Policy Updates

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Policy Updates


Notice of Amendment to PayPal Legal Agreements

Issued: September 29, 2020

Please read this document.

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

We encourage you to carefully review the notices below so that you are familiar with these upcoming changes.

There is no further action needed from you as these changes will take place automatically on

December 16, 2020.


In the event you would prefer to decline these changes and close your account, you can do so prior to December 16, 2020 without incurring any additional charges.

Amendments made for linguistic adjustment, to correct or remove orthographical and grammatical mistakes, or changes to the formatting are not mentioned in this document. This does also apply where we have corrected or standardized numbering and references.



Effective date: December 16, 2020

  • Please click HERE to view an updated copy of the intended changes.

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

About Your Account – Opening an Account – Commercial Entity Status

We have amended the wording in the section to reflect that upon reaching certain thresholds or involving certain business segments or activities, the Commercial Entity Agreements can apply to any type of PayPal account you hold.

About Your Account – Opening an Account – Safe use of your PayPal account

In this section, we have added the requirement to keep the number of a phone to which you are the primary user current in your PayPal account profile.

About Your Account – Fees

In this section, we have removed the last paragraph regarding the merchant rate as we will cease to offer the merchant rate for merchants.

Making A Payment – General provisions for making a payment – Your payment instruction

We added a new paragraph at the end of this section about giving you the option to select certain recipients as "trusted beneficiaries" for a faster payment experience.

Receiving Payments – Refunds and reversals of payments – Dispute fees

We are establishing a dispute fee and its terms and conditions for sellers.

Receiving Payments – Refunds and reversals of payments – Chargeback fee

We have added a new section dealing with the Chargeback fee for clarification.

Receiving Payments – Rules about surcharging

In this section, we have removed the last paragraph referring to the merchant as we will cease to offer the merchant rate for merchants.

Receiving Payments – PayPal Giving Fund

We have added two new sections on the PayPal Giving Fund, which apply to Irish and United Kingdom charities only, respectively.

Receiving Payments – Merchant Rate

This section has been removed as we will cease to offer the merchant rate for merchants.

Resolving Problems – Complaints

We have added a new Complaints section applicable to users registered in the United Kingdom, Guernsey, the Isle of Man, and Jersey.

Other Legal Terms – Our Rights – Inactivity Fee

We are establishing an inactivity fee for accounts that have been inactive for at least 12 consecutive months.

NOTE: This provisions does not apply to PayPal users registered in Ireland and to personal accounts registered in Hungary.

Schedule 1: Table of Fees

A2.2.2. Fees for using the checkout solution included in the PayPal Commerce Platform

In section A2.2.2.3., we have removed the reference to the merchant rate and to sections A2.2.3. and A2.2.4. as we will cease to offer the merchant rate for merchants.

A2.2.3. Merchant rate

Section A2.2.3. has been removed as we will cease to offer the merchant rate for merchants.

A3.1. Currency Conversion

In section A3.1.1. we changed the conversion fee for currency conversions of amounts in your PayPal account that do not form part of a specific transaction into or out of your account (e.g. converting your balance to another currency) and for transactions involving a currency conversion for which the seller has agreed to bear the conversion fee to 3.0%.

Section A3.1.2. has been changed to apply for all countries under this user agreement and the currency conversion fee for transactions for which the seller has not agreed to bear the fee to be generally 4.00%.

A3.2. Withdrawing your Balance

In section A3.2.1. we have introduced a fee for withdrawals to a U.S. bank account associated with your PayPal account.

A3.3. Chargeback Fee and Dispute Fee

We have broken own section A3.3. into two sub-sections: A3.3.1. Chargeback Fee, which remains unchanged, and A3.3.2. Dispute Fee which is dealing with our newly introduced Dispute Fee.

NOTE: This fee does not apply to PayPal users registered in Ireland.

A3.13 Inactive PayPal accounts

We have added a new section A3.13 dealing with the newly introduced inactivity fee.



4. Information Security; Data Protection; Data Portability

We have amended section 4.6. to talk about a Data Protection Addendum rather than a schedule (as a result, Schedule 2 has been removed) and we have added a new section 4.7. on Data Portability.



We have removed the limitation to PayPal Premier or Business Accounts from the first paragraph of the Commercial Entity Agreement.



We are updating our data processing terms to reflect that PayPal is a data controller for payment processing and fraud services.



In section 11., we have added a hyperlink to the Mastercard Currency Conversion Calculator and the ECB rate and we have clarified that we are not obliged to send you message pursuant to the "Cross-Border Fee Regulation" (Regulation (EC) 924/2009).



We have added new terms for our iZettle service to our Legal Agreements page for the United Kingdom.