Policy Updates

 

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Policy Updates

 

This page displays policy updates informing users in advance of important changes to the PayPal service, its User Agreement, or other policies.  Please go to “Past Policy Updates” for previous policy updates.

 

AMENDMENTS TO THE PAYPAL USER AGREEMENT, THE PAYPAL PRIVACY POLICY, PAYPAL HERE AGREEMENT AND THE PAYPAL WEBSITE PAYMENTS PRO AND VIRTUAL TERMINAL AGREEMENT

Effective Date: April 19, 2018

 

PayPal is making some changes to its User Agreement, Privacy Policy, PayPal Here Agreement and the PayPal Website Payments Pro and Virtual Terminal Agreement that will be effective as to all PayPal users in the U.S. on April 19, 2018.  We encourage you to review this Policy Update and familiarize yourself with all the changes that are being made.  If you do not agree to these amendments, you may close your account before April 19, 2018. 

 

Amendments to the PayPal User Agreement

A summary of changes follows:

  • We’re no longer going to offer the Pay After Delivery product so we are removing terms related to that product from the user agreement. 
  • We’re clarifying that when purchasing or sending money, we may require a backup payment method for your transaction(s) to be used if the selected payment method is declined, expired or otherwise unavailable.
  • We’re updating the list of items not eligible for our Purchase Protection Program, so that payments sent using PayPal to any bill payment service are not eligible for the program.  
  • We’re including references to Venmo in the Presentation of  PayPal clause for sellers as well as clarifying your obligations to present PayPal and Venmo on par with other payment methods.
  • We’re adding terms that apply to marketplace sellers.  If you sell on a marketplace and accept payment through your PayPal account, a hold may be placed on a payment sent to you at the instruction of the marketplace. 
  • For business accounts, we are changing the fee charged for our faster withdrawal option to an eligible debit card linked to your PayPal account to 1% of the transferred amount.
  • We’re removing the variable rate pricing for sending money to friends and family members who have PayPal accounts in a country other than the United States when you send money using PayPal balance or your bank account and introducing a new flat fee of $2.99 or $4.99 per transaction depending on the recipient’s country.  However, when you send money using your credit card, debit card, or PayPal credit you will be charged the new flat fee per transaction depending on the recipient’s country + 2.9% of the transaction amount + a fixed fee based on the currency.
  • We’re changing the balance functionality for your PayPal account depending on whether we have been able to verify identifying information that you provide to us. 
    • If we have not verified your identifying information, a balance in your PayPal account can generally only be held in your PayPal account and transferred to a linked bank account or debit card.
    • If we have verified your identifying information, a balance in your PayPal account can be held in your PayPal account, transferred to a linked bank account or debit card, used to make purchases or send money to others. 

Restrictions and limitations on such accounts may be lifted upon validation of the user’s identity by PayPal.

  • We’re clarifying how we calculate transaction exchange rates where we perform a currency conversion.
  • Clarifying that Sellers have certain obligations under applicable law around how they collect, store and protect user data of customers in Europe.
  • We’re updating the user agreement to enable you to seek public injunctive relief in court instead of arbitration, if a court decides that you have a right to pursue that type of relief and it is not available in arbitration under the terms of the user agreement’s arbitration provision.

Please note that we are not proceeding with the amendment originally included in this Policy Update stating a payment must be made in connection with a transaction where the buyer logged into their PayPal account in order for a seller to be covered for Unauthorized Transactions under our Seller Protection program.

Amendments to the PayPal Privacy Policy

At PayPal, it is important to us that you understand our privacy practices and your privacy choices. That’s why we updated and streamlined this information in the updated PayPal Privacy Policy, which includes a Consumer Privacy Notice, to clarify the information we collect, how we protect it, use it and the choices and controls you have across various PayPal services.  The updated Privacy Policy will replace the existing Privacy Policy for PayPal Services. 

We will continue to keep your information secure, and we will never share, sell or rent your personal data with third parties for the third parties’ own purposes without your consent.  A few notable updates include:

  • Expanded Scope: We’ve combined our privacy practices for PayPal and Xoom services, websites and applications into one Privacy Policy.
  • More Detailed Explanations: We’ve included more details about important features of our services and when you connect your PayPal account to third-party websites and platforms. 
  • Customized Experiences: We clarified how we may provide you with customized experiences on PayPal properties.  We also explain how you can choose to limit the use of your information.

Our updated Privacy Policy will be effective on April 19, 2018.  We encourage you to review the new Privacy Policy in advance here.
 

Amendments to the PayPal Here Agreement and the PayPal Website Payments Pro and Virtual Terminal Agreements

We added a section to the PayPal Here Agreement and to the PayPal Website Payments Pro and Virtual Terminal Agreements to clarify that PayPal is not acting as a money transmitter in connection with those products.  This new section clarifies that PayPal is acting as your agent to receive payments on your behalf from your customers.  It also includes a representation that you are only using these products to receive payments for the sale of goods and/or services.

In the PayPal Website Payments Pro and Virtual Terminal Agreements, we are clarifying how we calculate transaction exchange rates where we perform a currency conversion.