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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 Here™ Agreement

Issued: 27 May 2016

Effective: 9 June 2016

 

Please read this document.

We’re making changes to some of 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 above stated Effective Date. 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 or to terminate the PayPal HereTM agreement without incurring any additional charges.

 

Fees for Amercian Express card payments under the Interchange Plus Fee Structure

We are reducing the fee for payments from an American Express card under the Interchange Plus Fee Structure to 2.75 % when you receive the card payment using a PayPal Here Card Reader’s Chip and PIN, Chip and Signature functionality or as a Contactless Transaction. New section 10.3 reads as follows:

10.3 Fees under the Interchange Plus Fee Structure

If you receive the card payment:

the PayPal Here Standard Rate fee is:

the PayPal Here Merchant Rate is as follows:

where the aggregate monetary amount of payments received in your Account in the previous calendar month:

  1. via the PayPal Here App; and
  2. as Commercial Transaction payments,

is:

the PayPal Here Merchant Rate fee (subject to the further terms and conditions in this section 10) is:

from a Visa, MasterCard or Maestro card

  • using your PayPal Here Card Reader’s Chip and PIN, Chip and Signature functionality
  • as a Contactless Transaction;

Interchange Fee

(approximately ranges from 0.2% to 2.0%)

 

+ 2.50 %

GBP 0.00 – GBP 6,0000.00

Interchange Fee +2.50%

GBP 6,000.01- GBP 15,000.00

Interchange Fee +1.75%

Above GBP 15,000.00

Interchange Fee +1.25%

from an American Express card

  • using your PayPal Here Card Reader’s Chip and PIN, Chip and Signature functionality
  • as a Contactless Transaction;

2.75%

regardless of the volume of payments which you receive

2.75%

from a Visa, MasterCard or Maestro card:

  • as a Keyed Transaction; or
  • by swiping the card’s magnetic stripe

Interchange Fee

+ 3.15%

+ GBP 0.20

Interchange Fee
+ 3.15%

+ GBP 0.20

from an American Express card:

  • as a Keyed Transaction; or
  • by swiping the card’s magnetic stripe

3.4% + GBP 0.20

3.4% + GBP 0.20

 

 

Notice of Amendment to PayPal Legal Agreements

 

Issued: 04 April 2016 (for Effective Dates see each individual agreement notice below)
 

Please read this document.

We’re making changes to some of 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 above stated Effective Date. 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 or to terminate the PayPal Website Payments Pro and Virtual Terminal Agreement and/or PayPal HereTM agreement without incurring any additional charges.

 

Important information about the amendments in general:

We are introducing “Interchange Plus”, a new fee structure for receiving credit and debit card payments using PayPal Website Payments Pro, Virtual Terminal and PayPal Here.

This is as a result of the introduction of the new European Interchange Fee Regulation and will take effect on a date falling on or after 9 June 2016.

If you are charged under the Interchange Plus fee structure, our fees will vary based on the type of card used and where the card originates and you may experience a slight delay in the settlement of your credit and debit card funds. Fees for Standard PayPal Payments that you receive will not change.

Your current fee structure will now be known as the “Blended Pricing” fee structure. You will soon be able to log in to your account to either re-confirm your current, blended, fee structure or to opt for the new Interchange Plus fee structure. We will send you a further communication with details of how to do this in April.

 

Notice of amendment to the PayPal Website Payments Pro and Virtual Terminal Agreement

Effective Date: 9 June 2016

 

You can find the amended PayPal Website Payments Pro and Virtual Terminal 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. 

These products are only available to UK resident Users.

1. Fees

We are replacing Clause 2 with text that introduces the Interchange Plus and Blended Pricing fee structures and clarifies the existing fees.  New clauses 2.1 to 2.10 read as follows (with the text of existing clauses 2.6 and 2.7 moving to new clauses 2.11 and 2.12):

“2. Fees

2.1 How fees are paid. You agree to pay the fees in this Agreement as they become due without set-off or deduction. You authorise PayPal to (and PayPal may) collect Monthly Fees first from any available Balance in your Account and then also from the funding source(s) registered for your Account, and you authorise PayPal to (and PayPal may) collect fees for receiving payments from the payments you receive before those funds are credited to your account. If PayPal is unable to collect a past due fee from your Account and its funding source(s), we may take action against you as provided in the User Agreement for unpaid fees. 

Except as further provided in this Agreement, you agree to pay the fees set out in the User Agreement.

Fees will be charged in the currency of the payment received.

See the Glossary at clause 2.6 for further reference.

2.2 Monthly Fees

Product

Monthly Fee

Website Payments Pro (including Express Checkout, Direct Payments API, Virtual Terminal and Fraud Management Filters)

GBP 20.00

Virtual Terminal only

GBP 20.00

 

2.3 Transaction Fees for Standard PayPal Payments with Express Checkout

If you receive the payment:

the PayPal Standard Rate fee is:

the PayPal Merchant Rate is as follows:

where the aggregate monetary amount of payments received in your PayPal Account in the previous calendar month is:

the PayPal Merchant Rate fee (subject to the further terms and conditions in this section 2.8) is:

as a Standard PayPal Payment using Express Checkout

3.4%

+ Fixed Fee

GBP 0.00 - GBP 1,500.00

3.4%
+ Fixed Fee

GBP 1,500.01 - GBP 6,000.00

2.9%
+ Fixed Fee

GBP 6,000.01 - GBP 15,000.00

2.4%
+ Fixed Fee

GBP 15,000.01 – GBP 55,000.00

1.9 %
+ Fixed Fee

Above GBP 55,000.00

1.4 %

+ Fixed Fee

 

2.4 Transaction Fees for Card Payments under the Blended Pricing Fee Structure

If you receive a payment:

the PayPal Standard Rate fee is:

the PayPal Merchant Rate is as follows:

where the aggregate monetary amount of payments received in your PayPal Account in the previous calendar month is:

the PayPal Merchant Rate fee (subject to the further terms and conditions in this section 2.8) is:

from a card (Visa, MasterCard or Maestro) using the Online Card Payment Services

3.4%

+ Fixed Fee

GBP 0.00 - GBP 1,500.00

3.4%
+ Fixed Fee

GBP 1,500.01 - GBP 6,000.00

2.9%
+ Fixed Fee

GBP 6,000.01 - GBP 15,000.00

2.4%
+ Fixed Fee

Above GBP 15,000.00

1.9 %
+ Fixed Fee

 

2.5 Transaction Fees for Card Payments under the Interchange Plus Fee Structure

If you receive a payment:

the PayPal Standard Rate fee is:

the PayPal Merchant Rate is as follows:

where the aggregate monetary amount of payments received in your Account in the previous calendar month is:

the PayPal Merchant Rate fee (subject to the further terms and conditions in this section 2.8) is:

from a card (Visa, MasterCard or Maestro) using the Online Card Payment Services

Interchange Fee
(approximately ranges from 0.2% to 2.0%)
+ 2.9%
+ Fixed Fee

GBP 0.00 - GBP 1,500.00

Interchange Fee
+ 2.9%
+ Fixed Fee

GBP 1,500.01 - GBP 6,000.00

Interchange Fee
+ 2.4%
+ Fixed Fee

GBP 6,000.01 - GBP 15,000.00

Interchange Fee
+ 1.9%
+ Fixed Fee

Above GBP 15,000.00

Interchange Fee
+ 1.4%
+ Fixed Fee

 

2.6 Glossary

a. Interchange Fees are set by Visa and MasterCard. They approximately range from 0.2% to 2.0% and vary for different types of cards (for example by categories and brand). PayPal shall always charge you the Interchange Fee as set by Visa and MasterCard and as passed on by its Acquirer. Single Interchange fees may change from time to time. For more information on Interchange Fees, please see MasterCard’s and Visa’s website as well as our simplified overview.

b. Percentage-based fees (such as 3.4%) refer to an amount equal to that percentage of the payment amount.

c. Fixed Fees are based on the currency received, as follows:

Argentine Peso:

2.00 ARS

New Zealand Dollar:

$0.45 NZD

Australian Dollar:

$0.30 AUD

Norwegian Krone:

2.80 NOK

Brazilian Real:

0.60 BRL

Philippine Peso:

15.00 PHP

Canadian Dollar:

$0.30 CAD

Polish Zloty:

1.35 PLN

Czech Koruna:

10.00 CZK

Russian Ruble

10.00 RUB

Euro:

€0.35 EUR

Singapore Dollar:

0.50 SGD

Danish Kroner:

2.60 DKK

Swedish Kronor:

3.25 SEK

Hong Kong Dollar:

$2.35 HKD

Swiss Franc:

0.55 CHF

Hungarian Forint:

90 HUF

Taiwan New Dollar:

10.00 TWD

Israeli New Shekels:

1.20 ILS

Thai Baht:

11.00 THB

Japanese Yen:

¥40 JPY

Turkish Lira:

0.45 TRY

Malaysian Ringgit:

2 MYR

UK Pounds Sterling:

£0.20 GBP

Mexican Peso:

4.00 MXN

US Dollar:

$0.30 USD

 

2.7 Blended Pricing or Interchange Plus Transaction Fees?

When you receive card payments using any of our Online Card Payment Services (including via Direct Payment API or Virtual Terminal):

  1. The Blended Pricing fee structure shall apply until PayPal implements the Interchange Plus fee structure (which shall be by further notice of the same published by PayPal on a date falling on or after 9 June 2016 on the Policy Updates page accessible via the Legal footer on most PayPal site pages) (“Interchange Plus Launch”).
  2. You may choose the fee structure applicable to you on or after Interchange Plus Launch, by the methods or procedures that PayPal may make available to you before and after Interchange Plus Launch. If you do not make an election, you will stay on your existing fee structure.
  3. You may choose your fee structure for future transactions only, not for past transactions. The fee structure that applies when you receive card payments using any of our Online Card Payment Services also applies when you receive card payments using PayPal HereTM.  This means that if you opt to be charged under the Interchange Plus fee structure, the respective Interchange Plus fee structure will apply to the use of both our Online Card Payment Services and PayPal Here.

 

2.8 Merchant Rate

Merchant Rate applies only to Accounts with Merchant Rate status. Merchant Rate status is subject to eligibility, application and approval by PayPal. PayPal may evaluate applications on a case-by-case basis, including, without limitation, on the following criteria: qualifying monthly sales volume, size of average shopping cart and an Account in good standing. To be eligible to apply for (and retain) PayPal Merchant Rate status the Account must:

  • at all times be in good standing and not under investigation; and
  • have received more than £1,500.00 GBP in aggregate monetary amount of payments in the previous calendar month.

PayPal may downgrade an Account to the Standard Rate at any time if the above conditions are not met or there are unresolved chargebacks against the Account.

If PayPal downgrades your Account you will need to apply to PayPal again for your Account to get PayPal Here Merchant Rate status.

You may apply to receive Merchant Rate for your Account using the dedicated online application form when logged into your PayPal Account. If your application is rejected, please note that you may only submit an application once every thirty days.

 

2.9 Additional Transaction Fees

a. Receiving Cross Border Payments

When you receive a Cross Border payment (which for the purpose of this Agreement also includes any payment made by a card from outside the United Kingdom) you agree to pay 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*

0.4%

Europe I**

0.5%

US / Canada

1.0%

Europe II***

1.3%

Rest of World

1.8%

* Aland Islands, Denmark, Faroe Islands, Finland, Greenland, Iceland, Norway, Sweden.

** Austria, Belgium, Channel Islands, Cyprus, Estonia, France (including French Guiana, Guadeloupe, Martinique, Reunion and Mayotte), Germany , Gibraltar, Greece, Ireland, Isle of Man, Italy , Luxembourg, Malta, Monaco, Montenegro, Netherlands, Portugal, San Marino, Slovakia, Slovenia, Spain, United Kingdom, Vatican City State.

*** Andorra, Albania, Belarus, Bosnia & Herzegovina, Bulgaria, Croatia, Czech Republic, Georgia, Hungary, Kosovo, Latvia, Liechtenstein, Lithuania, Macedonia, Moldova, Poland, Romania, Russian Federation, Serbia, Switzerland, Turkey, Ukraine.

This fee does not apply to:

  • Cross Border Euro or Swedish Krona payments made (i) between Accounts registered in; or (ii) by cards from the European Union or EEA do not incur this additional fee.
  • payments received from cards using the Online Card Payment Services under the Interchange Plus fee structure.

b. Failure to implement Express Checkout. If you do not implement Express Checkout as required in clause 1 (2) above, the percentage components of the Transaction Fees set out in clause 2.2 will each increase by an additional 0.5 % after PayPal gives you 30 days’ notice. You agree to pay the increased fees.

c. Additional risk factors. If PayPal determines that your Account receives, or is likely to receive, a disproportionately high number of customer complaints, Reversals, Chargebacks, Claims, or other indicators of a serious level of risk, PayPal may increase the percentage components of your Transaction Fees by up to 5%, after giving you 30 days prior notice of the increase. You agree to terminate your use of the Product if you do not agree to this increase.

 

2.10 Other Fees

Activity/Event/Product

Fee

  1. Recurring Payment Tool (optional service)

GBP 20.00 per month

  1. Uncaptured Authorisation Transactions

GBP 0.20

for each successful but uncaptured authorisation transaction via Direct Payment API or Virtual Terminal

  1. Card Account Verification Transactions

0.20 GBP

for each card account verification request (for all Direct Payment API or Virtual Terminal card account verification transactions (Visa and MasterCard only). For the avoidance of doubt, this does not include Uncaptured Authorisation Transactions.

 

2.11 MasterCard transactions. For further information about MasterCard’s rules and rates, please visit: http://www.mastercard.com/us/merchant/index.html.

2.12 Monthly Reports on Transaction Costs. PayPal shall make available monthly reports on transaction costs (inclusive of interchange fees) for card transactions which you process with PayPal Website Payments Pro and Virtual Terminal. These reports will be downloadable from your PayPal Account. The reports do not include any Standard PayPal payments.
 

2.  Settlement of Card Payments

We are adding a new clause 3 to outline how card payments charged for under the Interchange Plus fee structure will be settled. All subsequent clauses in the PayPal Website Payments Pro and Virtual Terminal Agreement will be renumbered.  The new clause 3 reads as follows:

3. Settlement of Card Payments within the Interchange Plus Fee Structure

You agree that, when PayPal receives a card payment for you, PayPal may hold those funds in your Reserve Account and you are thereby giving a Payment Order that instructs PayPal to pay those funds to your Payment Account only on the Business Day on which PayPal receives the information about the interchange fee applicable to the card payment, at which time the funds will then be made available to you in your Payment Account.  While the funds are held in your Reserve Account, the transaction will appear to you as “Pending” in your Account details. PayPal does not consider that the proceeds of the card payment in your Reserve Account are at your disposal until PayPal has received the information on the applicable interchange fee from our Processor (which can be within the next Business Day following the day on which the card payment was initiated by the card holder).

 

3. Parity among payment methods

We are removing clause 1.3 about parity among payment methods.

 

4.  Definitions

We are amending existing clause 9 (Definitions) (which becomes new clause 10) to replace the existing definition of “Online Card Payment Services” and add a definition for “Standard PayPal Payments”.  The new definitions read as follows:

“Online Card Payment Services:  Functionality provided online by PayPal to enable merchants to receive payments directly from a payer’s card (without the funds passing via the payer’s PayPal Account), without the card being present at the website or other point of sale.  Online Card Payment Services are integral to the Products such as Direct Payments API and Virtual Terminal.  PayPal HereTM is not an Online Card Payment Service because the card is present at a physical point of sale.”

“Standard PayPal Payments: All Payments which you receive from another PayPal account or payments via PayPal’s Account Optional Service.”

 

Notice of amendment to the PayPal Here Agreement

Effective Date: 9 June 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 only available to UK resident Users.

1. Fees

We are replacing section 10 with provisions that introduce the Interchange Plus and Blended Pricing fee structures and clarify the existing fees.  New section 10 reads as follows:

“10. Fees

Except as further provided in this section, you agree to pay the fees prescribed for Business Accounts in the User Agreement.

You agree to pay the following fees for the following payments received via the PayPal Here App:

 

10.1 Fees for Payments from another PayPal account via PayPal Location Based Payments Functionality

If you receive the payment:

the PayPal Here Standard Rate fee is:

the PayPal Here Merchant Rate is as follows:

where the aggregate monetary amount of payments received in your Account in the previous calendar month:

  1. via the PayPal Here App; and
  2. as Commercial Transaction payments,

is:

the PayPal Here Merchant Rate fee (subject to the further terms and conditions in this section 10) is:

from another PayPal Account via PayPal Location Based Payments Functionality

2.75%

GBP 0.00 - GBP 6,000.00

2.75%

GBP 6,000.01- GBP 15,000.00

2%

Above GBP 15,000.00

1.5%

 

10.2 Fees under the Blended Pricing Fee Structure

If you receive the card payment:

the PayPal Here Standard Rate fee is:

the PayPal Here Merchant Rate is as follows:

where the aggregate monetary amount of payments received in your Account in the previous calendar month:

  1. via the PayPal Here App; and
  2. as Commercial Transaction payments,

is:

the PayPal Here Merchant Rate fee (subject to the further terms and conditions in this section 10) is:

from a Visa, MasterCard or Maestro card

  • using your PayPal Here Card Reader’s Chip and PIN, Chip and Signature functionality
  • as a Contactless Transaction

2.75%

GBP 0.00 - GBP 6,000.00

2.75%

GBP 6,000.01- GBP 15,000.00

2%

Above GBP 15,000.00

1.5%

from a Visa, MasterCard, Maestro or an American Express card:

  • as a Keyed Transaction; or
  • by swiping the card’s magnetic stripe

3.4%

+ GBP 0.20

regardless of the volume of payments you receive

3.4%
+GBP 0.20

from an American Express Card:
 

  • using your PayPal Here Card Reader’s Chip and PIN, Chip and Signature functionality
     
  • as a Contactless Transaction

2.75%

2.75%

 

10.3 Fees under the Interchange Plus Fee Structure

If you receive the card payment:

the PayPal Here Standard Rate fee is:

the PayPal Here Merchant Rate is as follows:

where the aggregate monetary amount of payments received in your Account in the previous calendar month:

  1. via the PayPal Here App; and
  2. as Commercial Transaction payments,

is:

the PayPal Here Merchant Rate fee (subject to the further terms and conditions in this section 10) is:

from a Visa, MasterCard or Maestro card

  • using your PayPal Here Card Reader’s Chip and PIN, Chip and Signature functionality
  • as a Contactless Transaction; or

Interchange Fee

(approximately ranges from 0.2% to 2.0%)

+ 2.50 %

GBP 0.00 – GBP 6,0000.00

Interchange Fee +2.50%

GBP 6,000.01- GBP 15,000.00

Interchange Fee +1.75%

Above GBP 15,000.00

Interchange Fee +1.25%

from a Visa, MasterCard or Maestro card:

  • as a Keyed Transaction; or
  • by swiping the card’s magnetic stripe

Interchange Fee

+ 3.15%

+ GBP 0.20

regardless of the volume of payments which you receive

Interchange Fee
+ 3.15%

+ GBP 0.20

from an American Express Card

3.4% + GBP 0.20

3.4% + GBP 0.20

 

a. Interchange Fees are set by Visa and MasterCard. They approximately range from 0.2% to 2.0% and vary for different types of cards (for example by categories and brand). PayPal shall always charge you the Interchange Fee as set by Visa and MasterCard and as passed on by its Acquirer. Single Interchange fees may change from time to time. For more information on Interchange Fees, please see MasterCard’s and Visa’s website as well as our simplified overview.

b. Percentage-based fees (such as 3.40%) refer to an amount equal to that percentage of the payment amount.

 

10.4 Blended Pricing or Interchange Plus Transaction Fees?

When you receive card payments using PayPal Here:

  1. The Blended Pricing fee structure shall apply until PayPal implements the Interchange Plus fee structure (which shall be by further notice of the same published by PayPal on a date falling on or after 9 June 2016 on the Policy Updates page accessible via the Legal footer on most PayPal site pages) (“Interchange Plus Launch”).
  2. You may choose the fee structure applicable to you on or after Interchange Plus Launch, by the methods or procedures that PayPal may make available to you before and after Interchange Plus Launch. If you do not make an election, you will stay on your existing fee structure.
  3. You may choose your fee structure for future transactions only, not for past transactions. The fee structure that applies when you receive card payments using PayPal HereTM also applies when you receive card payments under the PayPal Website Payments Pro and Virtual Terminal Agreement.  This means that if you opt to be charged under the Interchange Plus fee structure, the respective Interchange Plus fee structure will apply when you receive card payments under the PayPal Website Payments Pro and Virtual Terminal Agreement and this Agreement.

 

10.5 Conditions for PayPal Here Merchant Rate

The PayPal Here Merchant Rate applies only to Accounts with PayPal Here Merchant Rate status. PayPal Here Merchant Rate status is subject to eligibility, application and approval by PayPal. PayPal may evaluate applications on a case-by-case basis, including, without limitation, on the following criteria: qualifying monthly sales volume, size of average shopping cart and an Account in good standing.

To be eligible to apply for (and retain) PayPal Here Merchant Rate status the Account must:

  • at all times be in good standing and not under investigation; and
  • have received more than £1,500.00 GBP in aggregate monetary amount of payments in the previous calendar month:
    • via the PayPal Here App; and
    • as Commercial Transaction payments.

PayPal may downgrade an Account to the PayPal Here Standard Rate at any time if the above conditions are not met or there are unresolved chargebacks against the Account.

If PayPal downgrades your Account you will need to apply to PayPal again for your Account to get PayPal Here Merchant Rate status.

You may apply to receive PayPal Here Merchant Rate for your Account using the dedicated online application form when logged into your PayPal Account. If your application is rejected, please note that you may only submit an application once every thirty days.

PayPal Here Merchant Rate status entitles you to also benefit from Merchant Rate status for Commercial Transactions under the PayPal User Agreement, with the tier values based on the aggregate monetary amount of payments received in your Account in the previous calendar month:

  1. via the PayPal Here App; and
  2. as Commercial Transaction payments, subject further to the terms and conditions in the PayPal User Agreement.

 

10.6 Additional Transaction Fees

The fees listed in the above tables shall be increased by the supplemental Cross Border Fee for Commercial Transactions (as outline in the relevant table in Schedule 1 of the PayPal User Agreement), if the payer’s card or PayPal account is from outside the United Kingdom.

This Cross Border Fee does not apply to card payments received under the Interchange Plus fee structure. However, the Cross Border Fee always applies to card payments with American Express cards (even if received under the Interchange Plus fee structure).

There is no fee to use the PayPal Here App to manage records of the cash and cheque payments you accept.

The fees prescribed in this clause 10 may be changed by amending this Agreement.

2. Settlement of card payments

We are adding a new section 11 to outline how card payments charged for under the Interchange Plus fee structure will be settled. All subsequent clauses in the PayPal HereTM Agreement will be renumbered.  The new section 11 reads as follows

11. Settlement of Card Payments within the Interchange Plus Fee Structure.
You agree that, when PayPal receives a card payment for you, PayPal may hold those funds in your Reserve Account and you are thereby giving a Payment Order that instructs PayPal to pay those funds to your Payment Account only on the Business Day on which PayPal receives the information about the interchange fee applicable to the card payment, at which time the funds will then be made available to you in your Payment Account.  While the funds are held in your Reserve Account, the transaction will appear to you as “Pending” in your Account details. PayPal does not consider that the proceeds of the card payment in your Reserve Account are at your disposal until PayPal has received the information on the applicable interchange fee from our Processor (which can be within the next Business Day following the day on which the card payment was initiated by the card holder).