Policy Updates


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Policy Updates

Last Update: March 1, 2018


This page shall serve as advance information for PayPal Users with regards to important upcoming changes of PayPal Services, the PayPal User Agreement, and other policies (collectively “Legal Agreements”). On this page you will see announcements of upcoming updates of the Policies. Under “Previous Policy Updates” you will find previous changes.

Please read this document carefully. PayPal will change the Legal Agreements with effect to May 25, 2018.

You do not need to do anything to accept the changes as they will automatically come into effect on May 25, 2018.

Should you decide you do not wish to accept the changes you can notify us prior to May 25, 2018 to close your account (https://www.paypal.com/ch/cgi-bin/?&cmd=_close-account) immediately without incurring any additional charges. 

All changes and updates to the Legal Agreements are on this page highlighted in italic. This highlighting shall ensure better traceability of the changes and updates applied.

Amendments made for linguistic adjustment, to correct or remove orthographical and grammatical mistakes, or changes to the formatting are not highlighted. This does also apply where we have corrected or standardized numbering and references.


Updates to the PayPal User Agreement

Throughout the document, we are now using the new terminology Statement of Privacy Practices where we previously referred to the "Privacy Policy".

In Section 1., we have corrected a technical glitch that resulted in clause 1.3. having been displayed twice as two independent clauses, which of course it wasn't – the subsequent numbering in Section 1. has been adjusted accordingly.

3.1.2. Default Funding Source

In clause 3.1.2. and throughout the User Agreement, we have replaced the previous defined term "Payment Method" with the new term Funding Source for clarification.

3.1.6. Pre-approved Payments

In clause 3.1.6. we have changed the wording completely:

By providing an advance Authorization for Pre-approved Payments, you:

  • Give the third party the ability to collect or reverse fixed or variable amount payments from your Account on a one-time basis, or on a (sporadically or periodically) recurring basis (as further specified in the applicable billing agreement – the document that you agree to when giving the Authorization) until you cancel your Authorization or underlying arrangement with the applicable third party; and
  • Hereby authorize and instruct PayPal to pay the third party (or another person they direct) from your PayPal Account amounts you owe as presented to us by the third party. This makes the recipient a trusted beneficiary of all your payments made under that Authorization, so we will not ask you to log in or approve the payments when they are made. You agree that PayPal is not obligated to verify or confirm the amount the third party presents to us for the purpose of processing this type of payment. You further acknowledge and agree that payments made under this provision are variable and may be made on various dates.

If you use the PayPal Location Based Payments Functionality to make a Pre-approved Payment to another User (typically a merchant) who accepts payments through the PayPal Location Based Payments Functionality, you may Authorize that User by selecting the User in the PayPal Location Based Payments Functionality. When you Authorize such a User, we may restrict the total amount that the Authorized User can request from your Account within a specific time period, as we may determine at our own discretion.

If your Pre-approved Payment requires a currency conversion by us, the amount of the Currency Conversion Fee (per Schedule 1) will be determined at the time the applicable third party processes your payment and completes the transaction. You acknowledge that the exchange rate determined at the time of each payment transaction will differ and you agree to the future execution of Pre-approved Payments being based on fluctuating exchange rates.

Prospective Payment Recipients acting under the above Authorizations who present us with a payment request under this provision hereby:

  • Warrant to PayPal that the amounts they present have been agreed and consented to by the User whose PayPal Account will be deducted (including changes to those amounts) and that they will give prior notice of the deduction to the payer; and
  • Agree that they will notify the payer at least 4 weeks in advance of the amount they will collect if that amount has increased in such a manner that the payer could not have reasonably expected to pay such an amount, taking into account the payer’s previous spending patterns and the circumstances of the payment and that they will be liable to PayPal for any refunds of such payment in accordance with the terms of this User Agreement.

You agree that you cannot request a refund from PayPal for a Pre-approved Payment unless: The Authorization did not specify the exact amount of the payment transaction when the Authorization was given and the applicable amount exceeded the amount you could have reasonably been expected to pay, taking into account your previous spending patterns and the circumstances of the case;

and Your consent to the making of the third party initiated payment was not given;

or The information relating to the third party initiated payment was not provided or made available to you for at least 4 weeks before the date the payment transaction was made to the merchant;

and You notify us of the request within 8 weeks from the date the payment was made;

and You comply with our requests to obtain information which we reasonably require to review the circumstances of the case. We reserve the right to request further information as is reasonably necessary to ascertain whether the above conditions have been satisfied and to waive any or all of the above conditions.

3.1.9. Sending E-Money in Different Currencies

In clause 3.1.9., we have followed the example of Germany and Austria and now display available currencies and their respective ISO-codes in a table.

Further, we have amended the existing wording as follows:

3.1.9. Sending E-Money in Different Currencies

You may send E-Money in the following currencies:



Australian dollars


Brazilian real


British pound sterling


Danish krone




Hong Kong dollar


Israeli new shekel


Japanese yen


Canadian dollar


Malaysian ringgit


Mexican peso


New Taiwan dollar


New Zealand dollar


Norwegian krone


Polish zloty


Russian ruble


Swedish krona


Swiss franc


Singapore dollar


Thai baht


Czech koruna


Hungarian forint


US dollar



There may be some restrictions with regard to where you can send certain currencies. When you send E-Money for someone to receive a currency that is different than the primary currency of your PayPal Account, we follow these practices: If you have an existing Balance in the receiving currency, we will send your payment from your Balance; If you have a Balance in a currency different than the receiving currency, we will perform a currency conversion (pursuant to clause 5.2.) and use the converted Balance to send your payment; If you do not have any Balance, we automatically obtain Balance in the primary currency of your PayPal Account from the relevant Funding Source pursuant to Section 3. to cover your Payment Order (and any Fees you owe us). When you pay us, your Funding Source provider may apply (and may charge you for) any required currency conversion.  We will then perform a currency conversion (pursuant to clause 5.2.) from the primary currency of your PayPal Account and send your payment (and collect Fees that are payable in the currency in which the payment is received by the recipient) from the converted Balance.

3.2.5. Your Refund Policy, Data Protection, Privacy Policy and Security

We have added a new clause 3.2.5. which applies to merchants:

3.2.5. Your Refund Policy, Data Protection, Privacy Policy and Security

We recommend that if you are selling goods or services you have a published return policy and a published privacy policy on your website.

Your privacy policy must clearly and expressly indicate that all PayPal transactions are subject to the PayPal Statement of Privacy Practices.  You must employ reasonable administrative, technical and physical measures to maintain the security and confidentiality of any and all PayPal data and information, including data and information about PayPal users and PayPal.

Compliance with Data Protection Laws.  With regard to any personal data processed by either Party in connection with this Agreement, the Parties will respectively each be a controller in respect of such processing. Each Party agrees to comply with the requirements of the Data Protection Laws applicable to controllers in respect of the provision of the Company Services and otherwise in connection with this Agreement. For the avoidance of doubt, PayPal and the Merchant each have their own, independently determined privacy policies, notices and procedures for the personal data they hold and are each a data controller (and not joint data controllers).

In complying with the Data Protection Laws, you shall, without limitation:

  • implement and maintain at all times all appropriate security measures in relation to the processing of personal data;
  • maintain a record of all processing activities carried out; and
  • not knowingly do anything or permit anything to be done which might lead to a breach of the Data Protection Laws.

In addition to our rights under clause 10.2., where we determine that there has been or that there is a reasonable likelihood of a security breach of your website or systems that could result in the unauthorized disclosure of customer information, we may take any other actions we deem necessary and/or require you to provide us with information related to any such breach.


Fees Policy

We have also applied amendments to the Fees Policy.

1. General

We have changed the way how we display and explain Commercial Transactions and Personal Transactions and some of the order in which information is displayed.

2. Personal Transactions

In Section 2. we have clarified that from now on, the sender will bear the fees for Personal Transactions.

2.1. Domestic Personal Transactions

Clause 2.1. has been amended to show that also Domestic Personal Transactions (partially) funded by Credit Card are free of charge as long as they are sent in Swiss francs (CHF):


Fee for the portion of the payment amount sent from:
- existing Balance; or
- Balance automatically obtained for the payment from bank account

Fee for the portion of the payment amount sent from Balance automatically obtained for the payment from all other Funding Sources.

Sending a Domestic Personal Transaction payment from your Balance

Free (when no currency conversion is involved)

Free when sent in Swiss francs (CHF); all other currencies: 3.40% plus Fixed Fee (charged in the currency in which your payment is received)


2.2. Cross-Border Personal Transactions

In clause 2.2. we have amended and simplified system of fees for Cross-Border Personal Transactions as follows and the definition of Country Groups is now a sub-clause (2.2.2.) to this clause:

2.2.1. Fees for Cross-Border Personal Transactions

To determine the Fees for Cross-Border Personal Transactions:

Find the country in which the recipient's registered address is located (see clause 2.2.2. below for further reference or ask the recipient if you are not sure) (second column).

Then find the applicable Personal Transaction payment Fee (and, where applicable, the Additional Personal Transaction payment Fee) (thirds and forth columns).


Country Group of recipient's Account

Personal Transaction payment Fee

Additional Personal Transaction payment Fee for the portion of the payment amount sent from Balance automatically obtained for the payment from all Funding Sources other thank bank account

Sending a Cross-Border Personal Transaction payment from your Balance

Northern Europe, North America, Europe I, Europe II

CHF 2.49

3.40% + Fixed Fee (charged in the currency in which your payment is received)

LATAM, APAC, Rest of World

CHF 4.99


3. Commercial Transactions

Since Section 3. has been changed to become clause 2.2.2., the previous Section 4. Commercial Transaction is now Section 3. Commercial Transactions and the sub-numbering has of course been amended accordingly.

4. Additional Fees

Due to the change in numbering, the previous Section 5. Additional Fees is now Section 4. Additional Fees and the sub-numbering has also be changed accordingly.

5. Due Dates, Taxes, and Third-Party Fees

Due to the change in numbering, the previous Section 6. Due Dates, Taxes, and Third-Party Fees is now Section 5. Due Dates, Taxes, and Third-Party Fees and the sub-numbering has also be changed accordingly.


Updates to the Statement of Privacy Practices

Effective Date: May 25, 2018


You can find the amended PayPal Privacy Policy by clicking here, or you may access it via the link provided at the top of the current Privacy Policy, which can be found by clicking the ‘Privacy’ footer on most PayPal site pages or clicking here.

We updated our disclosure of privacy practices in an updated Privacy Policy and reworded some content to make our practices easier to understand.  This updated Privacy Policy will replace our current Privacy Policy for PayPal Services and explains the personal data we collect, how we use it, and the choices and controls you have across our various services. The updated Privacy Policy brings PayPal privacy practices in line with the EU General Data Protection Regulation.

We encourage you to familiarise yourself with the updated Privacy Policy. If you object to the updated Privacy Policy, you may close your account before May 25, 2018.