User Agreement for PayPal Services

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PayPal Recurring Payments and Billing Agreement

Last Update: 5 April 2018



You accept this Recurring Payments and Billing Agreement when you sign up for a recurring payment with a third party without a PayPal account or when you accept our User Agreement. We may amend this agreement and provide you with 30 days’ prior notice by posting notice of the change on the “Policy Updates” page of our website. After this 30 day notice period, you will be considered as having expressly consented to all amendments to this agreement.

Recurring Payments

  1. A Recurring Payment is a payment in which you (as a buyer or a sender of funds) provide an advance authorisation to a third party (such as a merchant or eBay) for a third party initiated payment, that is a charge to your PayPal account or credit or debit card where you do not have a PayPal account (“Nominated Payment Source”) directly on a one-time, regular, or sporadic basis.
  2. Recurring Payments are usually called “Automatic Payments” and are sometimes called “Subscriptions”, “Preapproved Payments” or “Future Payments”.
  3. By providing an advanced authorisation for a third party initiated payment, you are giving the third party the ability to collect or reverse variable payment amounts from your Nominated Payment Source until such time as this arrangement is cancelled.
  4. You authorise and instruct PayPal to pay the third party (or another person they direct) amounts from your Nominated Payment Source for the amounts you agreed to owe and as presented to PayPal by that third party.
  5. You agree that PayPal is not obligated to verify or confirm the amount the third party presents to PayPal for the purpose of processing these types of payments.
  6. You acknowledge and agree that use of Recurring Payments in any form means that these payments may be variable and scheduled to occur at certain times (in the manner agreed between you and the third party). You should make sure that you fully understand your payment obligations with the third party and ensure you always have sufficient funds to meet your ongoing commitment to the third party.
  7. If your third party initiated payment requires a currency conversion by us, it will be completed at the transaction exchange rate we set for the relevant currency exchange. The transaction exchange rate is adjusted regularly and includes a currency conversion fee applied and retained by us on a base exchange rate to form the rate applicable to your conversion.  The base exchange rate is based on rates within the wholesale currency markets on the conversion day or the prior business day; or, if required by law or regulation, set at the relevant government reference rate(s). The transaction exchange rate applicable to your conversion may be applied immediately and without notice to you.. You acknowledge that the exchange rate determined at the time of each payment transaction will differ and you agree to the future execution of third party initiated payments being based on fluctuating exchange rates.
  8. In some cases, merchants may hold a small payment to verify your PayPal account. The hold is usually released within 3 to 5 days.

Billing Agreement

  1. When you establish a Recurring Payment with a merchant, you are also entering into a Billing Agreement with us. By entering into a Billing Agreement, you authorise us to allow the merchant to charge your Nominated Payment Source directly. PayPal facilitates the transaction between you and the merchant, but does not enforce contractual obligations for payment by you or for delivery of goods or services by the merchant.

Payment Method Selection for PayPal Payments

  1. In most cases, when the merchant requests a payment from your PayPal account, we will attempt to process the payment from an available Payment Method you choose when you establish the Recurring Payment. We will always use your available PayPal balance first.
  2. If the preferred Payment Method fails (for example, a credit or debit card expires) and your PayPal account cannot complete a transaction in the first instance, it may be used again to try to complete the transaction. If the preferred Payment Method in your PayPal account cannot complete a transaction after repeated attempts, you authorise us to attempt to complete the transaction by using each of the other payment methods available in your PayPal account until the transaction completes in full.

Cancelling Recurring Payments

  1. Buyers or senders of funds may cancel a Recurring Payment at any time up to 3 business days prior to the date the payment is scheduled to take place.
    a. PayPal account
    You can cancel a Recurring Payment or Automatic Payment established with a PayPal account by logging in to your account and accessing your settings. If you cancel a Recurring Payment you may still be liable to the merchant for one or more amounts and be required to pay the merchant through alternative means.
    b. Guest checkout
    To cancel a Recurring Payment or Automatic Payment established directly with your nominated credit or debit card (i.e. without a PayPal account), you can cancel it by contacting the merchant or us. We can be contacted by:


1800 073 263 (within Australia) or +61 2 8223 9500 
6am - 10pm AEST/AEDT Monday to Friday 
8am - 7pm Saturday and Sunday

Not open on Christmas Day, Boxing Day or New Year’s Day.


PayPal Australia 
GPO Box 351 
Sydney NSW 2001

Merchant obligations

  1. Merchants who present us with a payment request under a Billing Agreement warrant that the amounts they present have been properly agreed and consented to by the buyer whose Nominated Payment Source will be debited (including any applicable changes to those agreed amounts).
  2. Merchants agree that they will notify their buyers in advance of the amount they will collect (such advance notice must be reasonable for the buyer, taking account of all the circumstances), and if that amount has increased in such a manner that the buyer could not have reasonably expected to pay such an amount, taking into account that buyer’s previous spending patterns and the circumstances of the payment.
  3. Merchants must provide buyers with the ability to cancel a Recurring Payment within 3 business days of the scheduled date of the Recurring Payment.

Additional Terms for PayPal’s Website Payments Standard Customers using Enhanced Recurring Payments

  1. If you use Instalment Plans:
    1. You must not charge for the first payment of the instalment until you have shipped the goods purchased by your buyer;
    2. You may not charge in more than four instalments for a purchase;
    3. You may not add finance charges to the payment amount;
    4. The sum of the instalment billing must not exceed the total purchase price of the goods, including applicable taxes and shipping costs; and
    5. You must have and retain your buyer’s express consent to charge in instalments.
  2. If you use Automatic Billing, you must:
    1. obtain each buyer’s express consent for the amount, frequency, and duration of the Automatic Payment;
    2. provide the buyer with the ability to cancel an Automatic Payment within 3 business days of the scheduled date of the Automatic Payment; and
    3. provide a simple and easily accessible online cancellation procedure.
  3. If your customer cancels an Automatic Payment, you may not charge for the Automatic Payment.
  4. We may suspend or terminate your use of Website Payments Standard Enhanced Recurring Payments if we reasonably believe you have breached any term of this Recurring Payments and Billing Agreement or any part of the User Agreement.