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Policy Updates

 

Notice of Amendment to PayPal Legal Agreements

Issued: Jan 27, 2017 (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.

You do not need to do anything to accept the changes as they will automatically come into effect on the Effective Dates shown below. Should you decide you do not wish to accept them you can notify us before the above date to close your account (https://www.paypal.com/uk/cgi-bin/?&cmd=_close-account) immediately without incurring any additional charges.

We do hope, however, that you continue to use PayPal and enjoy the following benefits:

It’s faster

You don’t have to type in your card details each time you pay, so you can check out faster online.

It’s easier

PayPal is the preferred web payment method in the UK because it’s a smarter, savvier way to pay online in just a few clicks. All you need is your email address and a password.

Please review the current Legal Agreements in effect
 


Notice of amendment to the PayPal User Agreement

Effective Date: Apr 27, 2017

 

You can find the amended PayPal User 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. Funding Sources
    We have added a new section 3 (Funding Sources) which combines, reorganises and amends the following existing sections:
  • 3.4 (Default Funding Sources);
  • 3.5 (Preferred Funding Source);
  • 3.6 (Funding Source Limitations);
  • 3.7 (Bank Transfers); and
  • 3.13 (Card Information),

into a dedicated section to clarify further (amongst other things) how your Funding Sources may be selected and used (and how Special Funding Arrangements may be used) to fund your Balance with E-money.

In particular, section 3.6 deals with how a Preferred Funding Source may be selected and used for a Payment Order.  In such a case E-money obtained from your applicable Special Funding Arrangements (formerly Special Funding Sources) and from pre-existing Balance are used (in that order) before E-money obtained from your Preferred Funding Sources to cover a Payment Order.

After the implementation of a new Funding Source framework by PayPal (which shall be by further notice of the same published by PayPal on the Policy Updates page accessible via the Legal footer on most PayPal site pages on or after 27 April 2017 as PayPal may determine in its sole discretion),   PayPal may use your Preferred Funding Source to obtain E-money to cover certain Payment Orders even if you have pre-existing Balance, subject further to the rest of the PayPal User Agreement.

New section 3 reads as follows:

3. Funding Sources. 

3.1 Linking your Funding Source. You can link or unlink a debit card, a credit card, a pre-paid card (in certain cases), a bank account and/or PayPal Credit as a Funding Source for your 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.

You may choose to confirm your card or bank account, so that we can verify that the card or bank account is valid and that you are its owner.  We may allow you to do this by following the Link and Confirm Card process (for cards) or the Bank Confirmation process (for bank accounts) or other processes which we may notify to you or which we may publish from time to time.

3.2 Cards. By linking a debit card, credit card or (in certain cases) pre-paid 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 Agreement. You can stop the continuous authority in respect of any card by removing that card as a Funding Source in your Account Profile.

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 Agreement: or
  • when using the Add Funds functionality in your Account interface.

You give PayPal the right to resubmit any debit you authorised that is returned for insufficient or uncollected funds. If you cancel any direct debit (including, without limitation, any SEPA Direct Debit), you agree to reimburse us for the value of any goods or services that you have consumed with the proceeds of that direct debit.

You agree that when PayPal receives a payment from your bank account to obtain E-money in your Account, PayPal may hold the funds in your Reserve Account for so long as PayPal determines that an NSF Risk exists.  In such an event, the E-money will not be made available to you in your Payment Account (including for the execution of any Payment Order that the bank payment was made to cover) until PayPal determines that the NSF Risk has passed. Until that time the bank payment will appear to you as “Uncleared” in your Account details. PayPal is not in possession of all the information necessary to place the funds from your bank payment at your disposal until it determines that the NSF Risk has passed. 

PayPal reserves the right to require you to fund your requested payment by the use of Bank Account - eCheque to mitigate risk (including, without limitation, the NSF Risk) associated with your Payment Order.

3.4 SEPA Direct Debit (for users with registered addresses in Cyprus, Estonia, Greece, Ireland, Latvia, Lithuania, Malta, Slovakia and Slovenia):  After the implementation of the use of SEPA Direct Debit mandates by PayPal in the country in which you reside, whenever you register a bank account with PayPal or pay with a new bank account for the first time, you will be granting 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 make an electronic transfer from your bank account to PayPal via SEPA Direct Debit after that, you authorise PayPal to use such mandate and draw the amount from your bank account as explained above in this section 3.4 and you authorise your bank to arrange for payment to PayPal. You may claim a refund from your bank at any time up to 8 weeks after the date on which the SEPA Direct Debit payment took place in accordance with your bank’s terms and conditions.

PayPal will inform you of the amount of the SEPA Direct Debit payment and the time frame in which PayPal will collect the amount from the bank account together with the purchase confirmation. In the event that PayPal resubmits any SEPA Direct Debit payment request due to Reversal of the original payment, there will be no (additional) information given on the amount and the time frame ahead of the resubmission.

3.5 Special Funding Arrangements: Certain payments may be funded by special funding arrangements linked to your 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 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 Account as your Preferred Funding Source for obtaining E-money in your Balance to cover a Payment Order, subject further to this Agreement.  PayPal may allow you to choose a Preferred Funding Source for certain future Payment Orders in your account preferences on www.paypal.com 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 section 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.

After the implementation of the relevant framework by PayPal (which shall be by further notice of the same published by PayPal on the Policy Updates page accessible via the Legal footer on most PayPal site pages on or after 27 April 2017 as PayPal may determine in its sole discretion),

PayPal may disapply section 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 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 Arrangements

2.

Pre-existing Balance

3.

 

 

 

 

 

 

 

 

 

Default Funding Sources

 

Used in the following order (to the extent that such Funding Sources are available for use with your Account):

  1. Bank account – for an Instant Transfer payment
  2. PayPal Credit
  3. PayPal-branded debit card – where available
  4. PayPal-branded credit card – where available
  5. Debit card
  6. Credit card
  7. Bank account – for an eCheque payment

 

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 unauthorised). 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. For PayPal Business Payments, you are limited to funding your PayPal payment with your pre-existing Balance and/or eCheque.

If your Funding Sources are limited, you may choose to continue with the transaction with the understanding that you may have fewer avenues available for dispute resolution should the transaction turn out to be unsatisfactory (for instance, if one of your Funding Sources is your credit card but, as a result of a limitation of Funding Sources, you cannot fund your PayPal payment by credit card, you will not have chargeback rights for the PayPal payment).”

 

  1. Your Payment Order for a payment to another User or for a Withdrawal
    We have added new sections 4.2 and 4.3 to clarify the instructions and authorisations given by you in respect of E-money in your Balance when you submit a Payment Order for a payment to another user or for a withdrawal. New sections 4.2 and 4.3 read as follows:

    4.2 Your Payment Order for a payment to another User. Subject to the terms of this Agreement, your Payment Order for a payment to another User (whether a Personal Transaction payment or a Commercial Transaction payment) is your instruction and authorisation 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 Agreement, your Payment Order for a withdrawal from your Account is your instruction and authorisation to us to redeem E-money from your Balance.  Section 6 further applies to this type of Payment Order.

 

  1. Lifting Limits (Sending, Receiving and Withdrawing)
    We have amended:
  • new section 4.5 (Sending Limits) (formed from existing sections 3.2 (Sending Limits) and 3.3 (Lifting your sending limit));
  • new section 5.1 (Lifting your receiving limit) (formed from existing section 4.1); and
  • section 6.3 (Lifting your withdrawal limit),

to read as follows (with added wording underlined):

4.5 Sending Limits. If you have a periodic sending limit on your Account, you can view it by logging into your 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 our Service. 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).

5.1 Lifting your receiving limit. If you have a receiving limit on your Account, you can view it by logging into your 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 our Service. 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).

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).”
 

  1. Risk of Reversals, Chargebacks and Claims
    New section 5.3 (Risk of Reversals, Chargebacks and Claims (existing section 4.3) has been amended to clarify that when you receive a payment, you are liable to PayPal for the full amount of the payment plus any costs that we incur (for instance when banks charge us for the reversal) and any Fees if the payment is later invalidated for any reason.  The amended new section 5.3 now reads as follows (with added wording underlined):

“5.3 Risk of Reversals, Chargebacks and Claims. The receipt of a payment into your PayPal Account does not equate to the receipt of cleared funds. A notification that E-money has been sent to you, does not amount to a receipt of E-money in your Account unless you have accepted the payment. You acknowledge and agree that a payment transaction is completed and received by you even if it becomes subject to a Reversal, Chargeback. Claim, Reserve or hold. When you receive a payment, you are liable to PayPal for the full amount of the payment plus any costs that we incur and any Fees if the payment is later invalidated for any reason. In addition to any other liability, if there is a Reversal, or if you lose a Chargeback or Claim and you are not entitled to a payment under the Seller Protection Programme, you will owe PayPal an amount equal to the Reversal, Chargeback or Claim and our Fees per Schedule 1 (including a Chargeback Fee if applicable) and PayPal will debit your Balance to recover such an amount. If a sender of a payment files a Chargeback, the credit card company, not PayPal, will determine who wins the Chargeback. You can find out more about Chargebacks by reviewing our Chargeback Guide, accessible via the PayPal Security Centre and the section called: “Selling Safely”. The PayPal Security Centre is accessed via the PayPal website.”

 

  1. Your Refund Policy, Privacy Policy and Security.
    We have amended new section 5.7 (existing section 4.7 (Your Refund Policy and Privacy Policy) to clarify your obligations regarding your disclosure of your privacy policy, your obligations regarding security standards and our rights 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 unauthorised disclosure of customer information.  The amended new section 5.7 now reads as follows (with added wording underlined):

5.7 Your Refund Policy, 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.  In addition to our rights under section 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 unauthorised 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.
 

  1. Term and closing Your Account
    Section 7 (Term and closing Your Account) has been replaced with a new section (incorporating parts of existing sections 10.3 (Account Closure and Limited Access) and 15.6 (Complete Agreement and third party rights)) to clarify how your Account may be closed and what happens when your Account is closed.  The amended section 7 also clarifies (amongst other things) that when your account is closed:
  • the PayPal User Agreement is terminated, except that it survives termination to the extent and for so long as PayPal requires to deal with the closure of the account and to comply with applicable laws and regulations;
  • you will remain liable for all outstanding obligations under the PayPal User Agreement related to your Account prior to closure;
  • we may suspend, limit or terminate your access to or use of our Services, websites, software, systems (including any networks and servers used to provide any of the Services) operated by us or on our behalf or some or all of the Services;
  • PayPal may keep your Account information in its database for the purpose of fulfilling its legal obligations; and
  • PayPal may retain your Balance after closure to the extent and for the time PayPal reasonably requires to protect it and/or any third party against the risk of Reversals, Chargebacks, Claims, fees, fines, penalties and other liabilities of whatever nature.  You will be able to withdraw any undisputed funds that PayPal holds at any time.
     

     The replacement section 7 reads as follows:

7. Term and closing Your Account

This Agreement 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, 16 and Schedule 1).

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

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

  • you are in breach of the terms of this Agreement and/or we are entitled to close your Account under section 10.2;
  • you do not access your Account for three years; or
  • we suspect that your Account has been accessed without your authorisation.

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

When your 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 our Services, websites, software, systems (including any networks and servers used to provide any of the Services) operated by us or on our behalf or some or all of the Services;
  • you will remain liable for all outstanding obligations under this Agreement related to your Account prior to closure;
  • we may keep your 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 Account on closure.

If you are the legal representative of an incapacitated or deceased Account holder, please contact us at the PayPal Help Centre for assistance.”

 

  1. Restricted Activities
    Sections 9.1w, 9.1x, 9.1z and 9.1ab are amended to clarify how Restricted Activities are deemed to arise from certain actions you take (or omissions you make) regarding our infrastructure, our websites, software, systems (including any networks and servers used to provide any of the Services) operated by us or on our behalf, any of the Services or other Users’ use of any of the Services and any data or information.

    A new Section 9.1.aj is also added to make it a Restricted Activity to 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 unauthorised disclosure of customer information.

    The amended sections 9.1w, 9.1x, 9.1z and 9.1ab and new section 9.1aj read as follows (presented in context with their root clause with added wording underlined):

    9.1 Restricted Activities. In connection with your use of our website, your Account, or the Services, or in the course of your interactions with PayPal, a User or a third party, you will not:

    w. 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 Services) whether operated by us or on our behalf;

    x. Facilitate any viruses, Trojan horses, malware, worms or other computer programming routines that attempts 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

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

    ab. 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;

    aj. 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 unauthorised disclosure of customer information.
     

  2. Actions by PayPal
    Section 10.2 is amended to:
  • clarify that PayPal may suspend your eligibility for PayPal seller protection and/or PayPal Buyer Protection in retrospect at subsection j; and
  • insert a new subsection k to enable PayPal to suspend, limit or terminate your access to or use of the Services, websites, software, systems (including any networks and servers used to provide any of the Services) operated by us or on our behalf or some or all of the Services and, to the extent and for so long as permitted by applicable law, your data.

The amended parts of section 10.2 now read as follows (presented in context with the root clause and with added wording underlined):

10.2 Actions by PayPal. If we have reason to believe that you have engaged in any Restricted Activities, we may take various actions to protect PayPal, a User, a third party, or you from Reversals, Chargebacks, Claims, fees, fines, penalties and any other liability. The actions we may take include but are not limited to the following:

j. We may suspend your eligibility for PayPal seller protection and/or PayPal Buyer Protection (including in retrospect).

k. We may suspend, limit or terminate your access to our Services, websites, software, systems (including any networks and servers used to provide any of the Services) operated by us or on our behalf, and, to the extent and for so long as permitted by applicable law, your data.

 

  1. Payment Hold
    As an increased risk or exposure to PayPal’s customers and/or its service providers (in addition to PayPal) can diminish your or other PayPal customers’ safe access and/or use of your Payment Instrument, Account or the Service generally, section 10.5a is amended to clarify that PayPal will consider these risk factors (in addition to the risk or exposure to PayPal) when determining the level of risk or exposure associated with your Account for the purpose of deciding to place a hold on your payment.  The amended section 10.5a now reads as follows (with added wording underlined):

    “10.5 Payment Hold

    a. You agree that if either:

    i. you receive a payment that involves Transaction Risk; or

    ii. there may be a higher than acceptable level of risk or exposure associated with your Account (based on the information available to PayPal at the relevant time and what in its sole discretion it regards as an acceptable level of risk or exposure to PayPal, its customers and/or its service providers under all the circumstances).


    PayPal may in its sole discretion (acting reasonably) place a hold on that or any payment. If PayPal places a hold on funds in your Account, we will notify you about it (including, without limitation, how long the hold may last) - the funds will be held in your Reserve Account and those funds will be shown as “pending” in your PayPal Balance. We may notify you about the hold through authorised third parties (such as partner platforms on which you transact).

     

    …”

  2. Disclosure of reasons for our actions
    A new section 10.7 has been added to outline where we can decide to not share information with you about decisions that we make about our relationship with you.  New section 7 reads as follows:

“10.7 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 Agreement, whether they restrict or extend your access to the Service, our infrastructure, our websites, our software or our systems (including any networks and servers used to provide any of the 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.”

 

  1. PayPal seller protection
    Section 11.10 is amended in order to outline that the following items/transactions/cases are ineligible for PayPal seller protection:

1. Payments made in respect of gold (whether in physical form or in exchange-traded form); and

2. PayPal Mass Payment transactions.

The new sections 11.10.f and 11.10.g read as follows (presented in context within section 11.10, with added wording underlined):

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

 

f. Payments made in respect of gold (whether in physical form or in exchange-traded form).

g. PayPal Mass Payment transactions.”

 

  1. PayPal Buyer Protection
    Section 13.4a is amended to exclude the following types of transactions from coverage by PayPal Buyer Protection:
    a. payments to state-run bodies, (except for state-owned enterprises) or traders acting on mandates received from state-run bodies;
    b. payments made in respect of gold (whether in physical form or in exchange-traded form); and
    c. PayPal Mass Payment transactions.

    The amended section 13.4a now reads as follows (with added wording underlined):

13.4 Conditions for reimbursement

You may be reimbursed under PayPal Buyer Protection for a problem with a purchase only if all of the following requirements are met:

a. Your purchase is an eligible purchase. Purchases of most goods and services are eligible (including travel tickets, intangible items such as rights of access to digital content and other licences), except for the following transactions:

13. payments to state-run bodies (except for state-owned enterprises) or traders acting on mandates received from state-run bodies;

16. payments made in respect of gold (whether in physical form or in exchange-traded form); and

17. PayPal Mass Payment transactions.

 

  1. Governing Law
    We have amended new section 15.1 (existing section 14.3) to clarify that the choice of the governing law of the PayPal User Agreement as English law is subject to your local mandatory rights.  Section 15.1 now reads as follows (with added wording underlined):

15.1 Governing Law and Jurisdiction. This Agreement and the relationship between us shall be governed by English law, subject to your local mandatory rights. For complaints that cannot be resolved otherwise, you submit to the non-exclusive jurisdiction of the English courts arising out of or relating to this Agreement or the provision of our Services without prejudice to your right to also initiate a proceeding against PayPal in that context before the competent courts of and in Luxembourg. In simple terms, “nonexclusive jurisdiction of the English courts” means that if you were able to bring a claim arising from this Agreement against us in Court, an acceptable court would be a court located in England, but you may also elect to bring a claim in the court of another country instead.”
 

  1. No Warranty
    New section 15.4 (existing section 14.6) is amended to clarify the extent of your rights in respect of the performance and availability 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.  The amended new section 15.4 now reads as follows (with added wording underlined):

15.4 No Warranty. We provide to you 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 subject to your statutory rights but otherwise without any warranty or condition, express or implied, except as specifically stated in this Agreement. PayPal does not have any control over the products or services that are paid for with our Service and PayPal cannot ensure that a buyer or a seller you are dealing with will actually complete the transaction or is authorised to do so. PayPal does not guarantee continuous, uninterrupted or secure access to any part of our 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 acknowledge your access to 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,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 debit and credit cards are processed in a timely manner. We make every effort to ensure that the information contained in our correspondence, reports, on the website(s) and given verbally by our directors, officers and staff is accurate to the best of our belief at the time the information is provided. However, we cannot guarantee the accuracy of all such information in all circumstances and contexts, and no reliance should be placed on such information by you. 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 (2) months’ prior notice before discontinuing the service or feature, unless PayPal determines in its good faith judgement that: (1) such service or feature must be discontinued sooner as required by law or a third party relationship; or (2) 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 Services, including but not limited to, those related to export or import activity, taxes or foreign currency transactions.”
 

  1. Indemnification/re-imbursement
    New section 15.5 (existing section 14.7) is amended to clarify the extent of your obligation in respect of the use (whether by you or others acting on your behalf) 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.  The amended new section 15.5 now reads as follows (with added wording underlined):

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 authorised 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 or your employees' or agents' (or, where a third party otherwise acts on your behalf with your permission, that third party’s) actions and/or inactions, breach of this Agreement, breach of any law, breach of the rights of a third party, use of your PayPal account and/or use of the Services, our infrastructure, our websites, our software and our systems (including any networks and servers used to provide any of the Services) operated by us or on our behalf.
 

  1. Intellectual Property – Software Licence grant
    New section 15.7 (existing section 14.9) is amended to update the terms of the licence that PayPal and other licensors grant to you for the access to and use of PayPal software such as  APIs, developers’ toolkits or other software applications, which may include software provided by or integrated with software, systems or services of our service providers. The amended new section 15.7 now reads as follows (with added wording underlined):

15.7 Intellectual Property – Software Licence 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-sublicensable, non-transferable, royalty-free and limited license to access and/or 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 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 (1) integrated certain third party materials and technology into any web or other application, including its software, and/or (2) 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 other third party software application you use on the PayPal website 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 Services. If you are using the Services on the PayPal website, 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, then this section does not apply to your use of the hosted Services.”

 

  1. Fees - Fixed Fees for receiving Commercial Transaction payments
    We are increasing the Fee for Receiving Cross Border payments (Selling) from a sender in the Rest of World region from 1.8% to 2.0%.  The relevant entry in the table of Cross Border Fees at section A2.3 of Schedule 1 (Table of Fees) (presented in context with the column headings) now reads as follows:
     

    Sender’s country

    Cross Border Fee

    Rest of World

    2.0%

  1. Caps on Fees - Sending Payments through PayPal Mass Payments

We are increasing the Domestic PayPal Mass Payment transaction Fee cap at section A3.5.2 of Schedule 1 (Table of Fees) and the Fee cap for other PayPal Mass Payment transactions at section A3.5.2 of Schedule 1 (Table of Fees).  The Fee caps are now set out as follows (with sections A3.5.2 and A3.5.3 presented in the full context of their root clause, section A3.5 and additions shown underlined):

 

A3.5 Sending Payments through PayPal Mass Payments

A3.5.1 Fee

 

2% of total payment amount

A3.5.2 Domestic PayPal Mass Payment transaction Fee cap

 

A maximum fee cap per payment applies as follows for Domestic Transactions, (based on payment currency):

Australian Dollar:

16.00 AUD

Brazilian Real:

24.00  BRL

Canadian Dollar:

14.00 CAD

Czech Koruna:

280.00 CZK

Danish Krone:

84.00 DKK

Euro:

12.00 EUR

Hong Kong Dollar:

110.00 HKD

Hungarian Forint:

3080.00 HUF

Israeli Shekel:

50.00 ILS

Japanese Yen:

1200.00 JPY

Malaysian Ringgit:

50.00 MYR

Mexican Peso:

170.00 MXN

New Zealand Dollar:

20.00 NZD

Norwegian Krone:

90.00 NOK

Philippine Peso:

640.00 PHP

Polish Zloty:

46.00 PLN

Russian Ruble:

480.00 RUB

Singapore Dollar:

20.00 SGD

Swedish Krona:

100.00 SEK

Swiss Franc:

16.00 CHF

Taiwan New Dollar:

440.00 TWD

Thai Baht:

460.00 THB

U.K. Pounds Sterling:

10.00 GBP

U.S. Dollar:

14.00 USD



A3.5.3 Fee cap for other PayPal Mass Payment transactions

 

A maximum fee cap per individual payment applies as follows for all other transactions (based on payment currency):

Australian Dollar:

100.00 AUD

Brazilian Real:

150.00 BRL

Canadian Dollar:

90.00 CAD

Czech Koruna:

1700.00 CZK

Danish Krone:

500.00 DKK

Euro:

70.00 EUR

Hong Kong Dollar:

660.00 HKD

Hungarian Forint:

18500.00 HUF

Israeli Shekel:

320.00 ILS

Japanese Yen:

8000.00 JPY

Malaysian Ringgit:

300.00 MYR

Mexican Peso:

1080.00 MXN

New Zealand Dollar:

120.00 NZD

Norwegian Krone:

540.00 NOK

Philippine Peso:

3800.00 PHP

Polish Zloty:

280.00 PLN

Russian Ruble:

2800.00 RUB

Singapore Dollar:

120.00 SGD

Swedish Krona:

640.00 SEK

Swiss Franc:

100.00 CHF

Taiwan New Dollar:

2700.00 TWD

Thai Baht:

2800.00 THB

U.K. Pounds Sterling:

60.00 GBP

U.S. Dollar:

90.00 USD



Note: For cross border Euro or Swedish Krona payments made between Accounts registered in the European Union or EEA the Domestic Transaction Fee will apply.

 

  1. Other changes
    Sections of the PayPal User Agreement have been amended:
  • to clarify and reorganise existing wording, including the following existing sections:

 

Section

Amendment

  • 1.1 (PayPal is only a Payment Service Provider)

Reference to the Association pour la Garantie des Dépôts Luxembourg (AGDL) has been replaced with the Conseil de protection des déposants et des investisseurs.

  • 2.1 (Eligibility)

This section becomes new section 1.7

  • 1.7(Transaction History);
  • 2.2 (Personal and Business Accounts); and
  • 5 (Account Balances and transaction information),

Together these sections form a new section 2 (Your Account and Balances) with further amendments for context.

  • 3.10  (Third party initiated payments (including Recurring Payments)); and

 

This section becomes new section 4.8 (Pre-approved Payments) with further amendments for context.

  • 3.11  (Cancelling Recurring Payments)

This section becomes new section 4.9 (Cancelling Pre-approved Payments) with further amendments for context.

  • 10.1d (Temporary Holds for Disputed Transactions)

This section is amended to clarify your rights to cancel your authorisation and instruction for payments made to eBay under this section.

  • 2.3 (Verified Status)

This section becomes new section 10.6b (Getting Verified)

  • 14.3 (Governing Law and Jurisdiction),
  • 14.4 (No Waiver), 14.5 (Limitations of Liability)
  • 14.6 (No Warranty)
  • 14.7 (Indemnification/re-imbursement)
  • 14.8 (Complete Agreement and third party rights)
  • 14.9 (Licence grant)
  • 1.3 (Intellectual Property)
  • 14.10 (Third Party Permissions)
  • 2.4 (PayPal as Login Method) and
  • 14.11 (Corporate customers),

 

Together these sections form a new section 15 (General)

  • 14.2 (ECC-Net, Financial Ombudsman Service and CSSF)

This section is updated to show the new address of the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg, our regulator.

  • 15 (Definitions)

This section becomes new section 16, with:

  • clarifications of the following definitions: Add Funds, Authorise, Bank Funded Payment, Default Funding Sources, eCheque, Funding Source and Link and Confirm Card process; and
  • the following new defined terms replacing the defined terms in brackets: Bank Confirmation process (Random Deposit process), Pre-approved Payments (Recurring Payments), Special Funding Arrangements (Special Funding Sources).
  • Schedule 1 (Table of Fees))

We have added links to pages on the PayPal site with more information about Fees.

; and

  • correct minor typographical errors.

 

Notice of amendment to the PayPal Privacy Policy

Effective Date: Apr 27, 2017

 

You can find the amended PayPal Privacy Policy 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, choosing your country/region of residence and afterwards clicking on “Privacy Policy”.

1. How We Use the Information We Collect (section 3)

PayPal stores its customer data in data centres all over the world. The reference to “where PayPal facilities are located” has therefore been deleted.

2. How We Share Information with Other Third Parties (section 6)

PayPal provides its payment services globally using a network of several different entities in the group of companies owned by PayPal Holdings, Inc..  The PayPal entity providing the PayPal services to a user depends on the region in the world in which the User resides.  Therefore where PayPal processes a payment that you send to or receive from a User in another country, the transaction data needs to be made available to the PayPal entity processing the payment for that other User. Under local legislation there may be obligations to disclose the transaction data of both transaction partners. PayPal has therefore added following paragraph to section 6:

In order to provide the PayPal Services, certain of the information we collect (as set out in section 2) may be required to be transferred to other PayPal group entities or other entities, including those referred to in section 6 in their capacity as payment providers, payment processors or account holders (or similar capacities).  You acknowledge that according to their local legislation, such entities may be subject to laws, regulations, inquiries, investigations, or orders which may require the disclosure of information to the relevant authorities of the relevant country. Your use of the PayPal Services constitutes your consent to our transfer of such information to provide you the PayPal Services.

3. How We Share Information with Other Third Parties (section 6.a.)

PayPal has to comply with and provide notifications under international tax obligations, including, but not limited to, the Luxembourg laws of 24 July 2015 on the US Foreign Account Tax Compliance Act (“FATCA Law”) and 18 December 2015 on the OECD common reporting standard (“CRS Law”). Where PayPal is a reporting financial institution under these laws., if a user qualifies as a specified U.S. person under FATCA Law and/or as a reportable person under CRS Law and assuming the FATCA Law and CRS Law impose obligations on PayPal (in either case, as a “Reportable Account Holder”), this information will be automatically exchanged by PayPal with the Luxembourg tax authorities. The Luxembourg tax authorities will exchange this information with the U.S. Internal Revenue Service if FATCA Law applies and/or, if CRS Law applies, with the competent authority or authorities of your respective country or countries of tax residence that are participating jurisdictions under CRS Law.

A provision to allow for the above disclosure process has been incorporated into section 6.a. of the Privacy Policies. Additionally, we are publishing a specific notice and explanation of this “FATCA” clause, which can be accessed via the dedicated link in section 6.a.

4. How We Share Information with Other Third Parties (point 6.b.)

A new section 6.b. has been introduced in the PayPal Privacy Policies.

PayPal has to disclose account information to intellectual property rights owners if, under the applicable national law of an EU member state, they have a claim against PayPal for an out-of-court information disclosure due to an infringement of their intellectual property rights for which PayPal Services have been used.

b. Disclose Account Information to intellectual property right owners if under the applicable national law of an EU member state they have a claim against PayPal for an out-of-court information disclosure due to an infringement of their intellectual property rights for which PayPal Services have been used (for example, but without limitation, Sec. 19, para 2, sub-section 3 of the German Trademark Act or Sec. 101, para 2, sub-section 3 of the German Copyright Act).