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Informative Sheet relating to a personal PayPal account


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

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

Registered office: 22-24 Boulevard Royal, L-2449, Luxembourg

Enrolled in the register kept by CSSF with No. B00000351 and by the Bank of Italy with No. 21614

Telephone No.: 06 8938 6461

Other contact: /smarthelp/contact-us

Website: /webapps/mpp/home

PayPal is a Luxembourg credit institution duly authorised by the Luxembourg authority, CSSF, and passported to operate in Italy on a freedom to provide services basis.


2.Characteristics of the product and typical risks

2.1 Characteristics of the PayPal personal account

PayPal issues electronic money and provides payment services using that electronic money through a PayPal personal account. PayPal enables individuals and businesses to hold, send and receive electronic money online. This information sheet applies only to the use of the PayPal personal account.

PayPal also provides other financial and related services, including Pay in 3 instalments. Information on Pay in 3 instalments is available at the following link Foglio informativo relativo a "Paga in tre rate" (paypal.com) . For more details on our services see here.

The opening currency of the PayPal account is Euro. You can send or receive a payment in a variety of currencies, including Pound Sterling, Euro, US Dollar, Canadian Dollar, Japanese Yen, Australian Dollar, Swiss Franc, Norwegian Kroner, Swedish Krona, Danish Krone, Polish Zloty, Hungarian Forint, Czech Koruna, Singapore Dollar, Hong Kong Dollar, New Zealand Dollar, Israeli New Shekel, Mexican Peso, Brazilian Real, Philippine Peso, Thai Baht, and Taiwan New Dollar.

You can use a funding source as a way to pay PayPal to obtain electronic money in your account or to receive withdrawals from your account. You can link or unlink a credit card, debit card, a prepaid card (where available), a bank account or PayPal credit (where available) to your PayPal account as a funding source. By linking a funding source to your PayPal account, you give PayPal continuous permission to automatically charge that funding source.

The operational part of the PayPal account contains the PayPal balance, which is the balance of electronic money available for payments or withdrawals. When you use the payment services to pay another PayPal user, you instruct PayPal to transfer the money from your PayPal balance to the recipient’s account. You need to have enough PayPal balance in cleared funds to cover the amount of any payment you make, and the transaction fees you owe us at the time of the payment. If you have insufficient PayPal balance or have chosen a preferred funding source, you are also requesting PayPal to obtain funds on your behalf from your applicable funding source and issue electronic money to your PayPal balance for the completion of your payment.

If you have a PayPal balance, you may withdraw (redeem) any amount by transferring it to your nominated funding source linked to your PayPal account as explained above. When you withdraw (redeem) your electronic money you need to have enough PayPal balance to cover the value of any withdrawal at the time of the withdrawal. If your PayPal balance shows a negative amount, this is the net amount you owe to PayPal at the given time.

2.2. Main risks related to the PayPal personal account

Lack of protection of electronic money

While a PayPal account is considered secure, the main risk relates to the situation in which PayPal, for any reason, would not be able to repay account balances to its users. Electronic money is not a deposit, nor an investment under Luxembourg law. Therefore, the Luxembourg deposit guarantee or investor indemnity schemes administered by the Conseil des Protection des Deposants et des Investisseurs does not offer protection for funds held in PayPal accounts. As a licensed credit institution, PayPal is nevertheless subject to strict supervision, as well as banking laws and regulations that impose obligations aiming to prevent defaults by financial institutions.

Unauthorized access, errors and holds

As the PayPal account is provided online, other risks concern a potential unauthorized access by a third party to the PayPal account (e.g., in case of theft or careless treatment of account credentials by the user) and potential technical errors or issues affecting the correct or timely execution of payment transactions. In some cases PayPal is obliged (or uses its discretion) to delay certain payments, for example when it requires more information about a particular transaction.

Risk of reversal

When PayPal receives a payment from your funding source, it may store the resulting electronic money in a reserve account for as long as it has reason to believe that there is risk of reversal by the funding source provider. This is because PayPal may not have all the information necessary to place the funds in the customer PayPal balance while there is such a risk of reversal.

If a recipient does not qualify for PayPal’s Seller Protection Program (see below) and receives a payment that becomes subject to a chargeback or is reversed, the recipient (not PayPal in most cases) will be liable for the chargeback/reversal of the amount of that payment together with any fees. A chargeback is a dispute between the recipient of a card-funded payment, the bank that issued that card, and that issuer’s customer, the sender of the payment. PayPal does not decide chargeback issues, and PayPal and the payee must accept the decision of the issuing bank as final and legally binding in connection with a chargeback dispute.

Under certain circumstances, PayPal will cover the loss caused by a chargeback or reversal, rather than require the recipient of the payment to reimburse it, if the payer denies having authorized the payment or claims that they did not receive the item that they paid for. This is referred to as Seller Protection. Buyer Protection on the other hand allows buyers of eligible goods and services to recover all or part of their PayPal payment for purchases that were not delivered or are significantly not as the seller described them. Full details on the conditions for Seller Protection and Buyer Protection can be found in the User Agreement.

Exchange rate risk

By maintaining a balance or by sending or accepting payments in a currency other than the primary currency of the PayPal account (i.e. Euro), you are exposed to the risk of fluctuations of the exchange rates.

For further information, please refer to the Bank of Italy Guide on e-commerce payments (“I pagamenti nel commercio elettronico in parole semplice”) and the PayPal User Agreement both available on the PayPal website at /webapps/mpp/ua/legalhub-full.


3.Financial conditions

Information about fees and your personal PayPal account is available on the fee pages as incorporated in the User Agreement: /webapps/mpp/paypal-fees

PayPal does not apply charges for the use of its means of communication, but charges as set by your local carrier may apply.


4.main contractual clauses

4.1 Right of withdrawal

If you are a consumer, PayPal informs you that you have the right to withdraw from the User Agreement governing the PayPal account without giving any reason and without penalty within 14 days of your account being opened. To do so, you must, within these 14 days, follow the process to close your account which will end the User Agreement. In addition to these mandatory rights, even after 14 days, you can end the User Agreement by closing your account. You will have to pay fees for the services you used up until you close your account and withdraw your balance, if any. All pending transactions will be cancelled when you close your account. See the section “Closing your PayPal account” in the User Agreement for more details.

4.2 The maximum time limit for the closure of the contractual relationship

You may close your PayPal account at any time.

PayPal may close your PayPal account at its convenience by providing you with 2 months’ prior notice. We may also close your account at any time if:

  • You are in breach of the User Agreement and/or we are otherwise entitled to close or limit your account under the User Agreement.
  • You do not access your account for 3 years.
  • We suspect that your account has been accessed without your authorization.

4.3 Complaints and alternative dispute resolution

You can contact us at the relevant contact details provided for above to report disputes between you and PayPal regarding our services.

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.

If the outcome of any complaint about our services, after completing the complaint escalation process, is not to your satisfaction, you can escalate it by contacting one of the following:

4.4 Amendments to the User Agreement

PayPal may revise the User Agreement from time to time. PayPal will post a notice on the Policy Updates page of the PayPal website and provide notice of at least two months. By continuing to use PayPal services after any changes to the User Agreement take effect, you agree to be bound by those changes. If you do not agree with any changes, you may close the PayPal account before the changes take effect.

4.5. Governing Law

The User Agreement and the relationship between you and PayPal for the purposes of the PayPal account is governed by the laws of Luxembourg.

However, if you are a consumer, nothing in the User Agreement shall deprive you of the protection granted by the provisions of Italian law which are mandatory (in particular those defining consumer rights).

For complaints that cannot be resolved otherwise between you and PayPal, in case of consumers, the court of the place or residence or domicile of the consumer will have jurisdiction for any claim.



The terms used in this Informative Sheet have the following meaning: