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Policy Updates

 

 

Changes to PayPal Legal Agreements

Effective date: 5 April 2018

 

PayPal is changing some of its Legal Agreements with effect from 5 April 2018. We’ve created this policy update to help you understand the material changes. By continuing to use our services from 5 April 2018, you are agreeing to the changes. If you decide not to accept the changes, you can notify us before 5 April 2018 to close your account.

Set out below are the material changes to the:

Click on the links above to view the complete terms of each of the revised legal agreements:

 

Changes to the User Agreement

The changes to the User Agreement are most relevant to sellers.

  1. We’ve added a row in the table in clause 4.4 notifying sellers of the risk that we may transfer your PayPal balance to a third party if we’re required to by a law, court order or other legal process. This may happen if you are a judgment debtor or undischarged bankrupt and we receive an order to transfer your PayPal balance to a judgment creditor or trustee in bankruptcy. Clause 7.7 has also been updated to reflect this.
  2. We’ve inserted new clauses 11.3 and 11.4 to summarise the obligations of PayPal and sellers under the new European Union General Data Protection Regulation, which is relevant for sellers who accept payments from residents of the European Union.
  3. A new clause 12.2 has been inserted to permit us to correct any processing errors by debiting or crediting your account. For example, a processing error may mean you receive double the amount of a payment to which you were otherwise entitled. In these circumstances, we may debit your account to correct that error such that you receive the accurate amount.
  4. Clause 14 has been updated to clarify how currency conversions are completed.
  5. New clauses 15.16 and 15.17 have been inserted to create, and to perfect as we reasonably request, a security interest over funds held in your PayPal balance, such as when we place a reserve. These new clauses only apply to business and premier account holders.
  6. In clause 15.19 (now clause 15.21), we have deleted the words ‘and that determination is consistent with PayPal’s policies and procedures’.
  7. To protect PayPal and its users from the risk of financial loss, a new clause 24.2 has been inserted to indemnify us for costs we incur arising from chargebacks, reversals or refunds effected in accordance with the User Agreement. This new clause only applies to business and premier account holders.
     

Changes to the Combined Financial Services Guide and Product Disclosure Statement

  1. We’ve updated clause 5 (which deals with our remuneration, commissions and other benefits) to include money we earn from fees and interest, and money we pay for the referral of customers to us.
  2. We’ve added a row in the table in clause 16.6 notifying sellers of the risk that we may be required to transfer funds to a third party if you are a judgment debtor or undischarged bankrupt and we receive an order to do so.
  3. In clause 16.8, we have deleted the words ‘and that determination is consistent with PayPal’s policies and procedures’.
  4. We have changed the fees for personal transactions in clause 18 as set out below:
    1. Sending in Australia. 
      1. Previously, if you funded a payment to a friend or family member in Australia using a credit card or debit card, you paid 2.4% on the whole amount plus a fixed fee in the currency of payment. Now, a 2.6% + fixed fee will apply, but the 2.6% will only apply to the portion of the payment for which you used the credit card or debit card, as shown below.

Payment Method

Fees

PayPal balance or Australian bank account

Free

Any portion funded by a Credit Card or Debit Card

2.6% of the portion funded +
fixed fee based on the currency

  1. Sending internationally. 
    1. Previously, sending money to a friend or family member with a non-Australian PayPal account incurred a fee depending on a combination of the payment method used and the recipient’s country. Now, a flat fee of $5.99 AUD will apply.
    2. In addition, if any portion of the payment was funded by a credit card or debit card, you paid between 3.9% and 5.2% on the whole amount (depending on the recipient’s country) plus a fixed fee in the currency of the payment. Now, in addition to the $5.99 AUD flat fee, a 2.6% + fixed fee will apply, but the 2.6% will only apply to the portion of the payment for which you used the credit card or debit card, as shown below.

Payment Method

Fees

PayPal balance or Australian bank account

$5.99 AUD

Any portion funded by a Credit Card or Debit Card

$5.99 AUD+
2.6% of the portion funded +
fixed fee based on the currency

  1. Commercial Transaction Fees. 
    1. We have removed the table in clause 18.4 containing merchant volume discounted rates that could previously be applied for when meeting our qualifying criteria.
    2. The fee for accepting Domestic Commercial Payments with Website Payments Pro – Hosted Solution and API, has been reduced from 2.6% + fixed fee to 1.75% + fixed fee.
    3. The standard fees for receiving Commercial Transactions have not changed.
  2. Fee for Withdrawing USD balance.  A new clause 18.20 now sets a fee of 2.5% for each withdrawal of US Dollars from your PayPal balance to your linked United States bank account.

 

Updated Privacy Policy

At PayPal, we want it to be easy for you to understand our privacy practices and your privacy choices. That’s why we updated and streamlined this information in an updated Privacy Policy to explain the information we collect, how we use it and the choices and controls you have across various PayPal services.

Most of the ways we use and share your information will not change under our updated Privacy Policy. For example, we will continue to keep your information secure, and we will never sell your personal data to third parties.  At the same time, we want you to be comfortable with the changes that we have made. We have:

  • Compiled our privacy practices for different PayPal services, websites and applications;
  • Included more details about important features of our services and when you connect your PayPal account to third-party websites and platforms; and
  • Clarified how we may provide you with customized experiences on PayPal properties.  We also explain how you can choose to limit the use of your information.

 

Changes to PayPal’s Recurring Payments and Billing Agreement

  1. In clause 7 (previously clause 3), we’ve clarified how currency conversions are completed.
  2. In clause 10 (previously clause 5), we’ve clarified that we will use any available PayPal balance first before your preferred payment method for Automatic Payments.
     

Change to PayPal’s Refunded Returns Service General Conditions of Use

We have updated the General Conditions of Use for the Refunded Returns service to allow you to submit a tracking number as proof that you returned the item to the seller.
 

Changes to the Worldpay Commercial Entity Agreement

These changes apply to users who have ‘Commercial Entity’ status under clause 9 of the User Agreement. Most users do not have Commercial Entity status. PayPal is not a party to the Commercial Entity Agreements (CEAs).

The following amendments are being made to the Worldpay CEA:

  1. A new clause 2 has been introduced containing mainly obligations of Worldpay as the card acquirer. These include:
    1. More accurately defining PayPal’s and Worldpay’s responsibilities;
    2. A stipulation that, in the course of remitting funds processed by Worldpay as acquirer, any obligation of Worldpay to do so is subject to any rights of Worldpay under its agreement with PayPal;
    3. An indemnification from the Commercial Entity in favour of Worldpay for all losses arising from or relating to the payment of funds by Worldpay into a PayPal account in accordance with the CEA; and
    4. Permission for Worldpay to defer the payment of funds processed in its reasonable discretion to protect itself against certain loss, including that arising from chargebacks, and conferring responsibility on the Commercial Entity for that loss.
  2. In clause 3 (formerly clause 2):
    1. the fifth and sixth bullets regarding credit vouchers and cash disbursements have been deleted;
    2. Commercial Entities now must comply with the Payment Card Industry SSC Standards if they access cardholder data; and
    3. Commercial Entities are now required to include their physical location at points of interaction with cardholders so they can determine whether a transaction will be domestic or cross-border.
  3. A new clause 5 has been inserted requiring Commercial Entities to disclose to Worldpay such information as it reasonably requires in order to enable it to perform its obligations and/or assess financial and insurance risks and/or assess the Commercial Entity’s compliance with the CEA or card association rules.
  4. The governing law of the CEA has been changed to English law and the exclusive jurisdiction set to the courts of England and Wales.