Foreign Exchange as a Service

The FX as a Service (“FXaaS”) is a currency exchange service for PayPal business accounts through which PayPal will provide currency conversion rate (“FX Rate”) quotes for currency pairs supported by PayPal. You may use that FX Rate to convert prices from a designated holding currency (“Holding Currency”) to the applicable presentment currency (“Presentment Currency”) and quote prices in that Presentment Currency to your customers. For transactions processed and settled through using the FX as a Service, PayPal will process and settle such transactions at the applicable FX Rate, as specified in the Fees Page.

1. These Service Terms, along with the PayPal User Agreement, and any other applicable agreement you have entered into with PayPal for the use of the Services (collectively “PayPal Agreements”), apply to your use of the Services, and as such, the PayPal Agreements shall be deemed an integral part of these Terms.
2. PayPal shall determine the currency pairs supported by FX as a Service from time to time in its sole discretion. The list of currencies supported by FX as a Service is included in the developer documentation provided to you, or made available to you by other means, and may be updated by PayPal from time to time. PayPal may commence or cease support for any Holding Currency or Presentment Currency at any time and will make commercially reasonable efforts to notify you, which efforts may include updating the Integration requirements.
3. Rate Refresh Time. At a specified time each day (“Rate Refresh Time”), PayPal will make available to you via the FX API the FX Rates applicable to transactions by your customers for the next twenty-four (24)-hour period or other time period specified in the Integration Requirements or FX API response (“Rate Period”). For clarity, the Rate Period begins from the time the rate is refreshed, not from the time you obtain the FX Rates via the FX API. You must make an FX API call on or after the Rate Refresh Time each day to obtain the FX Rates applicable to that Rate Period; PayPal has no obligation to transmit the FX Rates to you.
   
   If the foreign exchange rate PayPal pays changes by more than 3.5%, PayPal reserves the right to change the FX Rates charged to you during the Rate Period.
4. FX Rate. For each supported currency pair, the FX Rate shall consist of the following
   1. Base Exchange Rate: the base transaction exchange rate as determined by PayPal; and
   2. Currency Conversion Spread: the PayPal Currency Conversion spread, expressed as a percentage of the underlying transaction amount after being converted to the Presentment Currency. The Currency Conversion spread is in addition to any currency conversion fees for settlement to PayPal’s acquirers and card networks.
5. Rate Setting. PayPal will submit transactions for clearing and settlement in the applicable payment network based on the Presentment Currency transaction amount you provide to PayPal. PayPal will convert that amount to your designated Holding Currency based on the applicable FX Rate pursuant to this Rate Setting Section.
   1. Each FX Rate made available via the FX API will be associated with a specific FX identifier (“FX ID”). The applicable FX ID shall be used to determine the FX Rate to be applied to your transactions.
   2. For any transactions by your customers which are authorized and captured (i.e., initiating payment to be received by PayPal for network clearing and settlement) during a Rate Period, and for which you submit to PayPal the FX ID for that Rate Period, PayPal will process and settle those transactions at the applicable FX Rate for that Rate Period.
   3. For any transactions by your customers which are authorized and captured not later than two (2) hours following the end of a Rate Period (“Cut-Off Time”), PayPal will process and settle those transactions based on the FX ID you submit with the transaction, as follows: (I) if you submit a transaction before the Cut-Off Time with the FX ID for the immediately preceding Rate Period, PayPal will process and settle those transactions with you at the FX Rate for the immediately preceding Rate Period; or (II) if you submit a transaction before the Cut-Off Time with the FX ID for the current Rate Period, PayPal will process and settle those transactions with you at the FX Rate for the current Rate Period.
   4. For any transactions by your customers which are not authorized and captured during the applicable Rate Period or by the applicable Cut-Off Time in accordance with Section 3, PayPal will submit the transaction to the applicable network based on the transaction amount you provide, but will settle such transaction using the FX Rate in effect at the time that transaction is captured.
   5. You are solely responsible for submitting an FX ID with each transaction. If the FX as a Service is used, but you do not include an FX ID, PayPal will process and settle transactions at the FX Rate in effect at the time that transaction is captured.
   6. To the extent that the price paid by your customer is based on a transaction exchange rate which is different from the FX Rate used by PayPal for settlement for any reason, you shall solely bear the risk relating to the difference in the price paid by your customer on the one hand, and the settlement as between PayPal and you on the other hand.
   7. All time stamps used by PayPal for determining applicable FX Rates shall be determined solely by PayPal.
6. Settlement. PayPal will process transactions with the applicable payment network based on the transaction amount in the Presentment Currency contained in the transaction message you submit for payment. PayPal will settle with you by converting the Presentment Currency transaction amount to your designated Holding Currency at the Currency Conversion rate determined. The transaction amount in the designated Holding Currency to be paid to you is net of:
   1. any applicable transaction fees under the Agreement; and 
   2. the Currency Conversion Spread multiplied by the transaction amount in Presentment Currency.
7. Chargebacks, Returns and Refunds. If any transaction that involved currency conversion using the FX As a Service is charged back, or otherwise returned or subject to a refund, the chargeback, return or refund will be processed to the applicable payment network in the Presentment Currency in which the transaction was completed, and PayPal will convert that amount for settlement with you using the then-current Base Exchange Rate. You bear all risk of changes in FX rates in connection with chargebacks, returns, refunds, and other reversals.
8. Tax. Each Party is solely responsible for applicable taxes, levies, duties, or similar governmental assessments (collectively, “taxes”) for the amounts respectively received. You are solely responsible for all taxes applicable to transaction amounts received while using FXaaS.