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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: Aug 16, 2016 (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 above date to close your account (https://www.paypal.com/uk/cgi-bin/?&cmd=_close-account) immediately without incurring any additional charges.

We do hope, however, that you continue to use PayPal and enjoy the following benefits:

It’s faster

You don’t have to type in your card details each time you pay, so you can check out faster online.

It’s easier

PayPal is the preferred web payment method in the UK because it’s a smarter, savvier way to pay online in just a few clicks. All you need is your email address and a password.

Please review the current Legal Agreements in effect
 


Notice of amendment to the PayPal User Agreement.

Effective Date: Nov 19, 2016

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

 

  1. Intellectual Property

We are adding a new paragraph to Section 1.3 (Intellectual Property) for businesses that use PayPal.  The new paragraph outlines the licence that you give to us and to the PayPal Group to use your business name, trademarks and logos for the purpose of displaying information about your business and its products and services.  The new paragraph at section 1.3 reads as follows:

“You grant the PayPal Group 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 displaying information about your business and its products and services.”

 

  1. Non discouragement

We are amending section 4.4 (Non discouragement) to outline the standards that businesses must adopt at their points of sale in respect of their customers’ use of PayPal.  Section 4.4 now reads as follows (with added/amended wording underlined):

“4.4 Non discouragement.

In representations to your customers or in public communications, you shall not mischaracterise or disparage PayPal as a payment method.

At all of your points of sale (in whatever form):

  1. you shall not dissuade or inhibit your customers from using PayPal; and 

  2. if you enable your customers to pay you with PayPal, you shall treat PayPal’s payment mark at least at par with other payment methods offered.

PayPal does not encourage surcharging because it is a commercial practice that can penalise the consumer and create unnecessary confusion, friction and abandonment at checkout.  You agree that you will only surcharge for the use of PayPal in compliance with any law applicable to you and not in excess of the surcharges that you apply for the use of other payment methods. You further agree that if you do surcharge a buyer, you, and not PayPal, will inform the buyer of the requested charge. PayPal has no liability to any buyer where you have failed to inform the buyer of any surcharge. You acknowledge that you could be committing a criminal offence if you fail to disclose any form of surcharge to a buyer.”

 

  1. Set off of balances

Section 5.4 (Set off of balances) is amended to clarify that PayPal may also deduct fees, charges or other amounts owed to the PayPal Group in respect of any services provided by the PayPal Group from any Account Balance held or controlled by you. The amended section 5.4 now reads as follows (with added wording underlined):

“5.4 Set-off of Balances. You agree that we may set-off any of the amounts held in Accounts held or controlled by you with any fees, charges or other amounts you owe us and (unless prevented by insolvency law) any such amounts you owe other members of the PayPal Group (including, without limitation, in respect of any services provided by any member of the PayPal Group). In simple terms, our right to set-off means that we may deduct such fees, charges or other amounts mentioned in this section from an Account Balance held or controlled by you.”

 

  1. Withdrawing Money in Multiple Currencies

Section 6.4 (Withdrawing Money in Multiple Currencies) is amended to clarify that currency conversion fees will apply to withdrawals of funds from Balances held in currencies other than your home currency.  The amendments also outline how other fees and certain currency conversion measures may apply if you withdraw to certain credit cards (where such functionality is available).  The amended section 6.4 now reads as follows (with added wording underlined):

“6.4 Withdrawing Money in Multiple Currencies. If you have multiple currencies in your Balance, you will be able to choose from those when you withdraw funds, but, unless otherwise agreed, the withdrawal will take place in your home currency.  Currency Conversion fees stated in Schedule 1 of this Agreement will apply if you withdraw funds from a Balance held in a currency other than your home currency.  If you are able to withdraw to your branded MasterCard or Visa card, your withdrawal may be subject to a fee as stated in Schedule 1 of this Agreement and may take place in a different currency to your home currency depending on whether PayPal can support the withdrawal into the card’s base currency.”

 

  1. Restricted Activities - PayPal Credit and your customers

A new Section 9.1.ai is added to make it a Restricted Activity to publicise PayPal Credit in certain ways without obtaining the necessary regulatory permission to do so. The new section 9.1.ai reads as follows (presented in context with its root clause):

“9.1 Restricted Activities. In connection with your use of our website, your Account, or the Services, or in the course of your interactions with PayPal, a User or a third party, you will not:

…

ai. Advertise, promote, introduce or describe PayPal Credit to your customers without obtaining the necessary regulatory permission to do so (which may lead to you committing a criminal offence under the (UK) Financial Services and Markets Act 2000).”

 

  1. PayPal seller protection

Section 11.10.a is amended in order to outline that the following items/transactions/cases will always remain ineligible for PayPal seller protection, unless otherwise agreed in writing with PayPal:

1. Items equivalent to cash (including, without limitation, stored value items such as gift cards and pre-paid cards );

2. Payments made in respect of financial products and investments; and

  1. Donations.

The amended section 11.10.a. now reads as follows (presented in context within section 11.10, with added wording underlined):

“11.10 What are examples of items/transactions/cases that are not eligible for PayPal seller protection?

a. Intangible items, licenses for digital content, and services. Where PayPal in its own discretion may make certain intangible items, licenses for digital content and/or services eligible from time to time, unless otherwise agreed in writing with PayPal, the following will always remain ineligible:

  1. Items equivalent to cash (including, without limitation, stored value items such as gift cards and pre-paid cards ).

  2. Payments made in respect of financial products and investments.

  3. Donations.”

 

  1. PayPal Buyer Protection

Section 13 is amended to make several amendments to the PayPal Buyer Protection policy as follows:

  1. the following types of transactions are now excluded from coverage of PayPal Buyer Protection (section 13.4a is amended accordingly):
    1. purchases of any interest in a business (including, without limitation, any items or services forming part of a business or corporate acquisition);
    2. purchases of vehicles (including, without limitation, motor vehicles, motorcycles, caravans, aircraft and boats), except for personally portable light vehicles used for recreational purposes like bicycles and wheeled hoverboards;
    3. payments on crowd-funding and/or crowd-lending platforms;
    4. purchases of items equivalent to cash (including, without limitation, stored value items such as gift cards and pre-paid cards);
    5. gambling, gaming and/or any activity involving a chance to win a prize;
    6. payments made in respect of financial products and investments;
    7. payments to state-run bodies, except for state-owned enterprises;
    8. donations; and
    9. purchases of items which you collect in person, or arrange to be collected on your behalf (including at a retail point of sale) and which you claim to be Not Received;
  2. transactions paid for in more than one instalment are now eligible for PayPal Buyer Protection, subject to the remainder of the PayPal User Agreement (section 13.4b is amended accordingly);
  3. buyers are reminded that they will not meet the conditions for reimbursement if they have received a  recovery for a given purchase from another source (new section 13.4e is added for this purpose);
  4. all buyers must now wait at least 7 days from the date of payment to escalate a Dispute for a purchase Not Received (NR), unless otherwise stated by PayPal (section 13.5c is amended accordingly); and
  5. the specific additional conditions for raising claims for SNAD or NR for purchases paid for using PayPal POS Functionality no longer apply (section 13.8 is deleted and subsequent remaining sections renumbered accordingly).

The amended sections 13.4 and 13.5 now read as follows (with added wording underlined):

“13.4 Conditions for reimbursement

You may be reimbursed under PayPal Buyer Protection for a problem with a purchase only if all of the following requirements are met:

a. Your purchase is an eligible purchase. Purchases of most goods and services are eligible (including travel tickets, intangible items such as rights of access to digital content and other licences), except for the following transactions:

  1. purchases of real estate (including, without limitation, residential property);

  2. purchases of any interest in a business (including, without limitation, any items or services forming part of a business or corporate acquisition);

  3. purchases of vehicles (including, without limitation, motor vehicles, motorcycles, caravans, aircraft and boats), except for personally portable light vehicles used for recreational purposes like bicycles and wheeled hoverboards;

  4. payments on crowd-funding and/or crowd-lending platforms;

  5. purchases of custom made items (unless they are claimed to be Not Received);

  6. purchases of goods and services prohibited by the PayPal Acceptable Use Policy;

  7. purchases of industrial machinery used in manufacturing;

  8. purchases of items equivalent to cash (including, without limitation, stored value items such as gift cards and pre-paid cards);

  9. purchases of goods and services using Zong, Website Payments Pro or Virtual Terminal;

  10. Personal Transactions;

  11. gambling, gaming and/or any activity involving a chance to win a prize;

  12. payments made in respect of financial products and investments;

  13. payments to state-run bodies, except for state-owned enterprises;

  14. donations; and

  15. purchases of items which you collect in person, or arrange to be collected on your behalf (including at a retail point of sale) and which you claim to be Not Received.

b. You sent the payment for your purchase from your PayPal Account to the Payment Recipient’s PayPal Account through the Send Money tab applicable to payments for goods and/or services on the PayPal website or app, or the Payment Recipient's PayPal checkout flow (including, without limitation, the PayPal Location Based Payments Functionality, if used by the Payment Recipient).

c. Your problem is either that:

  1. you did not receive your purchase– “Not Received” (“NR”); or
  2. your purchase is “Significantly Not as Described” (“SNAD”). Further information on what we mean by “SNAD” is set out in section 13.8.

If your problem is a transaction that you did not authorise (including, without limitation, a duplicate or incorrect payment when using the PayPal Location Based Payments Functionality), please see section 12 and visit the PayPal Security Centre at https://www.paypal.co.uk/security. You can report the problem via the PayPal Security Centre or here.

d. You have followed the process described in section 13.5 (How do I resolve my problem?).

e. You have not received a recovery for that purchase from another source.

f. PayPal has made a final decision on your problem in your favour.

 

13.5 How do I resolve my problem?

a. Try to resolve your problem directly with the Payment Recipient
Use reasonable endeavours to resolve the problem directly with the Payment Recipient. If you are still unable to resolve the problem, go to the Resolution Centre and follow steps b, c and d.

b. Open a Dispute
Open a Dispute within 180 days of the date on which you made the payment for the purchase you would like to dispute. We may refuse to accept any Dispute that you open in relation to that purchase after the expiry of that period (please be aware of this if you agree a delivery time of an item or performance of a service with the Payment Recipient that falls after the expiry of that period).

c. Escalate the Dispute to a Claim
If you and the Payment Recipient are unable to come to an agreement, escalate the Dispute to a Claim within 20 days of opening the Dispute. It is your responsibility to keep track of these deadlines.
You must wait at least 7 days from the date of payment to escalate a Dispute for a purchase Not Received (NR), unless otherwise stated by PayPal.
If you do not escalate the Dispute to a Claim within 20 days, PayPal may close the Dispute and you will not be eligible for a payment under the terms of PayPal Buyer Protection.
In certain cases, PayPal may permit you to edit or change a Claim after filing only if you wish to add further information or if you wish to change the reason of your Dispute/Claim from “Not Received” to “Significantly Not as Described”. Otherwise you may not edit or change a Claim after filing it.

d. Respond to PayPal’s requests in a timely manner
Once a Dispute has been escalated to a Claim, PayPal may make a final decision on your problem in favour of the buyer or the Payment Recipient. Before (and for the purpose of) making a final decision on your problem, PayPal may request your cooperation in resolving the problem under section 13.6.”
 

  1. Fees - Turkey

We regret to inform you that PayPal no longer provides services to users in Turkey.  Accordingly, all references to fees relating to payments to and from Turkish users and/or in Turkish Lira have been removed from the PayPal User Agreement.

 

  1. Fees – Personal Transaction payments and Brazilian registered Accounts

Schedule 1 (Table of Fees) is amended to clarify that Brazilian registered Accounts may neither send nor receive Personal Transaction payments. This means that you cannot send Personal Transaction payments to Brazilian registered Accounts.  Section A4.2.2. of Schedule 1 (Table of Fees) is amended accordingly as follows (presented in context with its root wording, with added wording shown underlined):

“A4.2 A "Personal Transaction" payment involves sending money (initiated from the “Friends and Family” tab of the “Send Money” flow) to, and receiving money into your PayPal Account from, friends and family without making an underlying commercial transaction (that is, the payment is not for the purchase of goods or services or for making any other commercial transaction).

If you are making a commercial transaction (for instance selling goods or services), you may not ask the buyer to send you a Personal Transaction payment for the purchase. If you do so, PayPal may remove your ability to accept any or all payments for Personal Transactions. Please also note that:

…

A4.2.2 Brazilian and Indian registered Accounts may neither send nor receive Personal Transaction payments. This means that you cannot send Personal Transaction payments to Brazilian or Indian registered Accounts; and

…”

Other consequential amendments are made to section A1.2 of Schedule 1 (Table of Fees)).

 

  1. Fixed Fees for receiving Commercial Transaction payments

We are increasing the Fixed Fee for receiving a Commercial Transaction payment in Brazilian Real (BRL) from 0.40 BRL to 0.60 BRL.  The relevant entry in the table of Fixed Fees at section A4.6 of Schedule 1 (Table of Fees) (presented in context with the column headings) now reads as follows:

Currency:

Fee:

Brazilian Real:

0.60 BRL

 

  1. Other changes

Sections of the PayPal User Agreement have been amended to clarify existing wording (especially section 13 (PayPal Buyer Protection) and Schedule 1 (Table of Fees)) and correct minor typographical errors. For instance, we don’t support payments in Argentine Peso, so all remaining references to Argentine Peso have been removed to clarify this point.

 

Notice of amendment to the PayPal Here™ Agreement

Effective Date: Nov 19, 2016
 

You can find the amended PayPal Here™ Agreement below the version of that agreement currently in force by clicking here or accessing it via the “Legal” or “Legal Agreements” footer on most PayPal site pages. This product is available to only UK resident Users.
 

  1. Seller Protection Program

Section 14 is amended to clarify that PayPal Here transactions are no longer eligible for PayPal seller protection.  Section 14 now reads as follows:
“14. PayPal seller protection.

PayPal Here transactions are not eligible for PayPal seller protection. Please also read section 4.3 (Risk of Reversals, Chargebacks and Claims) of the PayPal User Agreement to understand the risk of Chargebacks arising when you receive a payment.”

 

  1. Other changes

Sections of the PayPal Here™ Agreement have been amended to clarify existing wording (especially in sections 2 (The Application and Approval Process), 3 (Getting, Using, Returning and Replacing your PayPal Here Card Reader) and 7 (Using PayPal Here)) and correct minor typographical errors.