User Agreement for PayPal Service

 

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PayPal User Agreement

Last Update: September 11, 2018

PLEASE NOTE:

The version of the PayPal User Agreement marked "Current PayPal User Agreement" set out below is effective until December 10, 2018 inclusive.

The version marked "PayPal User Agreement" further below will take effect and supersede the Current PayPal User Agreement on December 11, 2018.

 

Current PayPal User Agreement

Last update: August 31, 2018

This Agreement contains 16 Sections, 3 Sub-Sections and 1 Schedule and you may access any section directly by selecting the appropriate link below. Some terms have specific definitions, which we have provided in Section 16. You will also find underlined words and phrases in this User Agreement and on the PayPal Website that hyperlink to relevant information.

Jump to section:

1. Our Relationship With You 
2. PayPal Account - Eligibility and Types of Accounts 
3. Sending Money 
4. Receiving Money 
5. Account Balances 
6. Withdrawing Money 
6a. Kauf auf Rechnung 
6b. PayPal PLUS 
6c. Payment after 14 Days (“Bezahlung nach 14 Tagen”) 
7. Closing Your PayPal Account 
8. Fees and Currency Conversion 
9. Restricted Activities 
10. Your Liability - Actions We May Take 
11. Seller Protection Policy 
12. Errors and Unauthorized Transactions 
13. PayPal Buyer Protection 
14. Disputes with PayPal 
15. General 
16. Definitions 
Schedule 1. Table of Fees

This User Agreement governs your use of the services provided to you by

PayPal (Europe) S.à r.l. et Cie, S.C.A.
22-24 Boulevard Royal
2449 Luxembourg

Luxembourg

(referred to as "PayPal" or "we") (this “User Agreement”).

The terms of the Acceptable Use Policy, the PayPal Buyer Protection Policy, the PayPal Seller Protection Policy and Merchant Gift Certificates Agreement located on the "Legal Agreements" landing page on the PayPal Website are incorporated by reference into this User Agreement and provide additional terms and conditions related to the PayPal Services. The above mentioned documents are "Ancillary Documents" for the purpose of this User Agreement.

 

For the avoidance of doubt, neither the Ancillary Documents nor the parts of this User Agreement that incorporate the terms of the Ancillary Documents constitute "framework contracts" for the purpose of the EU Payment Services Directive (2007/64/EC), the Second EU Payment Services Directive (2015/2366) ("PSD2") or any implementation of those directives in the member states of the European Union or the EEA.

You must agree with and accept all of the terms and conditions contained in this User Agreement when opening a PayPal Account or when using other services offered by PayPal outside of a PayPal. This User Agreement shall apply to all services offered by PayPal. This User Agreement shall also apply to you as a merchant insofar as you assign a claim to PayPal (such as during Kauf auf RechnungRatenzahlung Powered by PayPal). All future changes of this User Agreement set out in the Policy Update already published on the PayPal Website(s) at the time you register for the PayPal Services are incorporated by reference into this User Agreement and will take effect as specified in that Policy Update.

This User Agreement, together with other legal terms and legally required disclosures relating to your use of the PayPal Services will be provided to you, at all times on the PayPal Website(s) (typically located at the "AGB" hyperlink on the landing page). This information may also be sent to you, if you wish so. We also refer to the User Agreement on the PayPal Website(s) wherever relevant.

For more information about the PayPal Services, please read our Key Payment and Service Information.

 

1. Our Relationship With You

1.1. PayPal is only a Payment Service Provider 
PayPal enables you to make payments to and accept payments from third parties. PayPal is an independent contractor for all purposes. PayPal does not have control of nor assumes the liability or legality for the products or services that are paid for with the PayPal Services. We do not guarantee the identity of any User or ensure that a Buyer or a Seller will complete a transaction. Please note that there are risks of dealing with underage persons or people acting under false pretense.

Important to know:

PayPal is duly licensed as a Luxembourg credit institution in the sense of Article 2 of the law of 5 April 1993 on the financial sector. PayPal is under the prudential supervision of the Luxembourg supervisory authority, the Commission de Surveillance du Secteur Financier (CSSF).

PayPal’s main business is the issuance of E-Money and the provision of services closely related to the issuance of E-Money. Since the PayPal Services are limited to E-Money, which does not qualify as a deposit or an investment service in the sense of the law.

This means for you: You are not protected by the Luxembourg deposit guarantee or investor indemnity schemes administered by the Conseil de protection des déposants et des investisseurs (CPDI).

A description of the main characteristics of the PayPal Services is set out in the Key Payment and Service Information document which is accessible via the “Legal Agreements” link of each page of the PayPal Website(s).

1.2. Your Privacy

Protecting your privacy is very important to PayPal. Please review our Privacy Policy in order to better understand our commitment to maintaining your privacy as well as our use and disclosure of your Information.

1.3. Assignment

You may not transfer or assign any rights or obligations you have under this User Agreement without PayPal’s prior written consent. You are not permitted to transfer your PayPal Account to a third party. PayPal reserves the right to transfer or assign this User Agreement or any right or obligation under this User Agreement at any time without your consent. This does not affect your rights to close your PayPal Account under Section 7.

1.4. Communicating with You

1.4.1. Languages

We provide you with this User Agreement in German – therefore German shall be the contractual language and any English version of this User Agreement is for informational purposes only. This User Agreement is concluded in German and this English version of the User Agreement is for informational purposes only. As a standard, we will communicate with you in German. Upon request by you, communication can be made in English.

1.4.2. Notices to You

You agree that PayPal may contact or inform you by any of the following means:

  1. By e-mail: We may send an e-mail to the e-mail address registered in your PayPal Account;
  2. Online: By publishing it on the PayPal Website(s) or as message in your PayPal Account;
  3. By mail: We may send a message to the postal address registered in your PayPal Account;
  4. By telephone: We may call you or send you a text message.

You may request a copy of any legally required disclosures from us and we will provide this to you in a form which allows you to store and reproduce the information (for example, by e-mail). PayPal may charge you a Records Request Fee as per Schedule 1 (Table of Fees) clause A4.5. to provide a paper copy.

You may terminate your consent to receive required disclosures through electronic communications by contacting PayPal as described in clause 1.5. below. PayPal reserves the right to close your PayPal Account (pursuant to Section 7.) if you withdraw your consent to receive electronic communications.

1.5. Notices to PayPal

Notices to PayPal made in connection with this User Agreement must be sent by postal mail to PayPal’s head office:

PayPal (Europe) S.à r.l. et Cie, S.C.A. 
Legal Department 
22-24 Boulevard Royal 
2449 Luxembourg

Luxembourg.

1.6. Amendments to this User Agreement

Changes of this User Agreement will be offered to you in text-form, e.g. by way of sending you an e-mail, with a minimum of 2 months prior notice before the suggested effective date of such change. You will be deemed to have consented to these changes unless you explicitly dissent before the effective day. In case you do not agree to the changes, you may terminate this User Agreement without any extra cost at any time before the effective date of the change. In such e-mail we shall particularly inform you about your right to dissent, the due date, and your option to terminate this User Agreement. We also publish the amended User Agreement on the PayPal Website(s).

Any other agreement with PayPal shall be amended in accordance with the provisions applicable to such agreement.

In cases where we add extra functionality to the existing PayPal Services or any other change which we believe in our reasonable opinion to neither reduce your rights nor increase your responsibilities, we may make an announcement within only 1 month. You shall have 3 weeks to express your dissent in such case.

1.7. Eligibility

You may sign up with PayPal in Germany to open a PayPal Account if you are at least 18 years old and a resident of Germany or you are a company with a registered seat of business in Germany. You further represent and warrant to us in opening a PayPal Account with us that you are not acting on behalf of or for the benefit of anyone else, unless you are opening the PayPal Account for and under the direction of the company that employs you. If you are not acting for the company that employs you, the new PayPal Account must be in your own name only.

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2. PayPal Account and Balances

2.1. Account Types

We offer 2 different types of Accounts: Personal Accounts and Business Accounts.

Unless expressly agreed otherwise with us, you may  hold not more than 1 Personal Account and 1  Business Account. Holders of certain Personal Accounts may be required to upgrade their accounts (which may include providing further information to PayPal) in order to use all of the current functionality available in a Personal Account.

You may sign up for a Personal Account or a Business Account with PayPal. A Personal Account is designed for personal purposes only. A Business Account must not be used for personal purposes, but only for your business or enterprise.

By default, your PayPal Account comprises 2 different functionalities: A payment functionality and a Reserve functionality. For the purpose of understandability we refer to them as “Payment Account” and “Reserve Account”.

The availability of sending payments and withdrawing funds depends on the availability of the respective funds in your Payment Account or Reserve Account.

Funds in your Payment Account:

You may freely avail of these funds, withdraw them to your bank account, or send payments.

Funds in your Reserve Account:

These funds are temporarily unavailable for you – they will display as "Payments held" in your PayPal Account. This means you may not withdraw these funds to your bank account or use it to send payments. This comprises all payments with the status "Pending" or "Held" as these are being held for risk protection purposes. The following scenarios may be affected:

  • PayPal payments funded by direct debit with security check (see clause 3.7.);
  • Payments completed by the Merchant at a later stage (see clause 3.9.
  • Payment Reviews (see clause 5.2.);
  • Payments on Temporary Hold (see clauses 10.5. and 10.6.);
  • Restricted activities and measures taken by PayPal (see Sections 9. and 10.).

2.2. Balance

The Balance in your PayPal Account represents the amount of E-Money available for paying out from your PayPal Account, subject to the terms of this User Agreement.  If you hold a Balance you will not receive interest or any other earnings on the Balance because European law forbids paying interest on E-Money, as it is a cash-equivalent and not a deposit.

You are not required to keep a Balance at all times, but if you use the PayPal Services to pay another User you need to have sufficient Balance in your PayPal Account to cover the amount of the payment (and transaction fees payable to us). 

This is because, when you pay another User, you are authorizing us to transfer E-Money from your Balance to the PayPal Account of the recipient, in each case according to your Payment Order and subject to the terms of this User Agreement.    

To get a Balance on your PayPal Account you can, subject further to this User Agreement:

  • Accept a payment in your PayPal Account from someone else; or
  • Obtain E-Money from us by paying us an equivalent amount.  You can do this:
    • Automatically using your applicable Funding Source(s) to cover payments that you instruct us to send to other Users (and the transaction fees payable by you to us).  The execution of the payment from your bank or card issuer to PayPal is your bank’s/card issuer’s responsibility; or
    • Manually using the “Add Funds” function available from your PayPal Account interface to pay us or instructing us to pull a payment from your bank account under the authority you give us when linking your bank account as a Funding Source (see clause 3.3.).

2.3. Account Information (including Balance and Transaction Information)

Unless your PayPal Account is restricted, you may access your details of executed payment transactions and other information relating to your PayPal Account transaction history and Balance by logging into your PayPal Account. Key information relating to your payments will be provided to you via e-mail and your transaction history will also be updated and made available to you at any time by logging into your PayPal Account. You will also be able to access a downloadable report via the “History” section of your PayPal Account. The “History” section will also show all Fees incurred and any other amounts charged to your PayPal Account in the relevant period. The “History” will only be updated and made available if there has been any activity on your PayPal Account or any Fees have been incurred in the relevant period. PayPal reserves the right to charge a Fee for providing you with additional information or for providing the transaction history and other information about Fees in a different way. The way in which we provide the transaction information will allow you to store and reproduce the information unchanged, for example by printing a copy. PayPal will ensure that the details of each transaction will be made available for you to view online for at least 13 months from when it is first made available. You agree to review your transactions through your PayPal Account History instead of receiving periodic statements by mail. 

2.4. Set-off

You agree that we may set-off any of the amounts held in PayPal 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 a Balance in a PayPal Account held or controlled by you.

2.5. Amounts You Owe Us

Where the aggregate amount you owe us exceeds the amount held in your Balance we may show your Balance in negative figures as a reflection of the net amount you owe to us.

When your Balance is negative you cannot Send Money with PayPal. You can restore your Balance by adding funds to your PayPal Account by bank transfer. Otherwise PayPal has the following options to restore your negative Balance:

  • We use incoming payments on your PayPal Account to settle the amount you owe us;
  • The next time you make a credit card or direct debit payment, we may charge your credit card or, as applicable, bank account, with the outstanding amount in addition to the payment amount. You will be notified during the payment process;
  • In case of a Failed Direct Debit Payment we may charge your credit card or make a further attempt of the direct debit payment (see clause 3.7. for details);
  • If you have a Balance in another currency, we may use these funds to settle the amount you owe us;
  • We may also deduct the outstanding amount from a withdrawal you may have requested.

If, for a period of 21 days, you have a Balance that reflects an amount owing to us that is not in euros (EUR), PayPal will convert the amount you owe us to euros (EUR). You will be charged a Currency Conversion Fee as set out in A4.1. of Schedule 1 (Table of Fees) for the conversion of the amount you owe to us into euros (EUR) (pursuant to clause 8.2.).

2.6. Balances in Different Currencies

If one of the currency Balances in your PayPal Account shows that you owe us an amount of funds for any reason, we may set-off the amount you owe us by using funds you maintain in a different currency Balance or by deducting amounts you owe us from money you receive into your PayPal Account, or money you attempt to withdraw or send from your PayPal Account, or in a different PayPal Account, and by deducting funds from any withdrawals you attempt to make.

You are responsible for all risks associated with maintaining Balances in multiple currencies (including, without limitation, the risk that the value of these Balances will fluctuate as exchange rates change, which over time may result in a significant decrease in the value of the Balances). You agree that you will not attempt to use multiple currencies for speculative trading.

2.7. Security Interest

To secure your performance of this User Agreement, you grant to PayPal a legal claim against the funds in your PayPal Account as security for any amount you may owe to us. This is known in legal terms as a “lien” on and “security interest” in your PayPal Account.

 

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3. Funding Sources

3.1. Linking Your Funding Source

You can link or unlink a credit card or a bank account as a Funding Source for your PayPal Account.   Please keep your Funding Source information current (i.e. credit card number and expiration date).  If this information changes, we may update it as directed by your bank or card issuer without any action on your part.

3.2. Cards

By linking a credit card as a Funding Source, you are providing PayPal with a continuous authority to automatically charge that card for the amount necessary to purchase E-Money required in your Balance to cover a Payment Order (plus transaction fees payable to us) when the card is the applicable Funding Source for that Payment Order pursuant to this User Agreement. You can stop the continuous authority in respect of any card by removing that card as a Funding Source from your PayPal Account.

3.3. Bank Accounts

By linking your bank account as a Funding Source, you are providing PayPal with a continuous authority, (subject to the terms of the mandate used by your bank to set up and maintain that authority) to automatically charge your bank account for the amount necessary to purchase E-Money in your Balance:

  • Required to cover a Payment Order to another User (plus transaction fees payable to us) when the bank account is the applicable Funding Source for that Payment Order pursuant to this User Agreement: or
  • When using the “Add Funds” functionality in your PayPal Account interface.

3.4. Direct Debit

Whenever you initiate a direct debit payment to fund a PayPal transaction or where the respective PayPal Service provides for direct debit by PayPal from your Funding Source (such as payment upon installment, direct debit and credit card hosted by PayPal ), you authorize us to draw the amount from the bank account you registered with PayPal.

In detail, this is what happens:

  • Your bank will receive a payment order to pay the amount to PayPal;
  • PayPal will receive a payment order to pay the respective E-Money or money amount to the recipient of the payment.

PayPal is in compliance with the Single Euro Payments Area (SEPA) Direct Debit mandates. SEPA is an initiative of the European Commission and European banking sector, aimed at making transactions more efficient within the European Union. Whenever you register a bank account with PayPal or user a new bank account for the first time as a Funding Source, you grant PayPal a SEPA Direct Debit mandate. You will be able to exclusively access such mandate and the mandate reference number (MRN) in your PayPal Account profile at any time and cancel or change the mandate for future transactions.

Whenever you pay with direct debit after that, you Authorize us to use this SEPA mandate and draw the amount from your bank account as explained above in this clause 3.4., and you Authorize your bank to arrange for payment to us. You can return any such direct debit payment within 8 weeks after your bank account has been debited. PayPal will inform you of the amount of the debit and the time frame in which PayPal will collect the amount from the bank account together with the purchase confirmation.

In case of a Reversal of a payment you have not initiated yourself, you Authorize PayPal to carry out another attempt to complete the transaction by direct debit at a later time. This does not apply if you had already settled the outstanding amount using another option. There will be no (additional) information on the amount and the time frame ahead of the resubmission.

In case of a Failed Direct Debit Payment, you Authorize PayPal to charge your credit card or a different bank account registered with PayPal with the payment amount plus the applicable Fees for Failed Direct Debit Payments pursuant to clause A4.6.2. of Schedule 1 (Table of Fees) or to further attempt to debit the payment amount and fee to your bank account, unless you had already settled the outstanding amount using another option. You will be notified during the payment process which Funding Source may be used. Any direct debit payment may be subject to a routine security check. If, based on our internal assessment of potential risk regarding direct debit procedures (such risks specified in this clause 3.7.), we have reason to believe that there is an increased risk associated with this payment:

  • We may mark the payment as “Pending” and not immediately complete the payment until we have conducted a Payment Review in accordance with clause 5.2.; where a Payment Review finds problem with the payment, the payment will be reversed and the funds returned to the Buyer from the Seller’s Reserve Account; or
  • Pursuant to our risk models and your payment history, there may be an increased risk of rejection or reversal by your bank, in which case it is likely that the respective credit to fund the E-Money payment will not become available to us. In this situation we reserve the right not to effect the Payment Order in accordance with clause 4.1. below.

The following are the main parameters for our internal risk assessment regarding direct debit procedures:

  • Risk of insufficient funds or credit on your bank account,
  • Risk that the transaction may not have been properly authorized by the account holder of the bank account,
  • The financial details of the bank account may be incorrect exposing the transaction to be executed incorrectly.

3.5. Special Funding Arrangements

Certain payments may be funded by special funding arrangements linked to your PayPal Account, such as merchant/transaction specific balance, gift vouchers or other promotional funding arrangements, the use and priority of which are subject to further terms and conditions between you and PayPal (“Special Funding Arrangements”). Your PayPal Account Overview may show the notional amount available in your Special Funding Arrangements to fund qualifying payments at any given time. This amount does not constitute E-Money, is not deemed part of your Balance and is not redeemable in cash - it only represents the amount of E-Money which PayPal offers to issue and credit to your PayPal Account at the time of (and only to immediately fund) a qualifying PayPal payment, subject to (and only for the period outlined in) the further terms and conditions of use of that Special Funding Arrangement. If your PayPal payment funded by a Special Funding Arrangement is rescinded (including, without limitation, Reversed) at a later time for any reason, PayPal will keep the amount that represents the portion of that PayPal payment that was funded by your Special Funding Arrangement and (provided that the Special Funding Arrangement has not already expired) reinstate the Special Funding Arrangement.

3.6. Preferred Funding Source

You can choose any of the Funding Sources in your PayPal Account as your Preferred Funding Source for obtaining E-Money in your Balance to cover a Payment Order, subject further to this User Agreement.  PayPal may allow you to choose a Preferred Funding Source for certain future Payment Orders in your account preferences of you PayPal Account from time to time.  There may be times when your Preferred Funding Source cannot be used, depending on the nature of the Funding Source, the type of Payment Order it is used to fund or the recipient (see also clause 3.8).  For example (on a non-exhaustive basis):

3.6.1. You select a credit card that has expired;

3.6.2. A Special Funding Arrangement is available to cover the Payment Order instead, in which case PayPal may use the Specific Funding Arrangement to obtain E-Money to cover your Payment Order before using your Preferred Funding Source; or

3.6.3. You have a pre-existing Balance available to cover the Payment Order instead, in which case PayPal may use your pre-existing Balance (after any available Special Funding Arrangement) for the E-Money to cover your Payment Order before using your Preferred Funding Source.

PayPal may disapply clause 3.6.3. and use your Preferred Funding Source to obtain E-Money to cover certain Payment Orders even if you have pre-existing Balance, subject further to this User Agreement.

3.7. No Preferred Funding Source Selected/Available

If you have not selected a Preferred Funding Source or if your Preferred Funding Source is unavailable, PayPal will obtain E-Money in your Balance to cover your Payment Order from the following sources in the following order to the extent available:

  1. Special Funding Agreements (see clause 3.5.),
  2. Pre-existing Balance
  3. Default Funding Sources used in the order of first Bank account and then credit card..

3.8. Funding Source Limitations

In order to manage risk, PayPal may limit the Funding Sources available for a transaction. If we limit a Funding Source, we will alert you that there is a higher than normal level of risk associated with the payment (for example and without limitation, a risk that the payment may be challenged to be unauthorized). Such a notice does not mean that either party to the transaction is acting in a dishonest or fraudulent manner. It means there may be a higher than normal level of risk associated with the payment. Funding Sources may be limited also if you make a PayPal payment through certain third party websites or applications.

 

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4. Sending Money

4.1. Our execution of your Payment Orders

Subject to the terms of this User Agreement (and your compliance with the same) you agree that we will execute a Payment Order made by you via your PayPal Account. We shall execute your Payment Order based on this Agreement within 1 Business Day. Within this timeframe we shall credit the payment service provider of the person you are sending your payment to. The 1-day time limit starts on the day following the date you gave us, and we received your valid Payment Order.

 
Executing your Payment Order is subject to the following requirements:
 
4.1.1. You send your Payment Order before 4.00pm German local time on a Business Day. If you provide us with your Payment Order after this time or not on a Business Day, you agree that your Payment Order was received by us on the following Business Day;
 
4.1.2. You have provided a correct Unique Identifier or other valid details of the recipient or you as PayPal or the person you are paying may reasonably request from you when you complete the details to make the Payment Order;
 
4.1.3. You have completed all mandatory information requested in the relevant payment or checkout flows;
 
4.1.4. You have provided details of your valid Funding Source(s) that have sufficient funds to make the payment; and
 
4.1.5. You have expressed valid consent to authorize your Payment Order. Such valid consent shall be deemed provided:
 
4.1.5.1. When you click the respective payment button (for example, "Pay" or "Continue") of the PayPal Website(s) which permit you to send us a Payment Order after you have submitted your correct log-in information and successfully logged into your PayPal Account; and/or
 
4.1.5.2. If you have set up a third party initiated payment Authorization according to clause 4.8. below in which you have agreed with a Merchant or other third party to provide an advance Authorization to allow that Merchant or third party to collect payment of funds from your PayPal Account; and/or
 
4.1.5.3. Instruct us to make a payment in any other way which we may notify to you when making the Payment Order from time to time.

Our obligation to execute Payment Orders within 1 Business Day following the date you gave us your valid Payment Order only applies to payments executed:

  • Between Users with registered PayPal Accounts in the European Economic Area (EEA);
  • In the currency of euro (EUR), pound sterling (GBP), or the currency of the EEA state that has not adopted euro (EUR) as its currency.
Once your Payment Order has been provided to us, you may not revoke it or otherwise withdraw your consent to the execution of the payment transaction. This does not apply when you have agreed to Pre-approved Payments (see clause 4.8.). You are able to cancel a Pre-approved Payment provided that you do so before the end of the Business Day which falls on the day before the next payment under the Pre-approved Payment Authorization is due to be made.
 

4.2. Your Payment Order For a Payment to Another User

Subject to the terms of this User Agreement, your Payment Order for a payment to another User (whether a Personal Transaction payment or a Commercial Transaction payment) is your instruction and authorization to us to transfer E-Money from the Payment Account element of your Balance to that User as further directed in your Payment Order.  Where you have insufficient Balance or have chosen a Preferred Funding Source you are also requesting us to obtain funds on your behalf from your applicable Funding Source and issue E-Money to the Payment Account element of your Balance for your payment to be made.

4.3. Your Payment Order for a Withdrawal

Subject to the terms of this User Agreement, your Payment Order for a withdrawal from your PayPal Account is your instruction and authorization to us to redeem E-Money from your Balance.  Section 6. further applies to this type of Payment Order.

4.4. Insufficient Funds in Your Balance

We are under no obligation to execute your Payment Order if you do not have sufficient funds in your PayPal Account or in your Funding Source. PayPal reserves the right not to effect a payment made by you until it receives cleared funds (this also means, without limitation, that PayPal is not obliged to settle a refund transaction before having received funding for the original transaction).

4.5. Sending Limits

If you have a sending limit on your PayPal Account, you can view it by logging into your PayPal Account and clicking on the “View your account limits” link on the “Account Overview” page. We may, at our reasonable discretion (for example, without limitation, to limit fraud or credit risk), impose limits on the amount of money you can send through the PayPal Services in order to minimize the risk of payment losses or fraud. To lift your sending limit, you must follow the steps that we will notify to you or publish from time to time (which we may set out in your Account Overview).

4.6. Refused Transactions

When you send E-Money and although the E-Money is available to the recipient, the recipient is not required to accept it. In case the recipient denies, refunds, or does not accept the payment within 30 days, we shall credit the amount to your PayPal Account. If you have used your credit card as Funding Source, we shall credit the amount to your credit card. You agree that you will not hold PayPal liable for any damages resulting from a recipient's decision not to accept a payment made through the PayPal Services.

4.7. Merchant Processing Delay

When you pay certain Merchants (for instance, some Merchants selling on online platforms) or pay for certain purchases (for instance, purchases which have to be shipped to you or may be further amended by the Merchant), you are providing

  1. an Authorization to the Merchant to collect your payment at a later time; and
  2. an instruction to PayPal to pay that Merchant when the Merchant requests payment.

Your Authorization will remain valid typically for up to 30 days. If you have a positive Balance at the time you made your Authorization, you agree that PayPal may hold the payment  amount as pending in your Reserve Account until the Merchant collects your payment. If your payment requires a currency conversion by us, the final exchange rate will be determined and applied (in accordance with clause 8.2.) at the time the Merchant processes your payment and completes the transaction.

Your authorization allows the Merchant to amend the payment amount before the Merchant collects the payment (to account for any amendments to the purchase that you may agree with the Merchant, such as additional taxes, shipping or postage charges or discounts). PayPal may set a maximum amount for the payment to be made to the Merchant in certain circumstances, which may be shown to you on the payment authorization page. PayPal is not required to verify any amendments at any time (including at the time the payment is transferred). PayPal may transfer any amount on the basis of you Authorization and upon receiving instructions form the Merchant of the final payment amount (subject to any maximum amount set and communicated by PayPal for the given payment).

4.8. Pre-approved Payments (also known as Automatic Payments)

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:

4.8.1. 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

4.8.2. Your consent to the making of the third party initiated payment was not given as set out in clause 4.1.5.;

or

4.8.3. 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

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

and

4.8.5. 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.

4.9. Cancelling Pre-approved Payments 
You may cancel a Pre-approved Payment agreement with a third party in the profile of your PayPal Account. Your cancellation can be made up to 1 Business Day prior to the date the payment is scheduled to be made.

You may also cancel a Pre-approved Payment in the context of location-based services.

4.10. Sending E-Money in Different Currencies

You may send E-Money in the following currencies:

SENDING CURRENCIES

Currency

ISO-4217-Code

Australian dollars

AUD

Brazilian real

BRL

British pounds sterling

GBP

Danish kroner

DKK

Euros

EUR

Hong Kong dollars

HKD

Israeli new shekels

ILS

Japanese yen

JPY

Canadian dollars

CAD

Malaysian ringgit

MYR

Mexican pesos

MXN

New Taiwan dollars

NTD

New Zealand dollars

NZD

Norwegian kroner

NOK

Philippine pesos

PHP

Polish zloty

PLN

Russian rubles

RUB

Swedish kronor

SEK

Swiss francs

CHF

Singapore dollars

SGD

Thai baht

THB

Czech koruna

CZK

Hungarian forint

HUF

US dollars

USD

 

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:

4.10.1. If you have an existing Balance in the receiving currency, we will send your payment from your Balance;

4.10.2. If you have a Balance in a currency different than the receiving currency, we will perform a currency conversion (pursuant to clause 8.2.) and use the converted Balance to send your payment;

4.10.3. If you do not have any Balance, we automatically obtain Balance in the primary currency of 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 8.2.) 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.

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5. Receiving E-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 PayPal Account.

5.1. Lifting your receiving limit

If you have a receiving limit on your PayPal Account, you can view it by logging into your PayPal Account and clicking on the “View your account limits” link on the “Account Overview”. We may, at our reasonable discretion (for example, without limitation, to limit fraud or credit risk), impose limits on the amount of money you can receive through the PayPal Services. To lift your receiving limit, you must follow the steps that we will notify to you or publish from time to time (which we may set out in your Account Overview).

5.2. Payment Review

Payment Review is a process by which PayPal reviews certain potentially high-risk payment transactions, such risks being described in clause 10.5.1. below.

If a payment is subject to Payment Review, PayPal will:

5.2.1. Execute the Payment Order initiated by the Buyer;

5.2.2. In PayPal’s discretion, immediately upon such execution restrict the Buyer’s Payment Instrument; 

5.2.3. Place a hold on the payment, meaning the funds are held in the Reserve Account of the payment recipient;

5.2.4. Provide notice to the payment recipient to delay the shipping of the item purchased by the Buyer (transactions marked as "Pending" are not covered by Seller Protection, see Section 11.); 

5.2.5. Conduct its review of the payment.

The payment is marked as "Pending" until we have gathered sufficient information to efficiently conduct the payment review in accordance with clause 10.5.1. Where a Payment Review finds a problem with the payment, the payment will be reversed and the funds returned to the Buyer from the Seller’s Reserve Account.

All payments that complete Payment Review are still subject to being reversed (i.e. returned to the Buyer) under the terms of this Agreement but will be eligible for PayPal Seller Protection if they meet the Seller Protection Policy requirements.

A payment subject to Payment Review is neither a review nor a representation by PayPal as to the commercial dealings, character or reputation of a party to the payment transaction and should not be considered as a lessening of the respect of any person.

5.3. Payment Reversals – PayPal’s Claims for Reimbursement

5.3.1. Conditional credit where the funding sources are a credit card or direct debit 
Every credit of E-Money which is done by PayPal as a result of another user’s PayPal payment (“Payer”) into your PayPal Account is subject to the condition that we receive the corresponding amount definitively. This condition only applies to the extent that the payment was made using a credit card or direct debit as the funding source. This condition applies only as long as the corresponding amount is subject to a potential reversal by the payer’s payment service provider pursuant to clause 4.8.2. In case of a reversal, we will proceed with the credit reversal pursuant to clause 4.8.3.

5.3.2. Reversal by the Payer’s payment service provider 
A reversal by the payment service provider that a Payer uses to fund their transaction occurs:

  • If the funding source is a credit card, when the Payer initiates a chargeback with his credit card’s issuing bank. It is solely the credit card’s issuing bank that decides the circumstances in which a chargeback may occur, on the basis of the terms of the credit card schemes such as Visa, MasterCard, and American Express,
  • If the funding source is a direct debit, when the Payer rejects a direct debit payment and asks his payment service provider to reimburse the amount, or when the direct debit cannot be honored for reasons not within our control (for example as result of insufficient funds or unauthorized use of the account owner’s bank account details).

5.3.3. Credit reversal by PayPal in relation to reversals 
When a reversal pursuant to clause 4.8.3. occurs, we will deduct the corresponding amount from the payment recipient’s PayPal Account unless you as a payment recipient are eligible for seller protection in accordance with the PayPal Seller Protection Policy. In the event you are not eligible for PayPal Seller Protection, we will first deduct the amount from the Balance in your PayPal Account. If the Balance in your PayPal Account is not sufficient, you are obliged to pay the corresponding amount into your PayPal Account or directly to us. We may also instruct a collection agency to recover the amount and/or initiate legal proceedings.

5.3.4. Reversal with regard to non-authorized payments 
A reversal also occurs when the payment is both not authorized by the rightful owner of the PayPal Account and you are not eligible for PayPal Seller Protection in accordance with the seller protection policy. In this case PayPal may proceed in relation to the payee as described under clause 4.8.3.

5.4. Presentation of PayPal Services

As a Merchant in representations or in public communications to your customers , you shall not mischaracterize or disparage the PayPal Services as a payment method.

If you as a Merchant enable your customers to pay you using the PayPal Services, you shall treat the service marks or trademarks of PayPal at least at par with other payment methods offered.

5.5. No Surcharging

As a Merchant, you shall not surcharge for the use of the PayPal Services, including without limitation additional “services fees”, higher shipping costs compared to the shipping costs when other payment methods are used, or any other additional fees or charges you charge to your customers for using the PayPal Services.

Surcharging is a Restricted Activity according to Section 9. below (see clause 9.1.12.).

5.6. Receiving Money in Different Currencies

You do not need to maintain a Balance in a particular currency to accept payments sent in that currency. By accepting such payment you automatically create a Balance in this currency. 
If you already hold this currency in your Balance, we will credit this payment to that Balance automatically.

5.7. Taxes

It is your responsibility to determine what, if any, taxes apply to the payments you make or receive, and it is your responsibility to collect, report and remit the correct tax to the appropriate tax authority. PayPal is not responsible for determining whether taxes apply to your transaction, or for collecting, reporting or remitting any taxes arising from any transaction. As a bank service provider no sales tax applies to the PayPal Services in the EU.

5.8. 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 Privacy Policy.  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, each Party 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 under this Agreement; and
  • not knowingly do anything or permit anything to be done which might lead to a breach by the other Party 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.

5.9. Holds according to your instructions

Certain PayPal functionality may allow you (whether directly or via someone you permit to act on your behalf under clause 15.9.1., like an online marketplace platform on which you transact as a seller) to instruct PayPal to hold your funds (including the proceeds of payments you receive using PayPal) in your Reserve Account.  In such a case we will show you the availability status of those funds in your PayPal Balance – the status descriptions may differ according to the functionality you used to instruct us to place the hold.  PayPal will release the hold on the funds according to the instruction that you (or the entity that you have permitted to act on your behalf under clause 15.9.1.) give to PayPal, subject to the rest of this Agreement.

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6. Withdrawing/Redeeming E-Money

6.1. How to Withdraw/Redeem E-Money

You may withdraw funds by electronically transferring them to your bank account. Withdrawing E-Money from your PayPal Account to your bank account is equal to redeeming E-Money into euros (EUR).

If you withdraw

6.1.1. a Balance held in a currency other than the original opening currency of your PayPal Account, or

6.1.2. to a bank account held in a currency other than the original opening currency of your PayPal Account
 
you will be charged a Currency Conversion Fee as set out in clause A3.1.1. of Schedule 1 to convert it to your primary currency Balance (pursuant to clause 8.2.).
 
The original opening currency of your PayPal Account is euro (EUR).
 
See also clause 6.4. if your PayPal Account holds a Balance in multiple currencies.
 
6.2. Withdrawal/Redemption Limit and Execution Times
 
6.2.1. Withdrawal/Redemption Limits
 
You agree to comply with our requests to verify your identity before we redeem E-Money to you to allow us to reduce the risk of fraud or to otherwise comply with our anti-money laundering or other legal obligations. You can view your periodic withdrawal limits, if any, by logging into your Account and clicking on the “View Limits” link on the “Account Overview.” We may, at our reasonable discretion (for example, without limitation, to limit fraud or credit risk as explained in clause 10.4. below), impose additional limits on the amount of money you can withdraw through the PayPal Services;
 
6.2.2. Execution Times
 
Redemption transactions from your Payment Account will be executed within the timeframes set out in clause 4.1., however, we may review your withdrawal transaction to mitigate any risks and/or to prevent money laundering and to ascertain whether any Restricted Activity (as set out in Section 9) is taking place ("Redemption Risk"). Where a Redemption Risk is identified by us applying the criteria in clause 10.5.1. below, we reserve the right to restrict your Payment Instrument and/or refuse your Payment Order.
 
When you instruct us to perform a redemption, we may treat this as a future dated Payment Order which we will execute as soon as we have cleared the criteria according to clause 10.5.1. below.
 
6.3. Lifting your withdrawal limit
 
In order to lift your withdrawal limit, you must follow the steps that we will notify to you or publish from time to time (which we may set out in your Account Overview).
 
6.4. Withdrawing Money in Different Currencies

 

If you have Balances in different currencies, you will be able to chose from those when you withdraw funds, but, unless otherwise agreed, the withdrawal will take place in the original opening currency of your PayPal Account.

 
See clause 6.1. for how you may be charged a Currency Conversion Fee to convert from or into the original opening currency of your PayPal Account when withdrawing your Balance.

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6a. Kauf auf Rechnung 6a.1. ”Kauf auf Rechnung”

Many merchants want to offer to their buyers, who are consumers and provide a place of residence in Germany (“Customers”), the opportunity to purchase goods or services in their online shop on account and pay by electronic funds transfer. For this purpose PayPal has developed a payment upon invoice product (“Kauf auf Rechnung”). . Any Merchant wishing to offer Kauf auf Rechnung to its Customers is required to either use PayPal PLUS (see Section 6b.) or to be a merchant on eBay. There shall be no entitlement to the eligibility for Kauf auf Rechnung. PayPal reserves the right not to offer Kauf auf Rechnung to a merchant and to terminate or limit Kauf auf Rechnung in full or in part at any time, including but not limited to the right not to purchase receivables of purchases of certain products, product group, or from certain industries.

In the scope of Kauf auf Rechnung PayPal purchases from the Merchant all receivables against a Customer of the Merchant which arise from the use of the Kauf auf Rechnung product (“PayPal Invoice Contracts”). PayPal will credit the purchase price for the receivables to the Merchant’s PayPal Account after completion of the order by the Customer and before the Customer settles the bill and pays the outstanding amount to PayPal.

6a.2. Conditions for the use of Kauf auf Rechnung by Customers

Kauf auf Rechnung may as a general rule be used for transaction amounts between EUR 1.50 and EUR 1,500.00.

PayPal will in its own name perform an identity and credit check on the Customer (“Credit Check”) as soon as the Customer chooses Kauf auf Rechnung. Kauf auf Rechnung shall not be offered to a Customer if the result of the Credit Check has resulted in the ineligibility of the Customer for the intended PayPal Invoice Contract. PayPal has the right to perform this Credit Check at its own standards and to rate Customers as eligible or ineligible for Kauf auf Rechnung. If PayPal determines that a Customer is ineligible for Kauf auf Rechnung, the Customer will immediately be shown a declining message. A PayPal Invoice Contract will not be concluded in this case. The Customer will be reverted back to the payment selection page of the Merchant.

You authorize PayPal to agree upon terms of use with the Customer for Kauf auf Rechnung, which shall define the specific terms of the PayPal Invoice Contract (including, but not limited to late fees for which the Customer is responsible if in default).

To be able to use Kauf auf Rechnung, the Customer is obliged to agree with the Terms of Use for Kauf auf Rechnung, the Privacy Policy for Users without PayPal Account and the information about the Credit Check. These terms may all be retrieved from the PayPal Website at http://www.paypal.de/agb in German and English language for inspection and download.

6a.3. Sale and Assignment of Receivables

The Merchant hereby offers PayPal to purchase all its receivables and rights against the Customer deriving from PayPal Invoice Contracts concluded after the date of introduction including any associated charges (including but not limited to shipping costs) and fees, ancillary rights, quasi-contractual claims, claims based on unjust enrichment and claims in tort(collectively “Assigned Receivables”). PayPal accepts this purchase offer. The Merchant hereby irrevocably assigns the Assigned Receivables to PayPal. PayPal hereby accepts the assignment of the Assigned Receivables.

The assignment of an Assigned Receivable to PayPal shall be effective as soon as the Assigned Receivable comes into existence.

The Merchant is obliged to inform PayPal of the amount of each Assigned Receivable via API call immediately after completion of the order process.

PayPal may resell and assign the Assigned Receivables (e.g. for purposes of collection) without any restrictions.

6a.4. Crediting of Purchase Price; Fees

For Assigned Receivables PayPal shall credit the Merchant an amount (“Purchase Price”) as set out below:

  • The price for the goods or services agreed upon between the Merchant and the Customer plus
  • Charges and fees (e.g. shipping costs) payable by the Customer minus
  • Standard Fees payable by Merchant according to Schedule 1 (Table of Fees) (see clause A3.2. for the use of PayPal PLUS or clauses A1.3.2., A3.1.2. as a Merchant on eBay); PayPal shall not apply a fee for the assignment of Assigned Receivables itself..

The Purchase Price is due immediately after the Customer completes the order process. PayPal shall credit the Merchant’s PayPal Account with an E-Money amount equal to the Purchase Price.

6a.5. Rights of recourse and rescission

PayPal shall not have a right of recourse against the Merchant, if the Customer is not able or willing to pay the Assigned Receivables due in a timely manner (“factoring without recourse”) nor in cases where the Customer commits fraud, e.g. by submitting a false name, address or bank account data. This only applies if the payment has been shown to the Merchant as completed in the Merchant’s PayPal Account.

If a Customer asserts the defense of non-fulfilment of contract (e.g. item not received) or if a Buyer refuses payment by asserting other defenses or objections, PayPal may take recourse with the Merchant unless the Merchant can provide valid proof of shipment in accordance with the terms of the PayPal Seller Protection Policy. In the event the Merchant violates representations or warranties set out in clause 6a.6. the Merchant shall not be eligible for PayPal Seller Protection.

In the event that the Customer disengages from the purchase (including, but not limited to rescinding, canceling, or revoking the purchase), the Merchant shall immediately inform PayPal of such disengagement via an API call or through the PayPal Account of the Merchant by voiding/cancelling the transaction in the Merchant’s PayPal Account, choosing the return option in the Merchant’s PayPal Account, or informing PayPal of the demand for a price reduction, respectively, and by returning the Purchase Price to PayPal via Merchant’s PayPal Account immediately. The same applies mutatis mutandis to partial disengagement (e.g. partial return) or reduction. In such case, the Merchant shall reimburse PayPal for any amounts already overpaid to the Merchant (if any). PayPal shall also reimburse an overpaid amount to the Merchant, if any.

6a.6. Representations and Warranties; Legal Consequences of a Breach

The Merchant hereby represents – irrespective of fault, whether willful or negligent – that the following is true and correct at the time of conclusion of this Agreement, when the assignment becomes effective and at any point in time thereafter for the Assigned Receivables (collectively “Representations”):

  1. The Merchant is the sole and unlimited legal and beneficial owner of the Assigned Receivables;
  2. The Merchant holds the full right to transfer, with full title guarantee, any and all of the Assigned Receivables;
  3. The Assigned Receivables, including all ancillary rights, are valid (with the exception of the Customer fraud as set out above in Section 6a.5);
  4. The Assigned Receivables have not been assigned to any third party, in particular, but without limitation, they are not subject to extended retention of title agreements (in German: verlängerter Eigentumsvorbehalt), floating charges, global assignments (in German: Globalzession) or similar security granted to third parties except for security agreements where the Merchant has been authorized to dispose of the Assigned Receivables as required under this User Agreement;

For the entire term of use of Kauf auf Rechnung (if not stated otherwise hereinafter) the Merchant undertakes the following vis-à-vis PayPal (collectively “Warranties”):

  1. The Merchant shall not autonomously collect payments relating to the Assigned Receivables;
  2. The Merchant shall deliver all products or services underlying any Assigned Receivables in full, without delay and as agreed to the Customer;
  3. The Merchant shall send or render all products or services within 7 days of the completion of a transaction, unless expressly agreed otherwise with PayPal;
  4. The Merchant will notify the Customer of the assignment of the Assigned Receivables to PayPal and provide to the Customer the payment instructions using the data received from PayPal via an API call and shall also include these payment instructions on its invoice to the Customer;
  5. The Merchant shall be in compliance with all requirements set forth in the documentation of the integration provided to the Merchant;
  6. The Merchant shall only enter into PayPal Invoice Contracts for physical goods and not for intangible goods or services, unless these intangible goods or services are in direct relationship with the purchased physical good (such as shipping or assembly costs);
  7. The Merchant shall use its best effort to ensure the validity of the assignment, shall not impair the Assigned Receivables in their existence or their commercial usability, shall ensure the best commercial usability of the Assigned Receivables and shall notify PayPal without undue delay if existence or commercial usability of the Assigned Receivables is considerably impaired;
  8. The Merchant shall not allow the Customer to change his address (invoice or shipping address) or any other of the Customer's data in the online shop or during the order process after the credit check has been performed. To the extent the Merchant engages third parties to ship the goods, the Merchant shall ensure that also such third party shall not allow changes of address or other data;
  9. The Merchant shall upon request by PayPal take such actions necessary or required to ensure the rights of PayPal to the Assigned Receivables or to exercise such rights;
  10. The Merchant shall support PayPal with the performance of debt collection measures regarding the Assigned Receivables by providing to PayPal proof of shipment or other compelling evidence regarding the existence, the value, or effectiveness of the Assigned Receivables;
  11. The Merchant shall pay Value Added Tax (VAT on Assigned Receivables. The Merchant authorizes PayPal to pay VAT to the competent financial authority and to request reimbursement from the Merchant. PayPal is entitled to set-off this reimbursement claim against a Purchase Price claim of the Merchant. PayPal shall notify the Merchant of such set-off. The Merchant shall transfer to PayPal such VAT amounts that have been refunded to the Merchant by the competent financial authority, if PayPal has notified the Merchant that Assigned Receivables are uncollectible. The net invoice amount shall be regarded as base for VAT assessment of a single receivable.
  12. The Merchant shall not grant any right of rescission to its Customers exceeding the applicable statutory right or rescission; this shall not apply if the Merchant sells goods using Kauf auf Rechnung on the German website of eBay at http://www.ebay.de under “eBayGuarantee”. The Merchant can according to the provisions of “eBayGuarantee” grant to its Customers a right of rescission that exceeds the statutory right of rescission;
  13. The Merchant shall grant to its Customers a term of payment as instructed by PayPal.

If the Merchant is in breach of any of the Representations or Warranties herein, the Merchant shall inform PayPal hereof immediately and, if possible, cure such breach without undue delay. PayPal will set an adequate grace period for the cure of the breach to the Merchant. If the Merchant does not cure the breach within the grace period set by PayPal, PayPal shall be entitled to terminate the Merchant’s use of Kauf auf Rechnung. The requirement of a grace period set by PayPal shall not apply, if a cure of the breach is a priori impossible. The Merchant is obliged to indemnify and hold PayPal harmless for any losses or damages that PayPal may suffer as a result of such breach of any Representation or Warranty.

If the Merchant is in breach of a Representation or Warranty and if (and as far as) PayPal has received on an Assigned Receivable an amount as per clause 6a.5 in an amount of the respective Assigned Receivable and if PayPal has terminated the use of Kauf auf Rechnung by the Merchant or in full, PayPal shall reassign the Assigned Receivable to the Merchant as far as legally permissible.

6a.7. Indemnity

Immediately upon completion of the order the Merchant shall notify the Buyer on the confirmation page of the Merchant’s online shop of the assignment and the payment instructions contained in the data provided by PayPal via API call, and also add this data on the invoice to the Buyer.

The Merchant shall act on PayPal’s instructions to take such action as is necessary to preserve or enforce PayPal’s rights in the Assigned Receivables. Further, the Merchant is obliged to support PayPal in its collection efforts of the Assigned Receivables by providing necessary proof of shipment or other documents supporting the existence, value and validity of the Assigned Receivables as the case may be.

The Merchant shall immediately notify PayPal in case of any (partial) returns, rescissions, credits, or cancellations with regard to Kauf auf Rechnung via API call. The Merchant shall also notify PayPal in case of any material or systemic complaints received in relation to Kauf auf Rechnung.

The Merchant shall defend, indemnify and hold harmless PayPal against any claim by any third party including PayPal’s legal expenses: (a) where Claim is due to or arising out of the Merchant’s alleged (i) breach of any Representation, Warranty, or obligation in this User Agreement, (ii) violation of any applicable laws or regulations, or (iii) negligence or misconduct, or (b) where Claim asserts that the Merchant’s technology (whether owned by the Merchant or licensed from a third party) or services provided under and used in accordance with this User Agreement, infringe such third party’s intellectual property rights.

6a.8. Data Protection

Both PayPal and the Merchant agree and acknowledge that both PayPal and the Merchant will each be independently of each other acting as data controllers in respect of personal data processed by each of them. This User Agreement does not establish a basis for jointly exercising data controller powers over the relevant personal data.

Both PayPal and the Merchant undertake to comply with privacy law (as applicable to each of them) and the fulfilment of their respective obligations under this User Agreement and to procure that their respective personnel comply with privacy law.

Both PayPal and the Merchant agree and warrant that neither PayPal nor the Merchant shall knowingly do or omit to do anything in relation to personal data which either knows would put PayPal or the Merchant in breach of its obligations under the privacy law.

Both PayPal and the Merchant must provide such reasonable assistance to the other so that it may comply with such obligations as are imposed on it by the privacy law, including (but not limited to) providing the other with reasonable co-operation and assistance in complying with any request received from an individual for access to copies of personal data relating to them and to fulfil its statutory regulatory obligations in relation to any competent regulator. Any breach of the provisions of this clause shall be notified in writing by the breaching party to the other party as soon as reasonably practicable.

To ensure a smooth flow of the use of Kauf auf Rechnung, the Merchant provides to PayPal in particular name, address and email address of the Customer, goods and services sold, the amount due and other relevant data which will then appear as pre-filled data in the application flow but may be changed by the Customer. The Merchant shall ensure that it obtains all necessary data protection consents from the Customer to allow PayPal to fulfil its duties and exercise its rights under this User Agreement.

6a.9. Termination rights of PayPal

PayPal reserves the right to limit or terminate the use of Kauf auf Rechnung by a Merchant without notice, including without limitation regarding certain products, groups of products or values.

6a.10. Limitation of liability

The liability of PayPal and its agents in connection with Kauf auf Rechnung is excluded for cases of slight negligence. In all other cases the liability of PayPal and its agents is limited to an amount equal to 20.00%  of the total amount of Fees which the Merchant has paid to PayPal in the preceding calendar year for the use of Kauf auf Rechnung. Nothing in this clause shall limit the liability of PayPal for loss of life or limb or health or for a breach of a major obligation or for cases of gross culpability.

Otherwise, the provisions of clause 15.4. shall apply.

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6b. PayPal PLUS

PayPal PLUS is a service providing a Merchant an optimized checkout for its online shop. PayPal PLUS includes the payment methods PayPal Services, credit card, and electronic direct debit, and Kauf auf Rechnung, as well as up to 5 third-party providers of payment methods which may be integrated into the PayPal PLUS checkout. PayPal PLUS also enables such Payers who do not hold a PayPal Account to process payments to the merchant using PayPal PLUS.

Payments received via PayPal PLUS will be credited to the PayPal Account of the Merchant as E-Money, irrespective of the payment instrument being used by the payer for payment in an individual case.

PayPal PLUS is only available to eligible Merchants and upon prior application by the Merchant. Eligibility is at PayPal’s sole discretion and takes numerous variables into account. Eligibility for PayPal PLUS does expressly not include eligibility for Kauf auf Rechnung

Kauf auf Rechnung shall only be provided subject to a prior risk check of the Merchant. The criteria of this risk check shall be in the sole discretion of PayPal.

Payments received via PayPal PLUS in the PayPal Account of the Merchant are deemed paid with PayPal as set forth in this User Agreement (see Section 6a.).

For receiving payments via PayPal PLUS Fees as set out in clause A.3 of Schedule 1 (Table of Fees) shall apply. 

 

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6c. Payment after 14 Days

6c.1. Eligibility

PayPal offers the possibility to some consumers to use “Payment after 14 Days” (in German: “Bezahlung nach 14 Tagen”). PayPal however reserves the right to decide whether you may use ”Payment after 14 Days” Eligibility criteria include but are not limited to transaction activity. You are therefore not entitled to claim the right to use “Payment after 14 Days”. ”Payment after 14 Days” is not available for commercial use.

6c.2. How “Payment after 14 Days” works

When you do a payment with ”Payment after 14 Days”, the recipient (merchant) will receive the transaction amount immediately in his PayPal account. We will initiate the direct debit from your bank account via direct debit no sooner than at least 14 days from the date of the transaction. 

6c.3. Direct debit

In order to use ”Payment after 14 Days”, you must have a valid bank account linked with your PayPal Account, and identified it as your primary bank account or preferred funding source or selected the bank account as Funding Source in the payment process. ”Payment after 14 Days” may not be used with other funding sources such as for example credit card. The entire transaction amount will be funded from the primary bank account linked to your PayPal Account, even if you have a balance in this PayPal Account.

For each payment using ”Payment after 14 Days”, you authorize PayPal to debit the primary bank account for the full payment amount no sooner than at least 14 days after the transaction date. The exact date, on which we will initiate the direct debit from your bank account, is going to be displayed in your PayPal Account statement and in an email which is sent to you.

If the initial direct debit is rejected or if insufficient funds are available, you authorize PayPal to resubmit the instruction for a direct debit. If the second debit fails as well, PayPal may use one of the other existing funding sources to obtain the transaction amount. The hierarchy of Funding Sources as defined in clause 3.7. applies.

6c.4. Choice of funding source

If you have chosen to use "Payment after 14 Days" for a transaction, we will debit the entire transaction amount from your bank account also if your Balance covers the transaction amount.  The use of gift vouchers or other Special Funding Arrangements (as defined in clause 3.5.) is excluded when using "Payment after 14 Days".

However, even when you have registered for “Payment after 14 Days”, you may choose a different Funding Source for each transaction. That means that you may decide for each transaction whether you want to use ”Payment after 14 Days” or another available Funding Source such as credit card, Balance or direct debit without the functionality ”Payment after 14 Days”.

6c.5. Availability, suspension, and termination of “Payment after 14 Days” by PayPal

In some instances, “Payment after 14 days” will not be available for single transactions even though you are generally eligible for “Payment after 14 days”.

PayPal has the right, at any time, to terminate, cancel, suspend or modify ”Payment after 14 Days”, qualifications or eligibility for ”Payment after 14 Days”, or your ability to use ”Payment after 14 Days”. Transaction which you have already initiated will still be performed.

6c.6. Customer Verification

You can use ”Payment after 14 Days” for purchases up to EUR 15,000.00 and above. However, once you have made purchases totaling EUR 15,000.00 or more, you will be asked to confirm some information about your identity. Upon successful completion of the identity check you can continue using ”Payment after 14 Days”. 
 

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7. Term and Closing Your PayPal Account

Your  Agreement with us starts when you successfully register for a PayPal Account and ends when your Account is closed for whatever reason, except that this Agreement survives termination to the extent and for so long as we require to deal with the closure of your Account and to comply with applicable laws and regulations (including, without limitation Sections 1., 7., 8., 10., 14., 15., and Schedule 1 (Table of Fees)).

You can close your PayPal Account at any time by logging into your PayPal Account, clicking on the "Profile" tab, clicking on the ”Close Account“ link, and then following the instructions. See the PayPal Help Center for more details.

We may close your PayPal Account at our convenience by providing you with 2 months prior notice. We may also close your PayPal Account at any time where:

  • You are in breach of the terms of this User Agreement and/or we are entitled to close your PayPal Account under clause 10.2.;
  • You do not access your PayPal Account for 3 years; or
  • We suspect that your PayPal Account has been accessed without your authorization.

Where we decide to close your PayPal Account we will provide you with notice of PayPal Account closure, and where practicable, the reasons for closing your PayPal Account, together with the ability to withdraw any undisputed funds that we are holding.

When your PayPal Account is closed:

  • We may cancel any pending transactions and you will forfeit any Balances associated with Special Funding Arrangements;
  • We may suspend, limit or terminate your access to or use of the PayPal Services, websites, software, systems (including any networks and servers used to provide any of the PayPal Services) operated by us or on our behalf or some or all of the PayPal Services;
  • You will remain liable for all outstanding obligations under this User Agreement related to your PayPal Account prior to closure;
  • We may keep your PayPal Account information in our database for the purpose of fulfilling our legal obligations; and
  • We may retain your Balance after closure to the extent and for the time we reasonably require to protect PayPal and/or any third party against the risk of Reversals, Chargebacks, Claims, fees, fines, penalties and other liabilities of whatever nature.  After this time you will be able to withdraw any undisputed funds that we are holding.  Please contact PayPal Customer Service if you have any questions about funds held in your PayPal Account on closure.

If you are the legal representative of an incapacitated or deceased Account holder, please contact the PayPal Customer Service for assistance.

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8. Fees and Currency Conversion

8.1. Fees

Fees for Users registered in Germany are specified in Schedule 1 (Table of Fees) below, which is an integral part of this User Agreement. For Users with a PayPal Account registered in a country or region which is not Germany, then for the avoidance of doubt, those Users will be liable to PayPal for the Fees as set out in the terms of the User Agreement relevant to that other country or region or as set out in the Table of Fees for that other county or region.

If other Fees apply for services or functionalities not referred to in Schedule 1 (Table of Fees) below, you will be notified of those Fees on the PayPal Website(s) where those other services or functionalities are offered or provided.

8.2. Currency Conversion

If a transaction involves a currency conversion by PayPal, it will be converted at the exchange rate we set for the relevant currency exchange. This is the "Base Exchange Rate".

The Base Exchange Rate is based on rates available in the wholesale currency markets, or if required by law or regulation, at the relevant government reference rate(s), on the conversion date or the prior business day.

We then add a Currency Conversion Fee (as set out in clause A3.1.1. of Schedule 1 (Table of Fees)) to the Base Exchange Rate to form the final foreign exchange rate applied to your transaction. In some cases (see clauses 4.7. and 4.8.) this final foreign exchange rate may be applied immediately and without notice to you. .

The “Currency Converter” tool can be accessed through your PayPal Account and used to see what exchange rates (with the Currency Conversion Fee already applied) apply for certain currency exchanges at the time you use the tool.

Where a currency conversion is offered by PayPal at the point of sale, you will be shown the exchange rate that will be applied to the transaction before you proceed with your Authorization of the payment transaction. By proceeding with your Authorization of the payment transaction you are agreeing to the currency conversion on the basis of such exchange rate. You may opt out of a currency conversion by PayPal before you complete your payment by selecting “Other Conversion options” on the “Review Your Information” page during checkout.

Where a currency conversion is offered at the point of sale by the Merchant, not by PayPal, and you choose to Authorize the payment transaction on the basis of the Merchant's exchange rate and charges, PayPal has no liability to you for such currency conversion by a Merchant.

Where your payment is funded by credit card and involves a currency conversion, by entering into this User Agreement you consent to and Authorize PayPal to convert the currency in place of your credit card issuer.

Where transactions are funded with direct debit, we will, unless we have a special agreement with you, always debit your bank account in euros (EUR) and, if required for the transaction, offer a currency conversion.

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9. Restricted Activities

 

9.1. Restricted Activities

In connection with your use of the PayPal Website(s), your PayPal Account, or the PayPal Services, or in the course of your interactions with PayPal, a User or a third party, you will not:

9.1.1. Breach this User Agreement (including, without limitation, opening multiple PayPal Accounts), the Commercial Entity Agreement, the PayPal Acceptable Use Policy or any other agreement that you have entered into with PayPal (including a policy);

9.1.2. Breach any law, statute, contract, or regulation (for example, those governing financial services including anti-money laundering, consumer protections, unfair competition, anti-discrimination or false advertising);

9.1.3. Infringe PayPal’s or any third party's copyright, patent, trademark, trade secret or other intellectual property rights, or rights of publicity or privacy;

9.1.4. Act in a manner that is obscene, defamatory, libelous, threatening or harassing;

9.1.5. Provide false, inaccurate or misleading Information;

9.1.6. Fail to provide us with further information about you or your business activities that we may reasonably request;

9.1.7. Send or receive what we reasonably believe to be potentially fraudulent or unauthorized funds;

9.1.8. Refuse to cooperate in an investigation or provide confirmation of your identity or any Information you provide to us;

9.1.9. Attempt to "double dip" or undertake any action which could amount to unjust enrichment during the course of a Dispute by receiving or attempting to receive funds from both PayPal and the Seller, bank, or credit card company for the same transaction;

9.1.10. Use an anonymizing proxy. whether electronically, physically (e.g. using a P.O. box as your address) or otherwise;

9.1.11. Control a PayPal Account that is linked to another PayPal Account that has engaged in any of these Restricted Activities. A PayPal Account is deemed to be “linked” to another PayPal Account for the purpose of this clause 9.1.11. where PayPal has reason to believe that both PayPal Accounts are controlled by the same legal personality or group of legal personalities (including, without limitation, individuals), which is more likely when both PayPal Accounts share certain attributes, including, without limitation, the same recorded user name, email address, funding source (e.g. bank account) and/or recorded ID used to receive services from partners of PayPal (such as an eBay ID);

9.1.12. Surcharge for the use of the PayPal Services (see clause 5.5. above);

9.1.13. Conduct your business or use the PayPal Services in a manner that results in or may result in complaints, Disputes, Claims, Reversals, Chargebacks, Fees, fines, penalties and other liability to PayPal, a User, a third party, or you;

9.1.14. Abuse (as either a Buyer or Seller) of our Online Dispute Resolution process and/or the PayPal Buyer Protection Policy;

9.1.15. Cause PayPal to receive a disproportionate number of Claims that have been closed in favor of the claimant regarding your PayPal Account or business;

9.1.16. Have a credit score from a credit reporting agency that indicates a high level of risk associated with your use of the PayPal Services;

9.1.17. Use your Account or the PayPal Services in a manner that PayPal, Visa, MasterCard, American Express, or our bank acquirer and/or payment processors reasonably believe to be an abuse of the bank’s reversal process, credit card system or a violation of credit card association rules;

9.1.18. Allow your PayPal Account to have a Balance reflecting an amount owing to us;

9.1.19. Undertake an activity that does or may present to us a credit or fraud risk, a sudden increase in exposure, or a significant or otherwise detrimental level of exposure (as PayPal reasonably believes based on the information available to it);

9.1.20. Use a credit card with your PayPal Account to provide yourself a cash advance (or help others to do so);

9.1.21. Access the PayPal Services from a country that is not included on PayPal's Worldwide page;

9.1.22. Disclose or distribute another User’s Information to a third party, or use the Information for marketing purposes unless you receive the User’s express consent to do so;

9.1.23. Send unsolicited e-mail to a User or use the PayPal Services to collect payments for sending, or assisting in sending, unsolicited e-mail to third parties;

9.1.24. Take any action that imposes an unreasonable or disproportionately large load on the Services, our infrastructure, our websites, our software, or our systems (including any networks and servers used to provide any of the Service) whether operated by us or on our behalf;

9.1.25. Facilitate any viruses, Trojan horses, malware, worms or other computer programming routines that attempt to or may damage, disrupt, corrupt, misuse, detrimentally interfere with, surreptitiously intercept or expropriate or gain unauthorized access to any system, data or Information or the Services;

9.1.26. Use any robot, spider, other automatic device, or manual process to monitor or copy our website without our prior written permission;

9.1.27. Use any device, software or routine to bypass our robot exclusion headers, or interfere or disrupt or attempt to interfere with or disrupt the PayPal Website(s), software, systems (including any networks and serves used to provide any of the PayPal Services) operated by us or on our behalf, any of the PayPal Services or other Users’ use of any of the PayPal Services;

9.1.28. Copy, reproduce, communicate to any third party, alter, modify, create derivative works, publicly display or frame any content from the PayPal Website(s) without our or any applicable third party’s written consent;

9.1.29. Take any action that may cause us to lose any of the services from our internet service providers, payment processors, or other suppliers or service providers;

9.1.30. Use the PayPal Services to test credit card behaviors;

9.1.31. Reveal your PayPal Account password(s) to anyone else, nor may you use anyone else's password;

9.1.32. Do, or omit to do, or attempt to do or omit to do, any other act or thing which may interfere with the proper operation of the PayPal Services or activities carried out as part of the PayPal Services or otherwise than in accordance with the terms of this User Agreement; 

9.1.33. Integrate the PayPal Services as payment method in a way which makes it impossible for a customer to identify whether he or she is on PayPal Website(s) (Example: iFraming, the URL is not visible for the User) or integrate or use any of the PayPal Services without fully complying with all mandatory requirements communicated to you by way of any integration or programmers guide or other documentation. You agree that engaging in the above Restricted Activities diminishes your or other PayPal Users’ safe access and/or use of your Payment Instrument, PayPal Account or the PayPal Services generally; or

9.1.34. Allow your use of the PayPal Services to present to PayPal or to our banking partners a risk of non-compliance with their respective anti-money laundering, counter terrorist financing and similar regulatory obligations (including, without limitation, where we cannot verify your identity or you fail to complete the steps to lift your sending, receiving or withdrawal limit in accordance with clauses 4.5., 5.1. and 6.3., or where you expose PayPal to the risk of any regulatory fines by European, US or other authorities for processing your transactions);

9.1.35. Integrate or use any of the PayPal Services without fully complying with all mandatory requirements communicated to you by way of any integration or programmers’ guide or other documentation issued by PayPal from time to time;

9.1.36. Make excessive use of the Authorization to collect funds given to you by the Buyer (e.g. when using location-based services);

9.1.37. Suffer (or cause us to determine 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.

You agree that engaging in the above Restricted Activities diminishes your or other PayPal customers' safe access and/or use of your Payment Instrument, PayPal Account or the PayPal Services in general.

9.2. Keeping your Payment Instrument Safe

You agree to perform the following actions to keep your Payment Instrument safe:

  1. Not engage in any of the Restricted Activities;
  2. Keep the details of your Funding Sources, password, and PIN safe;
  3. Not allow anyone else to have or use your Funding Source, password or PIN details;
  4. Not disclose the details of your Funding Sources, password, or PIN except when using the PayPal Services;
  5. Never write your password or PIN in a way that can be understood by someone else;
  6. Not choose a password or PIN that is made more memorable to you such as a sequence of letters or numbers that may be easy to guess;
  7. Take care to make sure that no one sees your password or PIN when you use it;
  8. Ensure you are logged out of all payment-relevant applications on your device when you do not use it to access the PayPal Services and/or when others could access it (e.g. where you share your device with others or use your device through unsecured public Internet connections such as in typical public “free-WiFi” areas);
  9. Refrain from using any functionality that saves or stores your password or PIN on your access device;
  10. Comply with all reasonable instructions we may issue regarding how you can keep your Payment Instrument safe;
  11. Keep your personal details in your PayPal Account up to date. We may be unable to respond to you if you contact us about your PayPal Account from an address, telephone number or e-mail account that is not registered with us, and;
  12. Take all reasonable steps to protect the security of the personal electronic device through which you access the PayPal Services (including, without limitation, using PIN and/or password protected personally configured device functionality to access the PayPal Services). If you lose your device you must inform us immediately and delete your device from the settings in your PayPal Account.

9.3. Restricted Activities and Permissions.

Nothing in this Section 9. prevents you from permitting third parties to take certain actions of your behalf as outlined in clause 15.9. in compliance with the conditions of their license and applicable law.

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10. Your Liability - Actions We May Take

PayPal offers the PayPal Services to payment recipients to facilitate payments from Buyers to payment recipient in payment recipient’s commerce. Additionally, PayPal offers Buyer Protection to Buyers. To be able to offer such services to payment recipients while maintaining the security and integrity of the payment system as required by law, PayPal establishes the following system:

  • If transactions become subject to Claims and Disputes and Seller is not protected by Seller Protection, payment recipients might have to reimburse PayPal (see clause 10.1.);
  • High-risk transactions (criteria see clause 10.5.) may be subject to Payment Holds (see clause 10.5.) or Reserves (see clause 10.4.).

10.1. Your Liability

10.1.1. Failed Direct Debit; Accidental or Unjustified Debit Return

In case of reversals, as well as all related fees and other cost, you are accountable as a Buyer in case that your bank account shows an insufficient balance or in case that you have provided incorrect bank account information (“Failed Direct Debit”), in case you have initiated the reversal although you have initiated the respective PayPal payment, or accidentally (“Accidental Or Unjustified Debit Return”). 

In case of credit card Chargebacks, you are accountable as a Buyer for all related fees and other cost in case that you have initiated the credit card Chargeback accidentally or you have initiated the Chargeback without due reason under your credit card rule. 

You agree to reimburse PayPal, a User, or a third party for any and all such liability. You still have the right to make a Claim, if applicable, under the terms of the PayPal Seller Protection Policy and PayPal Buyer Protection Policy.

10.1.2. Liability for PayPal Buyer Protection Claims and Buyer Complaint Policy Claims

You accept PayPal’s final decision in respect to Claims filed in accordance with the PayPal Buyer Protection Policy and the PayPal Seller Protection Policy. If PayPal makes a final decision in accordance with the PayPal Buyer Protection Policy and the PayPal Seller Protection Policy that you lose a Claim filed directly with PayPal, you will be required to reimburse PayPal for your liability, which will include the full purchase price of the item and original postage costs (and in some cases, you may not receive the item back) as well as fees that occurred PayPal in respect to credit card Chargebacks if the Buyer has initiated a credit card Chargeback. Please see the PayPal Buyer Protection Policy for details on how PayPal Buyer Protection may affect you as a Seller.

10.1.3. Reimbursement for Claims, disputes, or other amounts

In the event you are liable for any amounts owed to PayPal, PayPal may immediately remove such amounts from your Balance (if available). If there are insufficient funds in your Balance to cover your liability, PayPal reserves the right to collect your debt to PayPal by using any payments received in your Account and otherwise you agree to reimburse PayPal through other means. PayPal may also recover amounts you owe us through legal means, including, without limitation, through the use of a debt collection agency.

10.1.4. Temporary Holds for Disputed Transactions on Seller Accounts

If a Buyer files a Claim, Chargeback, or Reversal on a payment you received, or a Payment Hold pursuant to clause 10.5a. is placed, PayPal will place a temporary hold on the funds in your PayPal Account to cover the full amount in dispute. A hold placed under this provision will not restrict your use of the Account with regard to funds other than those disputed or at risk under the Claim, Chargeback, or Reversal. If you win a Dispute or if the payment is eligible for a payment under the terms of the PayPal Seller Protection Policy, we will release the hold and restore your access to the funds. If you lose the Dispute, PayPal will remove the applicable funds, including fees related to credit card Chargebacks, from your PayPal Account.

This process also applies to Claims that a Buyer files against you with eBay through the eBay resolution process, provided that you have authorized eBay to use your PayPal Account to pay amounts you owe to eBay or to the buyer (as the case may be) under the terms of the eBay resolution process (“eBay Due Amounts”) and eBay has notified us of the Claim. To the extent that the above provisions are met, you authorize and instruct PayPal to process payments of all and any eBay Due Amounts from your PayPal Account to eBay or to the buyer (as the case may be) according to eBay’s instructions to PayPal, but you agree that PayPal may treat your authorization and instruction for the payment of any given eBay Due Amount as cancelled and PayPal shall not be obliged to complete such payment if PayPal (in its sole discretion) decides that the claim would have been determined in your favor had it been filed as a Claim with PayPal. You may also cancel this authorization and instruction by contacting the PayPal Customer Service. All claims filed directly with eBay are governed by eBay policy only. The terms of the PayPal Seller Protection Policy do not cover sellers in respect of claims filed by buyers directly with eBay.

10.2. Actions by PayPal

If we have reason to believe that you have engaged in any Restricted Activities as set out in Section 9., we may take various actions to protect PayPal, a User, a third party, or you from any liability as set out in clause 10.1. The actions we may take include, but are not limited to the following:

10.2.1. We may, at any time and without liability, suspend, block, limit, close or cancel your right to use your Payment Instrument or PayPal Account entirely or for any particular transaction, which may in turn suspend, block, limit, close or cancel access to your Account or the PayPal Services (such as limiting access to any of your Funding Sources, and your ability to send money, make withdrawals, or remove financial Information). We will normally give you advance notice of any suspension or cancellation but we may, if it is reasonable to do so (for example if you are in breach of this Agreement or we consider it advisable for security reasons), suspend or cancel your right to use your Payment Instrument or PayPal Account without prior notice to you;

10.2.2. Block your Account and/or hold any funds in the Reserve Account (including, without limitation, for more than 180 days if so required by PayPal, where PayPal’s rights under clause 10.2. arise from your engagement in the Restricted Activity set out in clause 9.1.33.);

10.2.3. Refuse any particular payment transaction at any time for any reason and will only be required to make available the fact of the refusal and the reasons for the refusal and how you may resolve the problem, where possible, upon request and provided it is not prohibited by law;

10.2.4. We may reverse a payment (including, if appropriate, to the Payer’s Funding Source), that violates the PayPal Acceptable Use Policy, or Section 9., or which we reasonably suspect of violating the PayPal Acceptable Use Policy or Section 9.;

10.2.5. We may contact third parties and disclose details of the Restricted Activities in the manner set out in our Privacy Policy;

10.2.6. We may request information from you or otherwise update inaccurate Information you provided us;

10.2.7. We may refuse to provide the PayPal Services to you in the future;

10.2.8. We may hold your funds to the extent and for so long as reasonably needed to protect against the risk of liability. You acknowledge that, as a non-exhaustive guide:

10.2.8.1. PayPal’s risk of liability in respect of card-funded payments that you receive can last until the risk of a Chargeback closing in favor of the Payer/Buyer (as determined by card scheme rules) has passed. This depends on certain factors, including, without limitation:

10.2.8.1.1. The type of goods or services for which you receive payment; or

10.2.8.1.2. The timeframe for delivery of the goods or performance of the goods or services for which you receive payment (e.g. sales of event tickets months in advance of the event date can present a higher and more enduring risk of Chargebacks than sales of most other goods or services);

10.2.8.2. PayPal’s risk of liability in respect of a Claim or Dispute arising from a payment that you receive can last for the time that it takes for the parties to close the Claim or Dispute and all appeals associated with that Claim or Dispute in accordance with Section 13 of this User Agreement; 

10.2.8.3. PayPal’s risk of liability in respect of any event of insolvency that you suffer can last for as long as and to the extent that laws applicable to your insolvency restrict PayPal from taking legal action against you; and

10.2.8.4. If you allow your PayPal Account to have a Balance reflecting an amount owing to PayPal, PayPal’s risk of liability can last for the time and to the extent that you owe that amount to PayPal;

10.2.9. We may request information or documents from you in order to verify your identity and/or in regards to the goods or services you provided based on a transaction;

10.2.10. We may suspend your eligibility for PayPal Seller Protection and/or PayPal Buyer Protection (including in retrospect);

10.2.11. We may suspend, limit, or terminate your access to the PayPal Services, websites, software, systems (including any networks and serves used to provide any of the PayPal Services) operated by us or on our behalf, and your data.

Unless otherwise directed by us, you must not use or attempt to use your Payment Instrument or PayPal Account while it is suspended or has been closed. You must ensure that all agreements with Merchants or other third parties that involve third party initiated payments (including Pre-approved Payments) set up from your PayPal Account are cancelled immediately upon the termination, suspension or closure of your PayPal Account. You remain liable under this User Agreement in respect of all charges and other amounts incurred through the use of your PayPal Account at any time, irrespective of termination, suspension or closure.

10.3. Limited Access

If we suspect that your PayPal Account has been accessed without your authorization, we may also suspend, or limit, your access to your PayPal Account or the PayPal Services (such as limiting access to any of your Funding Sources, and your ability to send money, make withdrawals, or remove financial Information).

If we limit access to your PayPal Account, we will provide you with notice and opportunity to request restoration of access if appropriate.

10.4. Reserves

PayPal may place a Reserve on funds held in your PayPal Account.

This may be the case when PayPal reasonably believes (based on the information available to PayPal at the time of taking the Reserve and what in its sole discretion it regards as an acceptable level of risk to PayPal under all the circumstances) there may be a higher than acceptable level of risk associated with your Account, including payment losses pursuant to clause 10.1., your financial situation and the criteria listed in clause 10.5.1.

This means: If PayPal places a Reserve on funds in your Account, the funds will be held in your Reserve Account and those funds will be shown as "Pending" in your Balance. You may not have direct access to the funds held.

If your PayPal Account is subject to a Reserve, PayPal may either hold a certain percentage of the amounts received into your PayPal Account for a certain period of time (“Dynamic Reserve”) or hold a fixed amount for a certain period of time in your PayPal Account (“Minimum Reserve”).

The terms are based on what we deem necessary to protect against the risk associated with your PayPal Account. PayPal may change the terms of the Reserve at any time by providing you with notice of the new terms. You may close your PayPal Account if you object to the Reserve. If your PayPal Account is closed for any reason, we have the right to hold the Reserve according to Section 7. for a period not longer than necessary.

When managing risk for PayPal Accounts, we may also take the following measures in regards to withdrawing funds from your PayPal Account to your bank account:

  • Limit the amount you can immediately withdraw,
  • Change the speed or the method of payment for withdrawals,
  • Set-off amounts from your Balance and/or require that you, or a person associated with you, enter into other forms of security arrangements with us (for example, by providing a guarantee or requiring you to deposit funds with us as security for your obligations to us or third parties). You also agree to undertake, at your own expense, any further action (including, without limitation, executing any necessary documents and registering any form of document reasonably required by us to allow us to perfect any form of security interest or otherwise) required to establish a Reserve or other form of security in a manner reasonably determined by us.

10.5. Payment Hold 
You agree that, if you receive a payment that involves, according to PayPal’s internal risk model, a risk according to the below criteria, PayPal may place a hold on that or any related payment. PayPal will not hold the payment for any longer than necessary and will assess on a regular basis whether any of the identified risk factors continue to apply to the Account. Once the identified risk factors cease to apply, we will release the payment accordingly; 

PayPal applies payment holds in order to maintain the security and integrity of the PayPal Services. This includes holds in order to minimize suspicion of unlawful activity, fraud risk and compliance issues in relation to the transaction and to protect all users of the service and ourselves from misuse of the PayPal Services and from losses resulting from payment risks pursuant to clause 10.1. 
The following relevant criteria is used to assess the risk, as may be the case, alone or together with other criteria:

10.5.1. The transaction is deemed higher risk because the transaction involves the sale of goods or services in a high risk category, or other facts known to us typically resulting in an increased number of Chargebacks, other Claims or Disputes or to be often involved in fraud or illegal activity;

10.5.2. There is a sudden and abnormal change in a PayPal Account holder’s selling activity including an increase in the number of Chargebacks, Reversals, or Buyer complaints received in relation to such PayPal Account;

10.5.3. We have the reasonable suspicion that a Buyer’s Payment Instrument and/or Account are being used in relation to Restricted Activities (as set out in Section 9.);

10.5.4. We have reason to believe that a PayPal Account involved in the transaction may have been compromised, or that stolen financial details (bank or credit card) are used for the payment, or otherwise a transaction has not been properly authorized;

10.5.5. We have reason to believe that a User is trying to send or withdraw funds they received fraudulently;

10.5.6. A user has not provided sufficient Information to us to enable us to verify their identity or the identity of their business and/or the user has a limited trading history with PayPal or eBay;

10.5.7. With regards to Kauf auf Rechnung, PayPal may temporarily retain a payment to you as long as it is unclear, whether or not articles have been shipped, arrived at the Buyer or have been wrongly marked as shipped;

You acknowledge and agree that any payments held under this clause 10.5. may be placed in your Reserve Account and that you will provide to PayPal any information as PayPal may reasonably request to allow PayPal to determine whether the risk has passed.

 

10.6. eBay Item Hold

You agree that if PayPal, in its sole discretion, believes that a payment you receive for an eBay transaction may involve a high level of risk, that the amount may be held in your Reserve Account until we determine, in our reasonable discretion, that any such risk has passed. If the funds are held in your Reserve Account, it may show as "Pending" in your PayPal Account.

PayPal will release the eBay item hold and make funds available in your PayPal Account after 21 days unless you receive a Dispute, Claim, Chargeback, or Reversal on the transaction subject to the hold. PayPal may release the hold earlier if the Buyer leaves positive feedback on eBay. 

If you receive a Dispute, Claim, Chargeback, or Reversal on the transaction subject to the eBay item hold, the funds may be held in your Reserve Account (or an amount equal to the relevant payment) until the matter is resolved pursuant to this User Agreement.

10.7. Information About You

10.7.1 Request Additional Information 
PayPal reserves the right to request additional Information from you, other than what is referred to in this Agreement, to allow it to comply with its anti-money laundering obligations. You agree to comply with any request for further Information as we reasonably require in order to enable us to comply with our anti-money laundering obligations; this may include, without limitation, requiring you to fax, e-mail or otherwise provide to us certain identification documents. You also agree to provide us, upon our reasonable request and at your own expense, Information about your finance and operations, including, without limitation, your most recent financial statements (certified or otherwise) and merchant processing statements (if applicable).

10.7.2 Getting Verified 
To obtain Verified status you must set up Direct Debit and complete the Bank Confirmation process. 
PayPal may, from time to time, make available to you other methods or procedures for you to obtain “Verified” status. By highlighting a User as “Verified” PayPal only represents that the Verified user has completed the steps of the process to obtain “Verified” status. PayPal neither guarantees, undertakes nor otherwise represents that a Verified user will complete a payment transaction.

10.8. Disclosure of Reasons for Our Actions

Our decisions to take the actions set out in this Section 10. and any other actions we take under this User Agreement, whether they restrict or extend your access to the PayPal Services, our infrastructure, our websites, our software or our systems (including any networks and servers used to provide any of the PayPal Services) whether operated by us or on our behalf (including, without limitation, any blockages, limitations, suspensions, terminations, holds and reserves) may be based on confidential criteria that are essential to our management of risk and the protection of PayPal, our customers and/or service providers.  In addition, we may be restricted by regulation or a governmental authority from disclosing certain information to you about such decisions.  We have no obligation to disclose the details of our risk management or security procedures or our confidential information to you.

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11. Seller Protection Policy

PayPal offers Seller Protection based on the PayPal Seller Protection Policy. The PayPal Seller Protection Policy is part of this User Agreement.

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12. Errors and Unauthorized Transactions

12.1. Identifying Errors and/or Unauthorized Transactions

You can inspect your transaction history at any time by logging in to your PayPal Account on the PayPal Website(s). It is very important that you immediately notify PayPal if you have reason to believe any of the following activities have occurred:

  1. There has been an unauthorized transaction sent from your PayPal Account;
  2. There has been unauthorized access to your PayPal Account;
  3. Your password or your PIN has been compromised;
  4. Any Device you have used to access the PayPal Services has been lost, stolen, or deactivated, or
  5. Someone has transferred or may transfer money from your PayPal Account without your permission this includes where you link your Account with a third party platform (including a site or app) to initiate payments via that platform, but a payment was made from your Account for a transaction via that platform that you did not make).

These cases are collectively called "Improper Account Access". You must also immediately notify us if you have reason to believe that any other error has occurred on your Account.

In order for you to notify PayPal immediately of any of the above events, we strongly recommend that you monitor your PayPal Account closely on a regular basis. We will not seek to hold you liable for any unauthorized use of your PayPal Account by any person provided that we are satisfied that you have not acted deliberately or grossly negligent so as to enable any third person to gain access to your PayPal ID and/or password/PIN or to your device while you are logged in with PayPal.

12.2. Notifying PayPal of Errors, Unauthorized Transactions and/or misappropriated or unauthorized use of your Payment Instrument

You must notify us if you believe there has been or will be an error, unauthorized transaction, misappropriated or unauthorized use of your Payment Instrument or your PayPal Account:

  • Call our Customer Service. You will find the service phone number on the "Contact us" page;
  • Complete this report form on the PayPal Website(s);
  • Send a letter to the Error Resolution Department (address below).

If you initially provide information to us via the telephone, we may require that you send your query in writing within 10 Business Days after the phone contact.

Please complete the affidavit form and submit it online or mail it to

PayPal (Europe) S.à r.l. et Cie, S.C.A.

Error Resolution Department

22-24 Boulevard Royal

2449 Luxembourg

Luxembourg.

You must give us all the information in your possession as to the circumstances of any errors, unauthorized transactions and/or misappropriated or unauthorized use of your Payment Instrument or PayPal Account and take all reasonable steps requested to assist PayPal in its investigation.

12.3. Review of Reports of Errors

Without prejudice to your statutory rights, we will advise you of the results of our investigation within 20 Business Days after we receive your notice. If we have made an error, we will correct it promptly.

If we need more time, however, we may take up to 60 Business Days to investigate your query. If we decide that we need more time, we may provisionally re-credit your Account for the amount you think is in error within 10 Business Days after we receive your notice; so that you will have use of the E-Money during the time it takes us to complete our investigation.

If you initially provided information to us via the telephone and we do not receive your query in writing within 10 Business Days after your oral notice, we will not provisionally re-credit your PayPal Account.

At the end of our investigation, we will advise you of the results within 3 Business Days. If we determine that there was no error, we will send you a written explanation and we may debit any provisional credit that we previously credited to you in relation to the alleged error. You may ask for copies of the documents that we used in our investigation.

12.4. Liability for Unauthorized Transactions

Without prejudice to your statutory rights, if you report that there has been an Improper Account Access related to your PayPal Account, and there is no evidence to suggest fraud or deliberate or grossly negligent behavior by you, we will reimburse you in full for all unauthorized transactions sent from your PayPal Account.

We shall do so provided that you have informed us of the Improper Account Access without undue delay and in any event, no later than 13 months after the first transaction arising from that Improper Account Access was executed. Where we believe in our reasonable opinion that further investigation is required to ascertain more clearly the circumstances surrounding the reported Improper Account Access, we will follow the same process as set out in clause 12.3. above for such investigation.

12.5. Entitlement to a refund

You are entitled to a refund of the full amount of any payment transaction executed under an Authorization, provided the conditions applicable to a refund according to clause 4.8. have been met:

12.6. Errors

If we discover a processing error, we will rectify the error.

If the error resulted in you receiving less money than you were entitled to, PayPal will credit your PayPal Account for the difference.

If a payment was made to your Funding Source by way of mistake, PayPal may correct the mistake by debiting or crediting (as the case may be) your appropriate Funding Source(s).

If the error resulted in our not completing a transaction on time or in the correct amount, we will be liable to refund any amount as a result of carrying out a defective or non-executed payment transaction and for your losses or damages directly and reasonably foreseeably caused by this failure, unless:

  1. Through no fault of ours, you did not have enough available funds to complete the transaction,
  2. Our system was not working properly and you knew about the breakdown when you started the transaction,
  3. Circumstances beyond our control (such as fire or flood or loss of Internet connection) prevented the transaction, despite our reasonable precautions.

Notwithstanding any other provision of this User Agreement, PayPal will not be held liable for the non-execution or defective execution of a payment transaction (whether initiated by yourself or another User) if you have failed to notify PayPal of such an incorrectly executed payment transaction without undue delay, or in any event no later than within 13 months after the debit date, on becoming aware of such incorrectly executed payment transaction.

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13. PayPal Buyer Protection

13.1. Purchase

PayPal offers Buyer protection subject to the rules of the PayPal Buyer Protection Policy, which is a service offered for purchases paid with PayPal. The PayPal Buyer Protection Policy is herewith made a part of the present User Agreement.

13.2. Responsibility of the payment recipient

If PayPal decides in the Buyer’s favor, the payment recipient will be liable to PayPal. This includes, without limitation, where a Buyer with a registered PayPal account outside of Germany files a Claim that is covered under the applicable PayPal Buyer Protection Policy of the Buyer’s place of registration.

If PayPal decides in the Buyer’s favor, PayPal will collect the disputed amount from the payment recipient’s Balance at that time and refund the Buyer; this may depend upon the payment recipient having sufficient funds in their Balance. If the payment recipient has no sufficient Balance in its PayPal Account, PayPal may limit the payment recipient’s PayPal Account. The Buyer has no legal right to demand this from PayPal. This shall not limit in any way the liability of the payment recipient pursuant to clause 10.1.

13.3. Assignment of rights

If PayPal pays out a Claim, Reversal, or Chargeback that you file against a payment recipient, you agree to transfer and allow PayPal to have your rights, benefits and remedies against the payment recipient.

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14. Disputes with PayPal

14.1. Contact PayPal First

If a Dispute arises between you and PayPal, our goal is to learn about and address your concerns and, if we are unable to do so to your satisfaction, to provide you with a neutral and cost effective means of resolving the Dispute quickly. Disputes between you and PayPal regarding the PayPal Services may be reported to the PayPal Customer Service online via the “Email Us” link on the “Contact Us” at any time, or by calling the PayPal Customer Service telephone number located on the PayPal Website(s) and by logging into your PayPal Account.

14.2. ECC-Net, CSSF and ODR

If you have a complaint to make about us, you may choose to escalate it by contacting one of the following:

Institution

Description

Contact

ECC-Net

European Consumer Centre

http://ec.europa.eu/consumers/ecc/index_de.htm

CSSF

Authority responsible for the prudential supervisions of companies in the financial sector in Luxembourg

CSSF – Commission de Surveillance du Secteur Financier

283 Route d’Arlon

1150 Luxembourg

Luxembourg

 

http://www.cssf.lu/de

Online Dispute Resolution (ODR)

Online dispute resolution portal of the European Union

https://ec.europa.eu/consumers/odr

 

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15. General

15.1. Governing Law and Jurisdiction

This User Agreement and the relationship between us shall be governed by the laws of England and Wales with the exception of Section 6a. Kauf auf Rechnung to which the laws of the Federal Republic of Germany shall apply. For complaints that cannot be resolved otherwise, you submit to the non-exclusive jurisdiction of the courts of England and Wales. Your German consumer protection rights as well as your right to your right to also initiate a proceeding against PayPal in that context before the competent courts of and in Luxembourg shall remain unaffected.

15.2. No Waiver

Our failure to act with respect to a breach by you or others does not waive our right to act with respect to subsequent or similar breaches.

15.3. Limitations of Liability

We shall only be liable to you for loss or damage caused directly and reasonably foreseeable by our breach of this User Agreement and our liability in these circumstances is limited as set out in the remainder of this section.

15.3.1. In no event shall we or any other company of PayPal Group, persons who acts on our behalf, and/or the persons we enter into contracts with be liable for any of the following types of loss or damage arising under or in relation to this User Agreement (whether in contract, tort (including, without limitation, negligence) or otherwise:

15.3.1.1. Any loss of profits, goodwill, business, contracts, revenue or anticipated savings even if we are advised of the possibility of such damages, loss of profits, goodwill, business, contracts, revenue or anticipated savings;

15.3.1.2. Any loss or corruption of data;

15.3.1.3. Any loss or damage whatsoever which does not stem directly from our breach of this User Agreement.

15.3.2. Nothing in this User Agreement shall limit our liability resulting from our fraud or fraudulent misrepresentation, gross negligence, willful misconduct, for death or personal injury. The same shall apply with regard to any negligent or willful violation of core contractual obligations. Core contractual obligations are our obligations which have to be fulfilled in order to meet the objectives of the Agreement and to which our customers normally needs to rely on, i.e. including the contractually agreed and punctual fulfillment of the Payment Orders we receive from you, but not information or advice or notices which we are not obliged to give you and which do not directly relate to your transactions or your PayPal Account.

15.4. No Warranty

We provide to you the PayPal Services, our infrastructure, our website(s), our software, and systems (including any networks and servers used to provide any of the PayPal Services) whether operated by us or on our behalf subject to your statutory rights but otherwise without any warranty or condition, express or implied, except as specifically stated in this User Agreement.

PayPal does not have any control over the products or services that are paid for with the PayPal Services and PayPal cannot ensure that a Buyer or a seller you are dealing with will actually complete the transaction or is authorized to do so.

Further, PayPal is not in the position to provide in all circumstances an uninterrupted, continuous and secure access to any of the PayPal Services, our infrastructure, our websites, our software, and systems (including any networks and servers used to provide any of the PayPal Services) whether operated by us or on our behalf. We shall not be liable for any delay in the failure in our provision of the Services, our infrastructure, our websites, our software, and systems (including any networks and servers used to provide any of the PayPal Services) whether operated by us or on our behalf.

You further acknowledge your access to the PayPal Services our infrastructure, our websites, our software, and systems (including any networks and servers used to provide any of the PayPal Services) whether operated by us or on our behalf, may be occasionally restricted to allow for repairs, maintenance or the introduction of new facilities or services.

PayPal will make reasonable efforts to ensure that requests for electronic debits and credits involving bank accounts and credit cards are processed in a timely manner.

You must check all correspondence between us carefully and tell us as soon as possible if it includes something which appears to you to be wrong or not made in accordance with your instructions.

In the event that PayPal decides to discontinue any of the PayPal Services or any portion or feature of the PayPal Services for any reason, PayPal will give you at least 2 months’ prior notice before discontinuing the service or feature, unless PayPal determines in its good faith judgement that: (a) such service or feature must be discontinued sooner as required by law or a third party relationship; or (b) doing so could create a security risk or substantial economic or material technical burden.

You alone are responsible for understanding and complying with any and all laws, rules and regulations of your specific jurisdiction that may be applicable to you in connection with your use of the PayPal Services, including but not limited to, those related to export or import activity, taxes or foreign currency transactions.

15.5. Indemnification/re-imbursement

You agree to defend, reimburse or compensate us (known in legal terms to "indemnify") and hold PayPal, our other companies in our corporate group, the people who work for us or who are authorized to act on our behalf (including, without limitation, our service providers) harmless from any claim or demand (including legal fees) made or incurred by any third party due to or arising out of your, your employees or agent’s (or, where a third party otherwise acts on your behalf with your permission, that third party’s actions and/or inactions) breach of this User Agreement, breach of any law, breach of the rights of a third party, use of your PayPal Account and/or use of the PayPal Services, our infrastructure, our website(s), our software, and or systems (including any networks and servers used to provide any of the PayPal Services) operated by us or on our behalf.

15.6. Entire Agreement and Third Party Rights

This User Agreement sets forth the entire understanding between you and PayPal with respect to the PayPal Services. If any provision of this User Agreement is held to be invalid or unenforceable, such provision shall be struck out and the remaining provisions shall be enforced.

A person who is not a party to this User Agreement has no rights under the Contracts (rights of Third Parties) Act 1999 to rely upon or enforce any term of this User Agreement (except for the PayPal Group in respect of their rights as specified in this User Agreement) but this does not affect any right or remedy of third parties which exists or is available apart from that Act.

15.7. Intellectual Property and Software License Grant

If you are using PayPal software such as an API, developer’s toolkit or other software application which may include software provided by or integrated with software, systems or services of our service providers that you have downloaded to or otherwise accessed through your computer, device, or other platform, then PayPal and its licensors grant you a revocable, non-exclusive, non-sublicenseable, non-transferable, royalty-free and limited license to access and/our use PayPal’s software in accordance with the documentation, including all updates, upgrades, new versions and replacement software, as described herein for your personal use only. You may not rent, lease or otherwise transfer your rights in the software to a third party.

You must comply with the implementation, access, and use requirements contained in all documentation, together with any instructions provided by us from time to time accompanying the PayPal Services (including, without limitation, any implementation and use requirements we impose on you to comply with applicable laws and card scheme rules and regulations).

If you do not comply with PayPal’s instructions, implementation and use requirements you will be liable for all resulting damages suffered by you, PayPal and third parties. PayPal may update or discontinue any software upon notice to you.  While PayPal may have (a) integrated certain third party materials and technology into any web or other application, including its software, and/or (b) accessed and used certain third party materials and technology to facilitate providing you with the Services, you have not been granted and do not otherwise retain any rights in or to any such third party materials. You agree not to modify, alter, tamper with, repair, copy, reproduce, adapt, distribute, display, publish, reverse engineer, translate, disassemble, decompile or otherwise attempt to create any source code which is derived from the software or any third party materials or technology, or otherwise create any derivative works from any of the software or third party materials or technology. You acknowledge that all rights, title and interest to PayPal’s software are owned by PayPal and any third party materials integrated therein are owned by PayPal’s third party service providers. 

Any third party software application you use on the PayPal Website(s) is subject to the license you agreed to with the third party that provides you with this software. You acknowledge that PayPal does not own, control nor have any responsibility or liability for any third party software application you elect to use on any of our websites , software, and/or in connection with the PayPal Services. If you are using the PayPal Services on the PayPal Website(s), or other website or platform hosted by PayPal or a third party, and are not downloading PayPal’s software or using third party software applications on the PayPal Website(s), then this section does not apply to your use of the hosted PayPal Services.

15.8. Intellectual Property – Content License Grant

15.8.1. Licenses Granted by PayPal

Logo and PayPal Service identifiers: The URLs representing the PayPal website(s), “PayPal,” and all related logos of our products and services described in our website(s) are either copyrighted by PayPal, trademarks or registered trademarks of PayPal or its licensors. In addition, all page headers, custom graphics, button icons, and scripts are either copyrighted by PayPal, service marks, trademarks, and/or trade dress of PayPal. You may not copy, imitate, modify, alter, amend or use them without our prior written consent. You, as a merchant, may use HTML logos provided by PayPal through our merchant services, auction tools features or affiliate programs without prior written consent for the sole purpose of identifying yourself on your website as a merchant who accepts payments through the PayPal Services and directing web traffic from that website to the PayPal Services, but we may limit or revoke this permission at any time and for any reason in our sole discretion. You may not alter, modify or change these HTML logos in any way, use them in a manner that is disparaging to PayPal or the Service or display them in any manner that implies PayPal’s sponsorship or endorsement. All right, title and interest in and to the PayPal website and any content thereon is the exclusive property of PayPal and its licensors.

15.8.2. Licenses Granted by You

Your business-related intellectual property: 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.

Your content: When providing us with content or posting content (in each case for publication, whether on- or off-line) using the PayPal Services, you grant the PayPal Group a non-exclusive, worldwide, perpetual, irrevocable, royalty-free, sublicensable (through multiple tiers) right to exercise any and all copyright, publicity, trademarks, database rights and intellectual property rights you have in the content, in any media known now or in the future. Further, to the fullest extent permitted under applicable law, you waive your moral rights and promise not to assert such rights against the PayPal Group, its sublicensees or assignees. You represent and warrant that none of the following infringe any intellectual property right: your provision of content to us, your posting of content using the PayPal Services, and the PayPal Group’s use of such content (including of works derived from it) in connection with the PayPal Services.

15.9. Third Party Permissions

15.9.1. Permissions in general

You may expressly grant, remove, and manage permissions for some third parties to take certain actions on your behalf. In some cases you can do this by logging into your PayPal Account – in other cases you can do this directly with the third party.. You acknowledge that if you grant permission for a third party to take actions on your behalf, PayPal may disclose certain information about your PayPal Account to this third party.

15.9.2. Using licensed third-party services to access your PayPal Account information

If you permit either a third-party service provider licensed by applicable law to provide account information services ("AIS Provider") to access information about your PayPal Account on your behalf or a third party card issuer to confirm whether an amount necessary for the execution of a card-based payment transaction is available on your PayPal Account, then this User Agreement (including, without limitation, clause 2.3) will still apply to you and your access to that information using the AIS Provider or card issuer.

Further,  you are liable to PayPal

for the actions that you authorize the AIS Provider or card issuer to take on your behalf and

under clause 15.9.4. (your liability regarding any permissions you grant);, subject to your mandatory legal rights and Section 12 (Errors and Unauthorized Transactions).

15.9.3. Using licensed third party services to initiate your payment

If you permit a third party service provider licensed by law to provide payment initiation services ("PIS Provider") to initiate your payment on your behalf then this Agreement (including, without limitation, clauses 4.1. to 4.6. inclusive and clause 4.10.) will still apply to you and your payment initiated by the PIS Provider.

Further, you are liable to PayPal for the actions that you authorize the PIS Provider to take on your behalf and under clause 15.9.4. (your liability regarding any permissions you grant),       subject to your mandatory legal rights and Section 12. (Errors and Unauthorized Transactions).

15.9.4. Your liability regarding any permissions you grant

Granting permission to any third party in any way does not relieve you of any of your responsibilities under this User Agreement. You acknowledge and agree that you will not hold PayPal responsible for, and will indemnify PayPal from, any liability arising from the actions or inactions of this third party in connection with the permissions you granted.
 

15.10. PayPal as Login Method

If you use the PayPal Services as means of logging into external websites or mobile apps, we may share your login status with any third party offering this service as a login method, as well as the personal and other Account Information that you consent to being shared so that the third party can recognize you. PayPal will not give such third party access to your PayPal Account and will only make payments from your PayPal Account to that third party with your specific authorization.

If you offer this service as a means for visitors to log into your website, app, or otherwise for your customer accounts, you must agree to any specific terms applicable when this functionality is made available to you, and comply with any specifications in any integration manual or guideline. PayPal does not guarantee or otherwise represent the identity of any user of this login method. PayPal will not share with you the personal and other Account Information of the user (including login status) held by PayPal unless the user has consented to our disclosure of that Information to you.

15.11. Corporate Customers

If you are not a consumer, a Micro Enterprise or a trust/foundation, certain provisions of the Payment Services Directive may be disapplied for your use of the PayPal Services. In such cases you are a “Corporate Customer” and hereby agree that the following provisions of this User Agreement will be varied as follows:

15.11.1. You are not entitled to the right to a refund as set out in clauses 4.8. and 12.5.;

15.11.2. Where you identify an error, unauthorized transaction and/or misappropriated or unauthorized use of your Payment Instrument or Account in accordance with clauses 12.1. and 12.2. you have up to 60 days from the date of the alleged error or Improper Account Access to notify us of it, after which time we have no obligation to investigate, or act upon your notification;

15.11.3. We will only accept liability for unauthorized transactions in accordance with clause 12.4. where you have notified us of the Improper Account Access or error within 60 days of it;

15.11.4. In case we notify you in accordance with clause 1.5., the notice is deemed received by you in the following time lines: in case of e-mail, publication on the PayPal Website(s) or in your PayPal Account: within 24 hours; and in case of physical mailing within 3 Business Days.

As a Corporate Customer, you further agree that while we may do so, we are not obliged to comply nor provide you with the information requirements set out in Title III PSD2 and their equivalents in any implementation of PSD2 in member states of the European Union or the EEA that may apply to you ("PSD2 Transpositions"). Further, you agree that articles 72 and 89 of PSD2 and equivalent provisions in PSD2 transpositions do not apply to your use of the PayPal Services, meaning that, notwithstanding any other provisions of this User Agreement, we are not liable to you for the losses or damage you may suffer as a result of the matters referred to in Title III and articles 72 and 89 of PSD2 and equivalent provisions in PSD2 Transpositions.

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16. Definitions

16.1. "AIS Provider" has the meaning given in clause 15.9.2.

16.2. "Authorize”, "Authorized" or "Authorization" means you authorize a Merchant or other third party to collect a payment from your PayPal Account.

16.3. "Balance" means any E-Money that you have in your PayPal Account.

16.4.Bank Confirmation Process” is a verification process which PayPal may require you complete in order to lift sending. receiving or withdrawal limits or get Verified, involving PayPal sending two small deposits to your bank account. To complete the Bank Confirmation process you will be required to enter the details of the deposits sent to you via your Account. You can find more information about the Bank Confirmation process in the PayPal Help Centre which is located on the PayPal website. “Bank Funded Payment” means a payment that is fully funded using your bank account (as the case may be).

16.5. "Business Day" means any day on which banks in Luxembourg are open to the general public.

16.6. "Buyer" means a User who is buying goods or services and using the PayPal Services to Send Money.

16.7. "Chargeback" means a request made by a Buyer directly to his or her credit card company to invalidate a payment.

16.8. "Claim" means a request for reimbursement under a Buyer Protection Policy.

16.9. "Commercial Entity Agreement" means the "Commercial Entity Agreement" that commercial entities are required to enter into directly with PayPal’s payment processor(s).

16.10. "Customer Service" is PayPal’s customer support which can be accessed online via the “Email Us” link on the "Contact Us" page at any time, or by calling the customer service number located on the PayPal Website(s).

16.11. "Data Controller", "Data Processor" and "Data Subject" have the meanings given to those terms under the Data Protection Laws.

16.12. "Data Protection Laws" means EU Directive 95/46/EC or Regulation (EU) 2016/679 (the letter being commonly known as the EU General Data Protection Regulation) and any associated regulations or instruments and any other data protection laws, regulations, regulatory requirements and codes of practice applicable to the provision of the PayPal Services, such as PayPal's internal Binding Corporate Rules.

16.13. "Default Funding Sources" means, you have not selected a Preferred Funding Source, the Funding Sources used in the order set out in section 3.7.

16.14. "Dispute" means a dispute filed by a User (Buyer) in the PayPal Resolution Center.

16.15. "eBay" means eBay Inc and its affiliates (as the case may be).

16.16.EEA” or “European Economic Area” means the countries in the European Union as well as Iceland, Liechtenstein, and Norway.

16.17. "E-Money" means monetary value, as represented as a claim on PayPal, which is stored on an electronic device, issued on receipt of funds, and accepted as a means of payment by persons other than Further, a reference to a payment made by via the PayPal Services refers to an E-Money payment.

16.18. "Failed Direct Debit Payment" is a direct debit payment where the account bank for bank account that you have linked with your PayPal Account refuses because the bank account does not have sufficient credit or the credentials are wrong. A Reversal (i.e. where the bank reverts the payment because the account holder of the bank account has objected against the direct debit) is not a Failed Direct Debit Payment.

16.19.Fee” or "Fees" means those amounts stated in Schedule 1 (Table of Fees) to this User Agreement.

16.20. "Funding Source" means the type of payment that you select to fund a payment. The following types of payment may be used to fund a payment: Balance, direct debit, credit card, transfer.

16.21. "Improper Account Access" has the meaning given to it at clause 12.1.

16.22. "Information" means any confidential and/or personally identifiable information or other information related to a PayPal Account or User, including but not limited to the following: name, e-mail address, post/shipping address, phone number and financial information.

16.23. "Mass Payments" (alternatively “Payouts”) means the functionality that enables multiple payments to be sent at the same time. Receipt by us of a Mass Payment batch file from you is, subject to clause 3.1, receipt of a Payment Order for the purpose of this User Agreement.

16.24. "Micro Enterprise" means an enterprise which employs fewer than 10 persons and has an annual balance sheet that does not exceed 2 million euros (EUR).

16.25. "Payment Instrument" means all processes, instructions and requests, as indicated on the PayPal Website(s), which enable the User to access and use the PayPal Services.

16.26. "Payment Order" means an instruction validly made by you to us requesting the execution of a payment transaction, e.g. sending money pursuant to clause 3.1 and withdrawing money pursuant to Section 6.

16.27. "PayPal", "we", "us", or "our" means PayPal (Europe) S.à r.l. et Cie, S.C.A. duly licensed as a Luxembourg credit institution in the sense of Article 2 of the law of 5 April 1993 on the financial sector as amended and is under the prudential supervision of the Luxembourg supervisory authority, the Commission de Surveillance du Secteur Financier.

16.28. "PayPal Account" means a Business or Personal Account.

16.29.PayPal Group” means PayPal Holdings Inc., and its subsidiaries and subsidiary undertakings affiliates (including, without limitation, PayPal) as the case may be.

16.30. "PayPal Services" means all products, services, content, features, technologies, or functions offered by PayPal and all related sites, applications, and services.

16.31. "PayPal Website(s)" means any URL, such as http://www.paypal.de, through which we provide the PayPal Services to you.

16.32. "Personal Data" has the meaning given to it under the Data Protection Laws.

16.33. "PIS Provider" has the meaning given in clause 15.9.3.

16.34. "Policy" or "Policies" means any Policy or other agreement between you and PayPal that you entered into on the PayPal Website(s), or in connection with your use of the PayPal Services.

16.35.Pre-approved Payment” or an “Automatic Payment” is a “Standing Order” as defined in the Commission Delegated Regulation (EU) 2018/32 and means that the account provider (PayPal) makes regular transfers, on the instruction of the customer (you), of a fixed amount of money from the customer’s account to another account. This can also be a “Direct Debit” in the sense of the Regulation, meaning that the customer (you) permits someone else (recipient) to instruct the account provider (PayPal) to transfer money from the customer’s (your) account to that recipient. The account provider (PayPal) then transfers money to the recipient on a date or dates agreed by the customer (you) and the recipient. The amounts may vary. For the PayPal Services, this means a payment made by you using the PayPal Services on the basis of a Payment Order received by PayPal from you via a third party authorized by you (for example, a store or other trader you intend to pay for your purchases).

16.36.Preferred Funding Source” means a Funding Source that you select to fund a payment instead of using the Default Funding Source.

16.37. "PSD2" has the meaning given to it in the second paragraph of this User Agreement.

16.38. "Reserve" means an amount or a percentage of the funds received into your Account that we hold in order to protect against the risk of Reversals, Chargebacks, Claims, or any other liability related to your PayPal Account and/or use of the PayPal Services.

16.39. "Restricted Activities" means those activities described in Section 9. of this User Agreement.

16.40.Reversal” means a payment you received which PayPal may reverse to the sender or another third party because the payment: (a) has been challenged by a Buyer directly with their bank; and/or (b) has been removed from your Balance for any reason (other than a Chargeback or Claim pursuant to the PayPal Buyer Protection Policy), including, without limitation where (i) the payment violates our Acceptable Use Policy or we reasonably suspect that the payment violates our Acceptable Use Policy, or (ii) the payment amount was not authorized by the sender with the relevant third party initiated payment authorization (see clause 4.8.), or (iii) the payment was funded by a bank transfer that was subsequently reversed by the bank for any reason; and/or (c) has been categorized by PayPal’s internal risk modelling as a risky payment required to be reversed to mitigate the risk associated with the payment. The term “Reversed” shall be construed accordingly.

16.41. "Seller" and "Merchant" are used interchangeably and mean a User who is selling goods or services and using the PayPal Services to receive payment.

16.42. "Send Money" or “Sending Money” means the account provider (PayPal) transfers money on the instruction of the customer (you) from the customer’s account to another account under the standardized terms of the Commission Delegated Regulation (EU) 2018/32. For the PayPal Services, it means your ability to send money though the PayPal Services.

16.43.Special Funding Arrangements” means that certain payments may be funded by Special Funding Sources linked to your Account such as Merchant/transaction specific balance, gift vouchers, or other promotional Funding Source.

16.44. "Unique Identifier" means(a) when sending a payment, e-mail address, mobile phone number or any other means of identification as registered in the PayPal Account;(b) when withdrawing money, your bank account details (for example IBAN, sort code, account number) or your credit card information (for example card number or verification code).

16.45. "User", "you", or "your" means you and any other person or entity using the PayPal Services.

16.46. "Verified" means that you have completed our verification process in order to help establish your identity with PayPal. Verification does not constitute an endorsement of a User, or guarantee a User’s business practices.

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Schedule 1: Table of Fees
 A1. General and Definitions

Our Fees depend on whether a Commercial Transaction or a Personal Transaction is made.

For more information about Fees please visit: https://www.paypal.com/de/webapps/mpp/paypal-fees

A1.1. Commercial Transactions and Personal Transactions

A “Commercial Transaction” involves buying and selling goods and services, or payments received when you “request money” using the PayPal Services.

A ”Personal Transaction“ involves sending money (initiated from the “Personal” tab of the “Send Money” flow) to, and receiving money into your PayPal Account from friends and family without making a purchase (that is, the payment is not for goods or services). ). A Personal Transaction which is a Domestic Transaction is referred to as a "Domestic Personal Transaction" and a Personal Transaction which is a Cross-Border Transaction is referred to as a "Cross-Border Personal Transaction".

If you are 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. 

A1.2. Domestic Transaction and Cross-Border Transactions

A “Domestic Transaction“ is a transaction in euros (EUR) or Swedish kronor (SEK) from or to PayPal Accounts registered in countries of the European Union as well as in Iceland, Liechtenstein, and Norway.

Any other transaction is a “Cross-Border Transaction“.

A1.3. Variable Fee and Fixed Fee

A1.3.1. Variable Fee

Fees shown in percentages refer to the respective percentage of the respective transaction amount (“Variable Fee”).

A1.3.2. Fixed Fee

As far as this Table of Fees refers to “Fixed Fee” this means a fixed fee in amount in the respective transaction currency as set out below:

Fixed fee in transaction currency

Australian dollars:

AUD 0.30

Mexican pesos:

MXN 4.00

Brazilian real:

BRL 0.60

New Taiwan dollars:

TWD 10.00

British pounds sterling:

GBP 0.20

New Zealand dollars:

NZD 0.45

Canadian dollars:

CAD 0.30

Norwegian kroner:

NOK 2.80

Czech koruna:

CZK 10.00

Philippine pesos:

PHP 15.00

Danish kroner:

DKK 2.60

Polish zloty:

PLN 1.35

Euros:

EUR 0.35

Russian rubles:

RUB 10.00

Hong Kong dollars:

HKD 2.35

Swedish kronor:

SEK 3.25

Hungarian forint:

HUF 90.00

Swiss francs:

CHF 0.55

Israeli new shekels:

ILS 1.20

Singapore dollars:

SGD 0.50

Japanese yen:

JPY 40.00

Thai baht:

THB 11.00

Malaysian ringgit:

MYR 2.00

US dollars:

USD 0.30

A1.4. Country Groups

When in this Schedule 1 we are speaking of “Country Groups”, we are referring to the following:

Definitions of country groups

Country Group

Countries

Northern Europe

Denmark (including Faroe Islands and Greenland), Finland (including Aland), Iceland, Norway, Sweden

Europe I

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

North America

Canada, United States of America

Europe II

Albania, Andorra, Belarus, Bosnia and Hercegovina, Bulgaria, Croatia, Czech Republic, Georgia, Hungary, Kosovo, Latvia, Liechtenstein, Lithuania, Macedonia, Poland, Republic of Moldova, Romania, Russia, Serbia Switzerland, Ukraine

LATAM

Anguilla, Antigua and Barbuda, Argentina, Aruba, Bahamas, Barbados, Belize, Bermuda, Bolivia, Brazil, Cayman Islands, Chile, Colombia, Costa Rica, Cuba, Ecuador, El Salvador, Honduras, Montserrat, Netherlands Antilles, Panama, Paraguay, Peru, Puerto Rico, Saint Kitts and Nevis, Saint Lucia, Saint Vincent And The Grenadines, Suriname, Turks And Caicos Islands, Trinidad And Tobago, Uruguay, Venezuela, Virgin Islands (British),Virgin Islands (U.S.)

APAC

Australia, Bangladesh, Bhutan, Cambodia, China Domestic, China World Wide, Democratic People’s Republic of Korea, Federated States of Micronesia, Hong Kong, India, Indonesia, Japan, Mongolia, Macau, Maldives, Malaysia, Nepal, New Zealand, Norfolk Island, Pakistan, Peoples Democratic Republic of Lao, Philippines, Republic of Korea, Samoa, Singapore, Sri Lanka, Taiwan, Thailand, Tonga, Vietnam

Rest of World

all other countries not mentioned in any of the Country Groups above


A2. Fees for Personal Transactions 

When sending a Personal Transaction, the sender will pay the Fee.

The Fee for a Personal Transaction will be shown at the time of payment.

A2.1. Fees for Domestic Personal Transactions

fees for domestic personal transaction

Funding Source

Fees

Balance

free

Bank account

free

All other Funding Sources

Transactions in EUR or SEK

all other currencies

free

1.90% plus Fixed Fee (charged in the currency in which your payment is received)

A2.2. 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 A1.4. 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).

fees for cross-border personal transactions

Country Group in which recipient’s Account is registered

Fee for Cross-Border Personal Transaction

additional Fee for the portion of the transaction funded by Funding Sources other than Balance or Bank account

Northern Europe, North America, Europe I, Europe II

EUR 1.99

1.90% plus Fixed Fee (charged in the currency in which the transaction is received)

LATAM, APAC, Rest of World

EUR 3.99

A3. Commercial Transactions

When you send a Commercial Transaction no Fees apply if no currency conversion is required.

A3.1. Fees for Receiving Domestic Transactions

PayPal shall charge a Fee for receiving Domestic Transactions in your Account a Variable Fee in amount equal to 2.49% of the respective payment transaction amount plus Fixed Fee, which applies in the respective transaction currency as set out in clause A1.3.2. above – this does also apply for transactions received via PayPal PLUS (see clause 6b. above).

 “Merchant Rate” may be granted only upon separate application by a merchant and will be evaluated on a case-by-case basis and requires inter alia qualifying monthly transaction volume, an average shopping cart of a particular size, satisfactory implementation of certain criteria regarding the quality of the integration of the PayPal Services as communicated by PayPal from time to time, and a PayPal Account in good standing.

Merchant rate fees

Monthly transaction volume in EUR processed via PayPal Account

Variable Fee

less than EUR 2,000.00

2.49%

EUR 2,000.01 – EUR 5,000.00

2,19%

EUR 5,000.01 – EUR 25,000.00

1,99%

EUR 25,000.01 – EUR 100,000.00

1,79%

more than EUR 100,000.00

1.49%

For the Merchant Rate, in addition to the Variable Fee set out in the table above, the Fixed Fee shall apply in the respective transaction currency as set out in clause A1.3.2. above.

A3.2. Fees for Receiving Cross-Border Transactions

PayPal shall charge a Fee for receiving Cross-Border Transactions in your Business Account in an amount equal to the Variable Fee for Domestic Transactions plus a "Cross-Border Fee" according to the Country Group in which the PayPal Account of the sender is registered as set out below plus Fixed Fee.

The Variable Fee shall in these cases be increased by the percentage points set out below:

cross-border fee

Country Group

Cross-Border Fee

Northern Europe

+1.80 percentage points

Europe I

+2.00 percentage points

North America

+2.00 percentage points

Europe II

+3.00 percentage points

LATAM

+3.30 percentage points

APAC

+3.30 percentage points

Rest of World

+3.30 percentage points

A4. Additional Fees

A4.1. Currency Conversion Fee

For currency conversions processed in your PayPal Account outside or prior to a Personal Transaction or a Commercial Transactions (including, but not limited to converting a Balance to another currency before withdrawal) as well as for transaction requiring a currency conversion for which the payment recipient (Seller) has agreed to bear the Fee PayPal shall charge of Fee in an amount equal to 2.50% above the Base Exchange Rate (“Currency Conversion Fee”).

For all other transaction that require a currency conversion and for which the payment recipient (Seller) has not agreed to bear the Currency Conversion Fee, PayPal shall charge the following Currency Conversion Fee, each in percentage above the Base Exchange Rate:

Currency conversion fee according to currency

Currency converted to

Currency Conversion Fee

Australian dollars (AUD)

4.00%

Brazilian real (BRL)

4.00%

British pounds sterling (GBP)

3.50%

Canadian dollars (CAD)

3.50%

Czech koruna (CZK)

3.50%

Danish kroner (DKK)

3.50%

Euros (EUR)

3.50%

Hong Kong dollars (HKD)

4.00%

Hungarian forint (HUF)

3.50%

Israeli new shekels (ILS)

4.00%

Japanese yen (JPY)

4.00%

Malaysian ringgit (MYR)

4.00%

Mexican pesos (MXN)

4.00%

New Taiwan dollars (TWD)

4.00%

New Zealand dollars (NZD)

4.00%

Norwegian kroner (NOK)

3.50%

Philippine pesos (PHP)

4.00%

Polish zloty (PLN)

3.50%

Russian rubles (RUB)

3.50%

Singapore dollars (SGD)

4.00%

Swedish kronor (SEK)

3.50%

Swiss francs (CHF)

3.50%

Thai baht (THB)

4.00%

US dollars (USD)

3.50%

A4.2. Chargeback Fees

To cover the cost of processing Chargebacks, PayPal assesses a “Chargeback Fee” to Sellers for credit card payment chargebacks. A chargeback may occur when a Buyer rejects or reverses a charge on his or her credit card through the card issuer.

The Chargeback Fee does not apply if the transaction is covered by the PayPal Seller Protection Policy.

The Chargeback Fee applies in the relevant local currency as follows:

chargeback fee depending on currency received

Australian dollars:

AUD 22.00

Mexican pesos:

MXN 250.00

Brazilian real:

BRL 35.00

New Taiwan dollars:

TWD 625.00

British pounds sterling:

GBP 14.00

New Zealand dollars:

NZD 28.00

Canadian dollars:

CAD 20.00

Norwegian kroner:

NOK 125.00

Czech koruna:

CZK 400.00

Philippine pesos:

PHP 900.00

Danish kroner:

DKK 120.00

Polish zloty:

PLN 65.00

Euros:

EUR 16.00

Russian rubles:

RUB 640.00

Hong Kong dollars:

HKD 155.00

Swedish kronor:

SEK 150.00

Hungarian forint:

HUF 4,325.00

Swiss francs:

CHF 22.00

Israeli new shekels:

ILS 75.00

Singapore dollars:

SGD 28.00

Japanese yen:

JPY 1,875.00

Thai baht:

THB 650.00

Malaysian ringgit:

MYR 65.00

US dollars:

USD 20.00

A4.3. Commercial Transaction Refund Fee

If you refund a Commercial Transaction payment, PayPal will retain the Fixed Fee portion of the Commercial Transaction Fee.

The Buyer’s PayPal Account will be credited with the full Commercial Transaction payment amount.

Your PayPal Account will be charged with the amount initially credited to your PayPal Account in connection with the Commercial Transaction payment and the Fixed Fee portion of the Commercial Transaction Fee.

A4.4. PayPal Mass Payments

For the use of the PayPal Mass Payments function PayPal shall charge a Fee in an amount equal to 2.00% of the respective transaction amount (“Mass Payment Fee”).

A maximum fee cap per individual transaction using PayPal Mass Payments shall apply as set out below for Domestic Transactions and for all other transaction based on the respective payment currency:

fee caps for mass payment fee depending on currency used

Currency of PayPal Mass Payments

Fee cap for Domestic Transactions using PayPal Mass Payments

Fee cap for all other transactions using PayPal Mass Payments

Australian dollars

AUD 16.00

AUD 100.00

Brazilian real

BRL 24.00

BRL 150.00

British pounds sterling

GBP 10.00

GBP 60.00

Danish kroner

DKK 84.00

DKK 500.00

Euros

EUR 12.00

EUR 70.00

Hong Kong dollars

HKD 110.00

HKD 660.00

Israeli new shekel

ILS 50.00

ILS 320.00

Japanese yen

JPY 1,200.00

JPY 8,000.00

Canadian dollars

CAD 14.00

CAD 90.00

Malaysian ringgit

MYR 50.00

MYR 300.00

Mexican pesos

MXN 170.00

MXN 1,080.00

New Taiwan dollars

TWD 440.00

TWD 2,700.00

New Zealand dollars

NZD 20.00

NZD 120.00

Norwegian kroner

NOK 90.00

NOK 540.00

Philippine pesos

PHP 640.00

PHP 3,800.00

Polish zloty

PLN 46.00

PLN 280.00

Russian rubles

RUB 480.00

RUB 2,800.00

Swedish kronor

SEK 100.00

SEK 640.00

Swiss francs

CHF 16.00

CHF 100.00

Singapore dollars

SGD 20.00

SGD 120.00

Thai baht

THB 460.00

THB 2,800.00

Czech koruna

CZK 280.00

CZK 1,700.00

Hungarian forint

HUF 3,080.00

HUF 18,500.00

US dollars

USD 14.00

USD 90.00

A4.5. Records Request Fee

If you apply for requests of information relating to why we had reasonable justification to refuse your Payment Order PayPal shall charge a Fee in an amount of EUR 12.00 per document requested (“Records Request Fee”).

We will not charge the Records Request Fee for records requested in connection with your good-faith assertion of an error in your PayPal Account.

A4.6. Fees for bank returns on withdrawal and Reversals or failed direct debit payments

A4.6.1. Fees for bank return on withdrawal

If a withdrawal from your PayPal Account to your bank account initiated by you fails because of incorrect or incomplete bank account details PayPal shall charge a Fee in amount equal to the amount billed to PayPal by the credit institution at which you hold your account.

A4.6.2. Fees for Reversals or failed direct debit payments

In the event of a Reversal or a failed direct debit payment as per clause 10.1 of the User Agreement, PayPal shall charge a Fee in an amount equal to the amount billed to PayPal by the credit institution at which you hold your account.

A4.7. Charity Pricing

PayPal offers lower Fees to charities subject to prior application by the charity and approval by PayPal (“Charity Pricing”) with a Variable Fee of 1.50% plus Fixed Fee for receiving Domestic Transactions. The Cross-Border Fees for receiving Cross-Border Transactions apply as set out in clause A3.1.4. above accordingly.

A4.8. Fees for micro payments

A4.8.1. Micro Pricing

Subject to your prior application and to approval by PayPal you can switch your Business Account to receiving micro payments (“Micro Pricing”). The Micro Pricing shall apply after this switch for receiving Commercial Transactions as follows:

micro pricing fees

Fees for receiving Domestic Transactions

Variable Fee of 10.00% plus Fixed Fee

Fees for receiving Cross-Border Transactions

Variable Fee of 12.00% plus Fixed Fee

A4.8.2. Fixed Fee for Micro Pricing

For Micro Pricing the Fixed Fee shall by way of derogation from clause A1.3.2. apply depending on the currency received as set out below:

micro pricing fixed fee

Australian dollars:

AUD 0.05

Mexican pesos:

MXN 0.55

Brazilian real:

BRL 0.10

New Taiwan dollars:

TWD 2.00

British pounds sterling:

GBP 0.05

New Zealand dollars:

NZD 0.08

Canadian dollars:

CAD 0.05

Norwegian kroner:

NOK 0.47

Czech koruna:

CZK 1.67

Philippine pesos:

PHP 2.50

Danish kroner:

DKK 0.43

Polish zloty:

PLN 0.23

Euros:

EUR 0.10

Russian rubles:

RUB 2.00

Hong Kong dollars:

HKD 0.39

Swedish kronor:

SEK 0.54

Hungarian forint:

HUF 15.00

Swiss francs:

CHF 0.09

Israeli new shekels:

ILS 0.20

Singapore dollars:

SGD 0.08

Japanese yen:

JPY 7.00

Thai baht:

THB 1.80

Malaysian ringgit:

MYR 0.20

US dollars:

USD 0.05

A5. Due Dates, Taxes, and Third-Party Fees

All quoted fees are due immediately. All Fees are payable by you without set off or other deductions. You agree that we can deduct our Fees from the amounts we transfer but before those funds are credited to your PayPal Account.

Quoted Fees are inclusive of all applicable taxes. Other taxes or costs may exist that are not paid through PayPal or imposed by us.

You are liable for telephone charges and any charges made by your internet service provider or similar or associated charges as a result of the use by you of the PayPal Services.

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PayPal User Agreement

Effective date: December 11, 2018

 

This PayPal User Agreement (“User Agreement”) contains 16 Sections, three Sub-Sections and one Schedule and you may access any section directly by selecting the appropriate link below. You will also find underlined words and phrases in this User Agreement and on the PayPal Website that hyperlink to relevant information.

Jump to section:

1. Our Relationship With You 
2. PayPal Account - Eligibility and Types of Accounts 
3. Sending Money 
4. Receiving Money 
5. Account Balances 
6. Withdrawing Money 
6a. Kauf auf Rechnung 
6b. PayPal PLUS 
6c. Payment after 14 Days (“Bezahlung nach 14 Tagen”) 
7. Closing Your PayPal Account 
8. Fees and Currency Conversion 
9. Restricted Activities 
10. Your Liability - Actions We May Take 
11. Seller Protection Policy 
12. Errors and Unauthorized Transactions 
13. PayPal Buyer Protection 
14. Disputes with PayPal 
15. General 
16. Definitions 
Schedule 1. Table of Fees

This User Agreement governs your use of the services provided to you by

PayPal (Europe) S.à r.l. et Cie, S.C.A.
22-24 Boulevard Royal
2449 Luxembourg

Luxembourg

(referred to as "PayPal" or "we").

The terms of the Acceptable Use Policy, the PayPal Buyer Protection Policy, the PayPal Seller Protection Policy and Merchant Gift Certificates Agreement located on the "Legal Agreements" landing page on the PayPal Website are incorporated by reference into this User Agreement and provide additional terms and conditions related to the PayPal Services. The above mentioned documents are "Ancillary Documents" for the purpose of this User Agreement.

 

For the avoidance of doubt, neither the Ancillary Documents nor the parts of this User Agreement that incorporate the terms of the Ancillary Documents constitute "framework contracts" for the purpose of the EU Payment Services Directive (2007/64/EC), the Second EU Payment Services Directive (2015/2366) ("PSD2") or any implementation of those directives in the member states of the European Union or the EEA.

You must agree with and accept all of the terms and conditions contained in this User Agreement when opening a PayPal Account or when using other services offered by PayPal outside of a PayPal. This User Agreement shall apply to all services offered by PayPal. This User Agreement shall also apply to you as a merchant insofar as you assign a claim to PayPal (such as during Kauf auf RechnungRatenzahlung Powered by PayPal). All future changes of this User Agreement set out in the Policy Update already published on the PayPal Website(s) at the time you register for the PayPal Services are incorporated by reference into this User Agreement and will take effect as specified in that Policy Update.

This User Agreement, together with other legal terms and legally required disclosures relating to your use of the PayPal Services will be provided to you, at all times on the PayPal Website(s) (typically located at the "AGB" hyperlink on the landing page). This information may also be sent to you, if you wish so. We also refer to the User Agreement on the PayPal Website(s) wherever relevant.

For more information about the PayPal Services, please read our Key Payment and Service Information.

 

1. Our Relationship With You

1.1. PayPal is only a Payment Service Provider 
PayPal enables you to make payments to and accept payments from third parties. PayPal is an independent contractor for all purposes. PayPal does not have control of nor assumes the liability or legality for the products or services that are paid for with the PayPal Services. We do not guarantee the identity of any User or ensure that a Buyer or a Seller will complete a transaction. Please note that there are risks of dealing with underage persons or people acting under false pretense.

Important to know:

PayPal is duly licensed as a Luxembourg credit institution in the sense of Article 2 of the law of 5 April 1993 on the financial sector. PayPal is under the prudential supervision of the Luxembourg supervisory authority, the Commission de Surveillance du Secteur Financier (CSSF).

PayPal’s main business is the issuance of E-Money and the provision of services closely related to the issuance of E-Money. Since the PayPal Services are limited to E-Money, which does not qualify as a deposit or an investment service in the sense of the law.

This means for you: You are not protected by the Luxembourg deposit guarantee or investor indemnity schemes administered by the Conseil de protection des déposants et des investisseurs (CPDI).

A description of the main characteristics of the PayPal Services is set out in the Key Payment and Service Information document which is accessible via the “Legal Agreements” link of each page of the PayPal Website(s).

1.2. Your Privacy

Protecting your privacy is very important to PayPal. Please review our Privacy Policy (alternatively known as our Privacy Statement) in order to better understand our commitment to maintaining your privacy as well as our use and disclosure of your Information.

1.3. Assignment

You may not transfer or assign any rights or obligations you have under this User Agreement without PayPal’s prior written consent. You are not permitted to transfer your PayPal Account to a third party. PayPal reserves the right to transfer or assign this User Agreement or any right or obligation under this User Agreement at any time without your consent. This does not affect your rights to close your PayPal Account under Section 7.

1.4. Communicating with You

1.4.1. Languages

We provide you with this User Agreement in German – therefore German shall be the contractual language and any English version of this User Agreement is for informational purposes only. This User Agreement is concluded in German and this English version of the User Agreement is for informational purposes only. As a standard, we will communicate with you in German. Upon request by you, communication can be made in English.

1.4.2. Notices to You

You agree that PayPal may contact or inform you by any of the following means:

  • By e-mail: We may send an e-mail to the e-mail address registered in your PayPal Account;
  • Online: By publishing it on the PayPal Website(s) or as message in your PayPal Account;
  • By mail: We may send a message to the postal address registered in your PayPal Account;
  • By telephone: We may call you or send you a text message.

You may request a copy of any legally required disclosures from us and we will provide this to you in a form which allows you to store and reproduce the information (for example, by e-mail). PayPal may charge you a Records Request Fee as per Schedule 1 (Table of Fees) clause A4.5. to provide a paper copy.

You may terminate your consent to receive required disclosures through electronic communications by contacting PayPal as described in clause 1.5. below. PayPal reserves the right to close your PayPal Account (pursuant to Section 7.) if you withdraw your consent to receive electronic communications.

1.5. Notices to PayPal

Notices to PayPal made in connection with this User Agreement must be sent by postal mail to PayPal’s head office:

PayPal (Europe) S.à r.l. et Cie, S.C.A. 
Legal Department 
22-24 Boulevard Royal 
2449 Luxembourg

Luxembourg.

1.6. Amendments to this User Agreement

Changes of this User Agreement will be offered to you in text-form, e.g. by way of sending you an e-mail, with a minimum of two months prior notice before the suggested effective date of such change. You will be deemed to have consented to these changes unless you explicitly dissent before the effective day. In case you do not agree to the changes, you may terminate this User Agreement without any extra cost at any time before the effective date of the change. In such e-mail we shall particularly inform you about your right to dissent, the due date, and your option to terminate this User Agreement. We also publish the amended User Agreement on the PayPal Website(s).

Any other agreement with PayPal shall be amended in accordance with the provisions applicable to such agreement.

In cases where we add extra functionality to the existing PayPal Services or any other change which we believe in our reasonable opinion to neither reduce your rights nor increase your responsibilities, we may make an announcement within only one month. You shall have three weeks to express your dissent in such case.

1.7. Eligibility

You may sign up with PayPal in Germany to open a PayPal Account if you are at least 18 years old and a resident of Germany or you are a company with a registered seat of business in Germany. You further represent and warrant to us in opening a PayPal Account with us that you are not acting on behalf of or for the benefit of anyone else, unless you are opening the PayPal Account for and under the direction of the company that employs you. If you are not acting for the company that employs you, the new PayPal Account must be in your own name only.

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2. PayPal Account and Balances

2.1. Account Types

We offer two different types of Accounts: Personal Accounts and Business Accounts.

Unless expressly agreed otherwise with us, you may  hold not more than one Personal Account and one Business Account. Holders of certain Personal Accounts may be required to upgrade their accounts (which may include providing further information to PayPal) in order to use all of the current functionality available in a Personal Account.

You may sign up for a Personal Account or a Business Account with PayPal. A “Personal Account” is designed for personal purposes only. A “Business Account” must not be used for personal purposes, but only for your business or enterprise.

By default, your PayPal Account comprises two different functionalities: A payment functionality and a Reserve functionality. For the purpose of understandability we refer to them as “Payment Account” and “Reserve Account”.

The availability of sending payments and withdrawing funds depends on the availability of the respective funds in your Payment Account or Reserve Account.

Funds in your Payment Account:

You may freely avail of these funds, withdraw them to your bank account, or send payments.

Funds in your Reserve Account:

These funds are temporarily unavailable for you – they will display as "Payments held" in your PayPal Account. This means you may not withdraw these funds to your bank account or use it to send payments. This comprises all payments with the status "Pending" or "Held" as these are being held for risk protection purposes. The following scenarios may be affected:

  • PayPal payments funded by direct debit with security check (see clause 3.7.);
  • Payments completed by the Merchant at a later stage (see clause 3.9.
  • Payment Reviews (see clause 5.2.);
  • Payments on Temporary Hold (see clauses 10.5. and 10.6.);
  • Restricted activities and measures taken by PayPal (see Sections 9. and 10.).

2.2. Balance

The Balance in your PayPal Account represents the amount of E-Money available for paying out from your PayPal Account, subject to the terms of this User Agreement. If you hold a Balance you will not receive interest or any other earnings on the Balance because European law forbids paying interest on E-Money, as it is a cash-equivalent and not a deposit.

You are not required to keep a Balance at all times, but if you use the PayPal Services to pay another User you need to have sufficient Balance in your PayPal Account to cover the amount of the payment (and transaction fees payable to us).

This is because, when you pay another User, you are authorizing us to transfer E-Money from your Balance to the PayPal Account of the recipient, in each case according to your Payment Order and subject to the terms of this User Agreement.

To get a Balance on your PayPal Account you can, subject further to this User Agreement:

  • Accept a payment in your PayPal Account from someone else; or
  • Obtain E-Money from us by paying us an equivalent amount. You can do this:
    • Automatically using your applicable Funding Source(s) to cover payments that you instruct us to send to other Users (and the transaction fees payable by you to us). The execution of the payment from your bank or card issuer to PayPal is your bank’s/card issuer’s responsibility; or
    • Manually using the “Add Funds” function available from your PayPal Account interface to pay us or instructing us to pull a payment from your bank account under the authority you give us when linking your bank account as a Funding Source (see clause 3.3.).

2.3. Account Information (including Balance and Transaction Information)

Unless your PayPal Account is restricted, you may access your details of executed payment transactions and other information relating to your PayPal Account transaction history and Balance by logging into your PayPal Account. Key information relating to your payments will be provided to you via e-mail and your transaction history will also be updated and made available to you at any time by logging into your PayPal Account. You will also be able to access a downloadable report via the “History” section of your PayPal Account. The “History” section will also show all Fees incurred and any other amounts charged to your PayPal Account in the relevant period. The “History” will only be updated and made available if there has been any activity on your PayPal Account or any Fees have been incurred in the relevant period. PayPal reserves the right to charge a Fee for providing you with additional information or for providing the transaction history and other information about Fees in a different way. The way in which we provide the transaction information will allow you to store and reproduce the information unchanged, for example by printing a copy. PayPal will ensure that the details of each transaction will be made available for you to view online for at least 13 months from when it is first made available. You agree to review your transactions through your PayPal Account History instead of receiving periodic statements by mail. 

2.4. Set-off

You agree that we may set-off any of the amounts held in PayPal 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 a Balance in a PayPal Account held or controlled by you.

2.5. Amounts You Owe Us

Where the aggregate amount you owe us exceeds the amount held in your Balance we may show your Balance in negative figures as a reflection of the net amount you owe to us.

When your Balance is negative you cannot Send Money with PayPal. You can restore your Balance by adding funds to your PayPal Account by bank transfer. Otherwise PayPal has the following options to restore your negative Balance:

  • We use incoming payments on your PayPal Account to settle the amount you owe us;
  • The next time you make a credit card or direct debit payment, we may charge your credit card or, as applicable, bank account, with the outstanding amount in addition to the payment amount. You will be notified during the payment process;
  • In case of a Failed Direct Debit Payment we may charge your credit card or make a further attempt of the direct debit payment (see clause 3.7. for details);
  • If you have a Balance in another currency, we may use these funds to settle the amount you owe us;
  • We may also deduct the outstanding amount from a withdrawal you may have requested.

If, for a period of 21 days, you have a Balance that reflects an amount owing to us that is not in euros (EUR), PayPal will convert the amount you owe us to euros (EUR). You will be charged a Currency Conversion Fee as set out in A4.1. of Schedule 1 (Table of Fees) for the conversion of the amount you owe to us into euros (EUR) (pursuant to clause 8.2.).

2.6. Balances in Different Currencies

If one of the currency Balances in your PayPal Account shows that you owe us an amount of funds for any reason, we may set-off the amount you owe us by using funds you maintain in a different currency Balance or by deducting amounts you owe us from money you receive into your PayPal Account, or money you attempt to withdraw or send from your PayPal Account, or in a different PayPal Account, and by deducting funds from any withdrawals you attempt to make.

You are responsible for all risks associated with maintaining Balances in multiple currencies (including, without limitation, the risk that the value of these Balances will fluctuate as exchange rates change, which over time may result in a significant decrease in the value of the Balances). You agree that you will not attempt to use multiple currencies for speculative trading.

2.7. Security Interest

To secure your performance of this User Agreement, you grant to PayPal a legal claim against the funds in your PayPal Account as security for any amount you may owe to us. This is known in legal terms as a “lien” on and “security interest” in your PayPal Account.

 

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3. Funding Sources

3.1. Linking Your Funding Source

You can link or unlink a credit card or a bank account as a Funding Source for your PayPal Account. Please keep your Funding Source information current (i.e. credit card number and expiration date). If this information changes, we may update it at our sole discretion without any action on your part according to information provided by your bank or card issuer and third parties (including but not limited to our financial services partners and the card networks). If you do not want us to update your Funding Source information, you may contact your bank or card issue to request this or remove the Funding Source in your Account Profile. If we update your Funding Source information, we may retain any preference setting attached to it.

3.2. Cards

By linking a credit card as a Funding Source, you are providing PayPal with a continuous authority to automatically charge that card for the amount necessary to purchase E-Money required in your Balance to cover a Payment Order (plus transaction fees payable to us) when the card is the applicable Funding Source for that Payment Order pursuant to this User Agreement. You can stop the continuous authority in respect of any card by removing that card as a Funding Source from your PayPal Account.

3.3. Bank Accounts

By linking your bank account as a Funding Source, you are providing PayPal with a continuous authority, (subject to the terms of the mandate used by your bank to set up and maintain that authority) to automatically charge your bank account for the amount necessary to purchase E-Money in your Balance:

  • Required to cover a Payment Order to another User (plus transaction fees payable to us) when the bank account is the applicable Funding Source for that Payment Order pursuant to this User Agreement: or
  • When using the “Add Funds” functionality in your PayPal Account interface.

3.4. Direct Debit from Bank Account

Whenever you initiate a direct debit payment to fund a PayPal transaction or where the respective PayPal Service provides for direct debit by PayPal from your Funding Source (such as payment upon installment, direct debit and credit card hosted by PayPal ), you Authorize us to draw the amount from the bank account you registered with PayPal.

In detail, this is what happens:

  • Your bank will receive a payment order to pay the amount to PayPal;
  • PayPal will receive a payment order to pay the respective E-Money or money amount to the recipient of the payment.

PayPal is in compliance with the Single Euro Payments Area (SEPA) Direct Debit mandates. SEPA is an initiative of the European Commission and European banking sector, aimed at making transactions more efficient within the European Union. Whenever you register a bank account with PayPal or user a new bank account for the first time as a Funding Source, you grant PayPal a SEPA Direct Debit mandate. You will be able to exclusively access such mandate and the mandate reference number (MRN) in your PayPal Account profile at any time and cancel or change the mandate for future transactions.

Whenever you pay with direct debit after that, you Authorize us to use this SEPA mandate and draw the amount from your bank account as explained above in this clause 3.4., and you Authorize your bank to arrange for payment to us. You can return any such direct debit payment within eight weeks after your bank account has been debited. PayPal will inform you of the amount of the debit and the time frame in which PayPal will collect the amount from the bank account together with the purchase confirmation.

In case of a Reversal of a payment you have not initiated yourself, you Authorize PayPal to carry out another attempt to complete the transaction by direct debit at a later time. This does not apply if you had already settled the outstanding amount using another option. There will be no (additional) information on the amount and the time frame ahead of the resubmission.

In case of a Failed Direct Debit Payment, you Authorize PayPal to charge your credit card or a different bank account registered with PayPal with the payment amount plus the applicable Fees for Failed Direct Debit Payments pursuant to clause A4.6.2. of Schedule 1 (Table of Fees) or to further attempt to debit the payment amount and fee to your bank account, unless you had already settled the outstanding amount using another option. You will be notified during the payment process which Funding Source may be used. Any direct debit payment may be subject to a routine security check. If, based on our internal assessment of potential risk regarding direct debit procedures (such risks specified in this clause 3.7.), we have reason to believe that there is an increased risk associated with this payment:

  • We may mark the payment as “Pending” and not immediately complete the payment until we have conducted a Payment Review in accordance with clause 5.2.; where a Payment Review finds problem with the payment, the payment will be reversed and the funds returned to the Buyer from the Seller’s Reserve Account; or
  • Pursuant to our risk models and your payment history, there may be an increased risk of rejection or reversal by your bank, in which case it is likely that the respective credit to fund the E-Money payment will not become available to us. In this situation we reserve the right not to effect the Payment Order in accordance with clause 4.1. below.

The following are the main parameters for our internal risk assessment regarding direct debit procedures:

  • Risk of insufficient funds or credit on your bank account,
  • Risk that the transaction may not have been properly authorized by the account holder of the bank account,
  • The financial details of the bank account may be incorrect exposing the transaction to be executed incorrectly.

3.5. Special Funding Arrangements

Certain payments may be funded by special funding arrangements linked to your PayPal Account, such as merchant/transaction specific balance, gift vouchers or other promotional funding arrangements, the use and priority of which are subject to further terms and conditions between you and PayPal (“Special Funding Arrangements”). Your PayPal Account Overview may show the notional amount available in your Special Funding Arrangements to fund qualifying payments at any given time. This amount does not constitute E-Money, is not deemed part of your Balance and is not redeemable in cash - it only represents the amount of E-Money which PayPal offers to issue and credit to your PayPal Account at the time of (and only to immediately fund) a qualifying PayPal payment, subject to (and only for the period outlined in) the further terms and conditions of use of that Special Funding Arrangement. If your PayPal payment funded by a Special Funding Arrangement is rescinded (including, without limitation, Reversed) at a later time for any reason, PayPal will keep the amount that represents the portion of that PayPal payment that was funded by your Special Funding Arrangement and (provided that the Special Funding Arrangement has not already expired) reinstate the Special Funding Arrangement.

3.6. Preferred Funding Source

You can choose any of the Funding Sources in your PayPal Account as your Preferred Funding Source for obtaining E-Money in your Balance to cover a Payment Order, subject further to this User Agreement. PayPal may allow you to choose a Preferred Funding Source for certain future Payment Orders in your account preferences of you PayPal Account from time to time. There may be times when your Preferred Funding Source cannot be used, depending on the nature of the Funding Source, the type of Payment Order it is used to fund or the recipient (see also clause 3.8). For example (on a non-exhaustive basis):

  1. You select a credit card that has expired;
  2. A Special Funding Arrangement is available to cover the Payment Order instead, in which case PayPal may use the Specific Funding Arrangement to obtain E-Money to cover your Payment Order before using your Preferred Funding Source; or
  3. You have a pre-existing Balance available to cover the Payment Order instead, in which case PayPal may use your pre-existing Balance (after any available Special Funding Arrangement) for the E-Money to cover your Payment Order before using your Preferred Funding Source.

PayPal may disapply clause 3.6.c. and use your Preferred Funding Source to obtain E-Money to cover certain Payment Orders even if you have pre-existing Balance, subject further to this User Agreement.

3.7. No Preferred Funding Source Selected/Available

If you have not selected a Preferred Funding Source or if your Preferred Funding Source is unavailable, PayPal will obtain E-Money in your Balance to cover your Payment Order from the following sources in the following order to the extent available:

  1. Special Funding Agreements (see clause 3.5.),
  2. Pre-existing Balance
  3. Default Funding Sources used in the order of first Bank account and then credit card..

3.8. Funding Source Limitations

In order to manage risk, PayPal may limit the Funding Sources available for a transaction. If we limit a Funding Source, we will alert you that there is a higher than normal level of risk associated with the payment (for example and without limitation, a risk that the payment may be challenged to be unauthorized). Such a notice does not mean that either party to the transaction is acting in a dishonest or fraudulent manner. It means there may be a higher than normal level of risk associated with the payment. Funding Sources may be limited also if you make a PayPal payment through certain third party websites or applications.

 

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4. Sending Money

4.1. Our execution of your Payment Orders

Subject to the terms of this User Agreement (and your compliance with the same) you agree that we will execute a Payment Order made by you via your PayPal Account. We shall execute your Payment Order based on this Agreement within one Business Day. Within this timeframe we shall credit the payment service provider of the person you are sending your payment to. The 1-day time limit starts on the day following the date you gave us, and we received your valid Payment Order.

 

Executing your Payment Order is subject to the following requirements:

 

  1. You send your Payment Order before 4.00pm German local time on a Business Day. If you provide us with your Payment Order after this time or not on a Business Day, you agree that your Payment Order was received by us on the following Business Day;
  2. You have provided a correct Unique Identifier or other valid details of the recipient or you as PayPal or the person you are paying may reasonably request from you when you complete the details to make the Payment Order;
  3. You have completed all mandatory information requested in the relevant payment or checkout flows;
  4. You have provided details of your valid Funding Source(s) that have sufficient funds to make the payment; and
  5. You have expressed valid consent to authorize your Payment Order. Such valid consent shall be deemed provided:
  • When you click the respective payment button (for example, "Pay" or "Continue") of the PayPal Website(s) which permit you to send us a Payment Order after you have submitted your correct log-in information and successfully logged into your PayPal Account; and/or
  • If you have set up a third party initiated payment Authorization according to clause 4.8. below in which you have agreed with a Merchant or other third party to provide an advance Authorization to allow that Merchant or third party to collect payment of funds from your PayPal Account; and/or
  • Instruct us to make a payment in any other way which we may notify to you when making the Payment Order from time to time.

Our obligation to execute Payment Orders within one Business Day following the date you gave us your valid Payment Order only applies to payments executed:

  • Between Users with registered PayPal Accounts in the European Economic Area (EEA);
  • In the currency of euro (EUR), pound sterling (GBP), or the currency of the EEA state that has not adopted euro (EUR) as its currency.

Once your Payment Order has been provided to us, you may not revoke it or otherwise withdraw your consent to the execution of the payment transaction. This does not apply when you have agreed to Pre-approved Payments (see clause 4.8.). You are able to cancel a Pre-approved Payment provided that you do so before the end of the Business Day which falls on the day before the next payment under the Pre-approved Payment Authorization is due to be made.

 

4.2. Your Payment Order For a Payment to Another User

Subject to the terms of this User Agreement, your Payment Order for a payment to another User (whether a Personal Transaction payment or a Commercial Transaction payment) is your instruction and authorization to us to transfer E-Money from the Payment Account element of your Balance to that User as further directed in your Payment Order. Where you have insufficient Balance or have chosen a Preferred Funding Source you are also requesting us to obtain funds on your behalf from your applicable Funding Source and issue E-Money to the Payment Account element of your Balance for your payment to be made.

4.3. Your Payment Order for a Withdrawal

Subject to the terms of this User Agreement, your Payment Order for a withdrawal from your PayPal Account is your instruction and authorization to us to redeem E-Money from your Balance. Section 6. further applies to this type of Payment Order.

4.4. Insufficient Funds in Your Balance

We are under no obligation to execute your Payment Order if you do not have sufficient funds in your PayPal Account or in your Funding Source. PayPal reserves the right not to effect a payment made by you until it receives cleared funds (this also means, without limitation, that PayPal is not obliged to settle a refund transaction before having received funding for the original transaction).

4.5. Sending Limits

If you have a sending limit on your PayPal Account, you can view it by logging into your PayPal Account and clicking on the “View your account limits” link on the “Account Overview” page. We may, at our reasonable discretion (for example, without limitation, to limit fraud or credit risk), impose limits on the amount of money you can send through the PayPal Services in order to minimize the risk of payment losses or fraud. To lift your sending limit, you must follow the steps that we will notify to you or publish from time to time (which we may set out in your Account Overview).

4.6. Refused Transactions

When you send E-Money and although the E-Money is available to the recipient, the recipient is not required to accept it. In case the recipient denies, refunds, or does not accept the payment within 30 days, we shall credit the amount to your PayPal Account. If you have used your credit card as Funding Source, we shall credit the amount to your credit card. You agree that you will not hold PayPal liable for any damages resulting from a recipient's decision to not accept a payment made through the PayPal Services. We will:

  1. Quickly return any refunded or denied payment to your Balance or, as appropriate, your original Funding Source (in some case instead we may decide to not charge your original Funding Source); and
  2. Return any unclaimed payment to your Balance within 30 days after the date you initiated the payment.

4.7. Merchant Processing Delay

When you pay certain Merchants (for instance, some Merchants selling on online platforms) or pay for certain purchases (for instance, purchases which have to be shipped to you or may be further amended by the Merchant), you are providing

  • an Authorization to the Merchant to collect your payment at a later time; and
  • an instruction to PayPal to pay that Merchant when the Merchant requests payment.

Your Authorization will remain valid typically for up to 30 days. If you have a positive Balance at the time you made your Authorization, you agree that PayPal may hold the payment  amount as pending in your Reserve Account until the Merchant collects your payment. If your payment requires a currency conversion by us, the final exchange rate will be determined and applied (in accordance with clause 8.2.) at the time the Merchant processes your payment and completes the transaction.

Your authorization allows the Merchant to amend the payment amount before the Merchant collects the payment (to account for any amendments to the purchase that you may agree with the Merchant, such as additional taxes, shipping or postage charges or discounts). PayPal may set a maximum amount for the payment to be made to the Merchant in certain circumstances, which may be shown to you on the payment authorization page. PayPal is not required to verify any amendments at any time (including at the time the payment is transferred). PayPal may transfer any amount on the basis of you Authorization and upon receiving instructions form the Merchant of the final payment amount (subject to any maximum amount set and communicated by PayPal for the given payment).

4.8. Pre-approved Payments (also known as Automatic Payments)

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 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 four 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:

  1. 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

  2. Your consent to the making of the third party initiated payment was not given as set out in clause 4.1.e.;

    or

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

    and

  4. You notify us of the request within eight weeks from the date the payment was made;

    and

  5. 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.

4.9. Cancelling Pre-approved Payments 
You may cancel a Pre-approved Payment agreement with a third party in the profile of your PayPal Account. Your cancellation can be made up to one Business Day prior to the date the payment is scheduled to be made.

You may also cancel a Pre-approved Payment in the context of location-based services.

4.10. Sending E-Money in Different Currencies

You may send E-Money in the following currencies:

SENDING CURRENCIES

Currency

ISO-4217-Code

Australian dollars

AUD

Brazilian real

BRL

British pounds sterling

GBP

Danish kroner

DKK

Euros

EUR

Hong Kong dollars

HKD

Israeli new shekels

ILS

Japanese yen

JPY

Canadian dollars

CAD

Malaysian ringgit

MYR

Mexican pesos

MXN

New Taiwan dollars

NTD

New Zealand dollars

NZD

Norwegian kroner

NOK

Philippine pesos

PHP

Polish zloty

PLN

Russian rubles

RUB

Swedish kronor

SEK

Swiss francs

CHF

Singapore dollars

SGD

Thai baht

THB

Czech koruna

CZK

Hungarian forint

HUF

US dollars

USD

 

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:

  1. If you have an existing Balance in the receiving currency, we will send your payment from your Balance;
  2. If you have a Balance in a currency different than the receiving currency, we will perform a currency conversion (pursuant to clause 8.2.) and use the converted Balance to send your payment;
  3. If you do not have any Balance, we automatically obtain Balance in the primary currency of 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 8.2.) 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.

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5. Receiving E-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 PayPal Account.

5.1. Lifting your receiving limit

If you have a receiving limit on your PayPal Account, you can view it by logging into your PayPal Account and clicking on the “View your account limits” link on the “Account Overview”. We may, at our reasonable discretion (for example, without limitation, to limit fraud or credit risk), impose limits on the amount of money you can receive through the PayPal Services. To lift your receiving limit, you must follow the steps that we will notify to you or publish from time to time (which we may set out in your Account Overview).

5.2. Payment Review

Payment Review is a process by which PayPal reviews certain potentially high-risk payment transactions, such risks being described in clause 10.5.a. below.

If a payment is subject to Payment Review, PayPal will:

  1. Execute the Payment Order initiated by the Buyer;
  2. In PayPal’s discretion, immediately upon such execution restrict the Buyer’s Payment Instrument; 
  3. Place a hold on the payment, meaning the funds are held in the Reserve Account of the payment recipient;
  4. Provide notice to the payment recipient to delay the shipping of the item purchased by the Buyer (transactions marked as "Pending" are not covered by Seller Protection, see Section 11.); 
  5. Conduct its review of the payment.

The payment is marked as "Pending" until we have gathered sufficient information to efficiently conduct the payment review in accordance with clause 10.5.a. Where a Payment Review finds a problem with the payment, the payment will be reversed and the funds returned to the Buyer from the Seller’s Reserve Account.

All payments that complete Payment Review are still subject to being reversed (i.e. returned to the Buyer) under the terms of this Agreement but will be eligible for PayPal Seller Protection if they meet the Seller Protection Policy requirements.

A payment subject to Payment Review is neither a review nor a representation by PayPal as to the commercial dealings, character or reputation of a party to the payment transaction and should not be considered as a lessening of the respect of any person.

5.3. Payment Reversals – PayPal’s Claims for Reimbursement

  1. Conditional credit where the funding sources are a credit card or direct debit 
    Every credit of E-Money which is done by PayPal as a result of another user’s PayPal payment (“Payer”) into your PayPal Account is subject to the condition that we receive the corresponding amount definitively. This condition only applies to the extent that the payment was made using a credit card or direct debit as the funding source. This condition applies only as long as the corresponding amount is subject to a potential reversal by the payer’s payment service provider pursuant to clause 4.8.b. In case of a reversal, we will proceed with the credit reversal pursuant to clause 4.8.c.
  2. Reversal by the Payer’s payment service provider 
    A reversal by the payment service provider that a Payer uses to fund their transaction occurs:
  • If the funding source is a credit card, when the Payer initiates a chargeback with his credit card’s issuing bank. It is solely the credit card’s issuing bank that decides the circumstances in which a chargeback may occur, on the basis of the terms of the credit card schemes such as Visa, MasterCard, and American Express,
  • If the funding source is a direct debit, when the Payer rejects a direct debit payment and asks his payment service provider to reimburse the amount, or when the direct debit cannot be honored for reasons not within our control (for example as result of insufficient funds or unauthorized use of the account owner’s bank account details).
  1. Credit reversal by PayPal in relation to reversals 
    When a reversal pursuant to clause 4.8.c. occurs, we will deduct the corresponding amount from the payment recipient’s PayPal Account unless you as a payment recipient are eligible for seller protection in accordance with the PayPal Seller Protection Policy. In the event you are not eligible for PayPal Seller Protection, we will first deduct the amount from the Balance in your PayPal Account. If the Balance in your PayPal Account is not sufficient, you are obliged to pay the corresponding amount into your PayPal Account or directly to us. We may also instruct a collection agency to recover the amount and/or initiate legal proceedings.
  2. Reversal with regard to non-authorized payments 
    A reversal also occurs when the payment is both not authorized by the rightful owner of the PayPal Account and you are not eligible for PayPal Seller Protection in accordance with the seller protection policy. In this case PayPal may proceed in relation to the payee as described under clause 4.8.c.

5.4. Presentation of PayPal Services

As a Merchant in representations or in public communications to your customers , you shall not mischaracterize or disparage the PayPal Services as a payment method.

If you as a Merchant enable your customers to pay you using the PayPal Services, you shall treat the service marks or trademarks of PayPal at least at par with other payment methods offered.

5.5. No Surcharging

As a Merchant, you shall not surcharge for the use of the PayPal Services, including without limitation additional “services fees”, higher shipping costs compared to the shipping costs when other payment methods are used, or any other additional fees or charges you charge to your customers for using the PayPal Services.

Surcharging is a Restricted Activity according to Section 9. below (see clause 9.1.l.).

5.6. Receiving Money in Different Currencies

You do not need to maintain a Balance in a particular currency to accept payments sent in that currency. By accepting such payment you automatically create a Balance in this currency. 
If you already hold this currency in your Balance, we will credit this payment to that Balance automatically.

5.7. Taxes

It is your responsibility to determine what, if any, taxes apply to the payments you make or receive, and it is your responsibility to collect, report and remit the correct tax to the appropriate tax authority. PayPal is not responsible for determining whether taxes apply to your transaction, or for collecting, reporting or remitting any taxes arising from any transaction. As a bank service provider no sales tax applies to the PayPal Services in the EU.

5.8. 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 Privacy Policy (alternatively known as our Privacy Statement). 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, each Party 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 under this Agreement; and
  • not knowingly do anything or permit anything to be done which might lead to a breach by the other Party 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.

5.9. Holds according to your instructions

Certain PayPal functionality may allow you (whether directly or via someone you permit to act on your behalf under clause 15.9.a., like an online marketplace platform on which you transact as a seller) to instruct PayPal to hold your funds (including the proceeds of payments you receive using PayPal) in your Reserve Account. In such a case we will show you the availability status of those funds in your PayPal Balance – the status descriptions may differ according to the functionality you used to instruct us to place the hold. PayPal will release the hold on the funds according to the instruction that you (or the entity that you have permitted to act on your behalf under clause 15.9.a.) give to PayPal, subject to the rest of this Agreement.

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6. Withdrawing/Redeeming E-Money

6.1. How to Withdraw/Redeem E-Money

You may withdraw funds by electronically transferring them to your bank account. Withdrawing E-Money from your PayPal Account to your bank account is equal to redeeming E-Money into euros (EUR).

If you withdraw

  • a Balance held in a currency other than the original opening currency of your PayPal Account, or
  • to a bank account held in a currency other than the original opening currency of your PayPal Account

you will be charged a Currency Conversion Fee as set out in clause A4.1. of Schedule 1 to convert it to your primary currency Balance (pursuant to clause 8.2.).

The original opening currency of your PayPal Account is euro (EUR).

See also clause 6.4. if your PayPal Account holds a Balance in multiple currencies.

6.2. Withdrawal/Redemption Limit and Execution Times

  1. Withdrawal/Redemption Limits

You agree to comply with our requests to verify your identity before we redeem E-Money to you to allow us to reduce the risk of fraud or to otherwise comply with our anti-money laundering or other legal obligations. You can view your periodic withdrawal limits, if any, by logging into your Account and clicking on the “View Limits” link on the “Account Overview.” We may, at our reasonable discretion (for example, without limitation, to limit fraud or credit risk as explained in clause 10.4. below), impose additional limits on the amount of money you can withdraw through the PayPal Services;

  1. Execution Times

Redemption transactions from your Payment Account will be executed within the timeframes set out in clause 4.1., however, we may review your withdrawal transaction to mitigate any risks and/or to prevent money laundering and to ascertain whether any Restricted Activity (as set out in Section 9.) is taking place ("Redemption Risk"). Where a Redemption Risk is identified by us applying the criteria in clause 10.5.a. below, we reserve the right to restrict your Payment Instrument and/or refuse your Payment Order.

When you instruct us to perform a redemption, we may treat this as a future dated Payment Order which we will execute as soon as we have cleared the criteria according to clause 10.5.a. below.

 

6.3. Lifting your withdrawal limit

In order to lift your withdrawal limit, you must follow the steps that we will notify to you or publish from time to time (which we may set out in your Account Overview).

 

6.4. Withdrawing Money in Different Currencies

If you have Balances in different currencies, you will be able to choose from those when you withdraw funds, but, unless otherwise agreed, the withdrawal will take place in the original opening currency of your PayPal Account.

 

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6a. Kauf auf Rechnung

6a.1. ”Kauf auf Rechnung”

Many merchants want to offer to their buyers, who are consumers and provide a place of residence in Germany (“Customers”), the opportunity to purchase goods or services in their online shop on account and pay by electronic funds transfer. For this purpose PayPal has developed a payment upon invoice product (“Kauf auf Rechnung”). . Any Merchant wishing to offer Kauf auf Rechnung to its Customers is required to either use PayPal PLUS (see Section 6b.) or to be a merchant on eBay. There shall be no entitlement to the eligibility for Kauf auf Rechnung. PayPal reserves the right not to offer Kauf auf Rechnung to a merchant and to terminate or limit Kauf auf Rechnung in full or in part at any time, including but not limited to the right not to purchase receivables of purchases of certain products, product group, or from certain industries.

In the scope of Kauf auf Rechnung PayPal purchases from the Merchant all receivables against a Customer of the Merchant which arise from the use of the Kauf auf Rechnung product (“PayPal Invoice Contracts”). PayPal will credit the purchase price for the receivables to the Merchant’s PayPal Account after completion of the order by the Customer and before the Customer settles the bill and pays the outstanding amount to PayPal.

6a.2. Conditions for the use of Kauf auf Rechnung by Customers

Kauf auf Rechnung may as a general rule be used for transaction amounts between EUR 1.50 and EUR 1,500.00.

PayPal will in its own name perform an identity and credit check on the Customer (“Credit Check”) as soon as the Customer chooses Kauf auf Rechnung. Kauf auf Rechnung shall not be offered to a Customer if the result of the Credit Check has resulted in the ineligibility of the Customer for the intended PayPal Invoice Contract. PayPal has the right to perform this Credit Check at its own standards and to rate Customers as eligible or ineligible for Kauf auf Rechnung. If PayPal determines that a Customer is ineligible for Kauf auf Rechnung, the Customer will immediately be shown a declining message. A PayPal Invoice Contract will not be concluded in this case. The Customer will be reverted back to the payment selection page of the Merchant.

You authorize PayPal to agree upon terms of use with the Customer for Kauf auf Rechnung, which shall define the specific terms of the PayPal Invoice Contract (including, but not limited to late fees for which the Customer is responsible if in default).

To be able to use Kauf auf Rechnung, the Customer is obliged to agree with the Terms of Use for Kauf auf Rechnung, the Privacy Policy for Users without PayPal Account and the information about the Credit Check. These terms may all be retrieved from the PayPal Website at http://www.paypal.de/agb in German and English language for inspection and download.

6a.3. Sale and Assignment of Receivables

The Merchant hereby offers PayPal to purchase all its receivables and rights against the Customer deriving from PayPal Invoice Contracts concluded after the date of introduction including any associated charges (including but not limited to shipping costs) and fees, ancillary rights, quasi-contractual claims, claims based on unjust enrichment and claims in tort(collectively “Assigned Receivables”). PayPal accepts this purchase offer. The Merchant hereby irrevocably assigns the Assigned Receivables to PayPal. PayPal hereby accepts the assignment of the Assigned Receivables.

The assignment of an Assigned Receivable to PayPal shall be effective as soon as the Assigned Receivable comes into existence.

The Merchant is obliged to inform PayPal of the amount of each Assigned Receivable via API call immediately after completion of the order process.

PayPal may resell and assign the Assigned Receivables (e.g. for purposes of collection) without any restrictions.

6a.4. Crediting of Purchase Price; Fees

For Assigned Receivables PayPal shall credit the Merchant an amount (“Purchase Price”) as set out below:

  • The price for the goods or services agreed upon between the Merchant and the Customer plus
  • Charges and fees (e.g. shipping costs) payable by the Customer minus
  • Standard Fees payable by Merchant according to Schedule 1 (Table of Fees) (see clause A3.); PayPal shall not apply a fee for the assignment of Assigned Receivables itself..

The Purchase Price is due immediately after the Customer completes the order process. PayPal shall credit the Merchant’s PayPal Account with an E-Money amount equal to the Purchase Price.

6a.5. Rights of recourse and rescission

PayPal shall not have a right of recourse against the Merchant, if the Customer is not able or willing to pay the Assigned Receivables due in a timely manner (“factoring without recourse”) nor in cases where the Customer commits fraud, e.g. by submitting a false name, address or bank account data. This only applies if the payment has been shown to the Merchant as completed in the Merchant’s PayPal Account.

If a Customer asserts the defense of non-fulfilment of contract (e.g. item not received) or if a Buyer refuses payment by asserting other defenses or objections, PayPal may take recourse with the Merchant unless the Merchant can provide valid proof of shipment in accordance with the terms of the PayPal Seller Protection Policy. In the event the Merchant violates representations or warranties set out in clause 6a.6. the Merchant shall not be eligible for PayPal Seller Protection.

In the event that the Customer disengages from the purchase (including, but not limited to rescinding, canceling, or revoking the purchase), the Merchant shall immediately inform PayPal of such disengagement via an API call or through the PayPal Account of the Merchant by voiding/cancelling the transaction in the Merchant’s PayPal Account, choosing the return option in the Merchant’s PayPal Account, or informing PayPal of the demand for a price reduction, respectively, and by returning the Purchase Price to PayPal via Merchant’s PayPal Account immediately. The same applies mutatis mutandis to partial disengagement (e.g. partial return) or reduction. In such case, the Merchant shall reimburse PayPal for any amounts already overpaid to the Merchant (if any). PayPal shall also reimburse an overpaid amount to the Merchant, if any.

6a.6. Representations and Warranties; Legal Consequences of a Breach

The Merchant hereby represents – irrespective of fault, whether willful or negligent – that the following is true and correct at the time of conclusion of this Agreement, when the assignment becomes effective and at any point in time thereafter for the Assigned Receivables (collectively “Representations”):

  1. The Merchant is the sole and unlimited legal and beneficial owner of the Assigned Receivables;
  2. The Merchant holds the full right to transfer, with full title guarantee, any and all of the Assigned Receivables;
  3. The Assigned Receivables, including all ancillary rights, are valid (with the exception of the Customer fraud as set out above in Section 6a.5.);
  4. The Assigned Receivables have not been assigned to any third party, in particular, but without limitation, they are not subject to extended retention of title agreements (in German: verlängerter Eigentumsvorbehalt), floating charges, global assignments (in German: Globalzession) or similar security granted to third parties except for security agreements where the Merchant has been authorized to dispose of the Assigned Receivables as required under this User Agreement;

For the entire term of use of Kauf auf Rechnung (if not stated otherwise hereinafter) the Merchant undertakes the following vis-à-vis PayPal (collectively “Warranties”):

  1. The Merchant shall not autonomously collect payments relating to the Assigned Receivables;
  2. The Merchant shall deliver all products or services underlying any Assigned Receivables in full, without delay and as agreed to the Customer;
  3. The Merchant shall send or render all products or services within seven days of the completion of a transaction, unless expressly agreed otherwise with PayPal;
  4. The Merchant will notify the Customer of the assignment of the Assigned Receivables to PayPal and provide to the Customer the payment instructions using the data received from PayPal via an API call and shall also include these payment instructions on its invoice to the Customer;
  5. The Merchant shall be in compliance with all requirements set forth in the documentation of the integration provided to the Merchant;
  6. The Merchant shall only enter into PayPal Invoice Contracts for physical goods and not for intangible goods or services, unless these intangible goods or services are in direct relationship with the purchased physical good (such as shipping or assembly costs);
  7. The Merchant shall use its best effort to ensure the validity of the assignment, shall not impair the Assigned Receivables in their existence or their commercial usability, shall ensure the best commercial usability of the Assigned Receivables and shall notify PayPal without undue delay if existence or commercial usability of the Assigned Receivables is considerably impaired;
  8. The Merchant shall not allow the Customer to change his address (invoice or shipping address) or any other of the Customer's data in the online shop or during the order process after the credit check has been performed. To the extent the Merchant engages third parties to ship the goods, the Merchant shall ensure that also such third party shall not allow changes of address or other data;
  9. The Merchant shall upon request by PayPal take such actions necessary or required to ensure the rights of PayPal to the Assigned Receivables or to exercise such rights;
  10. The Merchant shall support PayPal with the performance of debt collection measures regarding the Assigned Receivables by providing to PayPal proof of shipment or other compelling evidence regarding the existence, the value, or effectiveness of the Assigned Receivables;
  11. The Merchant shall pay Value Added Tax (VAT on Assigned Receivables. The Merchant authorizes PayPal to pay VAT to the competent financial authority and to request reimbursement from the Merchant. PayPal is entitled to set-off this reimbursement claim against a Purchase Price claim of the Merchant. PayPal shall notify the Merchant of such set-off. The Merchant shall transfer to PayPal such VAT amounts that have been refunded to the Merchant by the competent financial authority, if PayPal has notified the Merchant that Assigned Receivables are uncollectible. The net invoice amount shall be regarded as base for VAT assessment of a single receivable.
  12. The Merchant shall not grant any right of rescission to its Customers exceeding the applicable statutory right or rescission; this shall not apply if the Merchant sells goods using Kauf auf Rechnung on the German website of eBay at http://www.ebay.de under “eBayGuarantee”. The Merchant can according to the provisions of “eBayGuarantee” grant to its Customers a right of rescission that exceeds the statutory right of rescission;
  13. The Merchant shall grant to its Customers a term of payment as instructed by PayPal.

If the Merchant is in breach of any of the Representations or Warranties herein, the Merchant shall inform PayPal hereof immediately and, if possible, cure such breach without undue delay. PayPal will set an adequate grace period for the cure of the breach to the Merchant. If the Merchant does not cure the breach within the grace period set by PayPal, PayPal shall be entitled to terminate the Merchant’s use of Kauf auf Rechnung. The requirement of a grace period set by PayPal shall not apply, if a cure of the breach is a priori impossible. The Merchant is obliged to indemnify and hold PayPal harmless for any losses or damages that PayPal may suffer as a result of such breach of any Representation or Warranty.

If the Merchant is in breach of a Representation or Warranty and if (and as far as) PayPal has received on an Assigned Receivable an amount as per clause 6a.5. in an amount of the respective Assigned Receivable and if PayPal has terminated the use of Kauf auf Rechnung by the Merchant or in full, PayPal shall reassign the Assigned Receivable to the Merchant as far as legally permissible.

6a.7. Indemnity

Immediately upon completion of the order the Merchant shall notify the Buyer on the confirmation page of the Merchant’s online shop of the assignment and the payment instructions contained in the data provided by PayPal via API call, and also add this data on the invoice to the Buyer.

The Merchant shall act on PayPal’s instructions to take such action as is necessary to preserve or enforce PayPal’s rights in the Assigned Receivables. Further, the Merchant is obliged to support PayPal in its collection efforts of the Assigned Receivables by providing necessary proof of shipment or other documents supporting the existence, value and validity of the Assigned Receivables as the case may be.

The Merchant shall immediately notify PayPal in case of any (partial) returns, rescissions, credits, or cancellations with regard to Kauf auf Rechnung via API call. The Merchant shall also notify PayPal in case of any material or systemic complaints received in relation to Kauf auf Rechnung.

The Merchant shall defend, indemnify and hold harmless PayPal against any claim by any third party including PayPal’s legal expenses: (a) where Claim is due to or arising out of the Merchant’s alleged (i) breach of any Representation, Warranty, or obligation in this User Agreement, (ii) violation of any applicable laws or regulations, or (iii) negligence or misconduct, or (b) where Claim asserts that the Merchant’s technology (whether owned by the Merchant or licensed from a third party) or services provided under and used in accordance with this User Agreement, infringe such third party’s intellectual property rights.

6a.8. Data Protection

Both PayPal and the Merchant agree and acknowledge that both PayPal and the Merchant will each be independently of each other acting as data controllers in respect of personal data processed by each of them. This User Agreement does not establish a basis for jointly exercising data controller powers over the relevant personal data.

Both PayPal and the Merchant undertake to comply with privacy law (as applicable to each of them) and the fulfilment of their respective obligations under this User Agreement and to procure that their respective personnel comply with privacy law.

Both PayPal and the Merchant agree and warrant that neither PayPal nor the Merchant shall knowingly do or omit to do anything in relation to personal data which either knows would put PayPal or the Merchant in breach of its obligations under the privacy law.

Both PayPal and the Merchant must provide such reasonable assistance to the other so that it may comply with such obligations as are imposed on it by the privacy law, including (but not limited to) providing the other with reasonable co-operation and assistance in complying with any request received from an individual for access to copies of personal data relating to them and to fulfil its statutory regulatory obligations in relation to any competent regulator. Any breach of the provisions of this clause shall be notified in writing by the breaching party to the other party as soon as reasonably practicable.

To ensure a smooth flow of the use of Kauf auf Rechnung, the Merchant provides to PayPal in particular name, address and email address of the Customer, goods and services sold, the amount due and other relevant data which will then appear as pre-filled data in the application flow but may be changed by the Customer. The Merchant shall ensure that it obtains all necessary data protection consents from the Customer to allow PayPal to fulfil its duties and exercise its rights under this User Agreement.

6a.9. Termination rights of PayPal

PayPal reserves the right to limit or terminate the use of Kauf auf Rechnung by a Merchant without notice, including without limitation regarding certain products, groups of products or values.

6a.10. Limitation of liability

The liability of PayPal and its agents in connection with Kauf auf Rechnung is excluded for cases of slight negligence. In all other cases the liability of PayPal and its agents is limited to an amount equal to 20.00%  of the total amount of Fees which the Merchant has paid to PayPal in the preceding calendar year for the use of Kauf auf Rechnung. Nothing in this clause shall limit the liability of PayPal for loss of life or limb or health or for a breach of a major obligation or for cases of gross culpability.

Otherwise, the provisions of clause 15.4. shall apply.

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6b. PayPal PLUS

6b.1. General principles

PayPal PLUS is a service providing a Merchant an optimized checkout for its online shop. PayPal PLUS includes the payment methods PayPal Services, credit card, and electronic direct debit, and Kauf auf Rechnung, as well as up to five third-party providers of payment methods which may be integrated into the PayPal PLUS checkout. PayPal PLUS also enables such Payers who do not hold a PayPal Account to process payments to the merchant using PayPal PLUS.

Payments received via PayPal PLUS will be credited to the PayPal Account of the Merchant as E-Money, irrespective of the payment instrument being used by the payer for payment in an individual case.

PayPal PLUS is only available to eligible Merchants and upon prior application by the Merchant. Eligibility is at PayPal’s sole discretion and takes numerous variables into account. Eligibility for PayPal PLUS does expressly not include eligibility for Kauf auf Rechnung

Kauf auf Rechnung shall only be provided subject to a prior risk check of the Merchant. The criteria of this risk check shall be in the sole discretion of PayPal.

Payments received via PayPal PLUS in the PayPal Account of the Merchant are deemed paid with PayPal as set forth in this User Agreement (see Section 6a.).

For receiving payments via PayPal PLUS Fees as set out in clause A.3 of Schedule 1 (Table of Fees) shall apply. 
 

6b.2. Data Processing Schedule

This Data Processing Schedule applies only to the extent that PayPal acts as a processor or Sub-processor to the Merchant. Capitalized terms used but not defined in this Section 6b. shall have the meaning set out in the User Agreement

a. Definitions and Interpretation

The following terms have the following meaning when used in this Section 6b.:

"Customer" means a European Union customer of Merchant who uses the PayPal Services and for the purposes of this clause 6b.2., is a data subject.

"Customer Data" means the personal data that the Customer provides to Merchant and Merchant passes on to PayPal through the use by the Merchant of the PayPal Services.

"Data Controller" (or simply "Controller") and "Data Processor" (or simply "Processor") and "Data Subject" have the meanings given to those terms under the Data Protection Laws.

"Data Protection Laws" means General Data Protection Regulation (EU) 2016/679 (GDPR) and any associated regulations or instruments and any other data protection laws, regulations, regulatory requirements and codes of conduct of EU Member States applicable to PayPal's provision of the PayPal Services.

"Personal Data" has the meaning given to it in the Data Protection Laws. 

"Processing" has the meaning given to it in the Data Protection Laws and "process", "processes" and "processed" will be interpreted accordingly. 

"Sub-processor" means any processor engaged by PayPal and/or its affiliates in the processing of personal data.

 

b. Processing of Personal Data in Connection with the Services

​i. Merchant data controller

With regard to any Customer Data to be processed by PayPal in connection with this User Agreement, Merchant will be a controller and PayPal will be a processor in respect of such processing. Merchant will be solely responsible for determining the purposes for which and the manner in which Customer Data are, or are to be, processed.

 

ii. Merchant written instructions

PayPal shall only process Customer Data on behalf of and in accordance with Merchant’s written instructions. PayPal and Merchant agree that this clause 6b.2. is Merchant's complete and final written instruction to PayPal in relation to Customer Data. Additional instructions outside the scope of this clause 6b.2. (if any) require prior written agreement between PayPal and Merchant, including agreement of any additional fees payable by Merchant to PayPal for carrying out such additional instructions. Merchant shall ensure that its instructions comply with all applicable laws, including Data Protection Laws, and that the processing of Customer Data in accordance with Merchant's instructions will not cause PayPal to be in breach of Data Protection Laws. The provisions of this clause 6b.2. are subject to the provisions of clause 6b.2.n. on Security. Merchant hereby instructs PayPal to process Customer Data for the following purposes:

  • As reasonably necessary to provide the PayPal services to Merchant and its Customer;
  • After anonymizing the Customer Data, to use that anonymized Customer Data, directly or indirectly, which is no longer identifiable personal data, for any purpose whatsoever.

 

c. PayPal cooperation

In relation to Customer Data processed by PayPal under this Agreement, PayPal shall co-operate with Merchant to the extent reasonably necessary to enable Merchant to adequately discharge its responsibility as a controller under Data Protection Laws, including without limitation as Merchant requires in relation to:

  • Assisting Merchant in the preparation of data protection impact assessments to the extent required of Merchant under Data Protection Laws; and
  • Responding to binding requests from data protection authorities for the disclosure of Customer Data as required by applicable laws.

d. Scope and Details of Customer Data processed by PayPal

The objective of processing Customer Data by PayPal is the performance of the PayPal Services pursuant to the User Agreement. PayPal shall process the Customer Data in accordance with the specified duration, purpose, type and categories of data subjects as set out in clause 6b.4. (Data Processing of Customer Data).

e. Compliance with Laws

PayPal and Merchant will at all times comply with Data Protection Laws.

f. Correction, Blocking and Deletion

To the extent Merchant, in its use of the PayPal services, does not have the ability to correct, amend, block or delete Customer Data, as required by Data Protection Laws, PayPal shall comply with any commercially reasonable request by Merchant to facilitate such actions to the extent PayPal is legally permitted to do so. To the extent legally permitted, Merchant shall be responsible for any costs arising from PayPal’s provision of such assistance.

g. Data Subject Requests

PayPal shall, to the extent legally permitted, promptly notify Merchant if it receives a request from a Customer for access to, correction, amendment or deletion of that Customer’s personal data. Merchant shall be responsible for responding to all such requests. If legally permitted, PayPal shall provide Merchant with commercially reasonable cooperation and assistance regarding such Customer's request and Merchant shall be responsible for any costs arising from PayPal’s assistance.

h. Training

PayPal undertakes to provide training as necessary from time to time to the PayPal personnel with respect to PayPal's obligations in this Section 6b. to ensure that the PayPal personnel are aware of and comply with such obligations.

i. Limitation of Access

PayPal shall ensure that access by PayPal's personnel to Customer Data is limited to those personnel performing PayPal Services in accordance with the User Agreement.

j. Sub-processors

Merchant specifically authorizes the engagement of members of the PayPal Group as Sub-processors in connection with the provision of the PayPal Services. In addition, Merchant generally authorizes the engagement of any other third parties as Sub-processors in connection with the provision of the PayPal Services. When engaging any Sub-processor, PayPal will execute a written contract with the Sub-processor, which contains terms for the protection of Customer Data which are no less protective than the terms set out in this Section 6b. PayPal shall make available to Merchant a current list of Sub-processors for the respective PayPal Services with the identities of those Sub-processors.

k. Audits and Certifications

Where requested by Merchant, subject to the confidentiality obligations set forth in the User Agreement, PayPal shall make available to Merchant (or Merchant’s independent, third-party auditor that is not a competitor of PayPal or any members of PayPal or the PayPal Group) information regarding PayPal’s compliance with the obligations set forth in this Section 6b. in the form of the third-party certifications and audits (if any) set forth in the Privacy Policy set out on the PayPal Website. Merchant may contact PayPal in accordance with the User Agreement to request an on-site audit of the procedures relevant to the protection of personal data. Merchant shall reimburse PayPal for any time expended for any such on-site audit at PayPal’s then-current professional PayPal services rates, which shall be made available to Merchant upon request. Before the commencement of any such on-site audit, Merchant and PayPal shall mutually agree upon the scope, timing, and duration of the audit in addition to the reimbursement rate for which Merchant shall be responsible. All reimbursement rates shall be reasonable, taking into account the resources expended by PayPal. Merchant shall promptly notify PayPal with information regarding any non-compliance discovered during the course of an audit.

l. Security

PayPal shall, as a minimum, implement and maintain appropriate technical and organizational measures as described in clause 6b.3. to keep Customer Data secure and protect it against unauthorized or unlawful processing and accidental loss, destruction or damage in relation to the provision of the PayPal Services. Since PayPal provides the PayPal Services to all Merchants uniformly via a hosted, web-based application, all appropriate and then-current technical and organizational measures apply to PayPal’s entire customer base hosted out of the same data center and subscribed to the same service. Merchant understands and agrees that the technical and organizational measures are subject to technical progress and development. In that regard, PayPal is expressly permitted to implement adequate alternative measures as long as the security level of the measures is maintained in relation to the provision of the PayPal Services.

m. Security Incident Notification

If PayPal becomes aware of a Security Incident in connection with the processing of Customer Data, PayPal will, in accordance with Data Protection Laws: (a) notify Merchant of the Security Incident promptly and without undue delay; (b) promptly take reasonable steps to minimize harm and secure Customer Data; (c) describe, to the extent possible, reasonable details of the Security Incident, including steps taken to mitigate the potential risks; and (d) deliver its notification to Merchant's administrators by any means PayPal selects, including via email. Merchant is solely responsible for maintaining accurate contact information and ensuring that any contact information is current and valid.

n. Deletion

Upon termination or expiry of the User Agreement, PayPal will delete or return to Merchant all Customer Dataprocessed on behalf of the Merchant, and PayPal shall delete existing copies of such Customer Data except where necessary to retain such Customer Data strictly for the purposes of compliance with applicable law.

o. Data Portability

Upon any termination or expiry of this Agreement, PayPal agrees, upon written request from Merchant, to provide Merchant’s new acquiring bank or payment service provider (“Data Recipient”) with any available credit card information including personal data relating to Merchant’s Customers (“Card Information”). In order to do so, Merchant must provide PayPal with all requested information including proof that the Data Recipient is in compliance with the Association PCI-DSS Requirements and is level 1 PCI compliant. PayPal agrees to transfer the Card Information to the Data Recipient so long as the following applies: (a) Merchant provides PayPal with proof that the Data Recipient is in compliance with the Association PCI-DSS Requirements (Level 1 PCI compliant) by providing PayPal a certificate or report on compliance with the Association PCI-DSS Requirements from a qualified provider and any other information reasonably requested by PayPal; (b) the transfer of such Card Information is compliant with the latest version of the Association PCI-DSS Requirements; and (c) the transfer of such Card Information is allowed under the applicable Association Rules, and any applicable laws, rules or regulations (including Data Protection Laws).

 

 

6b.3. Technical and Organizational Measures

The following technical and organizational measures will be implemented:

  1. Measures taken to prevent any unauthorized person from accessing the facilities used for data processing;
  2. Measures taken to prevent data media from being read, copied, amended or moved by any unauthorized persons;
  3. Measures taken to prevent the unauthorized introduction of any data into the information system, as well as any unauthorized knowledge, amendment or deletion of the recorded data;
  4. Measures taken to prevent data processing systems from being used by unauthorized person using data transmission facilities;
  5. Measures taken to guarantee that authorized persons when using an automated data processing system may access only data that are within their competence;
  6. Measures taken to guarantee the checking and recording of the identity of third parties to whom the data can be transmitted by transmission facilities;
  7. Measures taken to guarantee that the identity of the persons having had access to the information system and the data introduced into the system can be checked and recorded ex post facto at any time and by any authorized person;
  8. Measures taken to prevent data from being read, copied, amended or deleted in an unauthorized manner when data are disclosed and data media transported;
  9. Measures taken to safeguard data by creating backup copies.

6b.4. Data Processing of Customer Data

  1. Categories of data subjects

Customer Data – The personal data that the Customer provides to Merchant and Merchant passes on to PayPal through the use by the Customer of the PayPal Services.

 

  1. Subject-matter of the processing

The payment processing services offered by PayPal which provides Merchant with the ability to accept credit cards, debit cards, and other payment methods on a website or mobile application from Customers.

 

  1. Nature and purpose of the processing

PayPal processes Customer Data that is sent by the Merchant to PayPal for purposes of obtaining verification or authorization of the Customer’s payment method as payment to the Merchant for the sale goods or services.

 

  1. Type of personal data

Customer Data – Merchant shall inform PayPal of the type of Customer Data PayPal is required to process under this User Agreement. Should there be any changes to the type of Customer Data PayPal is required to process then Merchant shall notify PayPal immediately. PayPal processes the following Customer Data, as may be provided by the Merchant to PayPal from time to time:

 

  • Full name
  • Date of birth
  • Home address
  • Shipping address
  • Work address
  • Billing address
  • Email address
  • Telephone number
  • Fax number
  • Government ID number
  • Bank account number and bank routing number
  • Financial account number
  • Card or payment instrument type
  • Card Primary Account Number (PAN) or Device-specific Primary Account Number (DPAN)
  • Card Verification Value (CVV)
  • Card expiration date
  • Business tax ID
  • Username
  • Password
  • IP address
  • Device Data
  • Browser data.

 

  1. Special categories of data (if relevant)

The transfer of special categories of data is not anticipated.

  1. Duration of Processing

The term of the User Agreement.

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6c. Payment after 14 Days

6c.1. Eligibility

PayPal offers the possibility to some consumers to use “Payment after 14 Days” (in German: “Bezahlung nach 14 Tagen”). PayPal however reserves the right to decide whether you may use ”Payment after 14 Days” Eligibility criteria include but are not limited to transaction activity. You are therefore not entitled to claim the right to use “Payment after 14 Days”. ”Payment after 14 Days” is not available for commercial use.

6c.2. How “Payment after 14 Days” works

When you do a payment with ”Payment after 14 Days”, the recipient (merchant) will receive the transaction amount immediately in his PayPal account. We will initiate the direct debit from your bank account via direct debit no sooner than at least 14 days from the date of the transaction. 

6c.3. Direct debit

In order to use ”Payment after 14 Days”, you must have a valid bank account linked with your PayPal Account, and identified it as your primary bank account or preferred funding source or selected the bank account as Funding Source in the payment process. ”Payment after 14 Days” may not be used with other funding sources such as for example credit card. The entire transaction amount will be funded from the primary bank account linked to your PayPal Account, even if you have a balance in this PayPal Account.

For each payment using ”Payment after 14 Days”, you authorize PayPal to debit the primary bank account for the full payment amount no sooner than at least 14 days after the transaction date. The exact date, on which we will initiate the direct debit from your bank account, is going to be displayed in your PayPal Account statement and in an email which is sent to you.

If the initial direct debit is rejected or if insufficient funds are available, you authorize PayPal to resubmit the instruction for a direct debit. If the second debit fails as well, PayPal may use one of the other existing funding sources to obtain the transaction amount. The hierarchy of Funding Sources as defined in clause 3.7. applies.

6c.4. Choice of funding source

If you have chosen to use "Payment after 14 Days" for a transaction, we will debit the entire transaction amount from your bank account also if your Balance covers the transaction amount. The use of gift vouchers or other Special Funding Arrangements (as defined in clause 3.5.) is excluded when using "Payment after 14 Days".

However, even when you have registered for “Payment after 14 Days”, you may choose a different Funding Source for each transaction. That means that you may decide for each transaction whether you want to use ”Payment after 14 Days” or another available Funding Source such as credit card, Balance or direct debit without the functionality ”Payment after 14 Days”.

6c.5. Availability, suspension, and termination of “Payment after 14 Days” by PayPal

In some instances, “Payment after 14 days” will not be available for single transactions even though you are generally eligible for “Payment after 14 days”.

PayPal has the right, at any time, to terminate, cancel, suspend or modify ”Payment after 14 Days”, qualifications or eligibility for ”Payment after 14 Days”, or your ability to use ”Payment after 14 Days”. Transaction which you have already initiated will still be performed.

6c.6. Customer Verification

You can use ”Payment after 14 Days” for purchases up to EUR 15,000.00 and above. However, once you have made purchases totaling EUR 15,000.00 or more, you will be asked to confirm some information about your identity. Upon successful completion of the identity check you can continue using ”Payment after 14 Days”. 
 

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7. Term and Closing Your PayPal Account

Your  Agreement with us starts when you successfully register for a PayPal Account and ends when your Account is closed for whatever reason, except that this Agreement survives termination to the extent and for so long as we require to deal with the closure of your Account and to comply with applicable laws and regulations (including, without limitation Sections 1., 7., 8., 10., 14., 15., and Schedule 1 (Table of Fees)).

You can close your PayPal Account at any time by logging into your PayPal Account, clicking on the "Profile" tab, clicking on the ”Close Account“ link, and then following the instructions. See the PayPal Help Center for more details.

We may close your PayPal Account at our convenience by providing you with 2 months prior notice. We may also close your PayPal Account at any time where:

  • You are in breach of the terms of this User Agreement and/or we are entitled to close your PayPal Account under clause 10.2.;
  • You do not access your PayPal Account for three years; or
  • We suspect that your PayPal Account has been accessed without your authorization.

Where we decide to close your PayPal Account we will provide you with notice of PayPal Account closure, and where practicable, the reasons for closing your PayPal Account, together with the ability to withdraw any undisputed funds that we are holding.

When your PayPal Account is closed:

  • We may cancel any pending transactions and you will forfeit any Balances associated with Special Funding Arrangements;
  • We may suspend, limit or terminate your access to or use of the PayPal Services, websites, software, systems (including any networks and servers used to provide any of the PayPal Services) operated by us or on our behalf or some or all of the PayPal Services;
  • You will remain liable for all outstanding obligations under this User Agreement related to your PayPal Account prior to closure;
  • We may keep your PayPal Account information in our database for the purpose of fulfilling our legal obligations; and
  • We may retain your Balance after closure to the extent and for the time we reasonably require to protect PayPal and/or any third party against the risk of Reversals, Chargebacks, Claims, fees, fines, penalties and other liabilities of whatever nature. After this time you will be able to withdraw any undisputed funds that we are holding. Please contact PayPal Customer Service if you have any questions about funds held in your PayPal Account on closure.

If you are the legal representative of an incapacitated or deceased Account holder, please contact the PayPal Customer Service for assistance.

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8. Fees and Currency Conversion

8.1. Fees

Fees for Users registered in Germany are specified in Schedule 1 (Table of Fees) below, which is an integral part of this User Agreement. For Users with a PayPal Account registered in a country or region which is not Germany, then for the avoidance of doubt, those Users will be liable to PayPal for the Fees as set out in the terms of the User Agreement relevant to that other country or region or as set out in the Table of Fees for that other county or region.

If other Fees apply for services or functionalities not referred to in Schedule 1 (Table of Fees) below, you will be notified of those Fees on the PayPal Website(s) where those other services or functionalities are offered or provided.

8.2. Currency Conversion

Where a currency conversion is required, it will be completed at the transaction exchange rate we set for the relevant currency exchange.

The transaction exchange rate is adjusted regularly and includes a Currency Conversion Fee applied and retained by us on a base exchange rate to form the rate applicable to your conversion. The base exchange rate is set on the basis of rates within the wholesale currency markets, or if required by law or regulation, at the relevant government reference rate(s), in each case on the conversion date or the prior business day.

The transaction exchange rate applied to your conversion may be applied immediately and without notice to you.

The “Currency Converter” tool can be accessed through your PayPal Account and used to see what transaction exchange rates apply for certain currency exchanges at the time you use the tool.

Where a currency conversion is offered by PayPal to you when you make your transaction (e.g. at the point of sale), you will be shown the transaction exchange rate that will be applied to the transaction before you proceed with your Authorization of the payment transaction. By proceeding with your Authorization of the payment transaction you are agreeing to the currency conversion on the basis of the transaction exchange shown.

Where your payment is funded by Bank or Credit Card and involves a currency conversion by PayPal, by entering into this Agreement you consent to and authorize PayPal to convert the currency in place of your Bank or Credit card issuer.

Depending on the type of Funding Source used for your payment you may opt out of a currency conversion by PayPal before you complete your payment during checkout, in which case PayPal has no liability to you for your use of other currency conversion options.

Where a currency conversion is offered at the point of sale by the Merchant, not by PayPal, and you choose to Authorize the payment transaction on the basis of the Merchant's exchange rate and charges, PayPal has no liability to you for such currency conversion by a Merchant.

Where transactions are funded with direct debit, we will, unless we have a special agreement with you, always debit your bank account in euros (EUR) and, if required for the transaction, offer a currency conversion.

If you receive a payment in a currency other than the primary currency of your PayPal Account from anyone who doesn’t have a PayPal Account, the payment amount will be converted into the primary currency of your PayPal Account by PayPal for you at the time the payment is made, in accordance with this clause 8.2. (except where otherwise agreed by PayPal) and you agree to bear the Currency Conversion Fee at section A4.1. of this User Agreement (which is included in the transaction exchange rate you pay), before any other transaction fees apply.

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9. Restricted Activities

 

9.1. Restricted Activities

In connection with your use of the PayPal Website(s), your PayPal Account, or the PayPal Services, or in the course of your interactions with PayPal, a User or a third party, you will not:

  1. Breach this User Agreement (including, without limitation, opening multiple PayPal Accounts), the Commercial Entity Agreement, the PayPal Acceptable Use Policy or any other agreement that you have entered into with PayPal (including a policy);
  2. Breach any law, statute, contract, or regulation (for example, those governing financial services including anti-money laundering, consumer protections, unfair competition, anti-discrimination or false advertising);
  3. Infringe PayPal’s or any third party's copyright, patent, trademark, trade secret or other intellectual property rights, or rights of publicity or privacy;
  4. Act in a manner that is obscene, defamatory, libelous, threatening or harassing;
  5. Provide false, inaccurate or misleading Information;
  6. Fail to provide us with further information about you or your business activities that we may reasonably request;
  7. Send or receive what we reasonably believe to be potentially fraudulent or unauthorized funds;
  8. Refuse to cooperate in an investigation or provide confirmation of your identity or any Information you provide to us;
  9. Attempt to "double dip" or undertake any action which could amount to unjust enrichment during the course of a Dispute by receiving or attempting to receive funds from both PayPal and the Seller, bank, or credit card company for the same transaction;
  10. Use an anonymizing proxy. whether electronically, physically (e.g. using a P.O. box as your address) or otherwise;
  11. Control a PayPal Account that is linked to another PayPal Account that has engaged in any of these Restricted Activities. A PayPal Account is deemed to be “linked” to another PayPal Account for the purpose of this clause 9.1.k. where PayPal has reason to believe that both PayPal Accounts are controlled by the same legal personality or group of legal personalities (including, without limitation, individuals), which is more likely when both PayPal Accounts share certain attributes, including, without limitation, the same recorded user name, email address, funding source (e.g. bank account) and/or recorded ID used to receive services from partners of PayPal (such as an eBay ID);
  12. Surcharge for the use of the PayPal Services (see clause 5.5. above);
  13. Conduct your business or use the PayPal Services in a manner that results in or may result in complaints, Disputes, Claims, Reversals, Chargebacks, Fees, fines, penalties and other liability to PayPal, a User, a third party, or you;
  14. Abuse (as either a Buyer or Seller) of our Online Dispute Resolution process and/or the PayPal Buyer Protection Policy;
  15. Cause PayPal to receive a disproportionate number of Claims that have been closed in favor of the claimant regarding your PayPal Account or business;
  16. Have a credit score from a credit reporting agency that indicates a high level of risk associated with your use of the PayPal Services;
  17. Use your Account or the PayPal Services in a manner that PayPal, Visa, MasterCard, American Express, or our bank acquirer and/or payment processors reasonably believe to be an abuse of the bank’s reversal process, credit card system or a violation of credit card association rules;
  18. Allow your PayPal Account to have a Balance reflecting an amount owing to us;
  19. Undertake an activity that does or may present to us a credit or fraud risk, a sudden increase in exposure, or a significant or otherwise detrimental level of exposure (as PayPal reasonably believes based on the information available to it);
  20. Use a credit card with your PayPal Account to provide yourself a cash advance (or help others to do so);
  21. Access the PayPal Services from a country that is not included on PayPal's Worldwide page;
  22. Disclose or distribute another User’s Information to a third party, or use the Information for marketing purposes unless you receive the User’s express consent to do so;
  23. Send unsolicited e-mail to a User or use the PayPal Services to collect payments for sending, or assisting in sending, unsolicited e-mail to third parties;
  24. Take any action that imposes an unreasonable or disproportionately large load on the Services, our infrastructure, our websites, our software, or our systems (including any networks and servers used to provide any of the Service) whether operated by us or on our behalf;
  25. Facilitate any viruses, Trojan horses, malware, worms or other computer programming routines that attempt to or may damage, disrupt, corrupt, misuse, detrimentally interfere with, surreptitiously intercept or expropriate or gain unauthorized access to any system, data or Information or the Services;
  26. Use any robot, spider, other automatic device, or manual process to monitor or copy our website without our prior written permission;

aa. Use any device, software or routine to bypass our robot exclusion headers, or interfere or disrupt or attempt to interfere with or disrupt the PayPal Website(s), software, systems (including any networks and serves used to provide any of the PayPal Services) operated by us or on our behalf, any of the PayPal Services or other Users’ use of any of the PayPal Services;

bb. Copy, reproduce, communicate to any third party, alter, modify, create derivative works, publicly display or frame any content from the PayPal Website(s) without our or any applicable third party’s written consent;

cc. Take any action that may cause us to lose any of the services from our internet service providers, payment processors, or other suppliers or service providers;

dd. Use the PayPal Services to test credit card behaviors;

ee. Reveal your PayPal Account password(s) to anyone else, nor may you use anyone else's password;

ff. Do, or omit to do, or attempt to do or omit to do, any other act or thing which may interfere with the proper operation of the PayPal Services or activities carried out as part of the PayPal Services or otherwise than in accordance with the terms of this User Agreement; 

gg. Integrate the PayPal Services as payment method in a way which makes it impossible for a customer to identify whether he or she is on PayPal Website(s) (Example: iFraming, the URL is not visible for the User) or integrate or use any of the PayPal Services without fully complying with all mandatory requirements communicated to you by way of any integration or programmers guide or other documentation. You agree that engaging in the above Restricted Activities diminishes your or other PayPal Users’ safe access and/or use of your Payment Instrument, PayPal Account or the PayPal Services generally; or

hh. Allow your use of the PayPal Services to present to PayPal or to our banking partners a risk of non-compliance with their respective anti-money laundering, counter terrorist financing and similar regulatory obligations (including, without limitation, where we cannot verify your identity or you fail to complete the steps to lift your sending, receiving or withdrawal limit in accordance with clauses 4.5., 5.1. and 6.3., or where you expose PayPal to the risk of any regulatory fines by European, US or other authorities for processing your transactions);

ii. Integrate or use any of the PayPal Services without fully complying with all mandatory requirements communicated to you by way of any integration or programmers’ guide or other documentation issued by PayPal from time to time;

jj. Make excessive use of the Authorization to collect funds given to you by the Buyer (e.g. when using location-based services);

kk. Suffer (or cause us to determine 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.

You agree that engaging in the above “Restricted Activities” diminishes your or other PayPal customers' safe access and/or use of your Payment Instrument, PayPal Account or the PayPal Services in general.

9.2. Keeping your Payment Instrument Safe

You agree to perform the following actions to keep your Payment Instrument safe:

  1. Not engage in any of the Restricted Activities;
  2. Keep the details of your Funding Sources, password, and PIN safe;
  3. Not allow anyone else to have or use your Funding Source, password or PIN details;
  4. Not disclose the details of your Funding Sources, password, or PIN except when using the PayPal Services;
  5. Never write your password or PIN in a way that can be understood by someone else;
  6. Not choose a password or PIN that is made more memorable to you such as a sequence of letters or numbers that may be easy to guess;
  7. Take care to make sure that no one sees your password or PIN when you use it;
  8. Ensure you are logged out of all payment-relevant applications on your device when you do not use it to access the PayPal Services and/or when others could access it (e.g. where you share your device with others or use your device through unsecured public Internet connections such as in typical public “free-WiFi” areas);
  9. Refrain from using any functionality that saves or stores your password or PIN on your access device;
  10. Comply with all reasonable instructions we may issue regarding how you can keep your Payment Instrument safe;
  11. Keep your personal details in your PayPal Account up to date. We may be unable to respond to you if you contact us about your PayPal Account from an address, telephone number or e-mail account that is not registered with us, and;
  12. Take all reasonable steps to protect the security of the personal electronic device through which you access the PayPal Services (including, without limitation, using PIN and/or password protected personally configured device functionality to access the PayPal Services). If you lose your device you must inform us immediately and delete your device from the settings in your PayPal Account.

9.3. Restricted Activities and Permissions.

Nothing in this Section 9. prevents you from permitting third parties to take certain actions of your behalf as outlined in clause 15.9. in compliance with the conditions of their license and applicable law.

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10. Your Liability - Actions We May Take

PayPal offers the PayPal Services to payment recipients to facilitate payments from Buyers to payment recipient in payment recipient’s commerce. Additionally, PayPal offers Buyer Protection to Buyers. To be able to offer such services to payment recipients while maintaining the security and integrity of the payment system as required by law, PayPal establishes the following system:

  • If transactions become subject to Claims and Disputes and Seller is not protected by Seller Protection, payment recipients might have to reimburse PayPal (see clause 10.1.);
  • High-risk transactions (criteria see clause 10.5.) may be subject to Payment Holds (see clause 10.5.) or Reserves (see clause 10.4.).

10.1. Your Liability

  1. Failed Direct Debit; Accidental or Unjustified Debit Return

In case of reversals, as well as all related fees and other cost, you are accountable as a Buyer in case that your bank account shows an insufficient balance or in case that you have provided incorrect bank account information (“Failed Direct Debit”), in case you have initiated the reversal although you have initiated the respective PayPal payment, or accidentally (“Accidental Or Unjustified Debit Return”). 

In case of credit card Chargebacks, you are accountable as a Buyer for all related fees and other cost in case that you have initiated the credit card Chargeback accidentally or you have initiated the Chargeback without due reason under your credit card rule. 

You agree to reimburse PayPal, a User, or a third party for any and all such liability. You still have the right to make a Claim, if applicable, under the terms of the PayPal Seller Protection Policy and PayPal Buyer Protection Policy.

  1. Liability for PayPal Buyer Protection Claims and Buyer Complaint Policy Claims

You accept PayPal’s final decision in respect to Claims filed in accordance with the PayPal Buyer Protection Policy and the PayPal Seller Protection Policy. If PayPal makes a final decision in accordance with the PayPal Buyer Protection Policy and the PayPal Seller Protection Policy that you lose a Claim filed directly with PayPal, you will be required to reimburse PayPal for your liability, which will include the full purchase price of the item and original postage costs (and in some cases, you may not receive the item back) as well as fees that occurred PayPal in respect to credit card Chargebacks if the Buyer has initiated a credit card Chargeback. Please see the PayPal Buyer Protection Policy for details on how PayPal Buyer Protection may affect you as a Seller.

  1. Reimbursement for Claims, disputes, or other amounts

In the event you are liable for any amounts owed to PayPal, PayPal may immediately remove such amounts from your Balance (if available). If there are insufficient funds in your Balance to cover your liability, PayPal reserves the right to collect your debt to PayPal by using any payments received in your Account and otherwise you agree to reimburse PayPal through other means. PayPal may also recover amounts you owe us through legal means, including, without limitation, through the use of a debt collection agency.

  1. Temporary Holds for Disputed Transactions on Seller Accounts

If a Buyer files a Claim, Chargeback, or Reversal on a payment you received, or a Payment Hold pursuant to clause 10.5.a. is placed, PayPal will place a temporary hold on the funds in your PayPal Account to cover the full amount in dispute. A hold placed under this provision will not restrict your use of the Account with regard to funds other than those disputed or at risk under the Claim, Chargeback, or Reversal. If you win a Dispute or if the payment is eligible for a payment under the terms of the PayPal Seller Protection Policy, we will release the hold and restore your access to the funds. If you lose the Dispute, PayPal will remove the applicable funds, including fees related to credit card Chargebacks, from your PayPal Account.

This process also applies to Claims that a Buyer files against you with eBay through the eBay resolution process, provided that you have authorized eBay to use your PayPal Account to pay amounts you owe to eBay or to the buyer (as the case may be) under the terms of the eBay resolution process (“eBay Due Amounts”) and eBay has notified us of the Claim. To the extent that the above provisions are met, you authorize and instruct PayPal to process payments of all and any eBay Due Amounts from your PayPal Account to eBay or to the buyer (as the case may be) according to eBay’s instructions to PayPal, but you agree that PayPal may treat your authorization and instruction for the payment of any given eBay Due Amount as cancelled and PayPal shall not be obliged to complete such payment if PayPal (in its sole discretion) decides that the claim would have been determined in your favor had it been filed as a Claim with PayPal. You may also cancel this authorization and instruction by contacting the PayPal Customer Service. All claims filed directly with eBay are governed by eBay policy only. The terms of the PayPal Seller Protection Policy do not cover sellers in respect of claims filed by buyers directly with eBay.

10.2. Actions by PayPal

If we have reason to believe that you have engaged in any Restricted Activities as set out in Section 9., we may take various actions to protect PayPal, a User, a third party, or you from any liability as set out in clause 10.1. The actions we may take include, but are not limited to the following:

  1. We may, at any time and without liability, suspend, block, limit, close or cancel your right to use your Payment Instrument or PayPal Account entirely or for any particular transaction, which may in turn suspend, block, limit, close or cancel access to your Account or the PayPal Services (such as limiting access to any of your Funding Sources, and your ability to send money, make withdrawals, or remove financial Information). We will normally give you advance notice of any suspension or cancellation but we may, if it is reasonable to do so (for example if you are in breach of this Agreement or we consider it advisable for security reasons), suspend or cancel your right to use your Payment Instrument or PayPal Account without prior notice to you;
  2. Block your Account and/or hold any funds in the Reserve Account (including, without limitation, for more than 180 days if so required by PayPal, where PayPal’s rights under clause 10.2. arise from your engagement in the Restricted Activity set out in clause 9.1.gg.);
  3. Refuse any particular payment transaction at any time for any reason and will only be required to make available the fact of the refusal and the reasons for the refusal and how you may resolve the problem, where possible, upon request and provided it is not prohibited by law;
  4. We may reverse a payment (including, if appropriate, to the Payer’s Funding Source), that violates the PayPal Acceptable Use Policy, or Section 9., or which we reasonably suspect of violating the PayPal Acceptable Use Policy or Section 9.;
  5. We may contact third parties and disclose details of the Restricted Activities in the manner set out in our Privacy Policy;
  6. We may request information from you or otherwise update inaccurate Information you provided us;
  7. We may refuse to provide the PayPal Services to you in the future;
  8. We may hold your funds to the extent and for so long as reasonably needed to protect against the risk of liability. You acknowledge that, as a non-exhaustive guide:
    1. PayPal’s risk of liability in respect of card-funded payments that you receive can last until the risk of a Chargeback closing in favor of the Payer/Buyer (as determined by card scheme rules) has passed. This depends on certain factors, including, without limitation:
      1. The type of goods or services for which you receive payment; or
      2. The timeframe for delivery of the goods or performance of the goods or services for which you receive payment (e.g. sales of event tickets months in advance of the event date can present a higher and more enduring risk of Chargebacks than sales of most other goods or services);
    2. PayPal’s risk of liability in respect of a Claim or Dispute arising from a payment that you receive can last for the time that it takes for the parties to close the Claim or Dispute and all appeals associated with that Claim or Dispute in accordance with Section 13. of this User Agreement; 
    3. PayPal’s risk of liability in respect of any event of insolvency that you suffer can last for as long as and to the extent that laws applicable to your insolvency restrict PayPal from taking legal action against you; and
    4. If you allow your PayPal Account to have a Balance reflecting an amount owing to PayPal, PayPal’s risk of liability can last for the time and to the extent that you owe that amount to PayPal;
  9. We may request information or documents from you in order to verify your identity and/or in regards to the goods or services you provided based on a transaction;
  10. We may suspend your eligibility for PayPal Seller Protection and/or PayPal Buyer Protection (including in retrospect);
  11. We may suspend, limit, or terminate your access to the PayPal Services, websites, software, systems (including any networks and serves used to provide any of the PayPal Services) operated by us or on our behalf, and your data.

10.3. Limited Access

If we suspect that your PayPal Account has been accessed without your authorization, we may also suspend, or limit, your access to your PayPal Account or the PayPal Services (such as limiting access to any of your Funding Sources, and your ability to send money, make withdrawals, or remove financial Information).

If we limit access to your PayPal Account, we will provide you with notice and opportunity to request restoration of access if appropriate.

10.4. Reserves

PayPal may place a Reserve on funds held in your PayPal Account.

This may be the case when PayPal reasonably believes (based on the information available to PayPal at the time of taking the Reserve and what in its sole discretion it regards as an acceptable level of risk to PayPal under all the circumstances) there may be a higher than acceptable level of risk associated with your Account, including payment losses pursuant to clause 10.1., your financial situation and the criteria listed in clause 10.5.a.

This means: If PayPal places a Reserve on funds in your Account, the funds will be held in your Reserve Account and those funds will be shown as "Pending" in your Balance. You may not have direct access to the funds held.

If your PayPal Account is subject to a Reserve, PayPal may either hold a certain percentage of the amounts received into your PayPal Account for a certain period of time (“Dynamic Reserve”) or hold a fixed amount for a certain period of time in your PayPal Account (“Minimum Reserve”).

The terms are based on what we deem necessary to protect against the risk associated with your PayPal Account. PayPal may change the terms of the Reserve at any time by providing you with notice of the new terms. You may close your PayPal Account if you object to the Reserve. If your PayPal Account is closed for any reason, we have the right to hold the Reserve according to Section 7. for a period not longer than necessary.

When managing risk for PayPal Accounts, we may also take the following measures in regards to withdrawing funds from your PayPal Account to your bank account:

  • Limit the amount you can immediately withdraw,
  • Change the speed or the method of payment for withdrawals,
  • Set-off amounts from your Balance and/or require that you, or a person associated with you, enter into other forms of security arrangements with us (for example, by providing a guarantee or requiring you to deposit funds with us as security for your obligations to us or third parties). You also agree to undertake, at your own expense, any further action (including, without limitation, executing any necessary documents and registering any form of document reasonably required by us to allow us to perfect any form of security interest or otherwise) required to establish a Reserve or other form of security in a manner reasonably determined by us.

10.5. Payment Hold 
You agree that, if you receive a payment that involves, according to PayPal’s internal risk model, a risk according to the below criteria, PayPal may place a hold on that or any related payment. PayPal will not hold the payment for any longer than necessary and will assess on a regular basis whether any of the identified risk factors continue to apply to the Account. Once the identified risk factors cease to apply, we will release the payment accordingly; 

PayPal applies payment holds in order to maintain the security and integrity of the PayPal Services. This includes holds in order to minimize suspicion of unlawful activity, fraud risk and compliance issues in relation to the transaction and to protect all users of the service and ourselves from misuse of the PayPal Services and from losses resulting from payment risks pursuant to clause 10.1. 
The following relevant criteria is used to assess the risk, as may be the case, alone or together with other criteria:

  1. The transaction is deemed higher risk because the transaction involves the sale of goods or services in a high risk category, or other facts known to us typically resulting in an increased number of Chargebacks, other Claims or Disputes or to be often involved in fraud or illegal activity;
  2. There is a sudden and abnormal change in a PayPal Account holder’s selling activity including an increase in the number of Chargebacks, Reversals, or Buyer complaints received in relation to such PayPal Account;
  3. We have the reasonable suspicion that a Buyer’s Payment Instrument and/or Account are being used in relation to Restricted Activities (as set out in Section 9.);
  4. We have reason to believe that a PayPal Account involved in the transaction may have been compromised, or that stolen financial details (bank or credit card) are used for the payment, or otherwise a transaction has not been properly authorized;
  5. We have reason to believe that a User is trying to send or withdraw funds they received fraudulently;
  6. A user has not provided sufficient Information to us to enable us to verify their identity or the identity of their business and/or the user has a limited trading history with PayPal or eBay;
  7. With regards to Kauf auf Rechnung, PayPal may temporarily retain a payment to you as long as it is unclear, whether or not articles have been shipped, arrived at the Buyer or have been wrongly marked as shipped;

You acknowledge and agree that any payments held under this clause 10.5. may be placed in your Reserve Account and that you will provide to PayPal any information as PayPal may reasonably request to allow PayPal to determine whether the risk has passed.

 

10.6. eBay Item Hold

You agree that if PayPal, in its sole discretion, believes that a payment you receive for an eBay transaction may involve a high level of risk, that the amount may be held in your Reserve Account until we determine, in our reasonable discretion, that any such risk has passed. If the funds are held in your Reserve Account, it may show as "Pending" in your PayPal Account.

PayPal will release the eBay item hold and make funds available in your PayPal Account after 21 days unless you receive a Dispute, Claim, Chargeback, or Reversal on the transaction subject to the hold. PayPal may release the hold earlier if the Buyer leaves positive feedback on eBay. 

If you receive a Dispute, Claim, Chargeback, or Reversal on the transaction subject to the eBay item hold, the funds may be held in your Reserve Account (or an amount equal to the relevant payment) until the matter is resolved pursuant to this User Agreement.

10.7. Information About You

  1. Request Additional Information 
    PayPal reserves the right to request additional Information from you, other than what is referred to in this Agreement, to allow it to comply with its anti-money laundering obligations. You agree to comply with any request for further Information as we reasonably require in order to enable us to comply with our anti-money laundering obligations; this may include, without limitation, requiring you to fax, e-mail or otherwise provide to us certain identification documents. You also agree to provide us, upon our reasonable request and at your own expense, Information about your finance and operations, including, without limitation, your most recent financial statements (certified or otherwise) and merchant processing statements (if applicable).
  2. Getting Verified 
    To obtain Verified status you must set up Direct Debit and complete the Bank Confirmation process. 
    PayPal may, from time to time, make available to you other methods or procedures for you to obtain “Verified” status. By highlighting a User as “Verified” PayPal only represents that the Verified user has completed the steps of the process to obtain “Verified” status. PayPal neither guarantees, undertakes nor otherwise represents that a Verified user will complete a payment transaction.

10.8. Disclosure of Reasons for Our Actions

Our decisions to take the actions set out in this Section 10. and any other actions we take under this User Agreement, whether they restrict or extend your access to the PayPal Services, our infrastructure, our websites, our software or our systems (including any networks and servers used to provide any of the PayPal Services) whether operated by us or on our behalf (including, without limitation, any blockages, limitations, suspensions, terminations, holds and reserves) may be based on confidential criteria that are essential to our management of risk and the protection of PayPal, our customers and/or service providers. In addition, we may be restricted by regulation or a governmental authority from disclosing certain information to you about such decisions. We have no obligation to disclose the details of our risk management or security procedures or our confidential information to you.

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11. Seller Protection Policy

PayPal offers Seller Protection based on the PayPal Seller Protection Policy. The PayPal Seller Protection Policy is part of this User Agreement.

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12. Errors and Unauthorized Transactions

12.1. Identifying Errors and/or Unauthorized Transactions

It is very important that you immediately notify PayPal if you have reason to believe any of the following activities have occurred:

  1. There has been an unauthorized transaction sent from your PayPal Account;
  2. There has been unauthorized access to your PayPal Account;
  3. Your password or your PIN has been compromised;
  4. Any Device you have used to access the PayPal Services has been lost, stolen, or deactivated, or
  5. Someone has transferred or may transfer money from your PayPal Account without your permission this includes where you link your Account with a third party platform (including a site or app) to initiate payments via that platform, but a payment was made from your Account for a transaction via that platform that you did not make).

These cases are collectively called "Improper Account Access". You must also immediately notify us if you have reason to believe that any other error has occurred on your Account.

In order for you to notify PayPal immediately of any of the above events, we strongly recommend that you monitor your PayPal Account closely on a regular basis. We will not seek to hold you liable for any unauthorized use of your PayPal Account by any person provided that we are satisfied that you have not acted deliberately or grossly negligent so as to enable any third person to gain access to your PayPal ID and/or password/PIN or to your device while you are logged in with PayPal.

12.2. Notifying PayPal of Errors, Unauthorized Transactions and/or misappropriated or unauthorized use of your Payment Instrument

You must notify us if you believe there has been or will be an error, unauthorized transaction, misappropriated or unauthorized use of your Payment Instrument or your PayPal Account:

  • Call our Customer Service. You will find the service phone number on the "Contact us" page;
  • Complete this report form on the PayPal Website(s);
  • Send a letter to the Error Resolution Department (address below).

If you initially provide information to us via the telephone, we may require that you send your query in writing within ten Business Days after the phone contact.

Please complete the affidavit form and submit it online or mail it to

PayPal (Europe) S.à r.l. et Cie, S.C.A.

Error Resolution Department

22-24 Boulevard Royal

2449 Luxembourg

Luxembourg.

You must give us all the information in your possession as to the circumstances of any errors, unauthorized transactions and/or misappropriated or unauthorized use of your Payment Instrument or PayPal Account and take all reasonable steps requested to assist PayPal in its investigation.

12.3. Review of Reports of Errors

Without prejudice to your statutory rights, we will advise you of the results of our investigation within twenty Business Days after we receive your notice. If we have made an error, we will correct it promptly.

If we need more time, however, we may take up to 60 Business Days to investigate your query. If we decide that we need more time, we may provisionally re-credit your Account for the amount you think is in error within ten Business Days after we receive your notice; so that you will have use of the E-Money during the time it takes us to complete our investigation.

If you initially provided information to us via the telephone and we do not receive your query in writing within 10 Business Days after your oral notice, we will not provisionally re-credit your PayPal Account.

At the end of our investigation, we will advise you of the results within three Business Days. If we determine that there was no error, we will send you a written explanation and we may debit any provisional credit that we previously credited to you in relation to the alleged error. You may ask for copies of the documents that we used in our investigation.

12.4. Liability for Unauthorized Transactions

Without prejudice to your statutory rights, if you report that there has been an Improper Account Access related to your PayPal Account, and there is no evidence to suggest fraud or deliberate or grossly negligent behavior by you, we will reimburse you in full for all unauthorized transactions sent from your PayPal Account.

We shall do so provided that you have informed us of the Improper Account Access without undue delay and in any event, no later than thirteen months after the first transaction arising from that Improper Account Access was executed. Where we believe in our reasonable opinion that further investigation is required to ascertain more clearly the circumstances surrounding the reported Improper Account Access, we will follow the same process as set out in clause 12.3. above for such investigation.

12.5. Entitlement to a refund of a payment made under an Authorization

You are entitled to a refund of the full amount of any payment transaction executed under an Authorization, provided the conditions applicable to a refund according to clause 4.8. have been met:

12.6. Errors

If we discover a processing error, we will rectify the error.

If the error resulted in you receiving less money than you were entitled to, PayPal will credit your PayPal Account for the difference.

If a payment was made to your Funding Source by way of mistake, PayPal may correct the mistake by debiting or crediting (as the case may be) your appropriate Funding Source(s).

If the error resulted in our not completing a transaction on time or in the correct amount, we will be liable to refund any amount as a result of carrying out a defective or non-executed payment transaction and for your losses or damages directly and reasonably foreseeably caused by this failure, unless:

  1. Through no fault of ours, you did not have enough available funds to complete the transaction,
  2. Our system was not working properly and you knew about the breakdown when you started the transaction,
  3. Circumstances beyond our control (such as fire or flood or loss of Internet connection) prevented the transaction, despite our reasonable precautions.

Notwithstanding any other provision of this User Agreement, PayPal will not be held liable for the non-execution or defective execution of a payment transaction (whether initiated by yourself or another User) if you have failed to notify PayPal of such an incorrectly executed payment transaction without undue delay, or in any event no later than within 13 months after the debit date, on becoming aware of such incorrectly executed payment transaction.

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13. PayPal Buyer Protection

13.1. Purchase

PayPal offers Buyer protection subject to the rules of the PayPal Buyer Protection Policy, which is a service offered for purchases paid with PayPal. The PayPal Buyer Protection Policy is herewith made a part of the present User Agreement.

13.2. Responsibility of the payment recipient

If PayPal decides in the Buyer’s favor, the payment recipient will be liable to PayPal. This includes, without limitation, where a Buyer with a registered PayPal account outside of Germany files a Claim that is covered under the applicable PayPal Buyer Protection Policy of the Buyer’s place of registration.

If PayPal decides in the Buyer’s favor, PayPal will collect the disputed amount from the payment recipient’s Balance at that time and refund the Buyer; this may depend upon the payment recipient having sufficient funds in their Balance. If the payment recipient has no sufficient Balance in its PayPal Account, PayPal may limit the payment recipient’s PayPal Account. The Buyer has no legal right to demand this from PayPal. This shall not limit in any way the liability of the payment recipient pursuant to clause 10.1.

13.3. Assignment of rights

If PayPal pays out a Claim, Reversal, or Chargeback that you file against a payment recipient, you agree to transfer and allow PayPal to have your rights, benefits and remedies against the payment recipient.

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14. Disputes with PayPal

14.1. Contact PayPal First

If a Dispute arises between you and PayPal, our goal is to learn about and address your concerns and, if we are unable to do so to your satisfaction, to provide you with a neutral and cost effective means of resolving the Dispute quickly. Disputes between you and PayPal regarding the PayPal Services may be reported to the PayPal Customer Service online via the “Email Us” link on the “Contact Us” at any time, or by calling the PayPal Customer Service telephone number located on the PayPal Website(s) and by logging into your PayPal Account.

14.2. ECC-Net, CSSF and ODR

If you have a complaint to make about us, you may choose to escalate it by contacting one of the following:

Institution

Description

Contact

ECC-Net

European Consumer Centre

 

https://ec.europa.eu/info/live-work-travel-eu/consumers/resolve-your-consumer-complaint/european-consumer-centres-network_en

CSSF

Authority responsible for the prudential supervisions of companies in the financial sector in Luxembourg

CSSF – Commission de Surveillance du Secteur Financier

283 Route d’Arlon

1150 Luxembourg

Luxembourg

 

http://www.cssf.lu/de

Online Dispute Resolution (ODR)

Online dispute resolution portal of the European Union

https://ec.europa.eu/consumers/odr

 

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15. General

15.1. Governing Law and Jurisdiction

This User Agreement and the relationship between us shall be governed by the laws of England and Wales with the exception of Section 6a. Kauf auf Rechnung to which the laws of the Federal Republic of Germany shall apply. For complaints that cannot be resolved otherwise, you submit to the non-exclusive jurisdiction of the courts of England and Wales. Your German consumer protection rights as well as your right to your right to also initiate a proceeding against PayPal in that context before the competent courts of and in Luxembourg shall remain unaffected.

15.2. No Waiver

Our failure to act with respect to a breach by you or others does not waive our right to act with respect to subsequent or similar breaches.

15.3. Limitations of Liability

We shall only be liable to you for loss or damage caused directly and reasonably foreseeable by our breach of this User Agreement and our liability in these circumstances is limited as set out in the remainder of this section.

  1. In no event shall we or any other company of PayPal Group, persons who acts on our behalf, and/or the persons we enter into contracts with be liable for any of the following types of loss or damage arising under or in relation to this User Agreement (whether in contract, tort (including, without limitation, negligence) or otherwise:
    • Any loss of profits, goodwill, business, contracts, revenue or anticipated savings even if we are advised of the possibility of such damages, loss of profits, goodwill, business, contracts, revenue or anticipated savings;
    • Any loss or corruption of data;
    • Any loss or damage whatsoever which does not stem directly from our breach of this User Agreement.
  2. Nothing in this User Agreement shall limit our liability resulting from our fraud or fraudulent misrepresentation, gross negligence, willful misconduct, for death or personal injury. The same shall apply with regard to any negligent or willful violation of core contractual obligations. Core contractual obligations are our obligations which have to be fulfilled in order to meet the objectives of the Agreement and to which our customers normally needs to rely on, i.e. including the contractually agreed and punctual fulfillment of the Payment Orders we receive from you, but not information or advice or notices which we are not obliged to give you and which do not directly relate to your transactions or your PayPal Account.

15.4. No Warranty

We provide to you the PayPal Services, our infrastructure, our website(s), our software, and systems (including any networks and servers used to provide any of the PayPal Services) whether operated by us or on our behalf subject to your statutory rights but otherwise without any warranty or condition, express or implied, except as specifically stated in this User Agreement.

PayPal does not have any control over the products or services that are paid for with the PayPal Services and PayPal cannot ensure that a Buyer or a seller you are dealing with will actually complete the transaction or is authorized to do so.

Further, PayPal is not in the position to provide in all circumstances an uninterrupted, continuous and secure access to any of the PayPal Services, our infrastructure, our websites, our software, and systems (including any networks and servers used to provide any of the PayPal Services) whether operated by us or on our behalf. We shall not be liable for any delay in the failure in our provision of the Services, our infrastructure, our websites, our software, and systems (including any networks and servers used to provide any of the PayPal Services) whether operated by us or on our behalf.

You further acknowledge your access to the PayPal Services our infrastructure, our websites, our software, and systems (including any networks and servers used to provide any of the PayPal Services) whether operated by us or on our behalf, may be occasionally restricted to allow for repairs, maintenance or the introduction of new facilities or services.

PayPal will make reasonable efforts to ensure that requests for electronic debits and credits involving bank accounts and credit cards are processed in a timely manner.

You must check all correspondence between us carefully and tell us as soon as possible if it includes something which appears to you to be wrong or not made in accordance with your instructions.

In the event that PayPal decides to discontinue any of the PayPal Services or any portion or feature of the PayPal Services for any reason, PayPal will give you at least two months’ prior notice before discontinuing the service or feature, unless PayPal determines in its good faith judgement that: (a) such service or feature must be discontinued sooner as required by law or a third party relationship; or (b) doing so could create a security risk or substantial economic or material technical burden.

You alone are responsible for understanding and complying with any and all laws, rules and regulations of your specific jurisdiction that may be applicable to you in connection with your use of the PayPal Services, including but not limited to, those related to export or import activity, taxes or foreign currency transactions.

15.5. Indemnification/re-imbursement

You agree to defend, reimburse or compensate us (known in legal terms to "indemnify") and hold PayPal, our other companies in our corporate group, the people who work for us or who are authorized to act on our behalf (including, without limitation, our service providers) harmless from any claim or demand (including legal fees) made or incurred by any third party due to or arising out of your, your employees or agent’s (or, where a third party otherwise acts on your behalf with your permission, that third party’s actions and/or inactions) breach of this User Agreement, breach of any law, breach of the rights of a third party, use of your PayPal Account and/or use of the PayPal Services, our infrastructure, our website(s), our software, and or systems (including any networks and servers used to provide any of the PayPal Services) operated by us or on our behalf.

15.6. Entire Agreement and Third Party Rights

This User Agreement sets forth the entire understanding between you and PayPal with respect to the PayPal Services. If any provision of this User Agreement is held to be invalid or unenforceable, such provision shall be struck out and the remaining provisions shall be enforced.

A person who is not a party to this User Agreement has no rights under the Contracts (rights of Third Parties) Act 1999 to rely upon or enforce any term of this User Agreement (except for the PayPal Group in respect of their rights as specified in this User Agreement) but this does not affect any right or remedy of third parties which exists or is available apart from that Act.

15.7. Intellectual Property and Software License Grant

If you are using PayPal software such as an API, developer’s toolkit or other software application which may include software provided by or integrated with software, systems or services of our service providers that you have downloaded to or otherwise accessed through your computer, device, or other platform, then PayPal and its licensors grant you a revocable, non-exclusive, non-sublicenseable, non-transferable, royalty-free and limited license to access and/our use PayPal’s software in accordance with the documentation, including all updates, upgrades, new versions and replacement software, as described herein for your personal use only. You may not rent, lease or otherwise transfer your rights in the software to a third party.

You must comply with the implementation, access, and use requirements contained in all documentation, together with any instructions provided by us from time to time accompanying the PayPal Services (including, without limitation, any implementation and use requirements we impose on you to comply with applicable laws and card scheme rules and regulations).

If you do not comply with PayPal’s instructions, implementation and use requirements you will be liable for all resulting damages suffered by you, PayPal and third parties. PayPal may update or discontinue any software upon notice to you. While PayPal may have (a) integrated certain third party materials and technology into any web or other application, including its software, and/or (b) accessed and used certain third party materials and technology to facilitate providing you with the Services, you have not been granted and do not otherwise retain any rights in or to any such third party materials. You agree not to modify, alter, tamper with, repair, copy, reproduce, adapt, distribute, display, publish, reverse engineer, translate, disassemble, decompile or otherwise attempt to create any source code which is derived from the software or any third party materials or technology, or otherwise create any derivative works from any of the software or third party materials or technology. You acknowledge that all rights, title and interest to PayPal’s software are owned by PayPal and any third party materials integrated therein are owned by PayPal’s third party service providers. 

Any third party software application you use on the PayPal Website(s) is subject to the license you agreed to with the third party that provides you with this software. You acknowledge that PayPal does not own, control nor have any responsibility or liability for any third party software application you elect to use on any of our websites , software, and/or in connection with the PayPal Services. If you are using the PayPal Services on the PayPal Website(s), or other website or platform hosted by PayPal or a third party, and are not downloading PayPal’s software or using third party software applications on the PayPal Website(s), then this section does not apply to your use of the hosted PayPal Services.

15.8. Intellectual Property – Content License Grant

  1. Licenses Granted by PayPal

Logo and PayPal Service identifiers: The URLs representing the PayPal website(s), “PayPal,” and all related logos of our products and services described in our website(s) are either copyrighted by PayPal, trademarks or registered trademarks of PayPal or its licensors. In addition, all page headers, custom graphics, button icons, and scripts are either copyrighted by PayPal, service marks, trademarks, and/or trade dress of PayPal. You may not copy, imitate, modify, alter, amend or use them without our prior written consent. You, as a merchant, may use HTML logos provided by PayPal through our merchant services, auction tools features or affiliate programs without prior written consent for the sole purpose of identifying yourself on your website as a merchant who accepts payments through the PayPal Services and directing web traffic from that website to the PayPal Services, but we may limit or revoke this permission at any time and for any reason in our sole discretion. You may not alter, modify or change these HTML logos in any way, use them in a manner that is disparaging to PayPal or the Service or display them in any manner that implies PayPal’s sponsorship or endorsement. All right, title and interest in and to the PayPal website and any content thereon is the exclusive property of PayPal and its licensors.

  1. Licenses Granted by You

Your business-related intellectual property: 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.

Your content: When providing us with content or posting content (in each case for publication, whether on- or off-line) using the PayPal Services, you grant the PayPal Group a non-exclusive, worldwide, perpetual, irrevocable, royalty-free, sublicensable (through multiple tiers) right to exercise any and all copyright, publicity, trademarks, database rights and intellectual property rights you have in the content, in any media known now or in the future. Further, to the fullest extent permitted under applicable law, you waive your moral rights and promise not to assert such rights against the PayPal Group, its sublicensees or assignees. You represent and warrant that none of the following infringe any intellectual property right: your provision of content to us, your posting of content using the PayPal Services, and the PayPal Group’s use of such content (including of works derived from it) in connection with the PayPal Services.

15.9. Third Party Permissions

  1. Permissions in general

You may expressly grant, remove, and manage permissions for some third parties to take certain actions on your behalf. In some cases you can do this by logging into your PayPal Account – in other cases you can do this directly with the third party.. You acknowledge that if you grant permission for a third party to take actions on your behalf, PayPal may disclose certain information about your PayPal Account to this third party.

  1. Using licensed third-party services to access your PayPal Account information

If you permit either a third-party service provider licensed by applicable law to provide account information services ("AIS Provider") to access information about your PayPal Account on your behalf or a third party card issuer to confirm whether an amount necessary for the execution of a card-based payment transaction is available on your PayPal Account, then this User Agreement (including, without limitation, clause 2.3.) will still apply to you and your access to that information using the AIS Provider or card issuer.

Further,  you are liable to PayPal

for the actions that you authorize the AIS Provider or card issuer to take on your behalf and

under clause 15.9.d. (your liability regarding any permissions you grant);, subject to your mandatory legal rights and Section 12. (Errors and Unauthorized Transactions).

  1. Using licensed third party services to initiate your payment

If you permit a third party service provider licensed by law to provide payment initiation services ("PIS Provider") to initiate your payment on your behalf then this Agreement (including, without limitation, clauses 4.1. to 4.6. inclusive and clause 4.10.) will still apply to you and your payment initiated by the PIS Provider.

Further, you are liable to PayPal for the actions that you authorize the PIS Provider to take on your behalf and under clause 15.9.d. (your liability regarding any permissions you grant),       subject to your mandatory legal rights and Section 12. (Errors and Unauthorized Transactions).

  1. Your liability regarding any permissions you grant

Granting permission to any third party in any way does not relieve you of any of your responsibilities under this User Agreement. You acknowledge and agree that you will not hold PayPal responsible for, and will indemnify PayPal from, any liability arising from the actions or inactions of this third party in connection with the permissions you granted.
 

15.10. PayPal as Login Method

If you use the PayPal Services as means of logging into external websites or mobile apps, we may share your login status with any third party offering this service as a login method, as well as the personal and other Account Information that you consent to being shared so that the third party can recognize you. PayPal will not give such third party access to your PayPal Account and will only make payments from your PayPal Account to that third party with your specific authorization.

If you offer this service as a means for visitors to log into your website, app, or otherwise for your customer accounts, you must agree to any specific terms applicable when this functionality is made available to you, and comply with any specifications in any integration manual or guideline. PayPal does not guarantee or otherwise represent the identity of any user of this login method. PayPal will not share with you the personal and other Account Information of the user (including login status) held by PayPal unless the user has consented to our disclosure of that Information to you.

15.11. Corporate Customers

If you are not a consumer, a Micro Enterprise or a trust/foundation, certain provisions of the Payment Services Directive may be disapplied for your use of the PayPal Services. In such cases you are a “Corporate Customer” and hereby agree that the following provisions of this User Agreement will be varied as follows:

  1. You are not entitled to the right to a refund as set out in clauses 4.8. and 12.5.;
  2. Where you identify an error, unauthorized transaction and/or misappropriated or unauthorized use of your Payment Instrument or Account in accordance with clauses 12.1. and 12.2. you have up to sixty days from the date of the alleged error or Improper Account Access to notify us of it, after which time we have no obligation to investigate, or act upon your notification;
  3. We will only accept liability for unauthorized transactions in accordance with clause 12.4. where you have notified us of the Improper Account Access or error within sixty days of it;
  4. In case we notify you in accordance with clause 1.5, the notice is deemed received by you in the following time lines: in case of e-mail, publication on the PayPal Website(s) or in your PayPal Account: within twenty-four hours; and in case of physical mailing within three Business Days.

As a Corporate Customer, you further agree that while we may do so, we are not obliged to comply with nor provide you with information according to the information requirements set out in Title III PSD2 and their equivalents in any implementation of PSD2 in member states of the European Union or the EEA that may apply to you ("PSD2 Transpositions"). Further, you agree that articles 72 and 89 of PSD2 and equivalent provisions in PSD2 transpositions do not apply to your use of the PayPal Services, meaning that, notwithstanding any other provisions of this User Agreement, we are not liable to you for the losses or damage you may suffer as a result of the matters referred to in Title III and articles 72 and 89 of PSD2 and equivalent provisions in PSD2 Transpositions.

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16. Definitions

"Authorize”, "Authorized" or "Authorization" means you authorize a Merchant or other third party to collect a payment from your PayPal Account.

"Balance" means any E-Money that you have in your PayPal Account.

Bank Confirmation Process” is a verification process which PayPal may require you complete in order to lift sending. receiving or withdrawal limits or get Verified, involving PayPal sending two small deposits to your bank account. To complete the Bank Confirmation process you will be required to enter the details of the deposits sent to you via your Account. You can find more information about the Bank Confirmation process in the PayPal Help Centre which is located on the PayPal website. “Bank Funded Payment” means a payment that is fully funded using your bank account (as the case may be).

"Business Day" means any day on which banks in Luxembourg are open to the general public.

"Buyer" means a User who is buying goods or services and using the PayPal Services to Send Money.

"Chargeback" means a request made by a Buyer directly to his or her credit card company to invalidate a payment.

"Claim" means a request for reimbursement under a Buyer Protection Policy.

"Commercial Entity Agreement" means the "Commercial Entity Agreement" that commercial entities are required to enter into directly with PayPal’s payment processor(s).

"Customer Service" is PayPal’s customer support which can be accessed online via the “Email Us” link on the "Contact Us" page at any time, or by calling the customer service number located on the PayPal Website(s).

"Data Controller", "Data Processor" and "Data Subject" have the meanings given to those terms under the Data Protection Laws.

"Data Protection Laws" means EU Directive 95/46/EC or Regulation (EU) 2016/679 (the letter being commonly known as the EU General Data Protection Regulation) and any associated regulations or instruments and any other data protection laws, regulations, regulatory requirements and codes of practice applicable to the provision of the PayPal Services, such as PayPal's internal Binding Corporate Rules.

"Default Funding Sources" means, you have not selected a Preferred Funding Source, the Funding Sources used in the order set out in section 3.7.

"Dispute" means a dispute filed by a User (Buyer) in the PayPal Resolution Center.

"eBay" means eBay Inc and its affiliates (as the case may be).

"E-Money" means monetary value, as represented as a claim on PayPal, which is stored on an electronic device, issued on receipt of funds, and accepted as a means of payment by persons other than Further, a reference to a payment made by via the PayPal Services refers to an E-Money payment.

"Failed Direct Debit Payment" is a direct debit payment where the account bank for bank account that you have linked with your PayPal Account refuses because the bank account does not have sufficient credit or the credentials are wrong. A Reversal (i.e. where the bank reverts the payment because the account holder of the bank account has objected against the direct debit) is not a Failed Direct Debit Payment.

Fee” or "Fees" means those amounts stated in Schedule 1 (Table of Fees) to this User Agreement.

"Funding Source" means the type of payment that you select to fund a payment. The following types of payment may be used to fund a payment: Balance, direct debit, credit card, transfer.

"Information" means any confidential and/or personally identifiable information or other information related to a PayPal Account or User, including but not limited to the following: name, e-mail address, post/shipping address, phone number and financial information.

"Mass Payments" (alternatively “Payouts”) means the functionality that enables multiple payments to be sent at the same time. Receipt by us of a Mass Payment batch file from you is, subject to clause 3.1, receipt of a Payment Order for the purpose of this User Agreement.

"Micro Enterprise" means an enterprise which employs fewer than ten persons and has an annual balance sheet that does not exceed two million euros (EUR).

"Payment Instrument" means all processes, instructions and requests, as indicated on the PayPal Website(s), which enable the User to access and use the PayPal Services.

"Payment Order" means an instruction validly made by you to us requesting the execution of a payment transaction, e.g. sending money pursuant to clause 3.1. and withdrawing money pursuant to Section 6.

"PayPal Account" means a Business or Personal Account.

PayPal Group” means PayPal Holdings Inc., and its subsidiaries and subsidiary undertakings affiliates (including, without limitation, PayPal) as the case may be.

"PayPal Services" means all products, services, content, features, technologies, or functions offered by PayPal and all related sites, applications, and services.

"PayPal Website(s)" means any URL, such as http://www.paypal.de, through which we provide the PayPal Services to you.

"Personal Data" has the meaning given to it under the Data Protection Laws.

"Policy" or "Policies" means any Policy or other agreement between you and PayPal that you entered into on the PayPal Website(s), or in connection with your use of the PayPal Services.

Pre-approved Payment” or an “Automatic Payment” is a “Standing Order” as defined in the Commission Delegated Regulation (EU) 2018/32 and means that the account provider (PayPal) makes regular transfers, on the instruction of the customer (you), of a fixed amount of money from the customer’s account to another account. This can also be a “Direct Debit” in the sense of the Regulation, meaning that the customer (you) permits someone else (recipient) to instruct the account provider (PayPal) to transfer money from the customer’s (your) account to that recipient. The account provider (PayPal) then transfers money to the recipient on a date or dates agreed by the customer (you) and the recipient. The amounts may vary. For the PayPal Services, this means a payment made by you using the PayPal Services on the basis of a Payment Order received by PayPal from you via a third party authorized by you (for example, a store or other trader you intend to pay for your purchases).

Preferred Funding Source” means a Funding Source that you select to fund a payment instead of using the Default Funding Source.

"Reserve" means an amount or a percentage of the funds received into your Account that we hold in order to protect against the risk of Reversals, Chargebacks, Claims, or any other liability related to your PayPal Account and/or use of the PayPal Services.

Reversal” means a payment you received which PayPal may reverse to the sender or another third party because the payment: (a) has been challenged by a Buyer directly with their bank; and/or (b) has been removed from your Balance for any reason (other than a Chargeback or Claim pursuant to the PayPal Buyer Protection Policy), including, without limitation where (i) the payment violates our Acceptable Use Policy or we reasonably suspect that the payment violates our Acceptable Use Policy, or (ii) the payment amount was not authorized by the sender with the relevant third party initiated payment authorization (see clause 4.8.), or (iii) the payment was funded by a bank transfer that was subsequently reversed by the bank for any reason; and/or (c) has been categorized by PayPal’s internal risk modelling as a risky payment required to be reversed to mitigate the risk associated with the payment. The term “Reversed” shall be construed accordingly.

"Seller" and "Merchant" are used interchangeably and mean a User who is selling goods or services and using the PayPal Services to receive payment.

"Send Money" or “Sending Money” means the account provider (PayPal) transfers money on the instruction of the customer (you) from the customer’s account to another account under the standardized terms of the Commission Delegated Regulation (EU) 2018/32. For the PayPal Services, it means your ability to send money though the PayPal Services.

Special Funding Arrangements” means that certain payments may be funded by Special Funding Sources linked to your Account such as Merchant/transaction specific balance, gift vouchers, or other promotional Funding Source.

"Unique Identifier" means(a) when sending a payment, e-mail address, mobile phone number or any other means of identification as registered in the PayPal Account;(b) when withdrawing money, your bank account details (for example IBAN, sort code, account number) or your credit card information (for example card number or verification code).

"User", "you", or "your" means you and any other person or entity using the PayPal Services.

"Verified" means that you have completed our verification process in order to help establish your identity with PayPal. Verification does not constitute an endorsement of a User, or guarantee a User’s business practices.

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Schedule 1: Table of Fees
 A1. General and Definitions

Our Fees depend on whether a Commercial Transaction or a Personal Transaction is made.

For more information about Fees please visit: https://www.paypal.com/de/webapps/mpp/paypal-fees

A1.1. Commercial Transactions and Personal Transactions

A “Commercial Transaction” involves buying and selling goods and services, or payments received when you “request money” using the PayPal Services.

A ”Personal Transaction“ involves sending money (initiated from the “Personal” tab of the “Send Money” flow) to, and receiving money into your PayPal Account from friends and family without making a purchase (that is, the payment is not for goods or services). ). A Personal Transaction which is a Domestic Transaction is referred to as a "Domestic Personal Transaction" and a Personal Transaction which is a Cross-Border Transaction is referred to as a "Cross-Border Personal Transaction".

If you are 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. 

A1.2. Domestic Transaction and Cross-Border Transactions

A “Domestic Transaction“ is a transaction in euros (EUR) or Swedish kronor (SEK) from or to PayPal Accounts registered in countries of the European Union as well as in Iceland, Liechtenstein, and Norway.

Any other transaction is a “Cross-Border Transaction“.

A1.3. Variable Fee and Fixed Fee

A1.3.1. Variable Fee

Fees shown in percentages refer to the respective percentage of the respective transaction amount (“Variable Fee”).

A1.3.2. Fixed Fee

As far as this Table of Fees refers to “Fixed Fee” this means a fixed fee in amount in the respective transaction currency as set out below:

FIXED FEE IN TRANSACTION CURRENCY

Australian dollars:

AUD 0.30

Mexican pesos:

MXN 4.00

Brazilian real:

BRL 0.60

New Taiwan dollars:

TWD 10.00

British pounds sterling:

GBP 0.20

New Zealand dollars:

NZD 0.45

Canadian dollars:

CAD 0.30

Norwegian kroner:

NOK 2.80

Czech koruna:

CZK 10.00

Philippine pesos:

PHP 15.00

Danish kroner:

DKK 2.60

Polish zloty:

PLN 1.35

Euros:

EUR 0.35

Russian rubles:

RUB 10.00

Hong Kong dollars:

HKD 2.35

Swedish kronor:

SEK 3.25

Hungarian forint:

HUF 90.00

Swiss francs:

CHF 0.55

Israeli new shekels:

ILS 1.20

Singapore dollars:

SGD 0.50

Japanese yen:

JPY 40.00

Thai baht:

THB 11.00

Malaysian ringgit:

MYR 2.00

US dollars:

USD 0.30

A1.4. Country Groups

When in this Schedule 1 we are speaking of “Country Groups”, we are referring to the following:

DEFINITIONS OF COUNTRY GROUPS

Country Group

Countries

Northern Europe

Denmark (including Faroe Islands and Greenland), Finland (including Aland), Iceland, Norway, Sweden

Europe I

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

North America

Canada, United States of America

Europe II

Albania, Andorra, Belarus, Bosnia and Hercegovina, Bulgaria, Croatia, Czech Republic, Georgia, Hungary, Kosovo, Latvia, Liechtenstein, Lithuania, Macedonia, Poland, Republic of Moldova, Romania, Russia, Serbia Switzerland, Ukraine

LATAM

Anguilla, Antigua and Barbuda, Argentina, Aruba, Bahamas, Barbados, Belize, Bermuda, Bolivia, Brazil, Cayman Islands, Chile, Colombia, Costa Rica, Cuba, Ecuador, El Salvador, Honduras, Montserrat, Netherlands Antilles, Panama, Paraguay, Peru, Puerto Rico, Saint Kitts and Nevis, Saint Lucia, Saint Vincent And The Grenadines, Suriname, Turks And Caicos Islands, Trinidad And Tobago, Uruguay, Venezuela, Virgin Islands (British),Virgin Islands (U.S.)

APAC

Australia, Bangladesh, Bhutan, Cambodia, China Domestic, China World Wide, Democratic People’s Republic of Korea, Federated States of Micronesia, Hong Kong, India, Indonesia, Japan, Mongolia, Macau, Maldives, Malaysia, Nepal, New Zealand, Norfolk Island, Pakistan, Peoples Democratic Republic of Lao, Philippines, Republic of Korea, Samoa, Singapore, Sri Lanka, Taiwan, Thailand, Tonga, Vietnam

Rest of World

all other countries not mentioned in any of the Country Groups above


A2. Fees for Personal Transactions 

When sending a Personal Transaction, the sender will pay the Fee.

The Fee for a Personal Transaction will be shown at the time of payment.

A2.1. Fees for Domestic Personal Transactions

Activity

Fees

Sending a Domestic Personal Transaction payment

Free (when no currency conversion is involved)

A2.2. Fees for Cross-Border Personal Transactions 

A2.2.1 Cross Border Personal Transaction payments sent to the EEA in Euro or Swedish Krona

Activity

Fee

Sending a Domestic Personal Transaction payment to the EEA in Euro or Swedish Krona

Free (when no currency conversion is involved)

A2.2.2 Other Cross-Border Personal Transactions

To determine the Fees for Cross-Border Personal Transactions sent to a User in a specific country please follow the steps below:

  1. Find the country and related country group, in which the recipient's registered address is located (see clause A1.4. for further reference or ask the recipient if you are not sure) (second column).
  2. Then find the applicable Personal Transaction payment Fee in the third, fourth, and fifth columns.

FEES FOR CROSS-BORDER PERSONAL TRANSACTIONS

Activity

Country Group in which recipient’s Account is registered

Fee for transaction amounts of:^

 

Amount sent in euros (EUR)

EUR 0.00 – 49.99

EUR 50.00 – 99.99

EUR 100.00+

Sending a Cross Border Personal Transaction payment

Northern Europe, North America, Europe I, Europe II

EUR 0.99 †

EUR 1.99 †

EUR 1.99 †

LATAM, APAC, Rest of World

EUR 0.99 †

EUR 1.99 †

EUR 3.99 † 

 

^If the transaction is funded in a currency other than EUR, it will be converted to an equivalent amount in EUR for rating, calculated using the prevailing base exchange rate.

†If funded in a foreign currency, then a comparable amount in that currency.

 

A3. Commercial Transactions

When you send a Commercial Transaction no Fees apply if no currency conversion is required.

A3.1. Fees for Receiving Domestic Transactions

PayPal shall charge a Fee for receiving Domestic Transactions in your Account a Variable Fee in amount equal to 2.49% of the respective payment transaction amount plus Fixed Fee, which applies in the respective transaction currency as set out in clause A1.3.2. above – this does also apply for transactions received via PayPal PLUS (see clause 6b. above).

 “Merchant Rate” may be granted only upon separate application by a merchant and will be evaluated on a case-by-case basis and requires inter alia qualifying monthly transaction volume, an average shopping cart of a particular size, satisfactory implementation of certain criteria regarding the quality of the integration of the PayPal Services as communicated by PayPal from time to time, and a PayPal Account in good standing.

MERCHANT RATE FEES

Monthly transaction volume in EUR processed via PayPal Account

Variable Fee

less than EUR 2,000.00

2.49%

EUR 2,000.01 – EUR 5,000.00

2,19%

EUR 5,000.01 – EUR 25,000.00

1,99%

EUR 25,000.01 – EUR 100,000.00

1,79%

more than EUR 100,000.00

1.49%

For the Merchant Rate, in addition to the Variable Fee set out in the table above, the Fixed Fee shall apply in the respective transaction currency as set out in clause A1.3.2. above.

A3.2. Fees for Receiving Cross-Border Transactions

PayPal shall charge a Fee for receiving Cross-Border Transactions in your Business Account in an amount equal to the Variable Fee for Domestic Transactions plus a "Cross-Border Fee" according to the Country Group in which the PayPal Account of the sender is registered as set out below plus Fixed Fee.

The Variable Fee shall in these cases be increased by the percentage points set out below:

CROSS-BORDER FEE

Country Group

Cross-Border Fee

Northern Europe

+1.80 percentage points

Europe I

+2.00 percentage points

North America

+2.00 percentage points

Europe II

+3.00 percentage points

LATAM

+3.30 percentage points

APAC

+3.30 percentage points

Rest of World

+3.30 percentage points

A4. Additional Fees

A4.1. Currency Conversion Fee

For currency conversions processed in your PayPal Account outside or prior to a Personal Transaction or a Commercial Transactions (including, but not limited to converting a Balance to another currency before withdrawal) as well as for transaction requiring a currency conversion for which the payment recipient (Seller) has agreed to bear the Fee PayPal shall charge of Fee in an amount equal to 2.50% above the base exchange rate (“Currency Conversion Fee”).

For all other transaction that require a currency conversion and for which the payment recipient (Seller) has not agreed to bear the Currency Conversion Fee, PayPal shall charge the following Currency Conversion Fee, each in percentage above the base exchange rate (to form the transaction exchange rate):

CURRENCY CONVERSION FEE ACCORDING TO CURRENCY

Currency converted to

Currency Conversion Fee

Australian dollars (AUD)

4.00%

Brazilian real (BRL)

4.00%

British pounds sterling (GBP)

3.50%

Canadian dollars (CAD)

3.50%

Czech koruna (CZK)

3.50%

Danish kroner (DKK)

3.50%

Euros (EUR)

3.50%

Hong Kong dollars (HKD)

4.00%

Hungarian forint (HUF)

3.50%

Israeli new shekels (ILS)

4.00%

Japanese yen (JPY)

4.00%

Malaysian ringgit (MYR)

4.00%

Mexican pesos (MXN)

4.00%

New Taiwan dollars (TWD)

4.00%

New Zealand dollars (NZD)

4.00%

Norwegian kroner (NOK)

3.50%

Philippine pesos (PHP)

4.00%

Polish zloty (PLN)

3.50%

Russian rubles (RUB)

3.50%

Singapore dollars (SGD)

4.00%

Swedish kronor (SEK)

3.50%

Swiss francs (CHF)

3.50%

Thai baht (THB)

4.00%

US dollars (USD)

3.50%

A4.2. Chargeback Fees

To cover the cost of processing Chargebacks, PayPal assesses a “Chargeback Fee” to Sellers for credit card payment chargebacks. A chargeback may occur when a Buyer rejects or reverses a charge on his or her credit card through the card issuer.

The Chargeback Fee does not apply if the transaction is covered by the PayPal Seller Protection Policy.

The Chargeback Fee applies in the relevant local currency as follows:

CHARGEBACK FEE DEPENDING ON CURRENCY RECEIVED

Australian dollars:

AUD 22.00

Mexican pesos:

MXN 250.00

Brazilian real:

BRL 35.00

New Taiwan dollars:

TWD 625.00

British pounds sterling:

GBP 14.00

New Zealand dollars:

NZD 28.00

Canadian dollars:

CAD 20.00

Norwegian kroner:

NOK 125.00

Czech koruna:

CZK 400.00

Philippine pesos:

PHP 900.00

Danish kroner:

DKK 120.00

Polish zloty:

PLN 65.00

Euros:

EUR 16.00

Russian rubles:

RUB 640.00

Hong Kong dollars:

HKD 155.00

Swedish kronor:

SEK 150.00

Hungarian forint:

HUF 4,325.00

Swiss francs:

CHF 22.00

Israeli new shekels:

ILS 75.00

Singapore dollars:

SGD 28.00

Japanese yen:

JPY 1,875.00

Thai baht:

THB 650.00

Malaysian ringgit:

MYR 65.00

US dollars:

USD 20.00

A4.3. Commercial Transaction Refund Fee

If you refund a Commercial Transaction payment, PayPal will retain the Fixed Fee portion of the Commercial Transaction Fee.

The Buyer’s PayPal Account will be credited with the full Commercial Transaction payment amount.

Your PayPal Account will be charged with the amount initially credited to your PayPal Account in connection with the Commercial Transaction payment and the Fixed Fee portion of the Commercial Transaction Fee.

A4.4. PayPal Mass Payments

For the use of the PayPal Mass Payments function PayPal shall charge a Fee in an amount equal to 2.00% of the respective transaction amount (“Mass Payment Fee”).

A maximum fee cap per individual transaction using PayPal Mass Payments shall apply as set out below for Domestic Transactions and for all other transaction based on the respective payment currency:

FEE CAPS FOR MASS PAYMENT FEE DEPENDING ON CURRENCY USED

Currency of PayPal Mass Payments

Fee cap for Domestic Transactions using PayPal Mass Payments

Fee cap for all other transactions using PayPal Mass Payments

Australian dollars

AUD 16.00

AUD 100.00

Brazilian real

BRL 24.00

BRL 150.00

British pounds sterling

GBP 10.00

GBP 60.00

Danish kroner

DKK 84.00

DKK 500.00

Euros

EUR 12.00

EUR 70.00

Hong Kong dollars

HKD 110.00

HKD 660.00

Israeli new shekel

ILS 50.00

ILS 320.00

Japanese yen

JPY 1,200.00

JPY 8,000.00

Canadian dollars

CAD 14.00

CAD 90.00

Malaysian ringgit

MYR 50.00

MYR 300.00

Mexican pesos

MXN 170.00

MXN 1,080.00

New Taiwan dollars

TWD 440.00

TWD 2,700.00

New Zealand dollars

NZD 20.00

NZD 120.00

Norwegian kroner

NOK 90.00

NOK 540.00

Philippine pesos

PHP 640.00

PHP 3,800.00

Polish zloty

PLN 46.00

PLN 280.00

Russian rubles

RUB 480.00

RUB 2,800.00

Swedish kronor

SEK 100.00

SEK 640.00

Swiss francs

CHF 16.00

CHF 100.00

Singapore dollars

SGD 20.00

SGD 120.00

Thai baht

THB 460.00

THB 2,800.00

Czech koruna

CZK 280.00

CZK 1,700.00

Hungarian forint

HUF 3,080.00

HUF 18,500.00

US dollars

USD 14.00

USD 90.00

A4.5. Records Request Fee

If you apply for requests of information relating to why we had reasonable justification to refuse your Payment Order PayPal shall charge a Fee in an amount of EUR 12.00 per document requested (“Records Request Fee”).

We will not charge the Records Request Fee for records requested in connection with your good-faith assertion of an error in your PayPal Account.

A4.6. Fees for bank returns on withdrawal and Reversals or failed direct debit payments

A4.6.1. Fees for bank return on withdrawal

If a withdrawal from your PayPal Account to your bank account initiated by you fails because of incorrect or incomplete bank account details PayPal shall charge a Fee in amount equal to the amount billed to PayPal by the credit institution at which you hold your account.

A4.6.2. Fees for Reversals or failed direct debit payments

In the event of a Reversal or a failed direct debit payment as per clause 10.1. of the User Agreement, PayPal shall charge a Fee in an amount equal to the amount billed to PayPal by the credit institution at which you hold your account.

A4.7. Charity Pricing

PayPal offers lower Fees to charities subject to prior application by the charity and approval by PayPal (“Charity Pricing”) with a Variable Fee of 1.50% plus Fixed Fee for receiving Domestic Transactions. The Cross-Border Fees for receiving Cross-Border Transactions apply as set out in clause A3.2. above accordingly.

A4.8. Fees for micro payments (Micro Pricing)

Subject to your prior application and to approval by PayPal you can switch your Business Account to receiving micro payments (“Micro Pricing”). The Micro Pricing shall apply after this switch for receiving Commercial Transactions as follows:

MICRO PRICING FEES

Fees for receiving Domestic Transactions

Variable Fee of 10.00% plus Fixed Fee

Fees for receiving Cross-Border Transactions

Variable Fee of 12.00% plus Fixed Fee

For Micro Pricing the Fixed Fee shall by way of derogation from clause A1.3.2. apply depending on the currency received as set out below:

MICRO PRICING FIXED FEE

Australian dollars:

AUD 0.05

Mexican pesos:

MXN 0.55

Brazilian real:

BRL 0.10

New Taiwan dollars:

TWD 2.00

British pounds sterling:

GBP 0.05

New Zealand dollars:

NZD 0.08

Canadian dollars:

CAD 0.05

Norwegian kroner:

NOK 0.47

Czech koruna:

CZK 1.67

Philippine pesos:

PHP 2.50

Danish kroner:

DKK 0.43

Polish zloty:

PLN 0.23

Euros:

EUR 0.10

Russian rubles:

RUB 2.00

Hong Kong dollars:

HKD 0.39

Swedish kronor:

SEK 0.54

Hungarian forint:

HUF 15.00

Swiss francs:

CHF 0.09

Israeli new shekels:

ILS 0.20

Singapore dollars:

SGD 0.08

Japanese yen:

JPY 7.00

Thai baht:

THB 1.80

Malaysian ringgit:

MYR 0.20

US dollars:

USD 0.05

A5. Due Dates, Taxes, and Third-Party Fees

All quoted fees are due immediately. All Fees are payable by you without set off or other deductions. You agree that we can deduct our Fees from the amounts we transfer but before those funds are credited to your PayPal Account.

Quoted Fees are inclusive of all applicable taxes. Other taxes or costs may exist that are not paid through PayPal or imposed by us.

You are liable for telephone charges and any charges made by your internet service provider or similar or associated charges as a result of the use by you of the PayPal Services.

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