Policy Updates

 

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Policy Updates

 

This page informs users in advance of important changes to the PayPal Service, its User Agreement, or other policies. We encourage you to review this Policy Update to familiarize yourself with all of the changes that are being made to the PayPal User Agreement. These updates will be posted at least 30 days prior to their effective date.

 

Amendments to the PayPal User Agreement, the PayPal Privacy Policy and the PayPal Acceptable Use Policy

Effective Date: July 1, 2015

PayPal is changing its User Agreement, its Privacy Policy and the Acceptable Use Policy. The amended User Agreement, the Privacy Policy and the Acceptable Use Policy will be effective as to all PayPal users on July 1, 2015. We encourage you to review this Policy Update to familiarize yourself with the changes that are being made. YOUR USE OF PAYPAL OR ITS SERVICES AFTER JULY 1, 2015 MEANS YOU AGREE TO THESE CHANGES.

A summary of material changes is provided below. You can also click HERE to review the complete terms of the revised PayPal User Agreement, HERE to review the complete terms of the revised PayPal Privacy Policy and HERE to review the complete terms of the revised Acceptable Use Policy in their entirety. 

 

Amendments to the PayPal User Agreement

The update to the User Agreement is effective July 1, 2015. A summary of material changes is provided below. You can also click HERE to review the complete terms of the revised User Agreement in its entirety.

 

PayPal and eBay Separation
PayPal and eBay will be separate companies soon.We’ve updated the PayPal User Agreement to reflect how the PayPal services will work post separation given that PayPal and eBay will no longer be affiliates.

  • Section 4.2
    This section currently allows PayPal to debit your Account to pay PayPal or its parent company, eBay, for any amounts that are more than 180 Days past due.The revised section allows, post separation, PayPal to debit user’s PayPal Account(s) and pay PayPal, an Affiliate or eBay Inc. for amounts that are 180 Days past due.

    The revised section 4.2 reads as follows:

    4.2 Setoff of Past Due Amounts. If you have a past due amount owed to PayPal, an Affiliate, or eBay, PayPal may debit your Account to pay any amounts that are more than 180 Days past due.
  • Section 11.1(c)
    If eBay decides in favor of your buyer under the eBay Money Back Guarantee program, this section provides PayPal your authorization to reimburse eBay or your buyer directly for the amount of the claim.

    The revised section 11.1(c) reads as follows:

    (c) Liability for claims filed under eBay’s Money Back Guarantee program. If you are an eBay Seller and eBay makes a final decision pursuant to its eBay Money Back Guarantee program holding you liable to reimburse the buyer, then you authorize PayPal to remove funds from your Account in an amount not greater than the amount of such claim and remit such funds to eBay. If your balance is insufficient to cover the amount of such a claim, PayPal will place a hold on your Account. This hold will remain on your Account until: (1) the date that sufficient funds become available to cover the amount of such claim, at which time such funds will be removed from your Account; or (2) 20 Days from the date of eBay's final decision, at which time an amount not greater than the amount of such claim will be removed from your Account. 
  • Section 11.4
    This section currently allows PayPal to use information it receives from third party partners such as eBay to place a hold on a user’s PayPal Account.This section is being changed to reflect that PayPal may use information it receives from any third parties including eBay to place a hold on a user’s PayPal Account.

    The revised section 11.4 reads as follows:

    11.4 Actions by PayPal - Holds.
    1. Risk-Based Holds. PayPal, in its sole discretion, may place a hold on any or all of the payments you receive when PayPal believes there may be a high level of risk associated with you, your Account, or any or all of your transactions. PayPal’s determination may be based on different factors and PayPal may rely on information it receives from third parties. If PayPal places a hold on a payment, the funds will appear in your “pending balance” and the payment status will indicate the hold, for example it can show as “Completed - Funds not yet available.” If PayPal places a hold on any or all of the payments you receive, PayPal will provide you with notice of our actions. PayPal will release the hold on any payment after 30 Days from the date the payment was received into your Account unless PayPal has a reason to continue to hold the payment such as (a) the receipt of a Dispute, Claim, Chargeback, or Reversal, (b) PayPal believes that you have violated the terms of this Agreement or any other Policy and that such a violation results in the need to continue holding the funds, or (c) PayPal believes that you may be engaging in potentially fraudulent or suspicious activity and/or transactions. In such an event, PayPal may continue holding the payment in your Account until the matter is resolved pursuant to this Agreement. PayPal, in its sole discretion, may release the hold earlier under certain circumstances, for example when you upload tracking information of the item you shipped.
    2. Disputed Transaction Holds. If a User files a Dispute, Claim, Chargeback or Reversal on a payment you received, PayPal may place a temporary hold on the funds in your Account to cover the amount of the liability. If you win the dispute or the transaction is eligible for PayPal Seller Protection, PayPal will lift the temporary hold. If you lose the dispute, PayPal will remove the funds from your Account. This process also applies to any claim that a buyer files directly with eBay through the eBay Money Back Guarantee program, provided that your Account is your reimbursement method for amounts you owe to eBay or to the buyer (as the case may be) under the terms of the eBay Money Back Guarantee program.

 

Changes to PayPal Buyer Protection
We are increasing the scope of PayPal Buyer Protection to now include coverage for intangible items. References to intangible items have been removed from the new Section 7.3 which reads as follows:

7.3 Ineligible Items. Payments for the following are not eligible for reimbursement under PayPal Buyer Protection:

  • Real estate
  • Businesses (when you buy a business)
  • Vehicles, including motorcycles, caravans, aircrafts and boats
  • Custom made items with SNAD issues
  • Items that violate PayPal's Acceptable Use Policy
  • Items which you collect in person, or arrange to be collected on your behalf, including at a retail point of sale
  • Industrial machinery used in manufacturing
  • Items equivalent to cash, including prepaid or gift cards
  • Personal Payments

Even if your payment is not eligible for PayPal Buyer Protection, you can file a Dispute and resolve the issue directly with the Seller, however, PayPal will not find in your favor if you escalate a Dispute to a Claim when an item is not eligible for PayPal Buyer Protection.

 

Changes to PayPal Seller Protection
Although we are expanding PayPal Buyer Protection to buyers for intangible items, Seller Protection will not apply to intangible items. We are including a note in this section about this. In addition, we are adding a definition of Proof of Delivery for intangible or virtual items or services which can help a seller win a buyer’s Item Not Received Buyer Protection Claim.

For Sellers in Mexico, the revised subsection 4 reads as follows:

4. Proof of Shipment, Proof of Delivery, and Signature Confirmation Requirements.

“Shipping Company”: a “Shipping Company” is any one of the following:

  • FedEx
  • UPS
  • DHL
  • Estefeta
  • Multipack

"Proof of Shipment" is online or physical documentation from a shipping company that includes all of the following:

  • The date the item is shipped.
  • The recipient's address, showing at least the city/state or postal code (or international equivalent).

“Proof of Delivery” for intangible items means any compelling evidence to show the purchase order was fulfilled and includes all of the following:

  1. The date the item is delivered;
  2. The recipient’s address (email/IP, etc) where applicable.

NOTE: Although PayPal Buyer Protection extends coverage to buyers for intangible items, Seller Protection does not apply to intangible items. However, having proper Proof of Delivery can help a seller win a buyer’s Item Not Received Buyer Protection Claim. 

"Proof of Delivery" is online documentation from a shipping company that includes all of the following:

  • The date the item is delivered.
  • The recipient's address, showing at least the city/state or postal code (or international equivalent).
  • Signature Confirmation as described below for payments of $10,000 MXN or more (or the following equivalents):
     

    Currency

    Amount

    Australian Dollar

    $850 AUD

    Brazilian Real

    $1750 BRL

    Canadian Dollar

    $850 CAD

    Czech Koruna

    15,000 CZK

    Danish Krone

    4,100 DKK

    Euro

    €550 EUR

    Hong Kong Dollar

    $6,000 HKD

    Hungarian Forint

    170,000 HUF

    Israeli New Shekel

    2,700 ILS

    Japanese Yen

    ¥77,000 JPY

    Malaysian Ringit

    2,500MYR

    Mexican Peso

    $10,000

    Currency

    Amount

    New Zealand Dollar

    $950 NZD

    Norwegian Krone

    4,600 NOK

    Philippine Peso

    34,000 PHP

    Polish Zloty

    2,300 PLN

    Russian Ruble

    27,000 RUB

    Singaporean Dollar

    $950 SGD

    Swedish Krona

    4,950 SEK

    Swiss Franc

    700 CHF

    Taiwan New Dollar

    23,000 TWD

    Thai Baht

    24,500 THB

    Turkish Lira

    1,600TRY

    U.K. Pounds Sterling

    £450 GBP

    U.S. Dollar

    $750 USD

"Signature Confirmation" is online documentation that can be viewed at the shipping company's website and indicates that the item was signed for on delivery.

 

For Sellers in China, Hong Kong, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand and Vietnam, the revised postage requirements read as follows:

Postage requirements for Sellers in China, Hong Kong, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand and Vietnam

 

Postage requirement

Protection for Item Not Received

For items less than $750 USD (or equivalent as set out below)*, Proof of Shipment or Proof of Delivery (for intangible or virtual items or services)
For items of $750 USD or more (or equivalent as set out below)*, Proof of Delivery (for tangible items) or Proof of Delivery (for intangible or virtual items or services)

Protection for Unauthorized Transaction

Proof of Shipment

 

Currency*

Amount

Currency*

Amount

Australian Dollar

$850 AUD

New Zealand Dollar

$950 NZD

Brazilian Real

$1750 BRL

Norwegian Krone

4,600 NOK

Canadian Dollar

$850 CAD

Philippine Peso

34,000 PHP

Czech Republic Koruna

15,000 CZK

Polish New Zloty

2,300 PLN

Danish Krone

4,100 DKK

Russian Ruble

27,000 RUB

Euro

€550 EUR

Singaporean Dollar

$950 SGD

Hong Kong Dollar

$6,000 HKD

Swedish Krona

4,950 SEK

Hungarian Forint

170,000 HUF

Swiss Franc

700 CHF

Israeli New Shekel

2,700 ILS

Taiwan New Dollar

23,000 TWD

Japanese Yen

¥77,000 JPY

Thai Baht

24,500 THB

Malaysian Ringgit

2,500 MYR

Turkish Lira

1,600 TRY

Mexican Peso

$10,000 MXN

U.K. Pound Sterling

£450 GBP

   

U.S. Dollar

$750 USD

 

“Proof of Shipment” means online or physical documentation from a shipping company that includes all of the following:

  1. Status of “shipped” (or equivalent) and the date of postage;
  2. The recipient’s name and address must match those shown on the “Transaction Details” page;
  3. The sender’s name and address must match the Seller’s name and address;
  4. Online tracking information showing status of shipment.

“Proof of Delivery (for tangible items)” means online or physical documentation from a shipping company that includes (or where the shipping company warrants that they have obtained) all of the following:

  1. A status of “delivered” (or equivalent) and the date of delivery;
  2. The recipient’s name and address must match those shown on the “Transaction Details” page;
  3. Online documentation that can be viewed at the shipping company’s website and indicates that the item was signed for on delivery.

“Proof of Delivery (for intangible or virtual items or services)” means any compelling evidence to show the purchase order was fulfilled and includes all of the following:

  1. The date the item or service was provided;
  2. The recipient’s address (email/IP, etc) where applicable.

NOTE: Although Buyer Protection extends coverage to buyers for intangible items, Seller Protection does not apply to intangible items.

 

For Sellers in Turkey and Israel, “Proof of Delivery” reads as follows:

What is "Proof of Delivery" for Sellers in Turkey and Israel?

“Proof of Delivery (for tangible items)” means online documentation from a postal company that includes (or where the postal company warrants that they have obtained) all of the following:

  1. A status of “delivered” (or equivalent) and the date of delivery.
  2. The recipient’s address, showing at least the city/county or postcode (or international equivalent).

"Proof of Delivery (for intangible or virtual items or services)” is any compelling evidence to show the purchase order was fulfilled and includes all of the following:

  1. The date the item or service was delivered;
  2. The recipient's address (email/IP, etc.) where applicable.

NOTE: Although Buyer Protection extends coverage to buyers for intangible items, Seller Protection does not apply to intangible items.

 

For Sellers in Turkey and Israel, a new Suspension of Eligibility for PayPal Seller Protection section is inserted and reads as follows:

Suspension of Eligibility for PayPal Seller Protection

We may suspend your eligibility for PayPal Seller Protection if we hold a reasonable belief that there is an increased risk associated with your account. In assessing a risk, we will consider the:

  • Total monetary amount and/or number of Reversals issued against your PayPal account;
  • Reasonable risk of your account to the integrity of PayPal and our system; and
  • Potential losses occurring to us or our users.

We may suspend your eligibility for PayPal Seller Protection if it is linked or associated with another account which has been suspended.

We will lift the suspension provided we no longer hold a reasonable belief that there is an increased risk associated with your account.

If we reasonably believe a risk still exists, we may in our sole discretion, require you to take certain action in order to lift the suspension of your eligibility for PayPal Seller Protection. You must follow our directions as reasonably required by PayPal within the timeframe specified.

We will notify you by email if we suspend or lift the suspension of your eligibility for PayPal Seller Protection.

 

The revised section 9.4 of the PayPal User Agreement reads as follows:

"Proof of Shipment" is online or physical documentation from a shipping company that includes all of the following:

  • The date the item is shipped.
  • The recipient's address, showing at least the city/state or postal code (or international equivalent).

"Proof of Delivery (for tangible items)" is online documentation from a shipping company that includes all of the following:

  • The date the item is delivered.
  • The recipient's address, showing at least the city/state or postal code (or international equivalent).
  • Signature Confirmation as described below for payments of $750 USD or more (or the following equivalents), save for Sellers having a PayPal Account registered in Albania, Andorra, Bosnia and Herzegovina, Croatia, Turkey and Ukraine to whom such requirement won’t apply):
     

    Currency

    Amount

    Currency

    Amount

    Australian Dollar

    $850 AUD

    New Zealand Dollar

    $950 NZD

    Brazilian Real

    $1750 BRL

    Norwegian Krone

    4,600 NOK

    Canadian Dollar

    $850 CAD

    Philippine Peso

    34,000 PHP

    Czech Republic Koruna

    15,000 CZK

    Polish New Zloty

    2,300 PLN

    Danish Krone

    4,100 DKK

    Russian Ruble

    27,000 RUB

    Euro

    €550 EUR

    Singaporean Dollar

    $950 SGD

    Hong Kong Dollar

    $6,000 HKD

    Swedish Krona

    4,950 SEK

    Hungarian Forint

    170,000 HUF

    Swiss Franc

    700 CHF

    Israeli New Shekel

    2,700 ILS

    Taiwan New Dollar

    23,000 TWD

    Japanese Yen

    ¥77,000 JPY

    Thai Baht

    24,500 THB

    Malaysian Ringgit

    2,500 MYR

    Turkish Lira

    1,600 TRY

    Mexican Peso

    $10,000 MXN

    U.K. Pound Sterling

    £450 GBP

     

     

    U.S. Dollar

    $750 USD

 

"Signature Confirmation" is online documentation that can be viewed at the shipping company's website and indicates that the item was signed for on delivery.

“Proof of Delivery (for intangible or virtual items or services)” means any compelling evidence to show the purchase order was fulfilled and includes all of the following:

  1. The date the item or service was provided;
  2. The recipient’s address (email/IP, etc) where applicable.

NOTE: Although Buyer Protection extends coverage to buyers for intangible items, Seller Protection does not apply to intangible items.

  • Section 11.1(d)

    Any instructions given by you on your Account, once you have been authenticated, will be relied on by PayPal and PayPal will not be liability for any loss or damage you suffer where PayPal acts on those instructions in good faith. 

    A new clause 11.1(d) is inserted to that effect and reads as follows:
  1. Liability for instructions given by you on your Account. Any instructions given by you on your Account (whether verbal or in writing) once you have been authenticated will be relied on by PayPal. PayPal will not be liable for any loss or damage you or anyone else suffers where PayPal acts on those instructions in good faith, unless it was proved that PayPal was negligent.
  • Section 11.3

    If a PayPal user engages in any restricted activities as defined by the PayPal User Agreement, we’ve added language to Section 11.3 that allows PayPal to suspend your eligibility for PayPal Buyer Protection and/or PayPal Seller Protection.

    The revised section 11.3 reads as follows:

    11.3 Actions by PayPal – Restricted Activities. If PayPal, in its sole discretion, believes that you may have engaged in any Restricted Activities, we may take various actions to protect PayPal, Affiliates other Users, other third parties or you from Reversals, Chargebacks, Claims, fees, fines, penalties and any other liability. The actions we may take include but are not limited to the following:
    1. We may close, suspend, or limit your access to your Account or the PayPal Services;
    2. We may suspend your eligibility for PayPal Buyer Protection and/or PayPal Seller Protection;
    3. We may refuse to provide the PayPal Services to you now and in the future; and
    4. We may hold your funds for a period of time reasonably needed to protect against the risk of liability to PayPal or a third party, or if we believe that you may be engaging in potentially fraudulent or suspicious activity and/or transactions.
  • Section 13.1

    We are updating the Limitations of Liability reflected in the PayPal User Agreement to clarify that (1) among the damages for which PayPal and others listed in Section 13.1 cannot be held liable are damages for loss of data or business, and (2) that the limitations of liability reflected in Section 15.1 are applicable except and to the extent prohibited by law.

    The revised Section 13.1 reads as follows:

    13.1 Limitations of Liability. IN NO EVENT SHALL WE, OUR PARENT, SUBSIDIARIES AND AFFILIATES, OUR OFFICERS, DIRECTORS, AGENTS, JOINT VENTURES, EMPLOYEES OR SUPPLIERS BE LIABLE FOR LOST PROFITS OR ANY SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING WITHOUT LIMITATION DAMAGES FOR LOSS OF DATA OR LOSS OF BUSINESS) ARISING OUT OF OR IN CONNECTION WITH OUR WEBSITE, THE PAYPAL SERVICES, OR THIS AGREEMENT (HOWEVER ARISING, INCLUDING NEGLIGENCE) UNLESS AND TO THE EXTENT PROHIBITED BY LAW OUR LIABILITY, AND THE LIABILITY OF OUR PARENT, SUBSIDAREIS AND AFFILIATES, OUR OFFICERS, DIRECTORS, AGENTS, JOINT VENTURES, EMPLOYEES AND SUPPLIERS, TO YOU OR ANY THIRD PARTIES IN ANY CIRCUMSTANCE IS LIMITED TO THE ACTUAL AMOUNT OF DIRECT DAMAGES.
  • Changes to Exhibit A – Fees

    New hotel merchant rates are inserted in Exhibit A – Fees of the PayPal User Agreement and reads as follows:
  1. Hotel merchant rate

    The hotel merchant rate is only available to hotel merchants with PayPal Accounts registered in Singapore, Malaysia, Indonesia, Thailand, Vietnam and Philippines that:
    1. integrate their point of sale with a PayPal approved internet booking engine partner at their own cost;
    2. hold a valid Business Account in good standing; and
    3. obtain approval from PayPal.

      PayPal will determine in its sole discretion whether you are approved for the hotel merchant rate. The hotel merchant rate is limited to processing payments received for goods and services relating to your hotel business only. Notwithstanding any other rights we have under this Agreement, we may in our sole discretion, immediately revoke your approval for the hotel merchant rate.

      If you are approved for the hotel merchant rate, you will pay:
       

      Domestic payments (where applicable) and International payments

      Standard Rate:

      2.8%

  • Personal Payments Fee - Brazil

    We are reducing the fee for sending or receiving a Personal Payment to a recipient resident in Brazil which is fully or partially funded by debit or credit card from 7.4% + Fixed Fee to 5.99% + Fixed Fee. The relevant entry in the table of fees for Personal Payments Fee set forth on Section 5 “Fees for Other Pricing Categories”, item “d” “Personal Payments Fee” of “Exhibit A - Fees”(presented in context with the column headings) now reads as follows:
     

    Activity

    Country of Recipient

    Personal Payments Fee when Payment Method is exclusively Balance or Bank

    Personal Payments Fee when another Payment Method is used to fully or partially fund the payment, including a credit or debit card

    Sending or Receiving International Payments

    Brazil

    1.0%

    5.99% + Fixed Fee

  • Currency Conversion Fee – LATAM countries

    We are updating PayPal Currency Conversion fee set forth on Section 4 “Additional Fees” of “Exhibit A - Fees” from 3.5% to 4.5% on the following LATAM countries: Anguilla, Antigua and Barbuda, Argentina, Aruba, Bahamas, Barbados, Belize, Bermuda, Bolivia, Cayman Islands, Chile, Colombia, Costa Rica, Dominica, Dominican Republic, Ecuador, El Salvador, Falkland Islands, Grenada, Guatemala, Guyana, Honduras, Jamaica, Montserrat, Netherlands Antilles, Nicaragua, Panama, Paraguay, Peru, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, Trinidad & Tobago, Turks and Caicos Islands, Uruguay, Venezuela, Virgin Islands. This fee is applicable when a payment requires a currency conversion.
  • Commerical Payments Fee: Receiving International Commercial Payments

    We are updating fees for receiving international commercial payments. The update affects sellers in Albania, Bosnia & Herzegovina, Croatia, Georgia, Moldova, Serbia. The relevant entry in the table of fees, ‘Receiving Commercial Payments’ table in section 2 of Exhibit A - Fees, now reads as follows:
     

    Activity

    Seller’s Country

    Buyer’s Country

    Fee

    Receiving
    Commercial
    Payments

    Turkey, Andorra, Iceland, Monaco


    Northern Europe*:

    Standard Rate:

    3.8% + Fixed Fee

    Merchant Rate^:

    From 2.8% to 3.8% + Fixed Fee

    U.S, Canada, Europe I **:

    Standard Rate:

    3.9%+ Fixed Fee

    Merchant Rate^:

    From 2.9% to 3.9% + Fixed Fee

    Europe II ***:

    Standard Rate:

    4.4% + Fixed Fee

    Merchant Rate^:

    From 3.4% to 4.4% + Fixed Fee

    All other countries:

    Standard Rate:

    4.9% + Fixed Fee

    Merchant Rate^:

    From 3.9% to 4.9% + Fixed Fee

    Albania, Bosnia & Herzegovina, Croatia, Georgia, Moldova, Serbia,


    Northern Europe*:

    Standard Rate:

    3.8% + Fixed Fee

    Merchant Rate^:

    From 2.8% to 3.8% + Fixed Fee

     

    Europe I **:

    Standard Rate:

    3.9%+ Fixed Fee

    Merchant Rate^:

    From 2.9% to 3.9% + Fixed Fee

     

    U.S, Canada:

    Standard Rate:

    4.4%+ Fixed Fee

    Merchant Rate^:

    From 3.4% to 4.4% + Fixed Fee

     

    Europe II ***:

    Standard Rate:

    4.7% + Fixed Fee

    Merchant Rate^:

    From 3.7% to 4.7% + Fixed Fee

     

    All other countries:

    Standard Rate:

    5.2% + Fixed Fee

    Merchant Rate^:

    From 4.2% to 5.2% + Fixed Fee

     

    Fixed Fee

     

    See in table above

 

Amendments to the PayPal Privacy Policy

PayPal is changing its Privacy Policy, including to reflect the new relationship that PayPal will have with eBay Inc. and its affiliates (“eBay”) after the companies are no longer affiliated by common corporate control. The update to the Privacy Policy is effective July 1, 2015. Click HERE to review the complete terms of the updated Privacy Policy in its entirety.

 

Binding Corporate Rules & Cross Border Transfers of Personal Information

PayPal is committed to adequately protecting your personal information regardless of where the data resides. Following separation from eBay, PayPal will rely on a variety of methods to ensure adequate transfer of information across borders, including contractual mechanisms. We have changed the title of the “Binding Corporate Rules” section to “Cross Border Transfers of Personal Information” and updated the language in the section, including removing references to eBay’s Binding Corporate Rules.

Collection of Personal Information

This section has been updated in several ways reflecting the types of personal information collected for PayPal Services, including information collected from your computer or device, information collected during customer support cases, survey responses, and information from other accounts PayPal believes are controlled by a user.

As users increasingly access PayPal Services through mobile devices, we also added language highlighting the collection of information from mobile devices, including device identifiers and location information.

How We Use The Personal Information we Collect

This section has been updated and highlights the purposes for which we use personal information, including for identity verification purposes, the performance and customization of PayPal Services, and our reasons and methods for contacting you.

How We Use Cookies and Similar Technologies

This section has been updated explaining our use of Cookies and other tracking technologies, and to describe how we use these technologies for risk mitigation and fraud detection purposes. We also provide a link to our full Cookies policy, which is applicable to all members of PayPal’s corporate family. 

How We Share Information with Other PayPal Users

Changes have been made to this section explaining how personal information may be shared with other users of PayPal Services during transactions, transactional disputes, or when linking a PayPal merchant’s loyalty or gift card to a user account.

How We Share Information with Other Third Parties

This section was modified reflecting, among other things, the changing nature of the relationship between PayPal and eBay. Both parties will be separate entities, but would like to continue to provide users with the experiences they have come to expect. The changes to this section reflect PayPal’s sharing of account information with eBay and other third parties for purposes of fraud prevention and risk management, customer service, shipping and legal compliance.

As has always been the case, third parties will not be able to use this information for their marketing purposes without a user’s express consent.

Using Log In with PayPal

This section was updated to reflect the name change of PayPal Access to Log In with PayPal.

 

Amendments to the PayPal Acceptable Use Policy

The update to the Acceptable Use Policy is effective July 1, 2015. A summary of material changes is provided below. You can also click HERE to review the complete terms of the revised Acceptable Use Policy in its entirety.

  • Tobacco Products, E-cigarettes and Prescription Drugs and Devices

    The Acceptable Use Policy currently prohibits use of PayPal for activities that violate applicable law or industry regulations regarding the sale of tobacco products or prescription drugs and devices. We're replacing that prohibition with some new policy language covering these types of items, as well as e-cigarettes. Under the new language, use of PayPal for cigarette transactions will be prohibited. In addition, merchants will be permitted to use PayPal for sales of non-cigarette tobacco products, e-cigarettes, and prescription drugs and devices only with PayPal’s pre-approval.

    The changes will be as follows: 
    • Section 5 under Prohibited Activities, which contains the current provisions related to tobacco products and prescription drugs and devices, will be removed. 
    • A new Section 2(c) under Prohibited Activities will read as follows:

      You may not use the PayPal service for activities that: … 2. relate to transactions involving … (c) cigarettes …
    • The relevant parts of the chart under Activities Requiring Approval will be revised to read as follows:

      PayPal requires pre-approval to accept payments for certain services as detailed in the chart below.
       

      Service Requiring Pre-Approval

      Contact Information

      … selling … non-cigarette tobacco products, e-cigarettes or prescription drugs/devices.

      Please send contact information, business website URL and brief business summary to aup@paypal.com

  • Hate, violence, racial intolerance and the financial exploitation of a crime

    We’re revising the provision of the Acceptable Use Policy related to hate, violence, racial intolerance and the financial exploitation of a crime. That provision will be moved from Section 2(e) to Section 2(f) under Prohibited Activities and read as follows:

    You may not use the PayPal service for activities that: … 2. relate to transactions involving … (f) the promotion of hate, violence, racial intolerance or the financial exploitation of a crime …
  • Bribery and Corruption

    We’re adding to the Acceptable Use Policy an express prohibition against use of PayPal for payments related to bribery or corruption. A new Section 3(k) under Prohibited Activities will read as follows:

    You may not use the PayPal service for activities that: … 3. relate to transactions that … (k) involve offering or receiving payments for the purpose of bribery or corruption.
  • Gambling

    The Acceptable Use Policy currently prohibits use of PayPal for gambling-related activities unless they are legal in the places where the operator and the customers are located and the operator has received prior approval from PayPal. We’re making some changes to present that policy more clearly, including to clarify that it covers fantasy sports.

    Here is some additional detail on the changes: Our policy on gambling-related activities is currently set out in Section 6 under Prohibited Activities. We’re removing Section 6 and we’re adding a new row to the chart under Activities Requiring Approval that sets out our policy on gambling-related activities.

    In that new row, we’re preserving the non-exclusive list of covered gambling-related activities contained in the current Acceptable Use Policy, with two changes. First, we’re supplementing the list to clarify that fantasy sports are covered. Second, we’re making a change to some language in the current Acceptable Use Policy related to games of skill. The current language indicates that games of skill are covered, whether or not they are legally defined as lotteries. The revised language will reference gambling instead of lotteries. That is, it will indicate that games of skill are covered, whether or not they are legally defined as gambling.

    The relevant parts of the chart under Activities Requiring Approval will be revised to read as follows:

    PayPal requires pre-approval to accept payments for certain services as detailed in the chart below.
     

    Service Requiring Pre-Approval

    Contact Information

    Activities involving gambling, gaming and/or any other activity with an entry fee and a prize, including, but not limited to casino games, sports betting, horse or greyhound racing, fantasy sports, lottery tickets, other ventures that facilitate gambling, games of skill (whether or not legally defined as gambling) and sweepstakes, if the operator and customers are located exclusively in jurisdictions where such activities are permitted by law.

    Please send contact information, business website URL and brief business summary to aup@paypal.com

  • Air Transport Services

    We’re adding a provision under which PayPal may be used in connection with certain air transport services only with PayPal’s pre-approval. The relevant parts of the chart under Activities Requiring Approval will be revised to read as follows:

    PayPal requires pre-approval to accept payments for certain services as detailed in the chart below.
     

    Service Requiring Pre-Approval

    Contact Information

    Airlines and scheduled or non-scheduled charters/jets/air taxi operators …

    Please send contact information, business website URL and a brief business summary to compliance@paypal.com

  • Transactions on eBay

    The Acceptable Use Policy currently includes a provision under Transactions on eBay related to use of PayPal in support of eBay transactions. That provision requires, with respect to such use of PayPal, compliance both with the Acceptable Use Policy and with eBay’s rules related to prohibited and restricted items set forth on eBay’s website. In connection with the prospective separation of the eBay and PayPal businesses into independent publicly traded companies, we’re removing that provision from the Acceptable Use Policy.