Policy Updates

 

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Policy Updates

This page informs users in advance of important changes to the PayPal service, its User Agreement, or other policies. This page displays policy updates with future effective dates. Go to “Past Policy Updates” for previous policy updates.

 

Amendments to the PayPal User Agreement, the PayPal Privacy Policy and the PayPal Acceptable Use Policy

Effective Date: July 1, 2015

PayPal is changing its User Agreement, Privacy Policy and Acceptable Use Policy.  The amended User Agreement, Privacy Policy and Acceptable Use Policy will be effective as to all PayPal users on July 1, 2015.  We encourage you to review this Policy Update to familiarize yourself with the changes that are being made.  IF YOU DO NOT AGREE TO THE AMENDED USER AGREEMENT, PRIVACY POLICY OR ACCEPTABLE USE POLICY, YOU MAY CLOSE YOUR ACCOUNT BEFORE JULY 1, 2015 AND YOU WILL NOT BE BOUND BY THE AMENDED TERMS.

A summary of changes is provided below.  You can also click HERE to review the complete terms of the revised PayPal User Agreement, HERE to review the complete terms of the revised PayPal Privacy Policy and HERE to review the complete terms of the revised Acceptable Use Policy in their entirety.

Amendments to the PayPal User Agreement

The update to the User Agreement is effective July 1, 2015.   A summary of changes is provided below.  You can also click HERE to review the complete terms of the revised User Agreement in its entirety.

  • Section 1.10
    We are updating terms of the PayPal User Agreement regarding the means through and purposes for which we may contact you.

    The revised section 1.10 reads as follows:

    1.10 Calls to You; Mobile Telephone Numbers. You consent to receive autodialed or prerecorded calls and text messages from PayPal at any telephone number that you have provided us or that we have otherwise obtained.  We may place such calls or texts to (i) notify you regarding your account; (ii) troubleshoot problems with your account (iii) resolve a dispute; (iv) collect a debt; (v) poll your opinions through surveys or questionnaires, (vii) contact you with offers and promotions; or (viii) as otherwise necessary to service your account or enforce this User Agreement, our policies, applicable law, or any other agreement we may have with you. The ways in which you provide us a telephone number include, but are not limited to, providing a telephone number at Account opening, adding a telephone number to your Account at a later time, providing it to one of our employees, or by contacting us from that phone number. If a telephone number provided to us is a mobile telephone number, you consent to receive SMS or text messages at that number. We won’t share your phone number with third parties for their purposes without your consent, but may share your phone numbers with our Affiliates or with our service providers, such as billing or collections companies, who we have contracted with to assist us in pursuing our rights or performing our obligations under this User Agreement, our policies, applicable law, or any other agreement we may have with you. You agree these service providers may also contact you using autodialed or prerecorded calls and text messages, as authorized by us to carry out the purposes we have identified above, and not for their own purposes. Standard telephone minute and text charges may apply if we contact you.
     
  • PayPal and eBay Separation
    PayPal and eBay will be separate companies soon.We’ve updated the PayPal User Agreement to reflect how the PayPal services will work post separation given that PayPal and eBay will no longer be affiliates.
     
    • Section 5.4
      This section currently allows PayPal to debit your Account to pay PayPal or its parent company, eBay, for any amounts that are more than 180 Days past due.The revised section allows, post separation, PayPal to debit user’s PayPal Account(s) and pay PayPal, a PayPal Affiliate or eBay Inc. for amounts that are 180 Days past due.

      The revised section 5.4 reads as follows:

      5.4 Setoff of Past Due Amounts. If you have a past due amount owed to PayPal, an Affiliate or eBay, Inc., PayPal may debit your Account to pay any amounts that are more than 180 Days past due.
       
    • Section 10.1(c)
      If eBay decides an eBay Money Back Guarantee in favor of your buyer, this section provides PayPal your authorization to reimburse eBay or your buyer directly for the amount of the claim.

      The revised section 10.1(c) reads as follows:

      10.1(c) Liability for claims filed under eBay’s Buyer Protection resolution process.If you are an eBay Seller and eBay makes a final decision pursuant to its eBay Money Back Guarantee program holding you liable to reimburse the buyer, then you authorize PayPal to remove funds from your Account in an amount not greater than the amount of such claim and remit such funds to your buyer or eBay.  If your Balance is insufficient to cover the amount of such a claim, PayPal will place a hold on your Account.  This hold will remain on your Account until: (1) the date that sufficient funds become available to cover the amount of such claim, at which time such funds will be removed from your Account; or (2) 20 Days from the date of eBay's final decision, at which time an amount not greater than the amount of such claim will be removed from your Account.
       
    • Section 10.5(a)
      This section currently allows PayPal to use information it receives from third party partners such as eBay to place a hold on a user’s PayPal account.This section is being changed to reflect that PayPal may use information it receives from any third parties including eBay to place a hold on a user’s PayPal account.

      The revised section 10.5(a) reads as follows:

      10.5(a) Risk-Based Holds. PayPal, in its sole discretion, may place a hold on any or all of the payments you receive when PayPal believes there may be a high level of risk associated with you, your Account, or any or all of your transactions. PayPal’s determination may be based on a number of different factors and PayPal may rely on information it receives from third parties. If PayPal places a hold on a payment, the funds will appear in your “Pending Balance” and the payment status will show as “Completed - Funds not yet available”. If PayPal places a hold on any or all of the payments you receive PayPal will provide you with notice of our actions. PayPal will release the hold on any payment after 21 Days from the date the payment was received into your Account unless you receive a Dispute, Claim, Chargeback, or Reversal or PayPal has taken another action permitted under this Section 10. PayPal, in its sole discretion, may release the hold earlier under certain circumstances, for example PayPal may release the hold earlier if you have uploaded tracking information. If you receive a Dispute, Claim, Chargeback, or Reversal, PayPal may continue holding the payment in your Account until the matter is resolved pursuant to this Agreement.
       
  • Section 8.1
    PayPal has the right to adjust the fees we charge recipients of payments for goods or services.  We’ve updated Section 8.1 to clarify that we may adjust those fees upon 30 days’ written notice.

    The revised Section 8.1 reads as follows:

    8.1 Fees Overview.

    Fees are based on whether you are making a Purchase Payment, a Personal Payment or a PayPal Business Payment. Some fees are expressed as a percentage of the payment amount. All Fees are in U.S. Dollars unless otherwise stated.
     
    1. For Purchase Payments, the recipient of the payment will always pay the Fee.
    2. For Personal Payments, the following applies:
      1. The Fee depends on the Payment Method you use.
      2. The Fee is paid by either the sender or recipient, not both.
      3. The sender of the payment generally determines who pays the Fee at the time the sender makes the payment. If you send a Personal Payment from a third party (non-PayPal) website or by using a third party’s product or service, then the third party will determine if the sender or recipient of the Personal Payment will pay the Personal Payment Fee. This will be disclosed to you by the third party before the Personal Payment is initiated.

        However, for senders that have been upgraded to the updated PayPal user experience, there is no longer an option to allow the recipient of a Personal Payment to pay the Fee. A sender of a Personal Payment that has been upgraded to the updated PayPal user experience will always pay the Fee (if a Fee applies). The Fee will be disclosed to you before the Personal Payment is sent.

        Senders of Personal Payments that have not been upgraded to the updated PayPal experience may generally still determine whether the sender or recipient pays the fee. Therefore, if you receive a Personal Payment from a sender that has not been upgraded to the updated PayPal experience, the recipient may pay the Fee, depending on the sender’s determination.

        The Fee is waived if you send a Personal Payment to someone in the United States in U.S. Dollars and you use your bank or Balance as the exclusive Payment Method. If you use a different Payment method to send a Personal Payment, the Fees set out below will apply.
      4. Additional Fees apply if you are sending or receiving money to or from a country outside the United States or transacting in a foreign currency.
      5. If you use your credit card as the Payment Method for a Personal Payment, you may be charged a cash-advance fee by your credit card company.
      6. In some instances, Personal Payment pricing may not be available. In these instances, all payments must be Purchase Payments.
      7. Personal Payments may not be available on non-PayPal websites or other applications that offer you the ability to send a payment from your Account.
      8. Personal Payments may not be sent to recipients in certain countries.
    3. For PayPal Business Payments, the PayPal Business Payment Fee is paid by the recipient unless it is disclosed to you before you send the payment that you, the sender, must pay this Fee.
    4. We reserve the right to adjust your future Fees at our sole discretion upon 30 days’ written notice to you.
       
  • Section 8.2
    We’ve simplified some of the fees we charge to certain merchants and nonprofits for receiving payments.In both cases, we have removed the rate tier for monthly volumes over $100,000.00.

    The revised section 8.2 reads as follows:

    8.2 Domestic Payments in U.S. Dollars. This applies when both the sender and recipient are in the United States and the payment is in U.S. Dollars.
    1. Domestic Personal Payments in U.S. Dollars.
       

      Activity

      Payment Method

      Personal Payment Fee

      Sending or receiving*

      Exclusively Balance or bank account

      Fee waived

      Other, including a fully or partially funded payment by credit or debit card, or PayPal Credit.

      Standard rate: 2.9% + $0.30 USD

      *Sender generally determines whether the sender or recipient pays the Fee. See Section 8.1(b).

      However, for senders that have been upgraded to the newly updated PayPal user experience, there will no longer be an option to allow the recipient of the Personal Payment to pay the Fee and such sender will always pay the Fee (if a Fee applies).

       

    2. Domestic Purchase Payments in U.S. Dollars.
       

      Activity

      Purchase Payment Fee

      Sending (buying)

      Free

      Receiving (selling)

      Standard rate:

      Mobile In-Store Payments rate:

      2.9% + $0.30 USD

      2.7%

      Merchant rates*:

      Monthly Sales Volume:

      $0.01 - $3,000.00
      $3,000.01 - $10,000.00
      Over $10,000.01
       

      Fee:

      2.9% + $0.30 USD
      2.5% + $0.30 USD
      2.2% + $0.30 USD

       

      Nonprofit rate**:

      2.2% + $0.30
       

      * To qualify for our Merchant rates you must submit a one-time application, have qualifying monthly sales volume, and have an Account in good standing.
      ** Nonprofit rate is only available for registered charities with 501(c)(3) status.

       

  • Section 8.5
    We’ve updated Section 8.5, which deals with Micropayments pricing, to clarify that merchants that use PayPal Payments Pro to process their payments are not eligible for this category of pricing.

    The revised section 8.5 reads as follows:

    8.5 Micropayments Fees.  If you sign up for Micropayments pricing, then the micropayment Fees provided in clauses (a) to (c) below will apply to all Purchase Payments you receive into your Account. If you have both a Micropayments Pricing enabled Account and a standard pricing Account, you acknowledge that it is your responsibility to correctly route your payments to the appropriate Account, and that once a transaction is processed through the Account you selected, you may not request that the transaction be processed through a different Account. If you use PayPal Payments Pro, you are not eligible for Micropayments pricing.

  1. Domestic Micropayments in U.S. Dollars. The following Fees apply when both the sender and recipient are in the United States and the payment is in U.S. Dollars:
     
    Activity Micropayments Pricing Fees
    Sending (buying) Free
    Receiving (selling) 5% + $0.05 USD
  2. International Micropayments.  The following Fees apply when either the sender or recipient is outside the United States:
     
    Activity Micropayments Pricing Fees
    Sending (buying) Free*
    Receiving (selling) 6% + Fixed Fee**
    * Your financial institution may charge fees directly to the card you use to fund a cross-border payment even where no currency conversion is involved.
    ** See clause 8.5(c) below for a detailed list of fixed fees for international payments.
  3. Fixed Fees. The fixed fee that applies to international micropayments pricing is based on the currency of the payment:
     
    Currency Fee
    Australian Dollar: $0.05 AUD
    Brazilian Real: 0.10 BRL
    Canadian Dollar: $0.05 CAD
    Czech Koruna: 1.67 CZK
    Danish Krone: 0.43 DKK
    Euro: €0.05 EUR
    Hong Kong Dollar: $0.39 HKD
    Hungarian Forint: 15 HUF
    Israeli Shekel: 0.20 ILS
    Japanese Yen: ¥7 JPY
    Mexican Peso: $0.55 MXN
    New Zealand Dollar: $0.08 NZD
    Currency Fee
    Norwegian Krone: 0.47 NOK
    Philippine Peso: 2.5 PHP
    Polish Zlotych: 0.23 PLN
    Russian Ruble*: 2 RUB
    Singapore Dollar: $0.08 SGD
    Swedish Krona: 0.54 SEK
    Swiss Franc: 0.09 CHF
    Taiwan New Dollar: 2.00 TWD
    Thai Baht: 1.80 THB
    U.K. Pounds Sterling: £0.05 GBP
    U.S. Dollar: $0.05 USD

    *Subject to commencement of PayPal’s Russian Ruble service.
  • Section 10.3
    If a PayPal user engages in any restricted activities as defined by the PayPal User Agreement, we’ve added language to Section 10.3 that allows PayPal to suspend your eligibility for PayPal Purchase Protection and/or PayPal Seller Protection.

    The revised section 10.3 reads as follows:

    10.3 Actions by PayPal - Restricted Activities. If PayPal, in its sole discretion, believes that you may have engaged in any Restricted Activities, we may take various actions to protect PayPal, other Users, other third parties, 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:
    1. We may close, suspend, or limit your access to your Account or the PayPal Services (such as limiting access to any of your Payment Methods, and/or your ability to send money, make withdrawals, or remove financial Information). Use the Report Form link to request information in connection with an account limitation, hold or reserve – to access the Report Form, go to https://www.paypal.com/us/webapps/helpcenter/helphub/home/?dwf=neg_infolimit
    2. We may suspend your eligibility for PayPal Purchase Protection and/or PayPal Seller Protection
    3. We may contact Users who have purchased goods or services from you, contact your bank or credit card issuer, and/or warn other Users, law enforcement, or impacted third parties of your actions;
    4. We may update inaccurate Information you provided us;
    5. We may refuse to provide the PayPal Services to you in the future;
    6. We may hold your Balance for up to 180 Days if reasonably needed to protect against the risk of liability or if you have violated our Acceptable Use Policy;
    7. We may take legal action against you; and
    8. If you violate the PayPal Acceptable Use Policy, then in addition to the above actions you will be liable to PayPal for the amount of PayPal's damages caused by your violation of the Acceptable Use Policy. You acknowledge and agree that $2,500.00 USD per violation of the Acceptable Use Policy is presently a reasonable minimum estimate of PayPal's actual damages considering all currently existing circumstances, including the relationship of the sum to the range of harm to PayPal that reasonably could be anticipated because, due to the nature of the violations of the Acceptable Use Policy, actual damages would be impractical or extremely difficult to calculate. PayPal may deduct such damages directly from any existing Balance in the offending Account or any other Account you control.
    9. PayPal, in its sole discretion, reserves the right to terminate this Agreement, access to its website, or access to the PayPal Services for any reason and at any time upon notice to you and payment to you of any unrestricted funds held in your Balance.
       
  • Section 11.4
    Although we are expanding PayPal Purchase Protection to buyers for intangible items, Seller Protection will not apply to intangible items. We are including a note in this section about this. In addition, we are adding a definition of Proof of Delivery for intangible or virtual items or services which can help a seller win a buyer’s Item Not Received Purchase Protection Claim.

    The revised section 11.4 reads as follows:

    11.4 Proof of Shipment, Proof of Delivery and Signature Confirmation Requirements.

    "Proof of Shipment" is online or physical documentation from a shipping company that includes all of the following:
     
  • The date the item is shipped.
  • The recipient’s address matches the shipping address provided on the Transaction Details Page.
  • The recipient’s address, showing at least the city & state, or city & country, or zip/postal code (or international equivalent).

    "Proof of Delivery" for intangible or virtual items or services is documentation satisfactory to PayPal that the item or service was provided to the buyer such as proof of download including the date of fulfillment.

    NOTE: Although Purchase Protection extends coverage to buyers for intangible items, Seller Protection does not apply to intangible items.  However, having proper Proof of Delivery can help a seller win a buyer’s Item Not Received Purchase Protection Claim.

    “Proof of Delivery” for tangible items is online documentation from a shipping company that includes all of the following:
     
  • The item’s status as delivered.
  • The date the item is delivered.
  • The recipient address is the same as in the shipping address section on the Transaction Details Page.
  • The recipient's address, showing at least the city & state, or city & country, or zip/postal code (or international equivalent).
  • Signature Confirmation as described below if the full amount of the payment including shipping and taxes is $750 USD or more or its foreign currency equivalent provided below:
     

    850 Australian Dollar (AUD)

    950 New Zealand Dollar (NZD)

    1,750 Brazilian Real (BRL)

    4,600 Norwegian Krone (NOK)

    850 Canadian Dollar (CAD)

    34,000 Philippine Peso (PHP)

    15,000 Czech Republic Koruna (CZK)

    2,300 Polish New Zloty (PLN)

    4,100 Danish Krone (DKK)

    450 Pound Sterling – United Kingdom (GBP)

    550 Euro (EUR)

    950 Singaporean Dollar (SGD)

    6,000 Hong Kong Dollar (HKD)

    4,950 Swedish Krona (SEK)

    170,000 Hungarian Forint (HUF)

    700 Swiss Franc (CHF)

    2,700 Israeli Shekel (ILS)

    23,000 Taiwan New Dollar (TWD)

    77,000 Japanese Yen (JPY)

    24,500 Thai Baht (THB)

    10,000 Mexican New Peso (MXN)


    "Signature Confirmation" is online documentation that can be viewed at the shipping company’s website and indicates that the item was signed for on delivery.
     
  • Section 13.3
    We are increasing the scope of PayPal Purchase Protection to now include coverage for intangible items.  References to intangible items have been removed from the new Section 13.3 which reads as follows:

    13.3 Ineligible Items.  Payments for the following are not eligible for reimbursement under PayPal Purchase Protection:
    • Real estate, including residential property
    • Businesses
    • Vehicles, including motor vehicles, motorcycles, caravans, aircraft and boats
    • Significantly Not As Described issues for Custom-made items
    • Items prohibited by the PayPal Acceptable Use Policy
    • For INR claims, items which you collect in person or arrange to be collected on your behalf, including items bought through In-Store Checkout at the retail point of sale
    • Industrial machinery used in manufacturing
    • Items equivalent to cash, including prepaid or gift cards
    • PayPal Direct Payments
    • Virtual Terminal Payments
    • Personal Payments

    Even if your payment is not eligible for PayPal Purchase Protection, you can file a Dispute and try to resolve the issue directly with the Seller; however, PayPal will generally not find in your favor if you escalate a Dispute to a Claim for an item which is not eligible for PayPal Purchase Protection.

  • Sections 14.2 and 14.3
    We are updating terms of the PayPal User Agreement relating to how disputes you and PayPal may have with each other are resolved. Among the changes we are making are those to the Agreement to Arbitrate that:
     
    • Make it clear that all issues are for the arbitrator(s) to decide, except that issues relating to arbitrability, the scope or enforceability of the Agreement to Arbitrate, or the interpretation of subsection (a) of the Agreement to Arbitrate (“Prohibition of Class and Representative Actions and Non-Individualized Relief”), shall be for a court of competent jurisdiction to decide.
    • Set forth a requirement that you and we must provide each other with a Notice of Dispute before filing an arbitration demand to allow for an opportunity to resolve the dispute before an arbitration is initiated.

    The revised sections 14.2 and 14.3 read as follows:

    14.2 Applicable Law. You agree that, except to the extent inconsistent with or preempted by federal law and except as otherwise stated in this User Agreement, the laws of the State of Delaware, without regard to principles of conflict of laws, will govern this User Agreement and any claim or dispute that has arisen or may arise between you and PayPal.

    14.3 Agreement to ArbitrateYou and PayPal each agree that any and all disputes or claims that have arisen or may arise between you and PayPal, including without limitation federal and state statutory claims, common law claims, and those based in contract, tort, fraud, misrepresentation or any other legal theory, shall be resolved exclusively through final and binding arbitration, rather than in court, except that you may assert claims in small claims court, if your claims qualify and so long as the matter remains in such court and advances only on an individual (non-class, non-representative) basis. This Agreement to Arbitrate is intended to be broadly interpreted. The Federal Arbitration Act governs the interpretation and enforcement of this Agreement to Arbitrate.

  1. Prohibition of Class and Representative Actions and Non-Individualized Relief.

    YOU AND PAYPAL AGREE THAT EACH OF US MAY BRING CLAIMS AGAINST THE OTHER ONLY ON AN INDIVIDUAL BASIS AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE ACTION OR PROCEEDING. UNLESS BOTH YOU AND PAYPAL AGREE OTHERWISE, THE ARBITRATOR(S) MAY NOT CONSOLIDATE OR JOIN MORE THAN ONE PERSON'S OR PARTY'S CLAIMS AND MAY NOT OTHERWISE PRESIDE OVER ANY FORM OF A CONSOLIDATED, REPRESENTATIVE, OR CLASS PROCEEDING. ALSO, THE ARBITRATOR(S) MAY AWARD RELIEF (INCLUDING MONETARY, INJUNCTIVE, AND DECLARATORY RELIEF) ONLY IN FAVOR OF THE INDIVIDUAL PARTY SEEKING RELIEF AND ONLY TO THE EXTENT NECESSARY TO PROVIDE RELIEF NECESSITATED BY THAT PARTY'S INDIVIDUAL CLAIM(S). ANY RELIEF AWARDED CANNOT AFFECT OTHER PAYPAL USERS.

     
  2. Arbitration Procedures.

    Arbitration is more informal than a lawsuit in court. Arbitration uses a neutral arbitrator or arbitrators instead of a judge or jury, and court review of an arbitration award is very limited. However, the arbitrator(s) can award the same damages and relief on an individual basis that a court can award to an individual. The arbitrator(s) also must follow the terms of this User Agreement as a court would. All issues are for the arbitrator(s) to decide, except that issues relating to arbitrability, the scope or enforceability of this Agreement to Arbitrate, or the interpretation of subsection (a) of this Agreement to Arbitrate (“Prohibition of Class and Representative Actions and Non-Individualized Relief”), shall be for a court of competent jurisdiction to decide.

    The arbitration will be conducted by the American Arbitration Association ("AAA") under its rules and procedures, including the AAA's Consumer Arbitration Rules (as applicable), as modified by this Agreement to Arbitrate. The AAA's rules are available at www.adr.org. A party who intends to seek arbitration must first send to the other, by certified mail, a completed form Notice of Dispute (“Notice”). You may download a form Notice here. The Notice to PayPal should be sent to PayPal, Inc., Attn: Litigation Department, Re: Notice of Dispute, 2211 North First Street, San Jose, CA 95131. PayPal will send any Notice to you to the physical address we have on file associated with your PayPal Account; it is your responsibility to keep your physical address up to date. All information called for in the Notice must be provided including a description of the nature and basis of the claims the party is asserting and the relief sought.

    If you and PayPal are unable to resolve the claims described in the Notice within 30 days after the Notice is sent, you or PayPal may initiate arbitration proceedings. A form for initiating arbitration proceedings is available on the AAA's website at www.adr.org.

    The arbitration shall be held in the county in which you reside or at another mutually agreed location. If the value of the relief sought is $10,000 or less, you or PayPal may elect to have the arbitration conducted by telephone or based solely on written submissions, which election shall be binding on you and PayPal subject to the discretion of the arbitrator(s) to require an in-person hearing, if the circumstances warrant. In cases where an in-person hearing is held, you and/or PayPal may attend by telephone, unless the arbitrator(s) require otherwise. Any settlement offer made by you or PayPal shall not be disclosed to the arbitrator(s).

    The arbitrator(s) will decide the substance of all claims in accordance with applicable law, including recognized principles of equity, and will honor all claims of privilege recognized by law. The arbitrator(s) shall not be bound by rulings in prior arbitrations involving different PayPal users, but is/are bound by rulings in prior arbitrations involving the same PayPal user to the extent required by applicable law. The award of the arbitrator(s) shall be final and binding, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.
     
  3. Costs of Arbitration.

    Payment of all filing, administration, and arbitrator fees will be governed by the AAA's rules, unless otherwise stated in this Agreement to Arbitrate. If the value of the relief sought is $10,000 or less, at your request, PayPal will pay all filling, administration, and arbitrator fees associated with the arbitration. Any request for payment of fees by PayPal should be submitted by mail to the AAA along with your Demand for Arbitration and PayPal will make arrangements to pay all necessary fees directly to the AAA. If the value of the relief sought is more than $10,000 and you are able to demonstrate that the costs of accessing arbitration will be prohibitive as compared to the costs of accessing a court for purposes of pursuing litigation on an individual basis, PayPal will pay as much of the filing, administration, and arbitrator fees as the arbitrator(s) deem necessary to prevent the cost of accessing the arbitration from being prohibitive. In the event the arbitrator(s) determine the claim(s) you assert in the arbitration to be frivolous, you agree to reimburse PayPal for all fees associated with the arbitration paid by PayPal on your behalf that you otherwise would be obligated to pay under the AAA's rules.
     
  4. Severability.

    With the exception of any of the provisions in subsection (a) of this Agreement to Arbitrate ("Prohibition of Class and Representative Actions and Non-Individualized Relief"), if a court decides that any part of this Agreement to Arbitrate is invalid or unenforceable, the other parts of this Agreement to Arbitrate shall still apply. If a court decides that any of the provisions in subsection (a) of this Agreement to Arbitrate ("Prohibition of Class and Representative Actions and Non-Individualized Relief") is invalid or unenforceable, then the entirety of this Agreement to Arbitrate shall be null and void. The remainder of the User Agreement, including all other provisions of Section 14 (Disputes with PayPal), will continue to apply.
     
  5. Opt-Out Procedure.

    IF YOU ARE A NEW PAYPAL USER, YOU CAN CHOOSE TO REJECT THIS AGREEMENT TO ARBITRATE (“OPT OUT”) BY MAILING US A WRITTEN OPT-OUT NOTICE (“OPT-OUT NOTICE”). THE OPT-OUT NOTICE MUST BE POSTMARKED NO LATER THAN 30 DAYS AFTER THE DATE YOU ACCEPT THE USER AGREEMENT FOR THE FIRST TIME. YOU MUST MAIL THE OPT-OUT NOTICE TO PAYPAL, INC., ATTN: LITIGATION DEPARTMENT, 2211 NORTH FIRST STREET, SAN JOSE, CA 95131.

    For your convenience, we are providing an Opt-Out Notice form you must complete and mail to opt out of the Agreement to Arbitrate. You must complete the Opt-Out Notice form by providing the information called for in the form, including your name, address, phone number, and the email address(es) used to log in to the PayPal account(s) to which the opt-out applies. You must sign the Opt-Out Notice for it to be effective. This procedure is the only way you can opt out of the Agreement to Arbitrate. If you opt out of the Agreement to Arbitrate, all other parts of the User Agreement, including all other provisions of Section 14 (Disputes with PayPal), will continue to apply. Opting out of this Agreement to Arbitrate has no effect on any previous, other, or future arbitration agreements that you may have with us.
     
  6. Future Amendments to the Agreement to Arbitrate.

    Notwithstanding any provision in the User Agreement to the contrary, you and we agree that if we make any amendment to this Agreement to Arbitrate (other than an amendment to any notice address or website link provided herein) in the future, that amendment shall not apply to any claim that was filed in a legal proceeding against PayPal prior to the effective date of the amendment. The amendment shall apply to all other disputes or claims governed by the Agreement to Arbitrate that have arisen or may arise between you and PayPal. We will notify you of amendments to this Agreement to Arbitrate by posting the amended terms on www.paypal.com at least 30 days before the effective date of the amendments and by providing notice through email. If you do not agree to these amended terms, you may close your account within the 30 day period and you will not be bound by the amended terms.
  • Section 15.1
    We are updating the Limitations of Liability reflected in the PayPal User Agreement to clarify that (1) among the damages for which PayPal and others listed in Section 15.1 cannot be held liable are damages for loss of data or business, and (2) that the limitations of liability reflected in Section 15.1 are applicable except and to the extent prohibited by law.

    The revised Section 15.1 reads as follows:

    15.1 Limitations of Liability. IN NO EVENT SHALL WE, OUR PARENT AND AFFILIATES, AND THE OFFICERS, DIRECTORS, AGENTS, JOINT VENTURERS, EMPLOYEES AND SUPPLIERS OF PAYPAL, OUR PARENT OR OUR AFFILIATES BE LIABLE FOR LOST PROFITS OR ANY SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING WITHOUT LIMITATION DAMAGES FOR LOSS OF DATA OR LOSS OF BUSINESS) ARISING OUT OF OR IN CONNECTION WITH OUR WEBSITE, THE PAYPAL SERVICES, OR THIS AGREEMENT (HOWEVER ARISING, INCLUDING NEGLIGENCE), UNLESS AND TO THE EXTENT PROHIBITED BY LAW. OUR LIABILITY, AND THE LIABILITY OF OUR PARENT AND AFFILIATES, AND OUR AND THEIR RESPECTIVE OFFICERS, DIRECTORS, AGENTS, JOINT VENTURERS, EMPLOYEES AND SUPPLIERS, TO YOU OR ANY THIRD PARTIES IN ANY CIRCUMSTANCE IS LIMITED TO THE ACTUAL AMOUNT OF DIRECT DAMAGES. IN ADDITION, TO THE EXTENT PERMITTED BY APPLICABLE LAW, PAYPAL, OUR PARENT, AND AFFILIATES, AND THEIR RESPECTIVE OFFICERS, DIRECTORS, AGENTS, JOINT VENTURERS, EMPLOYEES, AND SUPPLIERS ARE NOT LIABLE, AND YOU AGREE NOT TO HOLD THESE PARTIES RESPONSIBLE, FOR ANY DAMAGES OR LOSSES (INCLUDING, BUT NOT LIMITED TO, LOSS OF MONEY, GOODWILL, OR REPUTATION, PROFITS, OR OTHER INTANGIBLE LOSSES OR ANY SPECIAL, INDIRECT, OR CONSEQUENTIAL DAMAGES) RESULTING DIRECTLY OR INDIRECTLY FROM: (1) YOUR USE OF OR YOUR INABILITY TO USE PAYPAL’S SITES AND SERVICES; (2) DELAYS OR DISRUPTIONS IN PAYPAL’S SITES AND SERVICES; (3) VIRUSES OR OTHER MALICIOUS SOFTWARE OBTAINED BY ACCESSING PAYPAL’S SITES OR SERVICES OR ANY SITE OR SERVICE LINKED TO PAYPAL’S SITES OR SERVICES; (4) GLITCHES, BUGS, ERRORS, OR INACCURACIES OF ANY KIND IN PAYPAL’S SITES OR SERVICES OR IN THE INFORMATION AND GRAPHICS OBTAINED FROM THEM; (5) THE CONTENT, ACTIONS, OR INACTIONS OF THIRD PARTIES; (6) A SUSPENSION OR OTHER ACTION TAKEN WITH RESPECT TO YOUR ACCOUNT; (7) YOUR NEED TO MODIFY PRACTICES, CONTENT, OR BEHAVIOR, OR YOUR LOSS OF OR INABILITY TO DO BUSINESS, AS A RESULT OF CHANGES TO THIS USER AGREEMENT OR PAYPAL’S POLICIES. PAYPAL RESERVES THE RIGHT TO MODIFY ITS POLICIES AND THIS USER AGREEMENT AT ANY TIME CONSISTENT WITH THE PROVISIONS OUTLINED HEREIN.

 

Amendments to the PayPal Privacy Policy

The update to the Privacy Policy is effective July 1, 2015 and contains several changes to reflect the new relationship that PayPal will have with eBay after the companies are no longer affiliated by common corporate control.  A summary of changes is provided below.  You can also click HERE to review the complete terms of the revised Privacy Policy in its entirety.

Binding Corporate Rules

As part of eBay Inc., PayPal formally followed all provisions within the eBay Inc. Binding Corporate Rules.  As a separate entity, PayPal is undergoing consideration of new Binding Corporate Rules for the PayPal family of companies.  During this period, PayPal will rely on a variety of methods to ensure adequate transfer of information across borders, including contractual mechanisms, and therefore we have removed this section. 

Collection of Personal Information

This section includes several changes to explain how PayPal collects personal information for the provision of PayPal Services, including the collection of information from other sources, such as from other PayPal accounts controlled by the same user.

How We Use The Personal Information we Collect

This section has been updated to provide our use of personal information, including for identity verification purposes, the performance and customization of PayPal Services, and our reasons and methods for contacting you.

How We Share Information with Other PayPal Users

Changes have been made to this section to explain how personal information may be shared with other users of PayPal Services to facilitate transactions, transactional disputes, or when linking a loyalty or gift card of a PayPal merchant to user accounts.

How We Share Information with Other Third Parties

This section was modified to reflect the changing nature of the relationship between eBay and PayPal.  Both parties will be separate entities, but would like to continue to provide users with the commerce experiences they have come to expect.

PayPal will share account information with third parties, such as eBay, to prevent fraud or assess and manage risk, to help protect accounts from fraudulent activity or alert users if we detect such fraudulent activity on their accounts, to provide customer services, including to help service accounts or resolve disputes (e.g., billing or transactional), to facilitate shipping and related services for purchases, and for other purposes such as to help those third parties comply with their legal requirements and to enable them to run programs aimed at evaluating buyer or seller standards. As has always been the case, third parties will not be able to use this information for their marketing purposes without a user’s express consent.

 

Amendments to the PayPal Acceptable Use Policy

The update to the Acceptable Use Policy is effective July 1, 2015.   A summary of changes is provided below.  You can also click HERE to review the complete terms of the revised Acceptable Use Policy in its entirety.

  • Permitted Activities
    It is no longer prohibited to use PayPal to engage in transactions involving real property.
     
  • Prohibited Activities
    It is now expressly prohibited to use PayPal to engage in activities that involve offering or receiving payments for the purpose of bribery or corruption.
     
  • Pre-approval required to use PayPal for the sale of certain services
    You are required to contact us and obtain our approval to use PayPal to accept payments for the sale of certain goods and services, including non-cigarette tobacco products, e-cigarettes or prescription drugs/devices and for activities involving gambling, gaming and/or any other activity with an entry fee and a prize, but only if the operator and customers are located exclusively in jurisdictions where such activities are permitted by law.