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, PAYPAL HERE AGREEMENT AND THE PAYPAL WEBSITE PAYMENTS PRO AND VIRTUAL TERMINAL AGREEMENT

Effective Date: March 29, 2017

 

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 on March 29, 2017.  We encourage you to review this Policy Update and familiarize yourself with the changes that are being made.  If you do not agree to these amendments, you may close your account before March 29, 2017. 

 

Amendments to the PayPal User Agreement

A summary of changes is provided.

  • We’ve updated the “Payment Method Used for My Transaction” section to describe changes that give you more control and choice in how you want to pay.  Updates include how to select a preferred payment method, the ability to see and choose from multiple payment methods when you check out on a merchant website, and greater clarity about how Preapproved Payments work and how you can manage them.
  • We are changing the currency conversion spread from an additional 2.5% over a wholesale exchange rate to an additional 3.0% over a wholesale exchange rate in situations where you are a sender of money in a PayPal transaction. The currency conversion spread remains unchanged at 2.5% over a wholesale exchange rate for all other currency conversions.
  • We are updating the list of items that are not eligible for Purchase Protection.  The updates to the list are:
    • Financial products or investments of any kind.
    • Donations.
    • Payments sent using PayPal’s friends and family functionality.
    • Payments made using PayPal Payouts and Mass Pay or guest checkout transactions (i.e., payments not sent using your PayPal account).
  • We are updating the eligibility requirements for Purchase Protection to require that you must respond to PayPal’s request for documentation and other information in a timely manner.
  • We are adding a non-discouragement clause for sellers that provides:
    • In representations to your customers or in public communications, you agree not to mischaracterize PayPal as a payment method. At all of your points of sale (in whatever form), you agree not to try to dissuade or inhibit your customers from using PayPal; and, if you enable your customers to pay you with PayPal, you agree to treat PayPal’s payment mark at least at par with other payment methods offered.
  • We are changing the standard transaction fee for sellers selling goods or services online to buyers outside the U.S. from 3.9% to 4.4% plus the existing fixed fee based on the currency.
  • We are changing the standard transaction fee for in store transactions received from buyers outside the U.S. from 3.7% to 4.2%.
  • We are removing the tier based fees we charge to nonprofits who receive payments from senders outside the U.S. and are charging a flat rate of 3.7% plus the existing fixed fee based on the currency for all such transactions.    
  • We are changing the micropayment fees for in store transactions received from buyers outside the U.S. from 6.0% to 6.5% plus the existing fixed fee based on the currency.
  • We are clarifying that we will assess the $20.00 chargeback processing fee for sellers who win a chargeback but are not eligible for Seller Protection.
  • We are adding the ability to create a negative balance in your PayPal account when we reverse a payment to cover eBay buyer protection claims that the seller loses.
  • We are updating the basic requirements for Seller Protection by requiring that you must respond to PayPal’s request for documentation and other information in a timely manner or you will not be eligible for Seller Protection.
  • We are updating the list of items that are not eligible for Seller Protection.  The updates to the list are:
    • Donations.
    • Financial products or investments of any kind.
    • Payments sent using PayPal’s friends and family functionality.
    • Payments made using PayPal Payouts and Mass Pay.
  • PayPal is updating its set off rights allowing us to debit a PayPal account when an amount owed to PayPal, our affiliates or eBay, Inc. becomes past due by removing the 180 day past due requirement.
  • We’ve updated our list of restricted activities to ensure we can protect our customers from attempts to misuse or gain unauthorized access to our systems.  We’ve also made clear that these restricted activities include actions to PayPal-operated systems or systems operated on PayPal’s behalf. 
  • We are making clear that our existing rights to limit or terminate your access to PayPal systems applies to systems operated on PayPal’s behalf.  We have also added the right to suspend your access to any of the PayPal services. 
  • We are updating our limitation of liability section to clarify that existing limitations of liability apply to situations affecting systems operated on PayPal’s behalf in addition to PayPal operated systems. 

 

Amendments to the PayPal Privacy Policy

The update to the Privacy Policy is effective March 29, 2017.  Our Privacy Policy explains the types of data PayPal collects and how we use it.  From time to time, we make updates to the Privacy Policy - for example, to reflect changes in our business, to provide you with better services, or to ensure that we meet our legal obligations.  Importantly, we don’t ever sell your account information to third parties for marketing purposes.  A summary of changes is provided below.

  • We clarified that we use cloud-based service providers to store and process information which may include personal data. “Cloud-based” services means services that are based online and can be located in the US or anywhere in the world.

 

Amendments to the PayPal Here Agreement

The update to the PayPal Here Agreement is effective March 29, 2017.  A summary of changes is provided.

  • We are changing the cross-border transactions fee for card present and PayPal transactions from 3.7% to 4.2%.
  • We are changing the cross-border transaction fee for keyed and scanned transactions from 4.5% + $0.15 to 5.0% + $0.15.
  • We are also adding pricing for verified charitable organizations that will match existing pricing for non-charities.

 

Amendments to the PayPal Website Payments Pro and Virtual Terminal Agreement

The update to the PayPal Website Payments Pro and Virtual Terminal Agreement is effective March 29, 2017.  A summary of changes is provided.

  • We are changing the additional fee for cross-border payments received from buyers outside the United States from 1.0% to 1.5% added to the transaction fees.
  • We are adding pricing for verified charitable organizations to the transaction fee table.  Direct Payments will cost 2.2% + $0.30 and Virtual Terminal Payments will cost 2.4% + $0.30.