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Notice of Amendment to the PayPal User Agreement

Effective Date (and issued on): Apr 27, 2017

Please read this document.

We’re making changes to the PayPal User Agreement, the contract that governs your relationship with PayPal. 

You do not need to do anything to accept the changes as they automatically come into effect on the Effective Date.

1. PayPal seller protection

Section 11 is amended in order to extend the coverage of the Seller Protection programme to also cover sales of all eligible intangible items (excluding digital goods and licences for digital content) and services;

Accordingly, section 11 now reads as follows (with added wording underlined):

“11. Seller Protection Programme

11.1 What is PayPal seller protection?

If you are the recipient of a payment made by a customer (“Payment Recipient”), we will re-imburse you an amount for Claims, Chargebacks, or Reversals made against you based on the following reasons:

1. A Chargeback or Reversal was issued against you for the reason of an “Unauthorised Payment” (except for any “Unauthorised Payment” initiated in an environment not hosted by PayPal); or
2. A Chargeback or Claim was issued against you for the reason of “Item Not Received”,

where PayPal receives from you proof that the item was posted or delivered in accordance with the requirements set forth below, subject to the further provisions of this section 11 (including, without limitation, the Eligibility Requirements at section 11.6).

Please read section 13 (PayPal Buyer Protection) to understand how a Claim against you may arise.  If you sell or market to buyers in other countries, you should read the PayPal Buyer Protection policies of the countries in which your target buyers are based (the relevant PayPal Buyer Protection policies are available here and are also accessible via the “Legal” or “Legal Agreements” footer on most PayPal site pages) as these policies will apply to you as a Payment Recipient or seller.

Please also read section 5.3 (Risk of Reversals, Chargebacks and Claims) to understand the risk of Reversals, Chargebacks and Claims arising when you receive a payment.

11.2 PayPal seller protection is available to:

1. Payment Recipients with registered PayPal Account(s) in Finland who receive PayPal payments from buyers making an eligible purchase via eBay (worldwide and everywhere PayPal is accepted); and
2. Payment Recipients with registered PayPal Account(s) in Finland who receive PayPal payments from buyers making eligible purchases outside of eBay.

PayPal seller protection does not apply to Claims, Chargebacks and/or Reversals for the reason that the purchase was Significantly Not as Described (SNAD) nor for items that you deliver or are picked up in person.

11.3 How much protection is provided by PayPal seller protection?

PayPal will pay you the full amount of an eligible payment the subject of the Claim, Chargeback, or Reversal and waive the Chargeback Fee, if applicable.

1. We may suspend your eligibility for PayPal Seller Protection if we hold a reasonable belief that there is an increased risk associated with your Account. In assessing a risk, we will consider the:
   • Total monetary amount and / or number of Claims, Chargebacks or Reversals issued against your PayPal Account;
   • Reasonable risk of your Account to the integrity of PayPal and our system; and
   • Potential losses occurring to us or our users.
2. We may suspend your eligibility for PayPal Seller Protection if it is linked or associated with another account which has been suspended.
3. We will lift the suspension provided we no longer hold a reasonable belief that there is an increased risk associated with your Account.

11.4 What happens when a buyer files a Claim, Chargeback, or Reversal?

PayPal will place a temporary hold on the funds in your Account to cover the full amount of the Claim, Chargeback, or Reversal. See section 10.1.d for further details about the temporary hold process.

11.5 If the payment is not covered by PayPal seller protection, PayPal will remove the funds from your Account and return the payment to the buyer. In addition, you will be responsible for PayPal’s Chargeback Fee, if applicable.

11.6 Eligibility Requirements

What are the eligibility requirements for PayPal seller protection?

If You have received more than €100,000 per month at least once over a consecutive period of 6 months on your PayPal Account and/or if You are applying surcharge for the use of PayPal (when the law applicable to You allows You to apply surcharge), You are not eligible for PayPal seller protection and Section 11.5 applies to You unless otherwise agreed between You and PayPal. PayPal will review your eligibility for seller protection in October and April of each calendar year.

To be eligible for PayPal seller protection, you must meet all of these requirements to be covered:

1. You must respect the requirements specified in Section 11.3 in relation your PayPal Account.
2. The transaction must be marked by PayPal as eligible or partially eligible for PayPal seller protection on your Account “Transaction Details” page.
3. If it is marked eligible, protection for both Unauthorised Payments and Item Not Received will apply.
4. Post the item to the shipping address on the “Transaction Details” page. If the item is delivered in person or if the Payment Recipient posts the item to a different address (for example, if the buyer asks that you send to another address on the basis that it is a “work address” or a “gift” address) then you will not be eligible for re-imbursement under the terms of the PayPal seller protection.
5. You may access the “Transactions Details” page by logging into your PayPal Account, selecting “History” and then selecting “Details” for the transaction.
6. You must follow the delivery requirements described below.
7. You must accept a single payment from one PayPal Account for the purchase (partial payment and/or payment in installments are excluded).
8. You must respond to PayPal’s requests for documentation and other information that is reasonably required by PayPal to investigate the matter in a timely manner.
9. Your eligibility is not otherwise suspended.

11.7 What are the delivery requirements?

If the payment is for pre-ordered or made-to-order goods, postage is required within the shipment policy or other specification on the merchant’s website.

11.8 What is “Proof of Postage”?

Online or physical documentation from a postal company that includes all of the following:

1. A status of “shipped” (or equivalent) and the date of postage
2. The recipient’s address, showing at least the city/county or postcode (or international equivalent).
3. Official acceptance from the shipping company (for example, a postmark, a receipt, or online tracking information). Or, if you have Proof of Delivery then you do not need Proof of Postage.

11.9 What is “Proof of Delivery”?

Proof of Delivery for tangible items means online documentation from a postal company that includes all of the following:

1. A status of “delivered” (or equivalent) and the date of delivery.
2. The recipient’s address, showing at least the city/county or postcode (or international equivalent).

Proof of Delivery for intangible items and services means any compelling evidence (as determined by PayPal) to show the sale was fulfilled, including but not limited to the following information:

1. The date the item or service was provided.
2. The recipient’s address (for instance, email/IP) where applicable

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

1. Licenses for digital content. Where PayPal in its own discretion may make certain intangible items (including licences for digital content and digital goods) and/or services eligible from time to time, unless otherwise agreed in writing with PayPal, the following will always remain ineligible:
   1. Items equivalent to cash (including, without limitation, stored value items such as gift cards and pre-paid cards ).
   2. Payments made in respect of financial products and investments.
   3. Donations.

2. Items that you deliver (or are picked up) in person.
3. Transactions made through Zong, Website Payment Pro (PayPal Direct Payment and Virtual Terminal).
4. Claims, Chargebacks and Reversals for Significantly Not as Described.
5. Items bought via classified listings.
6. Disputes filed directly with PayPal in the Resolution Centre pursuant to section 13 of this Agreement.
7. PayPal Business Payments.
8. Payments made in respect of gold (whether in physical form or in exchange-traded form).
9. PayPal Mass Payment transactions. “

2. Other changes

Sections of the PayPal User Agreement have been amended to make minor typographical changes with reference to the changes outlined in paragraph 1 above.