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. This page displays policy updates with future effective dates. Go to “Past Policy Updates” for previous policy updates.

 

Notice of Amendment to PayPal Legal Agreements
Issued: May 29, 2019 (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.


Please review the current Legal Agreements in effect


 

Notice of amendment to the PayPal User Agreement.

Effective Date: May 29, 2019

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.

Sections of the PayPal User Agreement have been amended:

  • to clarify and reorganise existing wording, including the following existing sections:

Section

Amendment

8.2 Currency Conversion

The last four paragraphs of this section become new section 8.3 (Currency Conversion Choices).

; and

  • correct minor typographical errors.

 

Notice of amendment to the PayPal User Agreement.

Effective Date: August 19, 2019

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. Refused Transactions and Refunds

We are amending sections 4.6 (Refused Transactions), 5.7 (Your Refund Policy, Data Protection, Privacy Policy and Security) and A3.1.2 in Schedule 1 (Table of Fees) to clarify what happens when a payment is refused or later refunded by the recipient (including where the original payment involved a currency conversion and where a currency conversion (and, in some cases, a currency conversion fee) applies to the returned amount). 

Section 4.6 is amended accordingly for payers receiving returned payments and is also renamed “Refused Transactions and Refunds sent by the recipient.”. 

Section 5.7 is amended accordingly for recipients sending refunds or refusing payments and is also renamed “Refunds, Refused Payments, Your Refund Policy, Data Protection, Privacy Policy and Security” with a new section 5.7.1 (Refunds and Refused Payments) added for the purpose of this clarification. 

Section A3.1.2 in Schedule 1 (Table of Fees) is amended accordingly.

Sections 4.6 and 5.7.1 now read as follows (presented in context with their root clauses and with added wording underlined):

            “…

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 our Service 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 Account; or
  • US dollars (opening a Balance in that currency for you, if you don’t have one already).

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. Note that, for the purpose of this particular return conversion:

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 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).

5.7 Refunds, Refused Payments, Your Refund Policy, Data Protection, Privacy Policy and Security.

5.7.1 Refunds and Refused Payments

If you are the recipient of a payment and we allow you to refuse a payment or send a refund of that payment to the payer:

  • you alone are (and PayPal is not) responsible for:
  • your legal and contractual obligations towards the payer for any amount you return to the payer; and
  • any difference between the cost to the payer of making the original payment and the value of the amount returned to the payer (for instance, as a result of transaction exchange rate fluctuations) except to the extent that the refund is a payment executed incorrectly by PayPal (see section 12).

 

5.7.2 Refund Policy

5.7.3 Data Protection and Privacy Policy

5.7.4 Security

A3.1 Currency Conversion

 


A3.1.2 For all other transactions involving a currency conversion (including conversion of amounts returned to you as refunds or refused payments):

…”

2. Fees for receiving Commercial Transaction payments

We are changing our Commercial Transaction payment Fees as follows:

  • The additional percentage-based Cross Border Fees set out in the table at section A2.3 of Schedule 1 (Table of Fees) for receiving payments from Northern Europe, US/Canada or Europe II are increasing and are now as follows:

Sender’s country

Cross Border Fee

 

Northern Europe

0.5%

 

US / Canada

2.0%

 

Europe II

2.0%

 

Sections A2.3 of Schedule 1 (Table of Fees) (presented in context with the column headings) now read as follows (with amendments underlined):

 “A2. Commercial Transaction payment Fees

A2.3Receiving Cross Border payments (Selling)

A2.3 Receiving Cross Border payments (Selling)

The Fee for Receiving Domestic Commercial Transaction payments applies plus an additional percentage-based Cross Border Fee as set out in the table below (depending on the sender’s country).

Sender’s country

Cross Border Fee

Northern Europe / Europe I

0.5%

Europe II / US/ Canada / Rest of World

2.0%

Note: Cross Border Euro or Swedish Krona payments made between Accounts registered in the European Union or EEA will be treated as Domestic Commercial Transaction payments for the purpose of applying Fees.

            …”

3. Other changes

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

 

Notice of amendment to the PayPal User Agreement.

Effective Date: September 16, 2019

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

We’re excited to let you know that we’ll be unveiling an entirely redesigned User Agreement. 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.

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.

We’ll let you know soon when you can review the redesigned User Agreement.

 

 

Notice of Amendment to PayPal Legal Agreements

Issued: March 13, 2019 (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 this notice to familiarise yourself with the changes that are being made.

You do not need to do anything to accept the changes as they will automatically come into effect on the Effective Dates shown below. Should you decide you do not wish to accept them you can notify us before the Effective Date or any time after that to close your account immediately without incurring any additional charges.


Please review the current Legal Agreements in effect.


 

Notice of amendment to the Commercial Entity Agreement For PayPal Payment Card Funded Processing Services (Worldpay)

Effective Date: March 13, 2019

This notice applies only if you have accepted the terms and conditions of the Commercial Entity Agreements, (typically if you are a User receiving card-funded payments for commercial transactions, like a merchant).

Although PayPal is not a party to the Commercial Entity Agreements, these agreements affect how you receive card-funded payments using PayPal’s services. They are your direct agreements with PayPal’s banking partners, who enable you to receive card-funded PayPal payments.

The Commercial Entity Agreements apply to merchants across the world – this means that not all of the changes to these agreements affect merchants resident in Europe. We have given notice only of the changes that affect merchants resident in Europe.

You can find the amended Commercial Entity Agreements below the version of those agreements currently in force by clicking here or accessing them via the “Legal” or “Legal Agreements” footer on most pages on the PayPal site.

1. Globalpay Commercial Entity Agreement for Credit Card Processing Services (formerly the HSBC Bank Commercial Entity Agreement for Credit Card Processing Services)

Until the Effective Date, your agreement is with GPUK LLP as Member and Processor in respect of card processing services provided to you under the agreement.  On and from the Effective Date, your agreement is with GPUK LLP, Global Payments Europe s.r.o., a limited company in the Czech Republic, or Global Payments Limited, a limited company in Malta, each as a Member and Processor in respect of card processing services provided to you under the agreement.  You do not need to do anything to accept the change.

The agreement has also been amended to clarify existing wording and correct minor typographical errors.

For information only, the agreement is also amended for merchants based outside of Europe – merchants based in Europe are not affected by these particular amendments.

2. Commercial Entity Agreement For PayPal Payment Card Funded Processing Services (WorldPay)

Until the Effective Date, your agreement is with Worldpay (UK) Limited as Acquirer in respect of card processing services provided to you under the agreement.  On and from the Effective Date, your agreement is with Worldpay (UK) Limited and/or Worldpay B.V. as Acquirer. You do not need to do anything to accept the change.

The agreement has also been amended to clarify existing wording and correct minor typographical errors.

 


 

Notice of amendment to the PayPal User Agreement.

Effective Date: February 27, 2019

1. Notice of changes to the Fees for Cross Border Personal Transaction payments sent by Users with their registered address in Ireland

This notice is made in accordance with section A1.2.2.2 of Schedule 1 of the PayPal User Agreement.

With effect on and from February 27, 2019, if you are a User with your registered address in Ireland, the Fees set out in current section A1.2.2.3 shall apply to you instead of the Fees set out in current section A1.2.2.2.  Section A1.2.2.2. of the PayPal User Agreement has been amended accordingly and will eventually be deleted, so that current section A1.2.2.3 will become new section A1.2.2.2.

 


 

 

Notice of amendment to the PayPal User Agreement.

Effective Date: January 30, 2019

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

 

Sections of the PayPal User Agreement have been amended:

  • to clarify and reorganise existing wording, including the following existing sections:

Section

Amendment

Section 2.6 (Balances in Multiple Currencies)

This section is amended to further clarify how PayPal may allow you to convert money in your Balance into a Balance in another currency. 

Section 5 (Receiving Money)

The start of this Section is amended to further clarify how further terms of use apply to merchants when they have integrated into their online checkout/platform any functionality intended to enable a customer without an Account to send a payment to the merchant’s Account (for instance, using alternative local payment methods). 

 

See also the reminder in respect of local payment methods (LPMs) in the Notice of amendment to the PayPal User Agreement with effective date April 29, 2019 below.

Section 5.5 (Receiving Money in different currencies.)

This Section is amended to further clarify what PayPal may allow you to do when you receive money in different currencies.

; and

  • correct minor typographical errors.

 

Notice of amendment to the PayPal User Agreement.

Effective Date: April 29, 2019

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

1) Local payment methods (LPMs)

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

For this purpose, on 13 November 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 have integrated into their online checkout/platform any functionality intended to enable a customer without an Account to send a payment to the merchant’s Account (for instance, using alternative local payment methods). This includes the PayPal Local Payment Methods Agreement. 

At the date of this notice the opening paragraph of Section 5 reads and applies (and will continue to read and be applied, including on and after the Effective Date) as follows

            5. Receiving 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 Account. By integrating (including having already integrated) into your online checkout/platform any functionality intended to enable a payer without an Account to send a payment to your 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.”

 

3) Other changes

Sections of the PayPal User Agreement have been amended to clarify existing wording and correct minor typographical errors. For instance, we don’t support payments in Indian Rupee, so all remaining references to Indian Rupee have been removed to clarify this point.

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.