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Digital Goods Micropayments Purchases Agreement

Last Update: August 9, 2018

 

This agreement governs the sale and purchase of digital goods (digital goods are delivered and used in an electronic format, like a song delivered online or through a mobile application) using PayPal. Your purchase or sale of digital goods using PayPal is subject to this Digital Goods Agreement, in addition to the terms of the PayPal User Agreement the PayPal Privacy Policy and other applicable legal agreements between you and PayPal.

 

Use of PayPal for digital goods payments

You may be able to buy digital goods from certain sellers and pay for them at a later date.  When it’s available to you, using this service does not require you to pay a fee to PayPal.  PayPal may decide to suspend or terminate this service, and PayPal may restrict the availability of this service (even beyond the eligibility requirements described below) anytime.

This service is available at the time of transaction only if:

  • you’re buying digital goods from a seller who has qualified with PayPal for this type of digital goods sales, and
  • you do not have a balance in your PayPal wallet.

Accepting micropayments for digital goods: 

As a seller of digital goods, your PayPal account may qualify to receive micropayments pricing as described in the PayPal User Agreement.

If your PayPal account is approved to accept micropayments for digital goods, your pricing will be dynamic, meaning that it will switch between micropayments pricing and standard transaction fees, depending on which price is lower.  

 

Disputes related to digital goods transactions

There are special rules that apply to disputes by buyers related to digital goods transactions in amounts below certain thresholds.

If you are a buyer:

When you are making Digital Goods Micropayments Purchases there are special rules that apply and that include pre-determined thresholds (described in the table below) where we may, at our discretion, reverse the transaction without requiring you to take further action.  We may limit the number of automatic reversals that you benefit from, but, even if that is the case, you will still be able to follow PayPal's standard dispute resolution processes described in the User Agreement.

 

If you are a seller:

If your PayPal account is approved to accept micropayments for digital goods and a buyer opens a dispute for a transaction involving digital goods from you in an amount below certain pre-determined thresholds (set forth in the table above) we may, at our discretion, reverse the transaction without requiring the buyer to take further action.  Your sale of digital goods is not eligible for coverage under PayPal’s Seller Protection program.