This page informs users in advance of important changes to the PayPal Service, its User Agreement, or other policies. We encourage you to review this Policy Update to familiarize yourself with all of the changes that are being made to the PayPal User Agreement. These updates will be posted at least 30 days prior to their effective date.
Amendments to the PayPal User Agreement, with respect to User Accounts in Asia Pacific, certain European and Latin American countries, Middle East and Africa.

Effective Date:  October 19, 2016

PayPal is changing its User Agreement.  The amended User Agreement will be effective as to all PayPal users on October 19, 2016.  We encourage you to review this Policy Update to familiarize yourself with the changes that are being made.


A summary of material changes is provided below:

  1. Changes to the form of consent required for merchant surcharging (Section 3.4)
    You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method without our prior written consent. You may charge a handling fee in connection with the sale of goods or services, as long as the handling fee is not higher than the handling fee you charge for non-PayPal transactions.
  2. Changes to Ineligible Items under PayPal Buyer Protection (Section 7.3)
    Payments for the following are not eligible for reimbursement under PayPal Buyer Protection:
  • Real estate
  • Businesses (when you buy all or part of a business)
  • Vehicles, including motorcycles, caravans, aircrafts and boats
  • Significantly Not As Described Claims for custom made items
  • Payments on crowdfunding platforms
  • Items that violate PayPal's Acceptable Use Policy
  • For Item Not Received (INR) items which you collect in person, or arrange to be collected on your behalf, including at a retail point of sale
  • Industrial machinery used in manufacturing
  • Stored value items such as gift cards and pre-paid cards
  • Gambling, gaming and other activity with an entry fee and a prize
  • Anything purchased from or an amount paid to a government agency
  • Personal Payments
  • Donations
  • Financial products and investments
  1. Amendments to Seller Protection (Section 9.5)
    The following are examples of items/transactions not eligible for PayPal Seller Protection:
  • Claims or Chargebacks for Significantly Not as Described.
  • Items that you deliver in person, including at a point of sale.
  • Intangible items, including Digital Goods and services.
  • Items equivalent to cash (including, without limitation, gift cards or vouchers)
  • PayPal Direct Payments (including Virtual Terminal Payments and Website Payments Pro/Plus payments).
  • Items that are not shipped to the recipient address. If you originally ship the item to the recipient address but the item is later redirected to a different address, you will not be eligible for PayPal Seller Protection. We therefore recommend not using a shipping service that is arranged by the buyer, so that you will be able to provide valid proof of shipping and delivery.
  • Donations.
  • Financial products or investments.
  1. Changes to the list of Restricted Activities for your account (Section 10.1)
    In connection with your use of our website, your Account, the PayPal Services, or in the course of your interactions with PayPal, other Users, or third parties, you will not: 
  • Breach this Agreement, the Commercial Entity Agreement, the Acceptable Use Policy or any other Policy that you have agreed to with PayPal;
  • Violate any law, statute, ordinance, or regulation;
  • Infringe PayPal's or any third party's copyright, patent, trademark, trade secret or other intellectual property rights, or rights of publicity or privacy;
  • Sell counterfeit goods;
  • Act in a manner that is defamatory, trade libelous, threatening or harassing to our employees, agents or other Users;
  • Provide false, inaccurate or misleading Information;
  • Engage in potentially fraudulent or suspicious activity and/or transactions;
  • Refuse to cooperate in an investigation or provide confirmation of your identity or any Information you provide to us;
  • Receive or attempt to receive funds from both PayPal and the Seller, bank or card issuer for the same transaction during the course of a Dispute;
  • Control an Account that is linked to another Account that has engaged in any of these Restricted Activities;
  • Conduct your business or use the PayPal Services in a manner that results in or may result in complaints, Disputes, Claims, Reversals, Chargebacks, fees, fines, penalties and other liability to PayPal, other Users, third parties or you;
  • Have a credit score from a credit reporting agency that indicates a high level of risk associated with your use of the PayPal Services;
  • Use your Account or the PayPal Services in a manner that PayPal, Visa, MasterCard, American Express, Discover or any other electronic funds transfer network reasonably believes to be an abuse of the card system or a violation of card association or network rules;
  • Allow your Account to have a negative balance;
  • Use a credit card with your Account to provide yourself a cash advance (or help others to do so);
  • Access the PayPal Services from a country that is not listed on PayPal's Worldwide page.
  • Disclose or distribute another User's Information to a third party, or use the Information for marketing purposes unless you receive the User’s express consent to do so;
  • Send unsolicited email to a User or use the PayPal Services to collect payments for sending, or assisting in sending, unsolicited email to third parties;
  • Take any action that imposes an unreasonable or disproportionately large load on our infrastructure;
  • Facilitate any viruses, trojan horses, worms or other computer programming routines that may damage, detrimentally interfere with, surreptitiously intercept or expropriate any system, data or Information;
  • Use an anonymizing proxy; use any robot, spider, other automatic device, or manual process to monitor or copy our website without our prior written permission;
  • Use any device, software or routine to bypass our robot exclusion headers, or interfere or attempt to interfere with our website or the PayPal Services;
  • Take any action that may cause us to lose any of the services from our Internet service providers, payment processors, or other suppliers; or
  • Abuse (as either a buyer or seller) our online Dispute Resolution process and/or PayPal Buyer Protection.
  1. Changes to the personal payments fee (Exhibit A Section 5) for sending or receiving personal payments in Brazil from 5.99% + Fixed Fee, to 7.4% + Fixed Fee