Policy Updates

 

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Policy Updates

 

This page informs users in advance of important changes to the PayPal service, its User Agreement, or other policies. This page displays policy updates with future effective dates. Go to “Past Policy Updates” for previous policy updates.

 

Notice of Amendment to PayPal Legal Agreements

Issued: August 19, 2019 (for Effective Dates see each individual agreement below)

Please read this document.

We’re making changes to the legal agreements that govern your relationship with PayPal.

We encourage you to carefully review this notice to familiarise yourself with the changes that are being made.

There is no further action needed from you as these changes will take place automatically on the Effective Dates shown below. In the event you would prefer to decline these changes and close your account, you can do so prior to the Effective Date without incurring any additional charges.

 

Updates to the User Agreement

Effective: 11 December 2019

We’re unveiling an entirely redesigned User Agreement for our customers. We’ve worked hard to make this new User Agreement a more user-friendly experience with content that makes it easier for you to understand your rights and obligations when it comes to using PayPal’s products and services.

Here’s what we’ve done:

  1. We’ve redesigned the User Agreement to simplify its format, with new colour-coded headings so you can find the information most relevant to your account more easily. We’ve revised and reorganised the content of the User Agreement to be easier to follow and to include information where you’d naturally look for it. We’re not changing the meaning of what we say, only how we say it and where you can find it.

B.  An updated User Agreement, will be available after 10 October 2019. Please click HERE to view once available.

 

Notice of amendment to the PayPal User Agreement.

Effective Date: August 19, 2019

You can find the current PayPal User Agreement currently in force by clicking here or accessing it via the “Legal” or “Legal Agreements” footer on most PayPal site pages.

  1. Terms of use of our new checkout solution
  • We have introduced a fee for receiving American Express Card payments using Custom Card Fields (where we allow you to receive such payments) to section A2.2.2 of Schedule 1.

Amended section A2.2.2 of Schedule 1 now read as follows (with changes shown underlined):

“…

A2.2.2 Fees for using the new checkout solution

 

Payments from cards (Visa, Mastercard or Maestro) using Custom Card Fields *

Payments from American Express cards using Custom Card Fields

Card-funded payments from users of our Payments without a PayPal account service

Payments from Local Payment Methods

Other payments

Fee

Blended Pricing Fee Structure

Interchange Plus Fee Structure

 

3.5%

 

 

 

1.20% + Fixed Fee

1.20% + Fixed Fee

Interchange Fee + 1.20% + Fixed Fee

 

1.20% + Fixed Fee

3.40% + Fixed Fee

* See the PayPal Online Card Payment Services Agreement (PayPal Hosted Solution and eTerminal Agreement) for information about the Interchange Plus Fee Structure and Blended Pricing Fee Structure and your choices.

…”

 

Notice of amendment to the PayPal Online Card Payment Services Agreement (formerly the PayPal Hosted Solution and eTerminal Agreement)

Effective Date: August 19, 2019

You can find the PayPal Online Card Payment Services Agreement currently in force by clicking here or accessing it via the “Legal” or “Legal Agreements” footer on most PayPal site pages.

  1. Fees

We have amended the PayPal Online Card Payment Services Agreement to:

  • reduce some of the fees we currently charge you for receiving card payments using our Custom Card Fields Product; and
  • introduce our fees for receiving payments from American Express cards where we allow you to receive such card payments.

Sections 2.4 and 2.5 now read as follows:

“…

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

The following fees apply to each domestic payment you receive from the following types of cards using the following Products under the Blended Pricing Fee Structure:

Product

Card Type

Fee

PayPal Hosted Solution

Visa, Mastercard

 

Blended Pricing Fee Structure

2.90% + Fixed Fee

Interchange Plus Fee Structure

 

Interchange Fee

(approximately ranges from 0.20% to 2.00%)

 

+ 2.50%

+ Fixed Fee

 

eTerminal

Visa, Mastercard

 

 

Blended Pricing Fee Structure

2.90% + Fixed Fee

 

Interchange Plus Fee Structure

 

Interchange Fee

(approximately ranges from 0.20% to 2.00%)

 

+ 2.50%

+ Fixed Fee

Custom Card Fields

Visa, Mastercard

Blended Pricing Fee Structure

1.20% + Fixed Fee

 

Interchange Plus Fee Structure

 

Interchange Fee

(approximately ranges from 0.20% to 2.00%)

 

+ 1.20%

+ Fixed Fee

 

American Express

3.5%

 

On and from June 6, 2019 the PayPal Merchant Rate no longer applies. In place of the PayPal Merchant Rate, the PayPal Standard Rate applies.

  1. Other changes

Sections of the PayPal Online Card Payment Services Agreement have been amended:

  • to clarify and reorganise existing wording, including the following existing sections:

Section

Amendment

New section 5.5

This is a new section which contains terms which apply to you if we allow you to receive payments from American Express cards.

Section 8.1 (Termination and suspension – By you)

We have added some terms which give you more flexibility to stop or terminate your use of Custom Card Fields.  We have also added a provision which relates to how you may stop your acceptance of American Express card payments, if we allow you to receive such payments.

; and

  • correct minor typographical errors.

 

Notice of amendment to the PayPal User Agreement.

Effective Date: August 19, 2019

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

1. Refused Transactions and Refunds 

We are amending sections 4.6 (Refused Transactions) and 5.7 (Your Refund Policy, Data Protection, Privacy Policy and Security) and A3.1.2 in Schedule 1 (Table of Fees) to clarify what happens when a payment is refused or later refunded by the recipient (including where the original payment involved a currency conversion and where a currency conversion (and, in some cases, a currency conversion fee) applies to the returned amount).

Section 4.6 is amended accordingly for payers receiving returned payments and is also renamed “Refused Transactions and Refunds sent by the recipient”. 

Section 5.7 is amended accordingly for recipients sending refunds or refusing payments and is also renamed “Refunds, Refused Payments, Your Refund Policy, Data Protection, Privacy Policy and Security” with a new section 5.7.1 (Refunds and Refused Payments) added for the purpose of this clarification. 

Section A3.1.2 in Schedule 1 (Table of Fees) is amended accordingly. Sections 4.6 and 5.7.1 now read as follows (presented in context with their root clauses and with added wording underlined):

            “…

4.6 Refused Transactions and Refunds sent by the recipient. 

We may allow the recipient of your payment to:

  • refuse to accept it; or 
  • decide to accept it and then use our Service to send you a refund of all or any part of the amount of the payment later. 

We will return the amount of any refused payment or refunded payment to your Balance.  We will return the amount of an unclaimed payment to your Balance within 30 Days after the date you initiated the payment.

If any amount of any payment is returned to you in any of the ways outlined above, we may convert the returned amount for you into either:

  • the currency of the Balance you used for the original payment (before any conversion into the currency received by the recipient happened); 
  • the original opening currency of your Account; or
  • US dollars (opening a Balance in that currency for you, if you don’t have one already).

If the original payment you sent involved a currency conversion, we will convert the returned amount from the currency received by the recipient as follows:

  • if the amount is returned within 1 day of the date of the original payment, we will use the transaction exchange rate applicable on the date of the original payment, so that you receive the original amount (including the currency conversion fee you paid) in the original currency you converted from for the original payment; and
  • if the amount is returned after 1 day of the date of the original payment, we will use the transaction exchange rate applicable at the time of the conversion of the returned amount. See section 8.2 for more information about how we set the transaction exchange rate. Note that, for the purpose of this particular return conversion:.

If you are registered with PayPal as resident in Spain, the transaction exchange rate includes the Currency Conversion Fee. You agree to bear the currency conversion fee set out at section A3.1.2 in this case..

We may also automatically withdraw the returned amount from your Balance and transfer the funds back to the funding source you used for the original payment. Withdrawals can also involve a currency conversion – see section 6.

We may decide to not charge your original Funding Source for the original payment in the first place if the amount is returned to your Balance as outlined above before the payment from your original Funding Source to PayPal to fund your original payment has settled.

The returned amount could be lower in value than your original payment amount.  This can happen as a result of:

  • the recipient sending you a refund lower in value than your original payment amount. As we are only a payment service provider, we cannot know what you are entitled to from the original payment recipient as a refund or why the recipient sent the refund in a particular amount; or
  • transaction exchange rate fluctuations.  

PayPal is not responsible for any loss resulting from the recipient's decision to refuse or refund your payment, except to the extent that a refund sent by the recipient is a payment executed incorrectly by PayPal (see section 12).

5.7 Refunds, Refused Payments, Your Refund Policy, Data Protection, Privacy Policy and Security. 

5.7.1 Refunds and Refused Payments

If you are the recipient of a payment and we allow you to refuse a payment or send a refund of that payment to the payer:

  • you alone are (and PayPal is not) responsible for:
  • your legal and contractual obligations towards the payer for any amount you return to the payer; and
  • any difference between the cost to the payer of making the original payment and the value of the amount returned to the payer (for instance, as a result of transaction exchange rate fluctuations) except to the extent that the refund is a payment executed incorrectly by PayPal (see section 12).

5.7.2 Refund Policy

5.7.3 Data Protection and Privacy Policy

5.7.4 Security

A3.1 Currency Conversion


A3.1.2 For all other transactions involving a currency conversion (including conversion of amounts returned to you as refunds or refused payments):

…”

 

2. Fees for receiving Commercial Transaction payments 

We are changing our Commercial Transaction payment Fees as follows:

  • The Fee for Receiving Domestic payments (Selling) at section A2.2.1 in Schedule 1 (Table of Fees) is changed to 2.90% + Fixed Fee.
  • The Fee for Receiving Domestic payments (Selling) for users in Spain using the new checkout solution at section A2.2.2 is changed to: 
    • 1.20% + Fixed Fee for receiving: 
      • payments from cards through Custom Card Fields if you are on the Blended Pricing Fee Structure
      • card-funded payments from users of our Payments without a PayPal account service; and
      • payments from Local Payment Methods;
    • Interchange Fee + 1.20% + Fixed Fee for receiving payments from cards through Custom Card Fields if you are on the Interchange Plus Fee Structure; and
    • 2.90% + Fixed Fee for receiving all other types of payments.
  • On and from August 19, 2019 the Merchant rate at section A2.2.2 in Schedule 1 (Table of Fees) no longer applies to any Spanish merchant. In place of the Merchant rate, the standard rate of 2.90% + Fixed Fee applies to each domestic Commercial Transaction payment received by Spanish merchants.
  • The additional percentage-based Cross Border Fees set out in the table at section A2.3 of Schedule 1 (Table of Fees) for receiving payments from Northern Europe, US/Canada or Europe II are increasing and are now as follows:

Sender’s country

Cross Border Fee

Europe I / Northern Europe

0.5%

Europe II / US / Canada / Rest of World

2.0%

 

  • The Fixed Fee for payments received in UK Pounds Sterling (GBP) at section A4.6 of Schedule 1 (Table of Fees) is increased to 0.30 GBP.

Sections A2 and A4.6 of Schedule 1 (Table of Fees) (presented in context with the column headings) now read as follows (with amendments underlined):

“A2. Commercial Transaction payment Fees

Where there is stated to be a Fixed Fee component, please refer to A4.6 of this Schedule 1 for more details.

Activity or Event

Fee

A2.1 Sending (Buying)

Free (when no currency conversion is involved)

A2.2 Receiving Domestic payments (Selling)

A2.2.1 Standard rate 

2.90% + Fixed Fee

Note on the Merchant rate: On and from August 19 2019 the Merchant rate no longer applies to any merchant.  In place of the Merchant rate, the standard rate of 2.90% + Fixed Fee applies to each domestic Commercial Transaction payment received by merchants.

 

A2.2.2 Fees for using the new checkout solution

 

 

 

 

Fee

Payments from cards (Visa, Mastercard or Maestro) using Custom Card Fields *

Card-funded payments from users of our Payments without a PayPal account service

Payments from Local Payment Methods

Other payments

Blended Pricing Fee Structure

Interchange Plus Fee Structure

 

1.20% + Fixed Fee

Interchange Fee + 1.20% + Fixed Fee

1.20% + Fixed Fee

1.20% + Fixed Fee

2.90% + Fixed Fee

 

* See the PayPal Online Card Payment Services Agreement (previously the PayPal Website Payments Pro and Virtual Terminal Agreement) for information about the Interchange Plus Fee Structure and Blended Pricing Fee Structure and your choices.

A2.3 Receiving Cross Border payments (Selling)

The Fee for Receiving Domestic Commercial Transaction payments applies plus an additional percentage-based Cross Border Fee as set out in the table below (depending on the sender’s country).

Sender’s country

Cross Border Fee

Europe I / Northern Europe

0.5%

Europe II / US / Canada / Rest of World

2.0%

 

Note: Cross Border Euro or Swedish Krona payments made between Accounts registered in the European Union or EEA will be treated as Domestic Commercial Transaction payments for the purpose of applying Fees.

A4.6 Fixed Fees for Commercial Transaction payments and Personal Transaction payments (unless otherwise stated) are based on the currency in which the payment is received, as follows:

Currency:

Fee:

Currency:

Fee:

Australian Dollar:

0.30 AUD

New Zealand Dollar:

0.45 NZD

Brazilian Real:

0.60 BRL

Norwegian Krone:

2.80 NOK

Canadian Dollar:

0.30 CAD

Philippine Peso:

15.00 PHP

Czech Koruna:

10.00 CZK

Polish Zloty:

1.35 PLN

Danish Kroner:

2.60 DKK

Russian Ruble:

10.00 RUB

Euro:

0.35 EUR

Singapore Dollar:

0.50 SGD

Hong Kong Dollar:

2.35 HKD

Swedish Krona:

3.25 SEK

Hungarian Forint:

90.00 HUF

Swiss Franc:

0.55 CHF

Israeli New Shekel:

1.20 ILS

New Taiwan Dollar:

10.00 TWD

Japanese Yen:

40.00 JPY

Thai Baht:

11.00 THB

Malaysian Ringgit:

2.00 MYR

U.K. Pounds Sterling:

0.30 GBP

Mexican Peso:

4.00 MXN

U.S. Dollar:

0.30 USD

…”

4. Other changes

Sections of the PayPal User Agreement have been amended to clarify and reorganise existing wording and correct minor typographical errors.

 

Notice of amendment to the PayPal Online Card Payment Services Agreement (formerly the PayPal Hosted Solution andeTerminal Agreement)  

Effective Date: August 19, 2019

You can find the amended PayPal Online Card Payment Services Agreement (formerly the PayPal Hosted Solution and eTerminal Agreement)  below the version of that agreement currently in force by clicking here or accessing it via the “Legal” or “Legal Agreements” footer on most PayPal site pages.

1. Fees

The fee for as outlined in the PayPal User Agreement now applies to each domestic Standard PayPal Payment you receive, instead of the PayPal Standard Rate fee for receiving such payments outlined at section 2.3.

Also, on and from August 19, 2019 the PayPal Merchant Rate outlined throughout section 2 (Fees) of the PayPal Online Card Payment Services Agreement (formerly the PayPal Hosted Solution and eTerminal Agreement ) no longer applies.  This means that, in place of the PayPal Merchant Rate:

  • the fee for Receiving Domestic payments (Selling) as outlined in the PayPal User Agreement applies to each domestic Standard PayPal Payment you receive; and
  • the relevant PayPal Standard Rate applies to card payments you receive under the Blended Pricing Fee Structure or the Interchange Plus Fee Structure.

Section 2 (Fees) of the PayPal Online Card Payment Services Agreement (formerly the PayPal Hosted Solution and eTerminal Agreement) now reads as follows (with amendments underlined):

“…

 

2. Fees

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

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

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

2.2 Monthly Fees

Product

Monthly Fee

PayPal Hosted Solution

EUR 15.00

eTerminal only

EUR 15.00

Custom Card Fields

None

2.3 Transaction Fees for Standard PayPal Payments

The fee for Receiving Domestic payments (Selling) as outlined in the User Agreement applies to each domestic Standard PayPal Payment you receive.

On and from August 19, 2019 the PayPal Merchant Rate no longer applies. In place of the PayPal Merchant Rate, the fee for Receiving Domestic payments (Selling) as outlined in the User Agreement applies to each domestic Standard PayPal Payment you receive.

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

The PayPal Standard Rate of 2.9% + Fixed Fee applies to each domestic payment you receive from a card (Visa or MasterCard) using the Online Card Payment Services under the Blended Pricing Fee Structure. 

On and from August 19, 2019 the PayPal Merchant Rate no longer applies. In place of the PayPal Merchant Rate, the PayPal Standard Rate applies.

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

The PayPal Standard Rate of:

 

 

Interchange Fee (approximately ranges from 0.10% to 2.0%)
+ 2.5%
+ Fixed Fee

 

applies to each payment you receive from a card (Visa or MasterCard) using the Online Card Payment Services under the Interchange Plus Fee Structure.

On and from August 19, 2019 the PayPal Merchant Rate no longer applies. In place of the PayPal Merchant Rate, the PayPal Standard Rate applies.

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

Argentine Peso:

2.00 ARS

New Zealand Dollar:

$0.45 NZD

Australian Dollar:

$0.30 AUD

Norwegian Krone:

2.80 NOK

Brazilian Real:

0.60 BRL

Philippine Peso:

15.00 PHP

Canadian Dollar:

$0.30 CAD

Polish Zloty:

1.35 PLN

Czech Koruna:

10.00 CZK

Russian Ruble

10.00 RUB

Euro:

€0.35 EUR

Singapore Dollar:

0.50 SGD

Danish Kroner:

2.60 DKK

Swedish Kronor:

3.25 SEK

Hong Kong Dollar:

$2.35 HKD

Swiss Franc:

0.55 CHF

Hungarian Forint:

90 HUF

Taiwan New Dollar:

10.00 TWD

Israeli New Shekels:

1.20 ILS

Thai Baht:

11.00 THB

Japanese Yen:

¥40 JPY

Turkish Lira:

0.45 TRY

Malaysian Ringgit:

2 MYR

UK Pounds Sterling:

£0.20 GBP

Mexican Peso:

4.00 MXN

US Dollar:

$0.30 USD

 

2.7 Merchant Rate

On and from August 19, 2019 the PayPal Merchant Rate no longer applies.  In place of the PayPal Merchant Rate, the Transaction Fees outlined in clauses 2.3, 2.4 and 2.5 apply, subject to the rest of this clause 2.

2.8 Additional Transaction Fees 

The fee for Receiving Cross Border payments (Selling) applies as outlined in the User Agreement, except that it does not apply to:

  • payments received from cards using the Online Card Payment Services under the Interchange Plus fee structure.

2.9 Monthly Reports on Transaction Costs. PayPal shall make available monthly reports on transaction costs (inclusive of interchange fees) for card transactions which you process with PayPal Hosted Solution, Custom Card Fields and eTerminal. These reports will be downloadable from your PayPal account. The reports do not include any Standard PayPal Payments.

…”

  1. Other changes

Sections of the PayPal Online Card Payment Services Agreement have been amended:

  • to clarify and reorganise existing wording, including the following existing sections:

Section

Amendment

4.2 (Your PCI DSS compliance)

Further clarifications of your obligations regarding your PCI DSS compliance.

4.4 (Security of Card Data)

This section is moved to section 11 of amended Schedule 1 (Data Security Requirements)

New section 4.4 (3D Secure)

This new section clarifies your obligations regarding your use of 3D Secure.

9.3 (No warranty)

A second paragraph has been added to clarify PayPal’s rights as set out in the first paragraph where PayPal hosts your Product.

Schedule 1 (Data Security)

This schedule is renamed “Data Security Requirements” and is amended in its entirety to outline your obligations regarding data security, including provisions regarding the principles of data security, what to do in case of a data breach, data protection, card data and PCI DSS.

; and

  • correct minor typographical errors.

 

Notice of Amendment to PayPal Legal Agreements

Issued: August 1, 2019 (for Effective Dates see each individual agreement below)

Please read this document.

We’re making changes to the legal agreements that govern your relationship with PayPal.

We encourage you to carefully review this notice to familiarise yourself with the changes that are being made.

There is no further action needed from you as these changes will take place automatically on the Effective Dates shown below. In the event you would prefer to decline these changes and close your account, you can do so prior to the Effective Date without incurring any additional charges.

Notice of amendment to the PayPal User Agreement.

Effective Date: October 21, 2019

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

1. Fees – Currency Conversion Fees

We are increasing:

  • the Currency Conversion Fee at section A3.1.1 in Schedule 1 (Table of Fees) from 2.5% to 3.0%; and
  • the Currency Conversion Fees at section A3.1.2  in Schedule 1 (Table of Fees) from 3.5% to 4.0% for conversions into the following currencies:
  • Canadian Dollar (CAD)
  • Czech Koruna (CZK)
  • Danish Krone (DKK)
  • Euro (EUR)
  • Hungarian Forint (HUF)
  • Norwegian Krone (NOK)
  • Polish Zloty (PLN)
  • Russian Ruble (RUB)
  • Swedish Krona (SEK)
  • Swiss Franc (CHF)
  • UK Pounds Sterling (GBP)
  • US Dollar (USD)

Section A3.1 (Currency Conversion) in Schedule 1 (Table of Fees) now reads as follows (with amendments underlined):

Activity or Event

Fee

A3.1 Currency Conversion

A3.1.1 For currency conversions that occur within your PayPal account outside and/or prior to a Personal or Commercial Transaction (“In Account”) (converting balances to other currencies before withdrawal for example), as well as for transactions involving a currency conversion for which the seller has agreed to bear the conversion fee:

3.0% above the base exchange rate (to form the transaction exchange rate.

A3.1.2 For all other transactions involving a currency conversion and for which the seller has not agreed to bear the conversion fee (including conversion of amounts returned to you as refunds or refused payments):


Between 3.0% and 4.0% above the base exchange rate (to form the transaction exchange rate depending on the currency into which the relevant amount is converted (please refer to the table below):

Currency and Code

Currency Conversion Fee

Australian Dollar (AUD):

4.0%

Brazilian Real (BRL):

4.0%

Canadian Dollar (CAD):

4.0%

Czech Koruna (CZK):

4.0%

Danish Krone (DKK):

4.0%

Euro (EUR):

4.0%

Hong Kong Dollar (HKD):

4.0%

Hungarian Forint (HUF):

4.0%

Israeli Shekel (ILS):

4.0%

Japanese Yen (JPY):

4.0%

Malaysian Ringgit (MYR):

4.0%

Mexican Peso (MXN):

4.0%

New Zealand Dollar (NZD):

4.0%

Norwegian Krone (NOK):

4.0%

Philippine Peso (PHP):

4.0%

Polish Zloty (PLN):

4.0%

Russian Ruble (RUB):

4.0%

Singapore Dollar (SGD):

4.0%

Swedish Krona (SEK):

4.0%

Swiss Franc (CHF):

4.0%

Taiwan New Dollar (TWD):

4.0%

Thai Baht (THB):

4.0%

U.K. Pounds Sterling (GBP):

4.0%

U.S. Dollar (USD):

4.0%