Policy Updates

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Policy Updates

 

Notice of Amendment to PayPal Legal Agreements

Issued: March 19, 2020 (for Effective Dates see each individual agreement below)

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 the Effective Dates shown below. In the event you would prefer to decline these changes and close your account, you can do so prior to the Effective Date without incurring any additional charges.

 

Updates to the PayPal Alternative Payment Methods Agreement

Effective Date: March 19, 2019

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

1. No additional fees for receiving international APM payments

We have amended section 3 (Using APM functionality) to clarify that the additional percentage-based fee for receiving international commercial transactions set out in the User Agreement does not apply when you receive APM payments.

 2. Annex 1 – APMs

We have amended Annex 1 to introduce Blik (as a standalone service), Multibanco, POLi and Trustpay as new APMs.

3. Other changes

Sections of the PayPal Alternative Payment Methods Agreement have been amended to clarify and reorganise existing wording and correct minor typographical errors.

 

Updates to the PayPal Acceptable Use Policy

Effective Date: March 19, 2020

You can find the PayPal Acceptable Use Policy currently in force by clicking here or accessing it via the “Legal” or “Legal Agreements” footer on most PayPal site pages.

1. Contact information

The contact information in the sections headed “Activities Requiring Approval” and “Violations of the Acceptable Use Policy” has been updated. Instead of sending an email to PayPal, you can complete a webform to submit your query or filing under those sections.

 

Updates to the User Agreement

Effective Date: March 19, 2020

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.

  1. New checkout solution

On and from the Effective Date, we may alternatively refer to the following products/functionalities (mentioned in the sections relating to the new checkout solution in the PayPal User Agreement) by their new names on our website and other written materials:

Current name

New name

new checkout solution

new checkout solution included in the PayPal Commerce Platform

Custom Card Fields

Advanced Credit and Debit Card Payments

Payments without a PayPal account service

Basic Credit and Debit Cards Payments

Fraud Tool / Custom Card Fields Fraud Management Filters

Fraud Protection

The new names will appear in the PayPal User Agreement on and from June 16, 2020. Please click HERE to view an updated copy of the changes intended to take effect on June 16, 2020.

  1. Mass Payments

On and from the Effective Date, we may alternatively refer to Mass Payments by its new name “Payouts” on our website and other written materials.The new name will appear in the PayPal User Agreement on and from June 16, 2020.Please click HERE to view an updated copy of the changes intended to take effect on June 16, 2020.

  1. Other changes

Sections of the PayPal User Agreement have been amended to clarify and reorganise existing wording and correct minor typographical errors.

 

Updates to the PayPal Online Card Payment Services Agreement

Effective Date: March 19, 2020

You can find the current PayPal Online Card Payment Services Agreement by clicking here (if you are resident in the UK, Gibraltar, Jersey, Guernsey or Isle of Man) or here (if you are resident elsewhere) or accessing it via the “Legal” or “Legal Agreements” footer on most PayPal site pages.

1. Changes of names of various products and functionalities

On and from the Effective Date, we will alternatively refer to the following products/functionalities by their new names on our website and other written materials:

Current name

New name

Custom Card Fields

Advanced Credit and Debit Card Payments

Fraud Tool / Custom Card Fields Fraud Management Filters

Fraud Protection

Custom Card Fields API

Advanced Credit and Debit Card Payments API

2. Other changes

Sections of the PayPal Online Card Payment Services Agreement have been amended to clarify and reorganise existing wording and correct minor typographical errors.

 

Updates to the User Agreement

Effective Date: June 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.

1. Actions We May Take If You Engage In Any Restricted Activities - Violations of the Acceptable Use Policy (new section)

We have added a new section which sets out our rights to deduct amounts in respect of damages which arise when you use your PayPal account primarily for the purposes of your trade, business, craft or profession and you violate the Acceptable Use Policy. The new section reads as follows (shown with headings of the root clauses for context and abridged for brevity, with amendments underlined):

“…

Restricted Activities And Holds

Actions We May Take if You Engage in Any Restricted Activities

If you use your PayPal account primarily for the purposes of your trade, business, craft or profession and you violate the Acceptable Use Policy, then:

  • in addition to being subject 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 USD 2,500.00 (or the prevailing equivalent in the currency of the country in which you reside) per violation of the Acceptable Use Policy is:
    • 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;
    • reasonable and proportionate in its application to the provision of the Services to you; and
    • necessary, but no more than sufficient, to protect PayPal’s legitimate interest in your compliance with the Acceptable Use Policy; and

PayPal may deduct such damages directly from any existing balance in any PayPal account you control.

…”

2. Other Legal Terms – Our Rights – Information About You

We have amended the section headed “Other Legal Terms – Our Rights – Information About You” to clarify your obligations to provide PayPal with information about you to facilitate our actions described in the user agreement, enable us to reduce the risk of fraud or comply with our regulatory (including anti-money laundering) obligations. The section headed “Other Legal Terms – Our Rights – Information About You” now reads as follows (shown with headings of the root clauses for context, with amendments underlined):

“…

Other Legal Terms

Our Rights

Information About You

We may request information from you as we reasonably require to facilitate our actions described in this user agreement, enable us to reduce the risk of fraud or comply with our regulatory (including anti-money laundering) obligations. You must comply with these requests in a timely fashion. This may involve you faxing, emailing or otherwise providing to us at your own expense identification documents and information about your finance and operations (such as your most recent financial statements and merchant processing statements).

…”

3. Fees for receiving Commercial Transaction payments

  1. Users registered with PayPal as residents of Bulgaria, Cyprus, Czech Republic, Estonia, Greece, Hungary, Ireland, Latvia, Liechtenstein, Lithuania, Malta, Romania, San Marino, Slovakia and Slovenia:

As a reminder (as originally notified in advance on January 2, 2020) the standard rate for receiving domestic commercial transaction payments (Selling) at section A2.2.1 of Schedule 1 (Table of Fees) was increased to 3.40% + Fixed Fee on March 5, 2020. The amendments which took effect on March 5, 2020 will continue to read and be applied on and after the Effective Date.

  1. Users registered with PayPal as residents of UK, Gibraltar, Guernsey, Isle of Man and Jersey:

The standard rate for receiving domestic commercial transaction payments (Selling) at section A2.2.1 of Schedule 1 (Table of Fees) remains at 2.90% + Fixed Fee.

4. Fees – Commercial Transaction Refunds

As a reminder (as notified on January 2, 2020) section A3.4 (Commercial Transaction Refunds) of Schedule 1 (Table of Fees) was amended on March 5, 2020 to clarify that, if you carry out a refund of a Commercial Transaction payment, all of the fees originally paid by you to receive the payment will not be returned to you. The amendment to section A3.4 (Commercial Transaction Refunds) of Schedule 1 (Table of Fees) which took effect on March 5, 2020 will continue to read and be applied on and after the Effective Date.

This amendment does not take effect for users registered with PayPal as residents of Ireland until further immediate notice of the change, to be published by PayPal on the Policy Updates page (accessible via the Legal footer on most PayPal site pages) on or after March 5, 2020 (as PayPal may determine in its sole discretion).

5. Other changes

Sections of the PayPal User Agreement have been amended to clarify and reorganise existing wording and correct minor typographical errors including the following existing sections:

Section

Amendment

About Your Account – Welcome to PayPal! (last paragraph)

The reference to “60 days” has changed to “two months”.

About Your Account – Closing Your PayPal Account (last paragraph)

The reference to “60 days” has changed to “two months”.

 

Updates to the PayPal Online Card Payment Services Agreement

Effective Date: June 16, 2020

You can find the amended PayPal Online Card Payment Services Agreement below the version of that document currently in force by clicking here (if you reside in the UK, Gibraltar, Jersey, Guernsey or Isle of Man) or here (if you reside elsewhere) or accessing it via the “Legal” or “Legal Agreements” footer on most PayPal site pages.

1. Vaulting Tool

We are pleased to introduce our new Vaulting Tool. We have added new section 7.2 (Vaulting Tool) and updated section 10 (Definitions) with terms specific to the new Vaulting Tool.

2. Account Updater Service

We are also pleased to introduce our new Account Updater Service. We have added new section 7.3 (Account Updater Service) and updated section 10 (Definitions) with terms specific to the new Account Updater Service.

3. Scope of Products - UK, Gibraltar, Jersey, Guernsey or Isle of Man only

We have amended the section headed “About this Agreement” to clarify that:

  • if you are offered and choose to use any Product, Online Card Payment Service or functionality (including technology) mentioned in the PayPal Online Card Payment Services Agreement , the terms of the PayPal Online Card Payment Services Agreement relating to that Product, Online Card Payment Service or functionality apply to you.
  • Fraud Protection is now also an optional additional service in the PayPal Website Payments Pro suite of functionality.
  • the following functionalities are now optional additional services in the Advanced Credit and Debit Card Payments suite of functionality:
    • any Website Payments Pro functionality;
    • the Vaulting Tool; and
    • the Account Updater Service

The section headed “About this Agreement” now reads as follows (abridged for brevity and shown with headings of root clauses for context, with amendments underlined):

“…

About this Agreement

By integrating or using any of the Products or Online Card Payment Services you agree to be bound by the terms of this Agreement. If you are offered and choose to use any Product, Online Card Payment Service or functionality (including technology) mentioned in this Agreement, the terms in this Agreement relating to that Product, Online Card Payment Service or functionality apply.

The Products are:

  • Website Payments Pro - a suite of functionality consisting of Express Checkout, Direct Payments API, Virtual Terminal and Fraud Management Filters as standard. Optional additional services include Fraud Protection, Advanced Fraud Management Filters and the Recurring Payments Tool.
  • Advanced Credit and Debit Card Payments - a suite of functionality consisting of the Advanced Credit and Debit Card Payments API as standard and Fraud Protection as an optional additional service. We may also offer you as optional additional services any of the following:
    • any Website Payments Pro functionality;
    • the Vaulting Tool; and
    • the Account Updater Service.
  • Virtual Terminal – the Virtual Terminal functionality as a standalone Product.

…”

4. Scope of Products – countries other than UK, Gibraltar, Jersey, Guernsey or Isle of Man

We have amended the section headed “About this Agreement” and section 10 (Definitions) to clarify that:

  • if you are offered and choose to use any Product, Online Card Payment Service or functionality (including technology) mentioned in the PayPal Online Card Payment Services Agreement , the terms of the PayPal Online Card Payment Services Agreement relating to that Product, Online Card Payment Service or functionality apply to you.
  • Fraud Protection is now also an optional additional service in the PayPal Website Payments Pro suite of functionality.
  • the following functionalities are now also optional additional services in the Advanced Credit and Debit Card Payments suite of functionality:
    • any Website Payments Pro Functionality;
    • the Vaulting Tool; and
    • the Account Updater Service.
  • Virtual Terminal is now an Online Card Payment Service available to merchants resident in countries other than the UK, Gibraltar, Jersey, Guernsey or Isle of Man and is part of the Website Payments Pro Functionality.

The section headed “About this Agreement” and the relevant parts of section 10 now read as follows (abridged for brevity and shown with headings of the root clauses for context, with amendments underlined):

“…

About this Agreement

By integrating or using the Product and the Online Card Payment Service you agree to be bound by the terms of this Agreement. If you are offered and choose to use any Product, Online Card Payment Service or functionality (including technology) mentioned in this Agreement, the terms in this Agreement relating to that Product, Online Card Payment Service or functionality apply.

The Product is the following:

  • Advanced Credit and Debit Card Payments - a suite of functionality consisting of the Advanced Credit and Debit Card Payments API as standard and Fraud Protection as an optional additional service. We may also offer you as optional additional services any of the following:
    • any Website Payments Pro Functionality;
    • the Vaulting Tool; and
    • the Account Updater Service.

The Product includes one or more Online Card Payment Services. The Online Card Payment Services are:

  • Advanced Credit and Debit Card Payments API - Functionality for performing credit and debit card transactions, where the card details are entered online by the cardholder.
  • Virtual Terminal - Functionality provided by PayPal to enable you to receive a card payment by manually entering Card Data given to you by the cardholder.

…”