Policy Updates

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Policy Updates

 

Changes to the User Agreement, Combined Financial Services Guide and Product Disclosure Statement, and Commercial Entity Agreements.

Effective date: 15 July 2016

PayPal is changing some of its Legal Agreements with effect from 15 July 2016. We’ve created this policy update to help you understand the changes that are being made. By continuing to use of our services from 15 July 2016, you are agreeing to these changes. If you decide not to accept the changes, you can notify us before 15 July 2016 to close your account.

Set out below are the key changes to the:

  • User Agreement, including the Buyer Protection Policy;
  • Combined Financial Services Guide and Product Disclosure Statement; and
  • Commercial Entity Agreements

You can also click here to review the complete terms of the revised User Agreement, here to review the complete terms of the revised Combined Financial Services Guide and Product Disclosure Statement, and here to review the complete terms of the revised Commercial Entity Agreements.

 

Changes to the User Agreement

We have amended the User Agreement as follows:

  1. In clause 3.7, we have updated the list of eligible entities that may use our services to include businesses that are not incorporated in Australia, but:
    1. carry on a business in Australia;
    2. are registered as a foreign corporation in Australia; and
    3. have either their central management and control in Australia or their voting power controlled by shareholders who live in Australia.
  2. We have replaced clause 9.5 with:

“If you are classified as having Commercial Entity status, you are subject to the terms and conditions of the Commercial Entity Agreements.”

We’ve subsequently defined what a “Commercial Entity” is in clause 27.1.

  1. We’ve deleted clauses 9.10 through to 9.14, as well as 10.27 and 10.28 because our PayPal POS and Check In functionalities will no longer be available. We’ve also deleted any consequent unnecessary definitions from clause 27.1.
  2. Clause 10.2(a) has been amended to reflect that while our Check In functionality will no longer be available, buyers may now use American Express cards to pay through our PayPal Here card reader.
  3. In clauses 16.2 and 16.3, we’ve expanded our authority to limit a PayPal account where:
    1. there is a risk associated with the account holder using services from us or any of our related companies other than their PayPal account; or
    2. the use of a PayPal account or other service from us or any of our related companies poses a risk to the integrity, security, or reliability of PayPal or its systems.
  4. New clauses 17.9 to 17.13 have been added as follows:

“17.9 If you are a seller, we may limit the amount you can withdraw from your PayPal balance to help protect us and our users from the risk of financial or other loss. The amount of your PayPal balance that will be available for withdrawal is called a “release amount”. The remainder will be retained in your PayPal account for up to 21 days.

17.10 We will notify you of the terms of any release amount we apply to your account.

17.11 Your release amount will be determined by information we collect when you create your account, as well as publicly available information and your selling activity. The more you use your account, the more we know about your selling activity. As such, our risk assessment may change and we may increase or decrease your release amount based on that changed assessment. We will notify you if this occurs.

17.12 In the event you do not agree to the terms of a release amount, you may close your account unless otherwise prohibited under this Agreement. However, if your account is closed for any reason, we have the right to hold the amount retained in your PayPal account for up to 180 days.

17.13 You may request an increase to your release amount once every 30 days.”

  1. Clause 18.2 has been deleted and replaced with:

“We may close your account if:

  1. You breach this Agreement;
  2. Your continued use of your account poses a risk to the integrity, security or reliability of us or our systems; or
  3. We otherwise determine not to provide our Services to you, acting reasonably.

We will provide you notice if we close your account.”

  1. Clause 18.4 sets out the circumstances in which you may not be able to close your account. We’ve added an outstanding balance on any PayPal Working Capital loan you hold as one such circumstance. Consequently, we’ve also introduced a new definition of “PayPal Working Capital” to clause 27.1.
  2. We’ve inserted a new clause 19.4 as follows:

“You grant us the worldwide right to use and depict your business name, trademarks and logos on our website and in our mobile and web applications for the purpose of identifying your business and its products and services.”

 

Changes to the Buyer Protection Policy

The Buyer Protection Policy is contained in Schedule 1 to the User Agreement from clause S9.1 onwards. We have changed the eligibility criteria for purchases that can be protected under the policy as follows:

  1. In clause S12.1(c), a purchase is eligible if the payment is not a Personal Transaction and is made through:
    1. The “Checkout with PayPal” button or by otherwise selecting PayPal as part of a seller’s PayPal checkout flow;
    2. The “Send Money” function and choosing “goods or services” on our website or mobile app, including in response to a request for money; or
    3. PayPal.Me and choosing “goods or services”.
  2. You no longer have to pay the full amount in one payment to be eligible for protection. As such, we’ve deleted clause S12.1(e).
  3. We’ve updated the list of items in clause S12.1(h) that are not eligible for protection. That list now reads as follows:
    1. Vehicles (including cars, motorcycles, caravans, boats and planes);
    2. Real estate;
    3. Anything purchased from or an amount paid to a government agency;
    4. Sale of business;
    5. Payments on crowdfunding platforms;
    6. Custom made items considered to be “significantly not as described”;
    7. Industrial machinery used in manufacturing;
    8. Activities involving gambling, gaming and/or any other activity with an entry fee and a prize;
    9. Items prohibited under our Acceptable Use Policy;
    10. Digital currencies and items that have or are capable of having a stored monetary value attached to them such as gift cards and pre-paid cards; or
    11. Donations.
  4. As a result of the updated list in clause S12.1(h):
    1. Items listed on Gumtree may now be protected if they are otherwise eligible under the Buyer Protection Policy; and
    2. Items you collect in person or arrange to be collected on your behalf are now eligible to be claimed as significantly not as described if they are otherwise eligible under the Buyer Protection Policy. However, these items are not eligible to be claimed as not received. Therefore, we’ve inserted the appropriate exclusion in a new clause S10.2.

 

Changes to the Combined Financial Services Guide and Product Disclosure Statement

We have amended the Combined Financial Services Guide and Product Disclosure Statement as follows:

  1. We’ve deleted clauses 5.1 to 5.3 and replaced them with:

“5.1 Our staff and the staff of our Related Bodies Corporate receive a salary plus superannuation where applicable. They may also be eligible for monetary and non-monetary awards or additional incentive payments, including bonuses and shares.

5.2 The way we pay our staff and the amount we pay them varies depending on each individual staff member’s business area and position at PayPal.

5.3 Some staff in the PayPal sales team earn a base salary and variable pay, calculated as a percentage or multiple of their base salary, if they (or their team) meet monthly or quarterly business and service targets (as applicable).”

  1. In clause 9, we’ve clarified that the Product Disclosure Statement applies to your Australian PayPal account or if you otherwise use our Services in Australia.
  2. We’ve added the following sentence to the last row of the table in clause 10.3, which deals with withdrawing money from your PayPal balance:

“If you have funds in your account that are held in a foreign currency, they’ll be converted to your bank account’s primary currency prior to withdrawal.”

  1. In clause 16.3, we’ve expanded our authority to limit a PayPal account where its use poses a risk to the integrity, security, or reliability of PayPal or its systems.
  2. A new row to the table in clause 16.3 has been added to provide information about reserves and release amounts as follows:

“If you are a seller, we may:

  • Place a reserve on funds held in your account where we reasonably believe there is a higher than acceptable level of risk associated with your account or your use of any of our products or services; or
  • Limit the amount you can withdraw from your PayPal balance based on information we collect when you create your account, as well as publicly available information and your selling activity. The amount of your PayPal balance that will be available for withdrawal is called a “release amount”. The remainder will be retained in your PayPal account for up to 21 days. Your release amount may change based on our ongoing assessment of risk.

Reserves and release amounts help protect us and our users from the risk of financial or other loss.

You may request an increase to your release amount once every 30 days.”

  1. In clauses 18.2 and 18.3, we’ve deleted the words “in most cases, the sender decides who pays the fee.”
  2. We’ve clarified the fees for receiving PayPal Here payments by replacing clause 18.5 with the following:
    “Fees for receiving (selling) with PayPal Here:

Type

Domestic Transactions

Cross-border Transactions

PayPal Here card reader

1.95%

1.95%

Manual card key-in

2.9% + fixed fee

2.9% + fixed fee

Invoice

2.6% + fixed fee

3.6% + fixed fee”

 
  1. We’ve deleted clause 18.6 because the PayPal POS Functionality will no longer be available.

 

Changes to the Commercial Entity Agreements

HSBC Bank PLC and National Westminster Bank PLC have changed the entities that hold membership with the card schemes to Global Payments Australia 1 Pty Ltd and Worldpay Pty Ltd and its related entities, respectively. Your Commercial Entity Agreements are being updated to match those changes. There are no changes to the terms and conditions of your Commercial Entity Agreements or the service you receive from PayPal – only the names of the counterparties are changing.