to select certain recipients as "trusted beneficiaries" for a faster payment experience.

Receiving Payments – Refunds and reversals of payments – Chargeback fee

We have added a new section dealing with the Chargeback fee for clarification.

Schedule 1: Table of Fees

A4.1.1. Currency Conversion Fee

In section A4.1.1. we have changed the currency conversion fee for transactions for which the seller has not agreed to bear the fee to be generally 4.00%.

A4.1.2. Fees for Withdrawing your Balance

We have introduced a fee for withdrawals to a U.S. bank account associated with your PayPal account.

 

UPDATES TO THE PAYPAL ONLINE CARD PAYMENT SERVICES AGREEMENT

4. Information Security; Data Protection; Data Portability

We have amended section 4.6. to talk about a Data Protection Addendum rather than a schedule (as a result, Schedule 2 has been removed) and we have added a new section 4.7. on Data Portability.

 

UPDATES TO THE COMMERCIAL ENTITY AGREEMENT

We have removed the limitation to PayPal Premier or Business Accounts from the first paragraph of the Commercial Entity Agreement.

 

UPDATES TO THE PRIVACY STATEMENT

We are updating our data processing terms to reflect that PayPal is a data controller for payment processing and fraud services.

 

iZETTLE

We have added new terms for our iZettle service to our Legal Agreements page.

 

Notice of Amendment to PayPal Legal Agreements

Issued: June 16, 2020

 

Please read this document.

We’re making changes to the legal agreements that govern your relationship with PayPal.

We encourage you to carefully review the notices below so that you are familiar with these upcoming changes.

There is no further action needed from you as these changes will take place automatically on

September 14, 2020.

In the event you would prefer to decline these changes and close your account, you can do so prior to September 14, 2020 without incurring any additional charges.

All changes and updates to the legal agreements are on this page highlighted in italic. This highlighting shall ensure better traceability of the changes and updates applied.

Amendments made for linguistic adjustment, to correct or remove orthographical and grammatical mistakes, or changes to the formatting are not highlighted. This does also apply where we have corrected or standardized numbering and references.

 

Updates to the PayPal User Agreement

Effective date: September 14, 2020

  • Please click HERE to view an updated copy of the intended changes.

You can find the current PayPal User Agreement by clicking here or accessing it via the “Legal” or “Legal Agreements” footer on most PayPal site pages.

 

Making A Payment – Buyer Protection

In this section, we have re-introduced the PayPal Buyer Protection Policy into the user agreement and reworded its terms for global alignment.

 

Receiving Payments – Impact of PayPal Buyer Protection on Sellers

We have amended the wording in the "Impact of PayPal Buyer Protection on Sellers" sub-section: If you are a seller and lose a claim under PayPal Buyer Protection and the buyer’s claim was that the item received was Significantly Not as Described, you may not receive the item back, or you may be required to accept the item back and pay for the return shipping costs.

 

Receiving Payments – PayPal Seller Protection

As with PayPal Buyer Protection, in this section we have re-introduced the PayPal Seller Protection Policy into the user agreement and reworded its terms for global alignment.

 

Schedule 1: Table of Fees

A3.5. Receiving Payments Through QR Codes in Person

We have introduced a new section A3.5. in our Table of Fees outlining the fees that will apply to (casual) sellers for receiving payments through our new QR code solution.

 

Notice of Amendment to PayPal Legal Agreements

Issued: March 19, 2020 (for Effective Dates see each individual agreement below)

Please read this document.

We’re making changes to the legal agreements that govern your relationship with PayPal.

We encourage you to carefully review the notices below so that you are familiar with these upcoming changes.

There is no further action needed from you as these changes will take place automatically on the Effective Dates shown below. In the event you would prefer to decline these changes and close your account, you can do so prior to the Effective Date without incurring any additional charges.

 

Updates to the PayPal Alternative Payment Methods Agreement

Effective Date: March 19, 2020

You can find the current PayPal Alternative Payment Methods Agreement by clicking here or accessing it via the “Legal” or “Legal Agreements” footer on most PayPal site pages.

 

1. No additional fees for receiving international APM payments

We have amended section 3 (Using APM functionality) to clarify that the additional percentage-based fee for receiving international commercial transactions set out in the User Agreement does not apply when you receive APM payments.

 

Updates to the PayPal Acceptable Use Policy

Effective Date: March 19, 2020

You can find the PayPal Acceptable Use Policy currently in force by clicking here or accessing it via the “Legal” or “Legal Agreements” footer on most PayPal site pages.

1. Contact information

The contact information in the sections headed “Activities Requiring Approval” and “Violations of the Acceptable Use Policy” has been updated. Instead of sending an email to PayPal, you can complete a webform to submit your query or filing under those sections.

 

Updates to the User Agreement

Effective Date: June 16, 2020

  • Please click HERE to view an updated copy of the intended changes.

You can find the current PayPal User Agreement by clicking here or accessing it via the “Legal” or “Legal Agreements” footer on most PayPal site pages.

1. Actions We May Take If You Engage In Any Restricted Activities - Violations of the Acceptable Use Policy (new section)

We have added a new section which sets out our rights to deduct amounts in respect of damages which arise when you use your PayPal account primarily for the purposes of your trade, business, craft or profession and you violate the Acceptable Use Policy. The new section reads as follows (shown with headings of the root clauses for context and abridged for brevity, with amendments underlined):

“…

Restricted Activities And Holds

Actions We May Take if You Engage in Any Restricted Activities

If you use your PayPal account primarily for the purposes of your trade, business, craft or profession and you violate the Acceptable Use Policy, then:

  • in addition to being subject to the above actions you will be liable to PayPal for the amount of PayPal's damages caused by your violation of the Acceptable Use Policy;
  • you acknowledge and agree that USD 2,500.00 (or the prevailing equivalent in the currency of the country in which you reside) per violation of the Acceptable Use Policy is:
    • a reasonable minimum estimate of PayPal's actual damages considering all currently existing circumstances, including the relationship of the sum to the range of harm to PayPal that reasonably could be anticipated;
    • reasonable and proportionate in its application to the provision of the Services to you; and
    • necessary, but no more than sufficient, to protect PayPal’s legitimate interest in your compliance with the Acceptable Use Policy; and

PayPal may deduct such damages directly from any existing balance in any PayPal account you control.

…”

2. Other Legal Terms – Our Rights – Information About You

We have amended the section headed “Other Legal Terms – Our Rights – Information About You” to clarify your obligations to provide PayPal with information about you to facilitate our actions described in the user agreement, enable us to reduce the risk of fraud or comply with our regulatory (including anti-money laundering) obligations. The section headed “Other Legal Terms – Our Rights – Information About You” now reads as follows (shown with headings of the root clauses for context, with amendments underlined):

“…

Other Legal Terms

Our Rights

Information About You

We may request information from you as we reasonably require to facilitate our actions described in this user agreement, enable us to reduce the risk of fraud or comply with our regulatory (including anti-money laundering) obligations. You must comply with these requests in a timely fashion. This may involve you faxing, emailing or otherwise providing to us at your own expense identification documents and information about your finance and operations (such as your most recent financial statements and merchant processing statements).

…”

3. Commercial Transaction Refund Fee

Section A4.3. of Schedule 1: Table of Fees has been amended to reflect that when you as a merchant reverse a Commercial Transaction payment, we will retain the fees that you have paid to receive the original payment:

A4.3. Commercial Transaction Refund Fee

If you refund a Commercial Transaction payment, there are no fees to make the refund, but the fees you originally paid to receive the payment are not returned to you.

4. Other changes

Sections of the PayPal User Agreement have been amended to clarify and reorganise existing wording and correct minor typographical errors including the following existing sections:

Section

Amendment

About Your Account – Welcome to PayPal! (last paragraph)

The reference to “60 days” has changed to “two months”.

About Your Account – Closing Your PayPal Account (last paragraph)

The reference to “60 days” has changed to “two months”.

 

Notice of Amendment to PayPal Legal Agreements

Issued: January 2, 2020

 

Please read this document.

We’re making changes to the legal agreements that govern your relationship with PayPal.

We encourage you to carefully review the notices below so that you are familiar with these upcoming changes.

There is no further action needed from you as these changes will take place automatically on the Effective Dates shown below. In the event you would prefer to decline these changes and close your account, you can do so prior to the Effective Date without incurring any additional charges.

 

Updates to the User Agreement

Effective Date: March 5, 2020

  • Please click HERE to view an updated copy of the intended changes.

You can find the current PayPal User Agreement by clicking here or accessing it via the “AGB”, "Legal" or “Legal Agreements” footer on most PayPal site pages.

 

1. Fees – Commercial Transaction Refund Fee

Section A4.3. (Commercial Transaction Refund Fee) of Schedule 1 (Table of Fees) is amended to clarify that, if you carry out a refund of a Commercial Transaction payment, all of the fees originally paid by you to receive the payment will not be returned to you.

Section A4.3. (Commercial Transaction Refund Fee) of Schedule 1 (Table of Fees) (presented in context with the column headings) now reads as follows (with amendments shown in italic):

A4.3. Commercial Transaction Refund Fee

If you refund a Commercial Transaction payment, there are no fees to make the refund, but the fees you originally paid to receive the payment are no returned to you.

 

2. Other changes

Sections of the PayPal User Agreement have been amended to clarify and reorganize existing wording and correct minor typographical errors.

Policy Updates

Last update: September 17, 2019

 

Please read this document.

We’re making changes to the legal agreements that govern your relationship with PayPal.

We encourage you to carefully review the notices below so that you are familiar with these upcoming changes.

There is no further action needed from you as these changes will take place automatically on the Effective Dates shown below. In the event you would prefer to decline these changes and close your account, you can do so prior to the Effective Date without incurring any additional charges.

 

Updates to the User Agreement

Effective: 11 December 2019

We’re unveiling an entirely redesigned User Agreement for our customers. We’ve worked hard to make this new User Agreement a more user-friendly experience with content that makes it easier for you to understand your rights and obligations when it comes to using PayPal’s products and services.

Here’s what we’ve done:

  1. We’ve redesigned the User Agreement to simplify its format, with new colour-coded headings so you can find the information most relevant to your account more easily. We’ve revised and reorganised the content of the User Agreement to be easier to follow and to include information where you’d naturally look for it. We’re not changing the meaning of what we say, only how we say it and where you can find it.

B. An updated User Agreement, will be available after 10 October 2019. Please click HERE to view once available.

 

UPDATES TO THE PAYPAL USER AGREEMENT – EFFECTIVE DATE AUGUST 19, 2019

With effect towards August 19, 2019 we make the following changes to the PayPal User Agreement:

4.6. Refused Transaction and Refunds sent by the recipient

We have amended clause 4.6. on refused and refunded transactions, with a special focus on transactions which have been subject to a currency conversion:

4.6. Refused Transactions and Refunds sent by the recipient

We may allow the recipient of your payment to:

  • refuse to accept it; or
  • decide to accept it and then use the PayPal Services to send you a refund of all or any part of the amount of the payment later.

We will return the amount of any refused payment or refunded payment to your Balance. We will return the amount of an unclaimed payment to your Balance within 30 days after the date you initiated the payment.

If any amount of any payment is returned to you in any of the ways outlined above, we may convert the returned amount for you into either:

  • the currency of the Balance you used for the original payment (before any conversion into the currency received by the recipient happened);
  • the original opening currency of your PayPal Account.

If the original payment you sent involved a currency conversion we will convert the returned amount from the currency received by the recipient as follows:

  • if the amount is returned within 1 day of the date of the original payment, we will use the transaction exchange rate applicable on the date of the original payment, so that you receive the original amount (including the currency conversion fee you paid) in the original currency you converted from for the original payment; and
  • if the amount is returned after 1 day of the date of the original payment, we will use the transaction exchange rate applicable at the time of the conversion of the returned amount. See Section 8.2. for more information about how we set the transaction exchange rate.

We may also automatically withdraw the returned amount from your Balance and transfer the funds back to the funding source you used for the original payment. Withdrawals can also involve a currency conversion – see Section 6.

We may decide to not charge your original Funding Source for the original payment in the first place if the amount is returned to your Balance as outlined above before the payment from your original Funding Source to PayPal to fund your original payment has settled.

The returned amount could be lower in value than your original payment amount. This can happen as a result of:

  • the recipient sending you a refund lower in value than your original payment amount. As we are only a payment service provider, we cannot know what you are entitled to from the original payment recipient as a refund or why the recipient sent the refund in a particular amount; or
  • transaction exchange rate fluctuations.

PayPal is not responsible for any loss resulting from the recipient's decision to refuse or refund your payment, except to the extent that a refund sent by the recipient is a payment executed incorrectly by PayPal (see Section 12).

 

5.8. Your Refund Policy, Data Protection, Privacy Policy and Security

For better overview, we have divided clause 5.8. into sub-clauses. With the exception of adding the sub-clauses 5.8.1., 5.8.2., and 5.8.3. and the respective headlines, we have not applied any further changes:

8. Fees and Currency Conversions

We have divided our previous clause 8.2. Currency Conversion into two sub-clauses (8.2. Currency Conversion and 8.3. Currency Conversion Choices), but did not make any change to the actual content.

 

UPDATES TO THE PAYPAL USER AGREEMENT – EFFECTIVE DATE OCTOBER 21, 2019

With effect towards October 21, 2019 we make the following changes to the PayPal User Agreement:

 

A4.1. Currency Conversion Fee

We will increase the Currency Conversion Fee according to clause A4.1. of the PayPal User Agreement from 2.50% to 3.00% as well as some of the fees for other transactions as per the table below:

A4.1. Currency Conversion Fee

For currency conversions processed in your PayPal Account outside or prior to a Personal Transaction or a Commercial Transactions (including, but not limited to converting a Balance to another currency before withdrawal) as well as for transaction requiring a currency conversion for which the payment recipient (Seller) has agreed to bear the Fee PayPal shall charge of Fee in an amount equal to 3.00% above the base exchange rate (“Currency Conversion Fee”).

For all other transaction that require a currency conversion and for which the payment recipient (Seller) has not agreed to bear the Currency Conversion Fee, PayPal shall charge the following Currency Conversion Fee, each in percentage above the base exchange rate (to form the transaction exchange rate):

CURRENCY CONVERSION FEE ACCORDING TO CURRENCY

Currency converted to

Currency Conversion Fee

Australian dollars (AUD)

4.00%

Brazilian real (BRL)

4.00%

British pounds sterling (GBP)

4.00%

Canadian dollars (CAD)

3.50%

Czech koruna (CZK)

4.00%

Danish kroner (DKK)

4.00%

Euros (EUR)

4.00%

Hong Kong dollars (HKD)

4.00%

Hungarian forint (HUF)

4.00%

Israeli new shekels (ILS)

4.00%

Japanese yen (JPY)

4.00%

Malaysian ringgit (MYR)

4.00%

Mexican pesos (MXN)

4.00%

New Taiwan dollars (TWD)

4.00%

New Zealand dollars (NZD)

4.00%

Norwegian kroner (NOK)

4.00%

Philippine pesos (PHP)

4.00%

Polish zloty (PLN)

4.00%

Russian rubles (RUB)

4.00%

Singapore dollars (SGD)

4.00%

Swedish kronor (SEK)

4.00%

Swiss francs (CHF)

4.00%

Thai baht (THB)

4.00%

US dollars (USD)

3.50%

Other than that, clause A4.1. and all other provisions of the PayPal User Agreement remain unchanged.

Policy Updates

Last update: January 30, 2019

 

This page shall serve as advance information for PayPal Users with regards to important upcoming changes of the PayPal Services, the PayPal User Agreement, and other policies (collectively, the “Legal Agreements”).

 

Please read this document carefully. PayPal will change the Legal Agreements with effect to April 29, 2019.

You do not need to do anything to accept the changes as they will automatically come into effect on April 29, 2019.

Should you decide you do not wish to accept the changes, you can notify us prior to April 29, 2019 to close your account (https://www.paypal.com/at/cgi-bin/?&cmd=_close-account) immediately without incurring any additional charges.

All changes and updates to the Legal Agreements are on this page highlighted in italic. This highlighting shall ensure better traceability of the changes and updates applied.

Amendments made for linguistic adjustment, to correct or remove orthographical and grammatical mistakes, or changes to the formatting are not highlighted. This does also apply where we have corrected or standardized numbering and references.

 

Updates to the PayPal User Agreement

We have made the following amendments to our PayPal User Agreement:

 

5. Receiving E-Money

By way of reminder for merchants using PayPal to receive Commercial Transaction payments, on November 13, 2018 PayPal started to enable some customers without Accounts to send payments to merchants’ Accounts using alternative local payment methods.

For this purpose, on November 13, 2018, the opening paragraph of Section 5. of the PayPal User Agreement was amended to clarify how further terms of use apply to merchants when they integrate into their online checkout/platform any functionality intended to enable a customer without a PayPal Account to send a payment to the merchant’s PayPal Account (for instance, using alternative local payment methods). This includes the PayPal Local Payment Methods Agreement.

Since November 13, 2018, the opening paragraph of Section 5. has read and been applied (and will continue to read and be applied) as follows:

5. Receiving E-Money

PayPal may allow anybody (with or without a PayPal Account) to initiate a payment resulting in the issuance or transfer of E-Money to your PayPal Account. By integrating into your online checkout/platform any functionality intended to enable a payer without a PayPal Account to send a payment to your PayPal Account, you agree to all further terms of use of that functionality which PayPal will make available to you on any page on the PayPal or Braintree website (including any page for developers and our Legal Agreements page) or online platform. Such further terms include the PayPal Local Payment Methods Agreement.

 

 

Updates to the PayPal Buyer Protection Policy

We have made the following amendments to our PayPal Buyer Protection Policy:

 

5.1. Timelines

In clause 5.1., we have changed the timelines from a fixed ten days to a more flexible timeline reflecting the individual case:

5.1. Timelines

The Buyer must reply in a timely manner to any questions asked by PayPal in regards to the PayPal Buyer Protection Claim. PayPal may decline the Claim if the Buyer does not provide an answer within the stated timeframe. PayPal may extend this timeframe in case of extraordinary circumstances which are outside the control of the Buyer.

 

Notice of amendment to the PayPal Privacy Statement

We’re making changes to the Privacy Statement that provides information on how we use your data.

We've provided additional details on how we use data when you transact with your friends, as well as more information on how we use data to prevent fraud and risk.

You can review the changes and the current Privacy Statement here.