PayPal Issues Advance Notice On User Agreement Updates Effective July 31, 2020

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PayPal sent out an advance notice to users to inform them of impending changes to the PayPal User Agreement. Most of these changes will go into effect on July 31, 2020, unless otherwise noted.

The changes described here are for U.S. account holders. PayPal users in other countries should check their email for a notice from PayPal or visit PayPal’s User Agreement webpage for their country.

The highlighted areas in red and bold seem especially relevant to sellers as they may change how online merchants operate their business or handle customer service issues.

Amendments To The PayPal U.S. Account User Agreement

  1. PayPal is expanding its Seller Protection Program to include certain intangible goods and providing the terms and conditions with respect to the coverage of such intangible goods.
  2. PayPal is clarifying that its Seller Protection Program does not cover Unauthorized Transactions initiated in an environment not hosted by PayPal.
  3. For “Significantly Not as Described” claims under PayPal’s Seller Protection Program, the company is clarifying that the item may not be returned to sellers or sellers may be required to accept the returned item and pay for the return shipping costs.
  4. PayPal is providing the terms and conditions under which it will automatically enroll eligible charities with PayPal Giving Fund (which relationship will be governed by the Nonprofit User Agreement) with the option to opt-out at any time.
  5. PayPal is excluding items intended for resale, including single item transactions or transactions that include multiple items, from reimbursement eligibility under its Purchase Protection Program.
  6. PayPal is requiring that buyers attempt to resolve their issues directly with sellers prior to filing a claim with PayPal in order to be eligible for reimbursement under its Purchase Protection Program.
  7. PayPal is requiring that users notify the company of any pricing errors or discrepancies within ninety (90) days of having access to the user’s account statement(s) or other account activity information, otherwise, PayPal shall have no obligation to make any corrections.
  8. PayPal is clarifying the fees payable by sellers in relation to transactions processed through QR codes, which will be payable on and from October 1, 2020 (or a later date as determined and offered by PayPal). Prior to this date, transaction fees on QR code payments are temporarily waived to help businesses impacted by COVID-19. Other fees for using PayPal services may apply.
  9. PayPal is adding payments made in respect of gold (in physical form or in exchange-traded form) to the list of ineligible items and transactions under our Seller Protection Policy.

Other PayPal User Agreement Updates

Amendments to the PayPal Website Payments Pro and Virtual Terminal Agreement

  • PayPal is updating our data processing terms to better align with the recent requirements of U.S. data protection law.
  • PayPal is incorporating the American Express Merchant Operating Guide into the additional terms governing American Express Card acceptance and providing a URL link to such Operating Guide.

Amendments to the Payflow Gateway Services Agreement

  • PayPal is updating its data processing terms to better align with the recent requirements of U.S. data protection law.

Amendments to the Payflow Gateway Services Agreement for eBay Sellers

  • PayPal is updating its data processing terms to better align with the recent requirements of U.S. data protection law.

Amendments to the PayPal Payflow Gateway Services for Resold Merchants Agreement

  • PayPal is updating its data processing terms to better align with the recent requirements of U.S. data protection law.

Amendments to the PayPal HereTM Agreement

  • PayPal is updating its data processing terms to better align with the recent requirements of U.S. data protection law.

Amendments to the Advanced Credit and Debit Card Payments and Virtual Terminal Agreement

  • PayPal is updating its data processing terms to better align with the recent requirements of U.S. data protection law.

Amendments to the PayPal Privacy Statement (Effective June 18, 2020)

  • PayPal is clarifying information about PayPal account profiles, including how others can find a user’s public profile.

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