PayPal - new policy updates (MAJOR CHANGES)

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Amendment to the PayPal User Agreement
Effective Date: Nov 02, 2010

    * Amendments to the User Agreement

The entire User Agreement has been revised. A copy of the revised User Agreement is contained in Schedule A, below. In particular, the PayPal Buyer Protection Policy and Buyer Complaint Policy has been revised with material changes to the Buyer Protection Policy and removal of the Buyer Complaint Policy. The revised PayPal Buyer Protection Policy contains material changes for sellers and buyers.

    * Amendment to the Fees Policy of the User Agreement

   1. The following fees will be added to the table titled “Cross-border personal transactions” in the row “Sending/Receiving”:
      "Funding Source: entirely funded by
      PayPal balance or bank account

      Brazil  1%    Funding Source: entirely or partially funded
      by debit card or credit card

      Brazil 7.4% + Fixed Fee"

   2. In the table titled “Cross-border personal transactions” the Fixed Fee for “Brazilian Real” will increase from 0.40 BRL to 0.60 BRL.

    * Amendment to Product Disclosure Statement

   1. In the second paragraph of section 4 “The PayPal Service”, the following paragraph is deleted:

          “You can register to use the PayPal Service if you are an Australian resident with a valid email address and a valid credit card, debit card or bank account. The PayPal Service is available in many countries around the World.”

      and replaced with:

          “You can register to use the PayPal Service if you are resident in Australia with a valid email address. To fund payments with your PayPal account, please see the paragraph below on Using the PayPal Service. Other PayPal entities provide similar services in many countries around the World.”

   2.

      In the second bullet point of section 4 “The PayPal Service”, the following paragraph is deleted:

          “Send Payments. You may make payments using any credit balance in your PayPal Account or using funds from your Australian bank account ("Nominated Bank Account") or Visa, Mastercard or American Express debit or credit card ("Nominated Card Account") that you designate and register with PayPal (note that some funding restrictions may apply, for example, where American Express does not permit a travel merchant to accept a partially funded or fully funded payment from your American Express credit card)”

      and replaced with:

          “Send Payments. You may make payments using:
             1. any credit balance in your PayPal Account;
             2. funds from the bank account you hold with a financial institution in Australia;
             3. a card designated by MasterCard or Visa as a MasterCard or a Visa card;
             4. an American Express card (for certain existing PayPal customers) or card of another payment processor as may be accepted by us from time to time that register with PayPal (note that some funding restrictions may apply, for example, where American Express does not permit a travel merchant to accept a partially funded or fully funded payment from your American Express credit card).

                PayPal reserves the right in its discretion to refuse any bank account or card.”

   3.

      In the fourth bullet point of section 4 “The PayPal Service”, the following paragraph is deleted:

          “Withdraw Money from your PayPal Account. If you have money in your PayPal Account, then you may withdraw your money to your Nominated Bank Account.”

      and replaced with:

          “Withdraw Money from your PayPal Account. If you have funds in your PayPal Account, then you may withdraw your funds to the bank account you hold with a financial institution in Australia or the United States of America.”

   4.

      In the last bullet point of section 4 “The PayPal Service”, the following paragraph is deleted:

          “Any money in your PayPal account will be pooled with money from other holders of PayPal Accounts and deposited by PayPal with a licensed bank. PayPal keeps a record of any money in your PayPal account.”

      and replaced with:

          “If you hold a balance in your PayPal account, your funds will be pooled with money from the PayPal Accounts of other customers and deposited by us with a licensed bank in Australia. This does not effect your rights to withdraw funds from your PayPal Account. We will hold your funds separate from our corporate funds and not use your funds for our operating expenses or any other corporate purposes.

          In consideration for your use of the Services, you irrevocably transfer and assign to us any ownership right that you may have in any interest that may accrue on funds held by us. This assignment applies only to interest earned on your funds, and does not grant us any ownership right to the principal of the funds you maintain with us, subject to the User Agreement. In addition to or instead of earning interest, we may receive a reduction in fees or expenses charged for banking services by a licensed bank that holds your funds in the pooled account.”

   5.

      In section “8 What are the differences in accounts?”, the following paragraphs are deleted:

          Premier Account

         1. Designed for users who buy and sell online.
         2. Access to certain features such as, merchant service rates (where approved), Mass Pay and eBay selling tools.
         3. You can also apply to pay different fees for selling Digital Goods through our Micropayments for Digital Goods PayPal Service.

          Business Account

         1. Includes all features of a Premier account.
         2. Hold the Business Account under a corporate or group name.
         3. Give multiple employees or representatives the authority to access the Business Account, and set different (transaction limits) access rights for each employee or representative.
         4. You can also apply to pay different fees for selling Digital Goods through our Micropayments for Digital Goods PayPal Service.

      and replaced with:

          Premier Account

         1. Designed for Users who buy and sell online.
         2. Access to certain features such as Mass Pay and eBay selling tools.
         3. You can also apply to pay different fees for selling Digital Goods through our Micropayments for Digital Goods PayPal Service.

          Business Account

         1. Includes all features of a Premier Account.
         2. Hold the Business Account under a corporate or group name.
         3. Give multiple employees or representatives the authority to access the Business Account, and set different access rights (including transaction limits) for each employee or representative.
         4. Access to merchant service rates (where approved).
   6.

      In section “8 What are the differences in accounts?” the following fees will be added to the table titled “Cross-border personal transactions” in the row “Sending/Receiving”:
      "Funding Source: entirely funded by
      PayPal balance or bank account

      Brazil  1%    Funding Source: entirely or partially
      funded by debit card or credit card

      Brazil 7.4% + Fixed Fee"
   7.

      In section “8 What are the differences in accounts?” in the table titled “Cross-border personal transactions” the Fixed Fee for Brazilian Real will increase from 0.4 BRL to 0.6 BRL.
   8.

      In section “14. Verification & Account Limits” under the heading “Verified Accounts” the following paragraphs are deleted:

          “We verify PayPal Accounts with the aim of safeguarding your security, limiting fraud, and preventing money laundering. When a PayPal account holder receives "Verified" status it signifies the holder has passed a series of security checks carried out by PayPal; however, PayPal does not guarantee the identity of any PayPal user or ensure that a buyer or a seller will complete a transaction.

          Verified users will generally have their limits increased on the cumulative total of payments, and on transfers.

          To Verify your account you will need to take the following steps for a bank account:

         1. To begin to add a bank account, click "Get verified" on the left hand side of your Account Overview followed by "Add bank account". When prompted, enter your bank details and review before submitting.
         2. Confirm that bank account - PayPal will deposit two small amounts into your bank account. When you see your next bank statement, make a note of these amounts, then log in to your PayPal account and tell us what these two amounts are. When successful, please review and agree to our “bank funding agreement” to complete the verification process.

          When you have completed these steps, your PayPal Account will be verified and you can continue sending PayPal payments funded through your Nominated Bank Account, credit card, or debit card. PayPal also provides “Top Up” functionality which may also be used to Verify your account.”

      and replaced with:

          “We verify PayPal Accounts and funding sources with the aim of safeguarding your security, limiting fraud, and preventing money laundering. Please note that you cannot verify any bank account you hold with a financial institution in the United States of America. When a PayPal account holder receives "Verified" status it signifies the holder has passed a series of security checks carried out by PayPal. By identifying a PayPal account holder as verified, we are only representing that the PayPal account holder has completed the steps set out in this clause. By attributing a verified status to a PayPal account holder, we do not guarantee, undertake or otherwise represent that they will complete a transaction or that they have satisfied any Prove Your Identity requirements.

          Verified Users will generally have their limits increased on the cumulative total of payments, and on transfers.

          You can lift your limits by becoming verified. As you cannot verify any bank account you hold with a financial institution in the United States of America, you cannot lift the limits on any PayPal Account that has linked only these type of bank accounts. You can verify your PayPal Account in 2 ways:

          Australian bank account.

         1. to begin to add a bank account, click "Get verified" on the left hand side of your Account Overview followed by "Link My Bank Account ". When prompted, enter your bank account details and review before submitting;
         2. confirm that bank account - we will deposit two small amounts into your bank account. When you see your next bank statement, make a note of these amounts, then log in to your PayPal Account and tell us what these two amounts are. You will be required to agree to and accept our Direct Debit Agreement and Service Agreement to complete the verification process.

            Once the above steps have been correctly completed you may use your Australian bank account to fund your payments.

          With an accepted card

         1. to begin to add a card click "Get verified" on the left hand side of your Account Overview followed by "Link My Credit or Debit Card ". When prompted, enter your card details and click “Continue”;
         2. confirm that card - we will charge $2.00 to your card, which will appear on your statement in 2 to 3 working days. When you see your next card statement, check for the charge and the unique 4-digit code provided by PayPal. Log in to your PayPal Account to confirm your card and complete the verification process, which includes providing the unique 4-digit code provided by PayPal. We will deposit the $2.00 charge into your PayPal Account within 24 hours after you confirm your card. We may also hold a further USD$1.00 on some cards when you first add them as a means of validating your card. The USD$1.00 hold is usually released within 3 to 5 business days.”

    * Schedule A – Revised User Agreement

1. Important things you should know

1.1. This is an important document (along with our Product Disclosure Statement) which you must consider carefully when using PayPal’s Services.

1.2. Before using our Services you should understand the risks, amongst others, that could occur when using our Services. Risks are set out in our Product Disclosure Statement and this Agreement.

1.3. This Agreement contains a number of sections and schedules. For convenience, you may jump directly to any section by selecting the appropriate link below.

   1. Important things you should know;
   2. Definitions and interpretation;
   3. How this Agreement works;
   4. Amendments to this Agreement;
   5. Our relationship;
   6. Fees;
   7. Opening an Account;
   8. Your obligations when you open an Account with us;
   9. Using your Account;
  10. Holding a Personal Account;
  11. Holding a Premier Account or Business Account;
  12. Sending funds;
  13. Receiving funds;
  14. Digital Goods;
  15. Foreign currencies;
  16. Selling items;
  17. Holds on transactions;
  18. Limiting Accounts;
  19. Reserves;
  20. Closing your Account;
  21. Our intellectual property;
  22. Legal disputes;
  23. Notices;
  24. Release;
  25. Limitation of liability;
  26. Indemnification;
  27. Assumption of rights;

Schedule 1. PayPal Seller Protection Policy;

Schedule 2. PayPal Buyer Protection Policy.


2. Definitions and interpretation

2.1. In this Agreement:

Accepted Currencies means Australian Dollar, US Dollar, Canadian Dollar, Euro, Pound Sterling, Japanese Yen, New Zealand Dollar, Swiss Franc, Hong Kong Dollar, Singapore Dollar, Swedish Krona, Danish Krone, Polish Zlotych, Norwegian Krone, Hungarian Forint, Mexican Peso, Israeli New Shekel, Czech Koruna, Taiwan New Dollar, Thai Baht, Philippine Peso and Brazilian Real;

Account means the account you open with us;

Agreement means this agreement and its schedules, together with any policies and documents that are incorporated by reference;

Business Account means the Business Account referred to in clause 7.2;

Chargeback means when the financial institution which issues a Nominated Card used by a buyer to send funds through our Services determines that the amount sent should be reversed or returned. The decision for a Chargeback is made independently by the financial institution which issues a Nominated Card. We are bound to follow the instructions of that financial institution;

Commercial Entity Agreement means the agreement you must enter into directly with our acquiring banks as required by them if you achieve Commercial Entity Status. Click here to view the Commercial Entity Agreement;

Commercial Entity Status means Premier Account or Business Account holders who are defined by Visa Europe, Visa Inc, Visa International, MasterCard Worldwide, UK Maestro, Solo and/or International Maestro as a “Commercial Entity”. Go to clause 11 or click here for more information.

Commercial Transaction involves buying or selling goods or services, and payments received when you "Request Money" using our Services;

Currency Conversion Rate means the wholesale exchange rate at which we obtain foreign currency plus our 2.5% processing fee;

Credit Card  means a card designated by MasterCard or Visa as a MasterCard or a Visa card, including any Debit MasterCard or Visa Debit Card (or a card of another payment processor as may be accepted by us from time to time);

Digital Goods means any digital good or service that is delivered and used in an electronic format. Examples of Digital Goods include: software, phone applications, online games goods, music, videos, enews and blogs;

Digital Goods Purchase means the purchase of Digital Goods from sellers that have been approved by us for the Micropayments for Digital Goods service;

Direct Debit Agreement means the Direct Debit Request and Service Agreement which sets out the terms on which we are permitted to direct debit your Nominated Bank Account;

eBay means the online venue which allows its members to communicate and offer, sell, and buy goods and services through any of its websites which includes amongst others www.ebay.com.au, www.ebay.com and www.ebay.co.uk ;

eCheque means a payment made directly from a Nominated Bank Account which is delayed until the transfer of funds from a Nominated Bank Account to a PayPal account is completed. eCheques usually take 3 to 5 working days to complete and are used in instances which includes where there is an insufficient balance in a PayPal account and a Credit Card has not been linked as a Funding Source;

Fees mean the fees for using our Services as set out in the Fees Policy;

Funding Source means the Nominated Bank Account or Nominated Card that you link to your Account;

Item Not Received means where you as a buyer do not receive an item you paid for using our Services;

Micropayments for Digital Goods means a PayPal service that offers among other things, Micropayment Pricing Fees and integrated website tools, to certain sellers who sell Digital Goods, apply for and are approved by us for this service;

Micropayment Pricing Fees means the fees set out under the heading “Micropayment Pricing” in the Fees Policy;

Nominated Bank Account means the bank account you hold with a financial institution in Australia that you link to your Account;

Nominated Card means the Credit Card that you link to your Account;

Payment Review means the process by which we review certain potentially high-risk payment transactions received from or sent to your Account. A payment subject to Payment Review is a review of the payment only and is implemented to reduce the risk of PayPal users receiving potentially high risk transactions. A payment subject to Payment Review is not a representation by us as to the commercial dealings, character or reputation of a party to the transaction and should not be considered as a reference to the reputation of any party to the transaction;

PayPal Buyer Protection Policy means the policy described in Schedule 2 which helps eligible buyers recover payments for the purchase of certain items;

PayPal Seller Protection Policy means the policy that Sellers may be eligible for as set out in Schedule 1;

PayPal, we us and our means PayPal Australia Pty Ltd ABN 93 111 195 389 AFSL 304962;

Personal Account means the Personal Account referred to in clause 7.2;

Personal Transaction involves sending money (initiated from the "Personal" tab of the "Send Money" flow or "Send Money through PayPal mobile) to and receiving money into your Account from friends and family without making a purchase i.e. the payment is not for goods or services;

Postpaid Payment Option is the payment option available to selected buyers of Digital Goods referred to in clause 14;

Premier Account means the Premier Account referred to in clause 7.2;

Primary Login means the individual or entity who opened and registered the Business Account;

Proof of Shipment means the proof of shipment accepted by us as set out on our “Proof of Shipment” page located in the Security Centre page of our Website by clicking on “Selling Safely” and locating “How We Help Protect Sellers”;

Prove Your Identity means the verification we require you to undertake so we may comply with anti-money laundering, counter-terrorism financing laws and “know your customer” requirements;

Related Bodies Corporate has the same meaning as in the Corporations Act 2001;

Reversal means, in relation to the PayPal Seller Protection Policy, when we place a hold on funds in your Account and those funds would otherwise be reversed when any of the following occurs:

   1. a Chargeback has been requested by an eBay buyer for reasons which may include the sender of the payment was using improperly obtained funds or a fraudulent payment has been made;
   2. a Chargeback has been requested by an eBay buyer for the reason of an Item Not Received;
   3. a claim filed via the PayPal Online Dispute Resolution Centre has been requested by an eBay buyer for reasons which may include where the sender of the payment was using improperly obtained funds or a fraudulent payment has been made;
   4. a claim filed via the PayPal Online Dispute Resolution Centre has been requested by an eBay buyer for the reason of item not received and you are unable to provide Proof of Shipment as required with respect to claims made under the PayPal Buyer Protection Policy;
   5. we reverse a payment for an eBay item we believe to be fraudulent; or
   6. a financial institution which issues the Funding Source reverses a payment for an eBay item it believes to be fraudulent;

Secondary Login means the individual or entity selected by the Primary Login to have access to the Primary Login’s PayPal account;

Sending Limit means the maximum payment amount you are able to send using our Services and is determined by our risk assessment procedures. If you have a Sending Limit, you can view it by logging into your Account and clicking on the "View Limits" link;

Services mean the online payment processing services provided by us and available through your Account, our Website, your mobile phone and/or your other wireless devices;

Significantly Not As Described means where you as a buyer receive an item you paid for using our Services, where in our opinion, the seller misrepresented the details of an item sold in a way that affects its value or usability. More information about Significantly Not As Described, including examples of items which are Significantly Not As Described are set out in Schedule 2, clause 3;

Verified means the status given to a PayPal account holder when they verify control of their Funding Source in accordance with clause 12.21;

Website means our website located at www.paypal.com.au or www.paypal.com/au;

You and your means any person or entity using our Services.

2.2. In this Agreement, unless the context requires otherwise:

   1. all references to currency mean Australian dollars unless this Agreement says otherwise;
   2. references to singular mean plural and vice versa;
   3. the headings are used for convenience only and do not affect the interpretation of this Agreement;
   4. other grammatical forms of defined words or expressions have corresponding meanings;
   5. a reference to a document includes the document as modified from time to time and any document replacing it;
   6. the word "person" includes a natural person and any body or entity whether incorporated or not;
   7. a reference to a thing includes a part of that thing;
   8. a reference to all or any part of a statute, rule, regulation or ordinance includes that statute, rule, regulation or ordinance as amended, consolidated, re enacted or replaced from time to time;
   9. blue words that are underlined in this Agreement are hyperlinks to other information which is relevant to you;
  10. wherever "include" or any form of that word is used, it must be construed as if it were followed by "(without being limited to)".

2.3. If any provision of this Agreement is held illegal or unenforceable, that provision will be limited or eliminated to the minimum extent necessary so that this Agreement will otherwise remain in full force and effect and enforceable.

2.4. This Agreement and the documents it incorporates detail the entire understanding between us concerning its subject matter.    


3. How this Agreement works

3.1. This Agreement is a contract between you and PayPal setting out the terms and conditions which apply to your use of our Services.

3.2. The following policies are incorporated into this Agreement by reference and provide additional terms and conditions related to specific Services we offer:

   1. Privacy Policy for PayPal Services;
   2. Electronic Fund Transfer Rights and Error Resolution;
   3. Fees Policy;
   4. PayPal Acceptable Use Policy;
   5. PayPal Recurring Payment and Billing Agreement;
   6. Product Disclosure Statement;
   7. PayPal Bonuses Policy;
   8. Merchant Gift Certificates Agreement.

3.3. To the extent of any inconsistency between this User Agreement and any policy identified in clause 3.2 above, that policy will prevail.

3.4. You will be taken to have accepted this Agreement by selecting the appropriate “agree” option on our Website or when you use any of our Services, whichever occurs first.

3.5. Each time you use our Services, you confirm your agreement to be bound by this Agreement.

3.6. If you do not want to be bound by this Agreement, you must stop using our Services. The Agreement will continue to apply to your previous use of our Services.


4. Amendments to this Agreement

4.1. We may amend this Agreement at any time, for example if we change the functionality of our Services or as required by law.

4.2. We will post any revised version of this Agreement on our Website. With the exclusion of any substantive changes referred to in clause 4.3 the revised Agreement will take effect as soon as it is posted on our Website.

4.3. If we make any substantive changes to this Agreement which may negatively impact your use of our Services in a material way, we will post a notice of those changes on the “Policy Updates” page of our Website. We will send you a notification email which will contain a link to the “Policy Updates” page. These changes will take effect on the date specified on the “Policy Updates” page, which will be at least 30 days after we send the notification email to you. You agree to receive such notices in this way.

4.4. Subject to clause 4.3, we will not provide 30 days prior written notice where we add any new functionality to our Services.

4.5. If you do not agree with any changes we make to this Agreement, you may terminate this Agreement at any time.


5. Our relationship

About us

5.1. We are a financial institution regulated by both the Australian Prudential Regulatory Authority (as a limited authorised deposit-taking taking institution restricted to providing a ‘purchased payment facility’ – we do not carry on general banking business) and the Australian Securities and Investments Commission. We are a non-cash payment service provider and enable you to make payments to, and accept payments from third parties. PayPal acts as an independent contractor in performing tasks on your behalf and at your direction.

5.2. We also act as a payment service provider by creating, hosting, maintaining and providing our Service to you via the internet. We do not have any control over, and are not responsible or liable for, the products or services that are paid for with our Services. We cannot ensure that a buyer or a seller you are dealing with will actually complete the transaction.

5.3. We do not act as a common carrier or public utility.

5.4. We do not:

   1. pay interest on balances kept in your Account;
   2. act as an escrow agent with respect to any funds kept in your Account;
   3. enter into a partnership, joint venture, agency or employment relationship with you by entering into this Agreement;
   4. guarantee the identity of any buyer or seller; or
   5. determine if you are liable for any taxes and we are not responsible for collecting, reporting or paying any taxes that may arise from your use of our Services.

No warranty

5.5. We and our Related Bodies Corporate do not give any express warranty or condition as to the suitability of our Services.

5.6. We and our Related Bodies Corporate, do not give any implied warranties, except for those implied under the Australian Securities and Investments Commission Act 2001 or Trade Practices Act 1974.

5.7. We will use all reasonable efforts to ensure that requests for electronic debits and credits involving bank accounts and Credit Cards are processed in a timely manner, but we make no representations or warranties regarding the amount of time needed to complete processing because our Services are largely dependent upon many factors outside of our control, such as delays in the banking system or mail services.

5.8. We do not guarantee continuous, uninterrupted or secure access to our Services, and operation of our Website may be interfered with by numerous factors outside of our control.

Eligibility

5.9. To be eligible to use our Services you must:

   1. be resident in Australia;
   2. be capable of forming a legally binding contract; and
   3. hold a valid email address;

and be either:

   1. a body corporate registered in Australia;
   2. partnership;
   3. Australian government body;
   4. association (incorporated or unincorporated); or
   5. an individual who is at least 18 years old.

5.10. You cannot open an Account with us in a trustee capacity.

Transfers or assignments

5.11. You cannot transfer or assign any rights or obligations you may have under this Agreement without our prior written consent. There are numerous reasons why we do not allow this, including our obligations under anti-money laundering and counter-terrorism financing laws to know our customer.

5.12. We may transfer or assign this Agreement or any right or obligation under this Agreement without your consent. In particular, you agree that this Agreement and all incorporated agreements may be transferred or assigned by us, in our sole discretion, to a third party. We will notify you in advance of such a transfer or assignment.


6. Fees

6.1. All fees are set out in the Fees Policy. You agree to pay all Fees as they become due and payable.

6.2. All fees will be determined in accordance with our Fees Policy. Your Account and all transactions are made and displayed in Australian Dollars unless otherwise specified and may be subject to exchange rates.


7. Opening an Account

7.1. When opening an Account it is important that you identify your correct entity type as you cannot make subsequent changes later. If in doubt as to what entity type you should register, you should consult an accountant or lawyer.

7.2. There are 3 types of PayPal accounts:

Personal Account

   1. Designed for buying online or sending and receiving money for Personal Transactions, i.e. from friends and family.
   2. Functionality related to some features, such as Mass Pay or eBay selling tools, are limited.
   3. Upgrade to a Premier Account at any time.
   4. For personal use only.

Premier Account

   1. Designed for users who buy and sell online
   2. Access to certain features such as Mass Pay and eBay selling tools.
   3. You can also apply to pay different Fees for selling Digital Goods through our Micropayments for Digital Goods service.

Business Account

   1. Includes all features of a Premier Account.
   2. Hold the Business Account under a corporate or group name.
   3. Give multiple employees or representatives the authority to access the Business Account, and set different access rights (including transaction limits) for each employee or representative.
   4. Access to merchant services rates (where approved).

7.3. You can only hold one Personal Account and either one Premier Account or one Business Account and each Account needs to have registered a unique email address. By opening a Premier Account or a Business Account and accepting the terms outlined in this Agreement, you attest that you are not establishing an Account to be used primarily for personal, family, domestic or household purposes.

7.4. To open a PayPal account you must provide us with the information requested and ensure that the information you provide us is correct at all times.

7.5. You authorise us, directly or through third parties, to make any inquiries we consider necessary to Prove Your Identity. This may include ordering a credit report, performing other credit checks and verifying the information you provide against third party databases.

7.6. When you first open your Account your primary currency will be in Australian Dollars unless you choose to make it a different currency.

7.7. You may also be subject to a Sending Limit until you become Verified.


8. Your obligations when you open an Account with us

8.1. If you open and hold an Account with us, you must:

   1. pay any Fees associated with your use of our Services and your Account;
   2. ensure that any information about you including your contact details is true, accurate, current and complete and if your information changes, you must update your information through our Website;
   3. if requested by us, provide to us in a timely manner, all documentation relating to your identity or authority to operate your Account (including Secondary Logins);
   4. if applicable, hold all the necessary licences to engage in the advertising and sale of the goods and services offered for sale or use in association with your Account;
   5. not offer unlawful products or services for sale or use through your Account;
   6. prominently display any refund policy (if you are a seller);
   7. not use your Account or our Services for any unlawful, fraudulent or improper activity;
   8. cooperate fully with us to investigate any suspected unlawful, fraudulent or improper activity on your Account;
   9. be aware of and pay any taxes that apply to the payments you send or receive; and
  10. not allow others to use your Account unless you have a Business Account with a Secondary Login.

8.2. You authorise us to disclose Credit Card related account profile and purchase behaviour information to Visa, MasterCard and American Express for the purpose of eliminating fraud and illicit behaviour.

8.3. When using our Services you must not:

   1. provide us with false, inaccurate or misleading information;
   2. act fraudulently or be involved in the sale of counterfeit or stolen items;
   3. use our Services to provide yourself a cash advance from your Credit Card (or help others to do so);
   4. display PayPal as an accepted payment method and subsequently prohibit the use of PayPal, indicate that you will or will not accept specific forms of PayPal payment, or otherwise discourage the use of PayPal as a payment mechanism;
   5. breach the  PayPal Acceptable Use Policy;
   6. be defamatory, unlawfully threatening or harassing;
   7. transmit any computer viruses or malicious code (Trojan horses, worms, time bombs, cancelbots, Easter eggs) that may damage, interfere with, surreptitiously intercept or expropriate any customer data or, personal information, or may interfere in the provision of our Services or our customers’ affairs;
   8. create liability for us or cause us to lose (in whole or in part) the services of our suppliers;
   9. allow anyone else to have or use your Funding Sources or password details or reveal your Account passwords to anyone else;
  10. use, or attempt to use, our Services for purposes other than sending and receiving payments and managing your Account, including but not limited to tampering, hacking, modifying or otherwise corrupting the security or functionality of our Services; or
  11. charge unreasonable or excessive fees for postage and handling when selling goods.

8.4. Our failure to act with respect to a breach by you or others does not waive our right to act with respect to subsequent or similar breaches.

8.5 If you grant express permission to a third party to take specific actions on your behalf, or access particular information about your Account, either through your use of the third party’s product or service, or through the “Profile” section of your Account, you acknowledge that we may disclose the information about your Account that is specifically authorised by you to this third party. You also acknowledge that granting permission to a third party to take specific actions on your behalf does not relieve you of any of your responsibilities under this Agreement. Further you acknowledge and agree that you will not hold us responsible for, and will indemnify us from, any liability arising from the actions or inactions of this third party in connection with the permissions you grant. You may change or remove these permissions at any time by logging into your Account, choosing the “Profile” subtab under the My Account tab, and selecting “API Access”.

9. Using your Account

Receiving payments through your Account

9.1. If you receive payments in to your Account for offering goods or services for sale you must ensure that you prominently display your current and accurate contact information and comply with the statutory warranties and conditions relating to the sale.

Keeping a balance in your Account

9.2. You are not required to carry a balance in your Account to keep the Account open. However we may request you to deposit funds into your Account to cover any potential reversal by us or to repay a negative balance.

9.3. You acknowledge that we cannot pay and you will not be paid interest on balances kept in your Account.

How PayPal manages the funds in your Account

9.4. If you hold a balance in your Account, your funds will be pooled with money from the PayPal accounts of other customers and deposited by us with a licensed bank in Australia. This does not effect your rights to withdraw funds from your Account.

9.5. We will hold your funds separate from our corporate funds and not use your funds for our operating expenses or any other corporate purposes.

9.6. In consideration for your use of our Services, you irrevocably transfer and assign to us any ownership right that you may have in any interest that may accrue on funds held by us. This assignment applies only to interest earned on your funds, and does not grant us any ownership right to the principal of the funds you maintain with us, subject to this Agreement. In addition to or instead of earning interest, we may receive a reduction in fees or expenses charged for banking services by a licensed bank that holds your funds in the pooled account.


10. Holding a Personal Account

10.1. You must only use a Personal Account for personal, domestic or household purposes. If you have a Personal Account and we have a reasonable basis to believe that it is not being used for personal, domestic or household purposes, we may require you to upgrade to a Premier Account or Business Account or limit or close your Account.

10.2. You may not be able to use all of our Services if you hold a Personal Account as some of our Services may only be available to Premier Accounts or Business Accounts. For example your access to the Mass Pay or eBay selling tools features may be limited. For information on what Services are available please refer to our Website.

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11. Holding a Premier Account or Business Account

11.1. You must:

   1. open a Premier Account or Business Account if you use our Services for purposes other than personal, domestic or household purposes; or
   2. open a Business Account if you are not an individual (unless you are a sole proprietor), for example you are a body corporate.

Commercial Entity Status

11.2. If you hold a Premier Account or Business Account and you receive a certain volume of payments that are funded from a Credit Card, you may be classified as having Commercial Entity Status. We will notify you when this occurs.

11.3. If you are classified as having Commercial Entity Status you must enter into a Commercial Entity Agreement.

11.4. If any provision of the Commercial Entity Agreement is inconsistent with a provision of this Agreement, the provision of the Commercial Entity Agreement will prevail to the extent of the inconsistency.

Setting up Secondary Logins in your Business Account

11.5. If you hold a Business Account the Primary Login may allow a Secondary Login to have access to your Account. The Primary Login is the only member on the Account capable of setting up Secondary Logins.

11.6. The Primary Login can select the account privileges given to the Secondary Login through the “Manage User” section of your Business Account on our Website, however not all of these rights can be given to the Secondary Login, for example a Secondary Login may not close your Account.

11.7. The Primary Login has sole responsibility for defining the type of access to give each Secondary Login and sole responsibility for monitoring activities occurring in the Account. If any changes to a login's access are needed it is the responsibility of the Primary Login to increase or decrease the access privileges. If any unauthorised activity takes place because of access granted to a Secondary Login, the Primary Login is responsible for the charges and/or losses.



12. Sending funds

12.1. You may use your Account to send funds to third parties. Please note your ability to send funds will be subject to any funding restrictions imposed by the issuer of your Funding Source.

12.2. For information about sending funds in foreign currencies, also refer to clause 15 below.

12.3. Where your Funding Source is a Nominated Bank Account, you authorise us to debit that Nominated Bank Account via the Bulk Electronic Clearing System. You grant us the right to resubmit such debit if it is returned for insufficient or uncollected funds.

12.4. As part of our risk assessment procedures and as required by law, we may from time to time, request information (such as your date of birth and photo identification) from you to authenticate your identity before you can send funds to third parties.

12.5. You are responsible for ensuring the accuracy of the information you provide about each recipient of a payment, including the email address or telephone number to which the payment is sent and the amount of the payment.

12.6. We may refuse to process a payment if we believe there is a risk associated with that payment. For example, we may refuse to process a payment sent to a person or country sanctioned by the United Nations or Australian government, where we believe there is a legal or regulatory risk or a risk of loss being suffered by us or our users.

How funds are sent  

12.7. When you send funds you authorise us to:

   1. debit funds on your behalf from your balance or applicable Funding Source; and
   2. transfer the funds to the recipient according to your instructions and subject to this Agreement.

12.8. We will fund your transaction as follows:
Sufficient Account balance to fund the entire transaction?    Funding Sources linked to your Account    How is the transaction funded?    
 Yes    Not applicable    Your Account balance
 No    Nominated Bank Account only     Your entire transaction is funded by eCheque from your Nominated Bank Account (regardless of any balance in your Account)
No    Nominated Card only    From any balance in your Account with the remainder of the transaction funded from your Nominated Card Account
No    Both Nominated Bank Account and Nominated Card    From any balance in your Account with the remainder of the transaction funded by the Funding Source you select at the point of payment.

If you select your Nominated Bank Account and we are notified by your bank that it does not have a sufficient balance to fund the transaction, you authorise us to and we will subsequently fund the transaction through your Nominated Card. You may be charged a dishonour fee by your bank for having insufficient funds.

12.9. In some cases a transaction may be funded by an eCheque regardless of whether you have linked a Nominated Card to your Account. We will let you know that a transaction is being funded by an eCheque at the point of payment.

12.10. You remain the owner of the funds sent until they are credited to the recipient’s PayPal account. However you will not be able to withdraw the funds or send the funds to another third party unless the funds are returned to your Account.

12.11. To the extent required to assist in protecting the integrity of our system, prevent fraud and limit the risk of money laundering and terrorist financing we may, at our discretion, not accept a Funding Source or request that you add another Funding Source or fund a transaction with an eCheque.

12.12. We are not responsible for any payments that are restricted or declined by the Funding Source, for example where there are insufficient funds in your Funding Source.

Expired Funding Sources

12.13. We will not debit your Funding Source if your Funding Source has expired. We view expired Credit Cards as an invalid Funding Source and reserve the right to remove expired Credit Cards from your Account. You can re-add the Credit Card once a valid expiry date is obtained.

Refused, refunded or unclaimed payments

12.14. The recipient is able to refund a payment within 60 days of receiving that payment. In some circumstances, a recipient is not required to accept the funds sent and may refuse a payment, even if the recipient is registered with us. We are not liable for any damages resulting from a recipient's decision to not accept a payment made through our Services.

12.15. If there is an unclaimed payment the funds will be returned to sender usually 30 days after the funds were sent.

12.16. If there is a refused payment or refunded payment the funds sent will be returned to sender usually within a business day after the funds were refused or refunded.

12.17. Payments funded by a Nominated Card are returned to that Nominated Card.

12.18. Payments funded by a Nominated Bank Account or PayPal account balance are returned to the sender’s PayPal account.

Sending limits

12.19. To the extent required to assist in protecting the integrity of our system, us or our users from loss, or to prevent fraud and limit the risk of money laundering and terrorist financing we may do the following, at our discretion, before you are able to send funds from your Account:

   1. impose the following Sending Limits on your Account:
         1. per calendar year - you may be subject to a Sending Limit for each calendar year;
         2. per transaction – you may be subject to a Sending Limit on each transaction in your Account;
         3. per total month - you may be subject to a Sending Limit on the total amount of funds that can be sent through your Account in one calendar month; or
   2. request the details of an additional Credit Card that you hold.

12.20. When you reach your Sending Limit, we will ask you to become Verified.

Verification

12.21. By identifying a PayPal account holder as Verified, we are only representing that the PayPal account holder has completed the steps set out in this clause. By attributing a Verified status to a PayPal account holder, we do not guarantee, undertake or otherwise represent that they will complete a transaction or that they have satisfied any Prove Your Identity requirements.

12.22. You can lift your Sending Limit (and withdrawal limit as specified in clause 13.5 below) by becoming Verified. This may be done in 2 ways:

Nominated Bank Account

   1. to begin to add a bank account, click "Get verified" on the left hand side of your Account Overview followed by "Link My Bank Account ". When prompted, enter your bank account details and review before submitting;
   2. confirm that bank account - we will deposit two small amounts into your bank account. When you see your next bank statement, make a note of these amounts, then log in to your Account and tell us what these two amounts are. You will be required to agree to and accept our Direct Debit Agreement to complete the verification process.

Once the above steps have been correctly completed you may use your Nominated Bank Account to fund your payments.

Nominated Card

   1. to begin to add a Credit Card, click "Get verified" on the left hand side of your Account Overview followed by "Link My Credit or Debit Card ". When prompted, enter your credit card details and click “Continue”;
   2. confirm that Credit Card - we will charge $2.00 to your Credit Card, which will appear on your statement in 2 to 3 working days. When you see your next Credit Card statement, check for the charge and the unique 4-digit code provided by us. Log in to your Account to confirm your Credit Card and complete the verification process, which includes providing the unique 4-digit code. We will deposit the $2.00 charge into your Account within 24 hours after you confirm your Credit Card. We may also hold a further USD$1.00 on some Credit Cards when you first add them as a means of validating your Credit Card. The USD$1.00 hold is usually released within 3 to 5 business days.

12.23. We may from time to time at our discretion request information from you to verify your Funding Source before you can send funds from your Account.


13. Receiving funds

13.1. If you receive a notice to your email address that a payment has been sent through PayPal to you, you cannot access those funds until you open an Account. Your Account must use the same email address as the email address to which you received a notice.

13.2. For information about receiving funds in foreign currencies, also refer to clause 15 below.

Your obligations when receiving funds

13.3. If you receive funds through our Services you must:

   1. pay any Fees for receiving the funds into your Account depending on whether it is a Commercial Transaction or Personal Transaction;
   2. not ask the buyer to send you the payment through a Personal Transaction if you sell goods or services and PayPal is chosen as the payment method; or
   3. not impose a surcharge or any other fee for accepting our Services as a payment method.

Withdrawing funds

13.4. Subject to the terms of this Agreement, funds can be withdrawn by transferring them to your Nominated Bank Account or a linked United States bank account. The funds cannot be transferred to your Nominated Card.

13.5. There is an initial withdrawal limit of $700.00 per month. If you want to withdraw more than $700.00 per month we will ask you to become Verified in accordance with clause 12.21 above.

13.6. Subject to clause 13.5 above, you may withdraw any balance in your Account provided:

   1. you have linked a Nominated Bank Account or a United States bank account to your Account;
   2. we have not limited your Account; and
   3. your Account does not have a negative balance because of any reversals. If your Account does have a negative balance because of any reversals, we may cancel any withdrawals you have initiated which are pending.

13.7. You may withdraw funds by logging into your Account, clicking on the “Withdraw” link and following the prompts.

13.8. If we have placed a hold on a transaction, you may not withdraw the funds which are subject to that transaction.

13.9. If you hold a balance (or part thereof) in a foreign currency, you may only withdraw that balance (or part thereof) after it has been converted to the currency of your Nominated Bank Account or linked United States bank account. For example, if you have a US Dollar bank account linked, any balance in a currency which is not US Dollars must be converted to US Dollars. Similarly, if you have an Australian Dollar bank account linked, any balance in a currency which is not Australian Dollars must be converted to Australian Dollars. You may avoid converting the currency held in your Account by:

   1. not withdrawing that currency;
   2. purchasing products in that currency using your Account; or
   3. transferring that currency to a third party.

13.10. You must ensure the details of your Nominated Bank Account or linked United States bank account are correct. If you have requested that a balance be withdrawn and the details of your Nominated Bank Account or linked United States bank account are incorrect, you are liable to pay a bank return or dishonour fee.

Refunds

13.11. You can refund a payment received to the sender within 60 days of the payment being received, by logging into your Account and following the prompts.

13.12. If a transaction is refunded, both the Fees and the payment will be refunded. If you return funds through the “Send Money” tab, this is not considered a refund and your transaction fees will not be refunded.


14. Digital Goods

Postpaid Payment Option for Digital Goods

14.1. If you use our Services to pay for a Digital Goods Purchase, we may, at our discretion, offer you the Postpaid Payment Option. You will only be able to use the Postpaid Payment Option when you do not have a balance in your Account.

14.2. The Postpaid Payment Option is incidental to our Services and issued at our discretion. Accordingly, we reserve our right, to terminate or amend the terms and conditions of the Postpaid Payment Option or the eligibility requirements at any time. If we make any substantive changes to the Postpaid Payment Option which may negatively impact your use of our Services in a material way, we will notify you in accordance with the “Amendments to this Agreement” section above. If you do not agree with any changes we make to the Postpaid Payment Option, you may terminate this Agreement at any time.

14.3. You may cancel the Postpaid Payment Option at any time by changing your Account preferences through our Website. If you cancel the Postpaid Payment Option, you will not be able to select the Postpaid Payment Option for a period of at least 6 months unless otherwise agreed by us.

14.4. If you use the Postpaid Payment Option you agree:

   1. and authorise us to debit the Digital Goods Purchases (or any part thereof) from any funds you receive to your Account;
   2. and authorise us to debit the Digital Goods Purchases from your Funding Source, at the earlier of:
         1. the value of your Digital Goods Purchases reaching the Digital Goods Purchase limit we specify when you log into your Account; or
         2. no later than 21 days from any postpaid Digital Goods Purchase. This date will be specified when you log into your Account; or
   3. to immediately pay the amount of any unpaid Digital Goods Purchases to us if we withdraw, suspend or cease the Postpaid Payment Option.

Fees for sellers of Digital Goods

14.5. If you are approved by us as a seller for the Micropayments for Digital Goods service you will pay the lesser of the:

   1. Micropayment Pricing Fees; or
   2. Fees set out under the heading “Commercial Transactions” in the Fees Policy.

Digital Good refunds

14.6. If you are approved by us as a seller for Micropayments for Digital Goods, you agree and authorise us to refund your buyers provided they are eligible for a refund under clause 14.7 on your behalf for any Digital Goods Purchase that is equal to or less than the relevant currency maximum values set out in the table below:
Currency    Maximum value  
Australian Dollar:    $9.99 AUD
Canadian Dollar:     $3.99 CAD
Czech Koruna:     99.99 CZK
Danish Krone:    24.99 DKK
Euro:    €3.99 EUR
Hong Kong Dollar:    $49.99 HKD
Hungarian Forint:    999 HUF
Japanese Yen:    ¥999 JPY
New Zealand Dollar:     $9.99 NZD
Norwegian Krone:    29.99 NOK
Philippine Peso:     499.99 PHP
Polish Zlotych:    19.99 PLN
Singapore Dollar:    $9.99 SGD
Swedish Krona:    34.99 SEK
Swiss Franc:    4.99 CHF
New Taiwan Dollar:    249.99 TWD
Thai Baht:    249.99 THB
U.K. Pounds Sterling:    £3.99 GBP
U.S. Dollar:    $3.99 USD

Claiming a Digital Good refund

14.7. To be eligible for a refund from a Digital Goods Purchase, you as a buyer must meet all of the following requirements:

   1. file a dispute with us in relation to a Digital Goods Purchase within 45 days of the date you made the payment to the seller;
   2. the total amount of the Digital Goods Purchase must be equal to or less than the relevant currency maximum values set out in the table in clause 14.6 above;
   3. your Digital Goods Purchase comprises only of Digital Goods and no other goods or services; and
   4. you have not received more than the following number of refunds for Digital Goods Purchases:
         1. 3 refunds in 1 calendar month;
         2. 5 refunds in 2 consecutive calendar months; or
         3. 7 refunds in 3 consecutive calendar months.

14.8. The refund will be credited to your Account.

14.9. We may, at our discretion, withdraw, cease, suspend or amend the refund of any Digital Goods Purchase at any time in writing including if we form the opinion that the refunds are being claimed on unreasonable grounds.

14.10. This section does not affect your ability to file a dispute following our standard dispute resolution processes as described in this Agreement.


15. Foreign currencies

15.1. You are responsible for all risks associated with maintaining balances in foreign currencies (including, the risk that the value of these balances will fluctuate as exchange rates change, which over time may result in a significant decrease in the value of the balances).

15.2. You agree not to attempt to use Accepted Currencies for speculative trading. Because our Currency Conversion Rates may include Fees, any attempt to use our Services for exchange trading will, in all likelihood, result in losses.

15.3. When you initiate a transaction in which a currency conversion must take place and the transaction has to be returned or reversed at a later time, we will re-convert the funds to the original currency, by applying the same exchange rate that was applied at the time of the original transaction.

15.4. We may use funds held in any currency balance to recover amounts owed to us due to Chargebacks or for any other reason. In addition, funds from payments received will first be diverted to us to make up any negative currency balance.

15.5. We will convert all negative balances to a US Dollar balance after your Account has maintained a negative balance for 21 consecutive days, except where the negative balance results from a pending reversal where we are yet to conclude our investigation. You must repay such negative balances in US Dollars. If you repay such negative balance in a currency other than US Dollars, the negative balance may fluctuate in accordance with international currency movements.

15.6. If one of the currency balances in your Account becomes negative, we will divert funds from any positive currency balance in your Account to make up the negative balance before allowing you to withdraw funds.

Sending funds  

15.7. You may send funds in any of the Accepted Currencies. There may be some restrictions with regard to where you can send certain currencies and whether your intended recipient can receive a payment. In some instances this functionality may be restricted, particularly where your payment is funded by an American Express credit card that does not support this payment. For example, where American Express does not permit a travel merchant to accept a partially funded or fully funded payment from your American Express credit card.

15.8. You do not need to maintain a balance in the currency in which you would like to send the payment, but can choose the currency at the time of payment. If you are making a payment in a currency in which you already maintain a balance, the funds for the payment will first be withdrawn from the balance you already hold in that currency. Additional funds required for the payment will be withdrawn first from any other balance you maintain in your Account and then from your Funding Source.

15.9. If your balances do not cover the full amount of your payment and you have registered a Nominated Card:

   1. if the Nominated Card is denominated in the currency of the payment, that Nominated Card will be charged for the remainder of the payment;
   2. if the Nominated Card is not denominated in the currency of the payment, but you do hold a Nominated Card denominated in one of the currencies supported by the Accepted Currencies feature your Nominated Cards Account will be charged in that currency;
   3. if your Nominated Card is neither denominated in the currency of the payment nor in any of the Accepted Currencies, your Nominated Card will be charged in the currency of your payment.

15.10. To assist you, we will display the Currency Conversion Rate before you send funds in a foreign currency.

Receiving funds

15.11. Your Account may hold balances in any or all of the Accepted Currencies with the exception of Brazilian Real.

15.12. Each of the Accepted Currencies held will display a separate balance in the Account. Any payments you receive will automatically be credited to the balance for the corresponding currency. You do not need to maintain a balance in a particular currency to accept payments sent in that currency.

15.13. If you hold a Personal Account, each time you receive a payment in a currency which you do not hold, you will be asked to accept or refuse that payment. To assist you in deciding whether to accept or refuse such payment, we will display the Currency Conversion Rate.

15.14. Unless you set up your payment receiving preferences as set out in clause 15.15, if you hold a Premier Account or Business Account, each time you receive a payment in a currency which is different to your primary currency or in which you do not hold a balance, you will be asked to accept or refuse that payment. To assist you in deciding whether to accept or refuse such payment, we will display the Currency Conversion Rate.

15.15. You can set up your payment receiving preferences in the “Profile” section of your Account to:

   1. automatically accept the payment and convert it to your primary currency. If you choose this option the payment will be converted at the current exchange rate at that time;
   2. automatically refuse payments received in a currency in which you do not already hold a balance; or
   3. continue to accept or refuse payments received in a currency in which you do not already hold a balance.


16. Selling items

16.1. If you sell tangible items, we may require that you provide Proof of Shipment to us (if there is a buyer dispute) in order to prevent the funds received being returned to the buyer. Please see the PayPal Seller Protection Policy and PayPal Buyer Protection Policy which are schedules to this Agreement.


17. Holds on transactions

17.1. In order to ensure the integrity of a transaction, or if we believe that there is an increased risk associated with a transaction, we will hold funds or proceeds from that transaction by placing them in a “held” status beyond the normal distribution period so we may conduct a review to determine if the funds may be released. Importantly, the proceeds from that transaction may still be subject to a subsequent reversal, Chargeback or claim.

17.2. We will hold funds in order to mitigate any actual or reasonably anticipated risk related to transactions we consider suspicious, or where we (or one of our customers) may be adversely affected.

17.3. Unless you receive a dispute, claim, Chargeback or reversal on the transaction subject to the hold, we will release the hold after 21 days.

Payment review

17.4. If a payment is subject to Payment Review, we will place a hold on the payment and provide notice to the seller to delay the shipping of the item. This may be because we have the reasonable suspicion that a buyer’s Funding Source and/or PayPal account are being used in breach of this Agreement or for other reasons as determined by us in our reasonable discretion.

17.5. We will conduct a review and either complete or reverse the payment. If the payment is completed, we will provide notice to the seller. Otherwise, we will reverse the payment and the funds will be returned to the buyer.

17.6. All payments that complete Payment Review are still subject to being reversed under the terms of this Agreement but may be eligible for the PayPal Seller Protection Policy, provided the PayPal Seller Protection Policy requirements are met.

17.7. We will provide notices to you by email and/or you can view the status of the payment via the “History” tab of your Account.

Buyer disputes

17.8. If you as a seller receive a dispute, claim, chargeback, or reversal on the transaction subject to the hold, we will hold the payment until the matter is resolved pursuant to this Agreement.

17.9. We may release a hold earlier in circumstances where for example, the buyer leaves positive feedback on eBay or where we are otherwise satisfied that the transaction has completed successfully.

17.10. If you sell an item on eBay offering eBay Buyer Protection (see for example the US eBay website http://pages.ebay.com/help/policies/buyer-protection.html) then eBay may make a final decision on a claim that a buyer files against you directly with eBay. If eBay makes a final decision that you lose an eBay Buyer Protection claim, then pursuant to the relevant eBay Buyer Protection policy you authorise eBay to debit those funds from your Account. For more information check the relevant eBay policies.


18. Limiting Accounts

18.1. If we believe that there is an increased risk associated with your Account, we may limit your access to sending money, receiving money, or making withdrawals for up to 180 days. In some cases, we may be prohibited by law from releasing funds or unrestricting your Account. For example, funds may be held beyond 180 days or returned to the sender if you fail to Prove Your Identity as required by us so we may comply with anti-money laundering, counter-terrorism financing laws and “know your customer” requirements.

18.2. We may also limit access to sending money, receiving money, or making withdrawals from your Account if it is linked or associated with another PayPal account which has been limited in accordance with clause 18.1 above. We may determine your Account is linked or associated to another PayPal account, for example by comparing account names, email addresses or IP addresses.

18.3. If access to your Account has been limited, you will be notified by email and requested to provide information relevant to your Account, a transaction or even your identity.

18.4. In assessing this risk, we will investigate your Account and consider the reasonable risk of a reversal, a breach or likely breach of this Agreement, or other potential losses occurring to either us or our customers. We will investigate the matter promptly and make a decision.

18.5. Following our investigation, if we reasonably believe there is no longer a risk, we will restore access to your Account, subject to any other actions we may take in accordance with this Agreement.

18.6. If we reasonably believe a risk still exists, we may:

   1. return funds to the sender and restore access to the remainder of your Account;
   2. continue to limit your Account access for up to 180 days as is necessary to protect us against the risk of reversals. As indicated in clause 18.1, we may be prohibited by law from releasing funds or unrestricting your Account; or
   3. close your Account by giving you notice and returning any funds held in balance to you (minus funds that are in dispute). If you are later determined to be entitled to the funds in dispute, we will make an additional payment of those funds to you.

18.7. If we request verification documentation or other identity or data verification information from you (especially for Prove Your Identity purposes), you agree to provide the requested information in a timely manner.

18.8. Ongoing failure to Prove Your Identity may mean we may be prohibited by law from releasing disputed funds or unrestricting your Account and your funds will be subject to applicable laws regarding unclaimed monies.

18.9. The following is a non-exhaustive list of events which may lead to your Account being limited:

   1. reports of unauthorised or unusual Credit Card use associated with the Account including, but not limited to, notice to us to that effect by the card issuing bank. This includes notices made by you to your Credit Card company that a transaction was unauthorised or your Account compromised, and is done in order to protect you from further unauthorised use of your card;
   2. reports of unauthorised or unusual bank account use associated with the Account;
   3. abuse by a buyer of the reversal process provided by the buyer's bank or Credit Card issuer;
   4. abuse by a buyer or seller of the PayPal Buyer Protection Policy or PayPal Seller Protection Policy;
   5. multiple disputes received regarding non-despatch of merchandise, non-delivery of services, merchandise not as described, or problems with merchandise shipped;
   6. receipt of potentially fraudulent funds;
   7. excessive disputes or reversals;
   8. attempts to "double dip" by receiving funds in a dispute both from us and through a reversal or a refund from the seller or a third party (for example eBay);
   9. refusal to cooperate in an investigation or provide confirmation of identity when requested;
  10. initiation of transactions considered to be cash advances or assisting in cash advances;
  11. sending unsolicited emails or posting referral links on websites where they are not permitted;
  12. opening more than one Account (with the exception of one Personal Account and one Premier Account or Business Account which is permitted);
  13. your Account has been used in or to facilitate fraudulent activity;
  14. material breaches of this Agreement;
  15. a risk assessment of your Account conducted by us;
  16. name on the Nominated Bank Account or Nominated Card does not match the name on your Account;
  17. return of an incoming electronic funds transfer for insufficient funds or incorrect bank details;
  18. use of an anonymising proxy;
  19. any breaches of our Acceptable Use Policy;
  20. reports from credit agencies of a high level of risk;
  21. your use of your Account is deemed by us, Visa, MasterCard, or American Express to constitute abuse of the Credit Card system or a violation of Credit Card rules, including using the our system to test Credit Card behaviours;
  22. logging in from a country not included on PayPal's permitted countries list; and/or
  23. any other activities which we, acting reasonably, deem as high risk selling or receiving activity.

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19. Reserves

Risk assessment

19.1. As part of our risk assessment procedures, we continually monitor your Account and assess it for initial and ongoing risk.

19.2. We, in our sole discretion, may place a reserve on funds held in your Account where you are a seller and we reasonably believe (based on the information available to us at the time of taking the reserve and what in our sole discretion we regard as an acceptable level of risk to us under all the circumstances) there may be a higher than acceptable level of risk associated with your Account. The reserve helps protect us and our customers from the risk of financial or other loss.

19.3. If we place a reserve on funds in your Account, the funds will be shown as “pending”.

Terms of reserve

19.4. If your Account is subject to a reserve, we will notify you of the terms of the reserve. The terms may require that a certain percentage of the amounts received in your Account are held for a certain period of time, or that a certain amount or percentage is held in reserve.

19.5. As our risk assessment changes, we will change the terms of the reserve accordingly (commensurate with the determined risk profile) and provide you with notice of the new terms.

19.6. In the event you do not agree to the terms of the reserve, you may close your Account, unless otherwise prohibited under this Agreement.


20. Closing your Account

20.1. Subject to clause 20.4, you can close your Account at any time by clicking the “Close Account” link in your “Profile” on our Website and following the instructions.

20.2. Similarly, we may close your Account at any time, for any reason, including but not limited to a breach of this Agreement or the policies and documents this Agreement incorporates by reference.

20.3. When your Account closes, any pending transactions will be cancelled.

20.4. You cannot close your Account in situations which include where you have:

   1. a negative balance;
   2. a dispute in progress; or
   3. any Account restriction.

20.5. Any funds that we are holding for you at the time of closure, less any applicable Fees, will be paid to you by direct deposit to your Nominated Bank Account or linked United States bank account or should this fail (for example you have closed your bank account), by cheque, assuming all withdrawal-related authentication requirements have been fulfilled (for example, you may not use closure of your Account as a means of evading withdrawal limits on new or un-Verified users).

20.6. You cannot use closure of your Account as a means of evading investigation if an investigation is pending at the time you close your Account, we may continue to hold your funds for up to 180 days as appropriate to protect us against the risk of reversals. In some cases we may be prohibited by law from releasing funds or unrestricting your Account. If you are later determined to be entitled to some or all of the funds in dispute, we will release those funds to you.

20.7. You will remain liable for all obligations related to your Account even after your Account is closed.

20.8. If you do not access your Account for a period of 3 years, it may be closed. After the date of closure, we will use the information you provided to try to send you any funds that we are holding for you. If that information is not correct, and we are unable to complete the payment to you, your funds will be subject to applicable laws regarding unclaimed monies.

20.9. The following clauses will survive any termination or expiry of this Agreement:

   1. 6 – Fees;
   2. 8.3g and 8.3j – Prohibited Activities using our Services;
   3. 22 – Legal Disputes;
   4. 24 – Release;
   5. 25 – Limitation of Liability; and
   6. 26 – Indemnification.

Recovery of amounts from your Account

20.10. When you receive a payment through our Services and the transaction is not eligible for the PayPal Seller Protection Policy, you will owe us for the amount of the transaction (including any applicable Fees imposed on us) if:

   1. the funds received are later invalidated for any reason;
   2. the funds received are subject to a Chargeback;
   3. there is a reversal;
   4. we determine under the PayPal Buyer Protection Policy that the funds received should be returned or reversed.

20.11. If you owe us or our Related Bodies Corporate any amounts, for example for any Fees or a reversal, and you are not eligible for the PayPal Seller Protection Policy (where applicable), you agree to allow us to recover these amounts by debiting your Account.

20.12. If there are insufficient funds in your Account to cover any money you owe us or our Related Bodies Corporate, these amounts become immediately due and payable. You authorise us to and we reserve our rights to collect any money you owe us or our Related Bodies Corporate as notified to you by:

   1. debiting your Account at a later date;
   2. debiting your selected Funding Source the next time you make a payment;
   3. set off against the balance of any other Account you have with us or against any money we owe you; or
   4. any other legal means.

 
21. Our intellectual property

21.1. Our Website and all of the content on our Website is the exclusive property of PayPal and our licensors.

21.2. Subject to clauses 21.3 and 21.4, you must not copy, imitate, modify, alter, amend or use without our prior written consent:

   1. the URLs representing our Website, “PayPal,” and all related logos of our products and Services described in our Website which either are subject to copyright or trademark ownership by us or our licensors; and
   2. all page headers, custom graphics, button icons, and other similar content on our websites.

Licence

21.3. You agree to grant us a nonexclusive, worldwide, royalty-free, perpetual, irrevocable, sublicensable right to exercise the copyright, publicity, and database rights (but no other rights) you have in your information, in any media so we may adequately provide our Services to you.

Use of our logos

21.4. You may use without our prior written consent, HTML logos provided by us through our merchant services, auction tools features or affiliate programmes for the purpose of directing web traffic to our Services. If you use our logos you agree to abide by the Logo Centre User Agreement located at https://www.paypal.com/au/cgi-bin/webscr?cmd=xpt/cps/general/OnlineLogoCenter-outside.

21.5. The logos must not:

   1. be altered, modified, or changed in any way, or used in a manner that is disparaging to us or our Services; or
   2. be displayed in any manner that implies sponsorship or endorsement by us or implies that you are acting as our agent.


22. Legal disputes

22.1. If a dispute arises between you and PayPal, our goal is to provide you with a neutral and cost effective means of resolving the dispute quickly. Accordingly, you agree that any controversy or claim at law or equity that arises out of this Agreement or our Services will be resolved in accordance with one of the subsections below, or as otherwise mutually agreed upon in writing. Before resorting to these alternatives we strongly encourage you to first contact us directly to seek a resolution.

Dispute Resolution

22.2. We strongly encourage you to first try and resolve disputes concerning transactions and other PayPal customers directly and using the PayPal Online Dispute  Resolution Centre.

22.3. Disputes between you and PayPal about our Services can be reported to Customer Support online through the PayPal Help Centre at any time, or by calling (02) 8223-9500 or 1800 073 263. Hours of operation for Customer Support can be found via the “Contact Us” link at the bottom of our Website. You may also contact our Customer Services, at the following address: “Attention: PayPal Australia, Locked Bag 10, Australia Square PO, Sydney NSW 1215”. Additionally, if you are still not satisfied with our resolution or handling of your dispute you may contact the Financial Ombudsman Service at 1300 78 08 08.

Court

22.4. Alternatively, any controversy or claim at law or equity may be adjudicated by a court of competent jurisdiction located in New South Wales, Australia. You agree to submit to the jurisdiction of the courts located within New South Wales.

Alternative Dispute Resolution

22.5. We may consider use of other alternative forms of dispute resolution, such as binding arbitration or non-binding mediation to be held in New South Wales, Australia or another location mutually agreed upon by the parties.


23. Notices

23.1. You agree that this Agreement and any other agreements, notices or other communications regarding your Account and/or your use of our Services may be provided to you electronically and you agree to receive all such communications from us in electronic form. These communications will be posted on our Website and/or sent to your email address. You can print a copy of any communications and retain it for your records. We reserve the right to provide communications in paper format, but assume no obligation to do so.

23.2. Except as explicitly stated otherwise, any notices to us should be given by mail to: PayPal Australia Pty. Limited, Locked Bag 10, Australia Square PO, Sydney NSW 1215 (in the case of PayPal) or to the primary email address you have provided to us (in your case).

23.3. Notices are deemed as given 24 hours after an email is sent, unless the sending party is aware that the electronic communication was not received. Alternatively, we may give you notice by mail to the address you have provided to us. In such case, notice shall be deemed given 3 days after the date of mailing.


24. Release

24.1. If you have a dispute with one or more users, you release us, our Related Bodies Corporate, employees, agents and directors from any and all claims, demands and damages (actual and consequential) of every kind and nature arising out of or in any way connected with such disputes.


25. Limitation of liability

25.1. Except where we are liable by operation of any non-excludable term implied by the Australian Securities and Investments Commission Act 2001 or Trade Practices Act 1974, we or our Related Bodies Corporate will not be liable for lost profits or any special, incidental or consequential damages arising out of or in connection with our Website, our Services, or this Agreement (however arising, including for negligence or for any unauthorised use or damage caused by Secondary Logins or as a consequence of any other person accessing your Account).

25.2. In any event, our liability, and the liability of our Related Bodies Corporate, employees and suppliers, to you or any third parties in any circumstance is limited to the actual amount of direct damages you incur.

25.3. We are not responsible for losses incurred by you as a result of your negligence, including the use of your Account by any person other than you, arising as the result of your failure to protect your passwords.


26. Indemnification

26.1. You agree to indemnify and hold us, our Related Bodies Corporate, officers, directors and employees harmless from any claim or demand (including legal fees) made or incurred by any third party due to or arising out of your breach of this Agreement or the documents it incorporates by reference, or your violation of any law or of the rights of a third party relating to your use of our Services.

26.2. You also agree to hold us, our Related Bodies Corporate, officers, directors and employees harmless from any losses or other damage whatsoever incurred as a direct or indirect consequence of access to your Account by other logins and you agree to indemnify us for any harm that arises as a direct or indirect consequence of other logins accessing your Account.


27. Assumption of rights

27.1. If we pay out any claim or any reversal or Chargeback that you file against a recipient of your payment, you agree that we assume your rights against the recipient and third parties related to the payment, and may pursue those rights directly or on your behalf, in our discretion.

Schedule 1

PayPal Seller Protection Policy

 
1. Eligibility

1.1. The PayPal Seller Protection Policy may apply to you if you are a seller.

1.2. If you are a seller, you may not owe us any amounts in connection with a Reversal where the following eligibility requirements are met for a transaction:

   1. the item is sold on eBay;
   2. you receive payment via PayPal;
   3. you provide us with valid Proof of Shipment for the sale; and
   4. the item is sent to the address specified on the "Transaction Details Page".


2. Limitations on the PayPal Seller Protection Policy

2.1. The PayPal Seller Protection Policy will not apply to a transaction if any of the following apply:

   1. you combine eBay items purchased through separate PayPal payments into a single shipment;
   2. more than one payment is received for a single eBay transaction;
   3. you do not provide Proof of Shipment or respond to our other requests for information in a timely manner;
   4. the item sold is an intangible good, quasi-cash, gift certificate, downloadable or streaming content, license for digital content or a service;
   5. the item sold is a motor vehicle (including cars, motorcycles, caravans, boats, and planes);
   6. the item is hand delivered;
   7. the item is shipped to an address that is different to the address listed on the “Transaction Details Page” of our Website (for this reason, we recommend not using a shipping service that is engaged by or controlled by the buyer because of the risk of the buyer redirecting the item to a different address);
   8. the buyer has claimed that the item is Significantly Not As Described;
   9. you have not complied with the terms of this Agreement, any PayPal policy or any specific directions provided by us, or
  10. if the buyer files a claim through a buyer protection policy other than the PayPal Buyer Protection Policy, such as the eBay Buyer Protection Program available on ebay.com (see http://pages.ebay.com/help/policies/buyer-protection.html).

3. Process

3.1. If a Reversal occurs, we will send you an email to let you know that we will place a temporary hold over funds in your Account to cover the amount of the Reversal and ask you to provide Proof of Shipment and any other information that we may require to enable us to assess and determine whether the transaction meets the eligibility requirements for the PayPal Seller Protection Policy;

3.2. We use our reasonable discretion to determine whether a transaction meets the PayPal Seller Protection Policy eligibility requirements. If we determine that a transaction meets the eligibility requirements, we will lift the temporary hold and restore the funds to your Account.

3.3. If we reasonably determine that a transaction does not meet the eligibility requirements, we will debit the funds from your Account, together with any Fees and return the funds to the buyer's PayPal account.

3.4. If we reasonably determine, having regard to all the relevant circumstances, that you have received an excessive or unreasonable number of Reversals, we may exclude you from the PayPal Seller Protection Policy or take any other actions pursuant to this Agreement. We will notify you if you are excluded from the PayPal Seller Protection Policy.

3.5. The PayPal Seller Protection Policy is incidental to our Services and issued at our discretion. Accordingly, we reserve our right, to terminate or amend the terms and conditions of the PayPal Seller Protection Policy or the eligibility requirements at any time. If we make any substantive changes to the PayPal Seller Protection Policy which may negatively impact your use of our Services in a material way, we will notify you in accordance with the “Amendments to this Agreement” section above. If you do not agree with any changes we make to the PayPal Seller Protection Policy, you may terminate this Agreement at any time.

3.6. You have no automatic entitlement to protection under the PayPal Seller Protection Policy. The PayPal Seller Protection Policy does not indemnify you for loss which may incur and is not a contract of insurance.




Schedule 2

PayPal Buyer Protection Policy

1. What is the PayPal Buyer Protection Policy?

1.1. The PayPal Buyer Protection Policy applies to all payments effected using our Services on or after 12.00am AEDT on 2 November 2010. For payments made using our Services prior to 12.00am AEDT on 2 November 2010, click here.

1.2. If you are an eligible buyer, the PayPal Buyer Protection Policy is our policy to help you recover payments made in respect of certain items purchased where items are:

   1. deemed Item Not Received; or
   2. delivered but are Significantly Not As Described.

1.3. If your purchase meets the requirements for the PayPal Buyer Protection Policy we will attempt to recover your payment from the seller, ie to attempt to reverse the transaction.

1.4. If you have received any cash back, rebate, credit or other promotional incentive from us or any third party for a purchase eligible for the PayPal Buyer Protection Policy, you may only recover the amount of your payments less the value of the cash back, rebate, credit or other promotional incentive you received.

1.5. Where we are unable to recover the whole or any part of your payment from the seller we may in our absolute and sole discretion, decide to make an ex gratia payment. Please note payment by us under the PayPal Buyer Protection Policy is at our absolute and sole discretion. You have no automatic entitlement to receive any payments. The PayPal Buyer Protection Policy does not indemnify you for loss which may incur and it is not a contract of insurance.

1.6. If we determine a claim in your favour, we will re-imburse you the full purchase price of the item and original postage costs only. We will not reimburse you for the postage costs you incur to return an item subject to a Significantly Not As Described claim to the seller or another party we reasonably specify. If the seller presents evidence for an Item Not Received claim that they shipped the goods to your address, we may find in favour of the seller even if you did not receive the goods.


2. Item Not Received

2.1. Buyers should wait a reasonable amount of time - at least 7 days - to receive the item, before filing a dispute for Item Not Received.


3. Significantly Not As Described

3.1. An item is Significantly Not As Described if, in our opinion, the seller misrepresented (including by omission of information or by giving incorrect information) the details of an item in a way that affects its value or usability.

3.2. Significantly Not As Described does not include cases where you are merely disappointed with the item or where the item did not meet your expectations.

3.3. Reasons that an item may be considered Significantly Not As Described include:

   1. the item is a completely different item to that which was represented by the seller at their point of sale, e.g. an audio book instead of a printed book, a desktop computer instead of a laptop, a picture of an item instead of the actual item; or an empty box;
   2. the condition of the item is significantly different. For example, if the item has clearly been used multiple times rather than 'almost new' or 'still in box' or is obviously repackaged rather than 'mint';
   3. the item is unusable and was not disclosed as such. For example, if there are missing major parts or components, will not function or turn on, or spoiled or past a relevant date. (NOTE: this applies to the item in its received state, no matter what the condition when it was sent);
   4. the item is not authentic. For example, a fake or pirated item that was advertised as authentic or a completely different or inferior brand of a similar product; or
   5. the item is missing a major portion or quantity. For example, if the buyer ordered 4 dozen golf balls but only received 1 dozen or 4 golf balls or the item is missing a primary component, like a blender missing a top or coffee maker missing the bottom plate.

3.4. An item is not considered to be Significantly Not As Described if, for example:

   1. the item fits into one of the Significantly Not As Described categories but was reasonably and prominently described at the seller’s point of sale as such. For example, if the listing states one of the following: "Item is being sold as is," "Item may not work properly," "Item is missing some parts," or "See picture for scratches or damages";
   2. you do not want the item after you see it in person but it was properly described at the seller’s point of sale;
   3. the description could have been reasonably misinterpreted by you or the seller. For example, if the item is a different colour than advertised (e.g. the item is aqua-marine but was advertised as teal);
   4. the item did not meet your expectations; or
   5. the item has minor scratches but was listed as 'in used condition'.

3.5. For items that do not qualify as Significantly Not As Described, we encourage you and the seller to find an equitable solution.

3.6. We reserve our right to make a decision on Significantly Not As Described if you and the seller cannot agree and we will exercise our sole discretion, reasonably, when determining a claim of Significantly Not As Described. In exercising our discretion we will have regard to numerous factors which may include the communications between you and the seller and any documentation you have provided to us. We will endeavour to provide you with reasons for our decision upon request.


4. Eligibility

4.1. You may be eligible for the PayPal Buyer Protection Policy if the following eligibility requirements are met:

   1. you use PayPal as your payment method when you make the payment; and
   2. your payment is less than $20,000.00; and
   3. your payment is not a personal transaction payment and is made through:
         1. an eBay “Pay Now” button or an eBay invoice; or
         2. the “Send Money” button of your Account by selecting “eBay Item” and entering your eBay User ID and the eBay item number for purchases on eBay; or
         3. the “Send Money” tab on our Website, by clicking the “Purchase” tab, or by selecting the “Checkout with PayPal” button or otherwise selecting PayPal as part of a Seller’s PayPal checkout flow; and
   4. your payment is made from your Account and not directly from a Credit Card processed through our Website Payments Pro or Virtual Terminal service; and
   5. pay the full amount of the item in one payment. Items purchased with multiple payments – like a deposit followed by a final payment – are not eligible; and
   6. Item Not Received or item received but Significantly Not As Described; and
   7. your Account is in good standing; and
   8. your purchase is for a tangible, physical good that can be shipped or delivered. For the avoidance of doubt, the PayPal Buyer Protection Policy does not apply to:
         1. intangibles (for example digitally delivered goods), although, subject to this clause, we may cover intangibles which have been transferred to a physical media (such as paper or CD-ROM), for example: electronic tickets that have been physically printed and shipped;
         2. services;
         3. licences and other access to digital content;
         4. travel tickets (including airline flight tickets);
         5. sale of business; and
   9. your purchase is not for:

         1. vehicles (including cars, motorcycles, caravans, boats and planes);
         2. real estate;
         3. custom made items;
         4. industrial machinery used in manufacturing; or
         5. items prohibited under our Acceptable Use Policy or by eBay's "Prohibited and Restricted Items and Services" policy (which will prevail in the event of any inconsistency with this policy);
         6. items which you collect in person, or arrange to be collected on your behalf;
         7. quasi-cash items such as gift cards and other pre-paid cards; and
  10. you file a “dispute” online in the “PayPal Online Dispute Resolution Centre” within 45 calendar days of the date that you made the payment to the seller and in the event that the dispute remains unresolved, you escalate the dispute to a “claim” under the PayPal Buyer Protection Policy within 20 calendar days of the date you filed the dispute.

4.2. For eBay listings, you should look for either a PayPal Buyer Protection message or an eBay Buyer Protection message. If you see this message and you meet all other eligibility requirements, your item is eligible for PayPal Buyer Protection. You can view this message in the listing after you complete your purchase by logging into your eBay account, going to “my eBay,” then “won”, and looking at the listing. If the listing does not include the buyer protection message, then it is not eligible for PayPal Buyer Protection.


5. Limitation

5.1. The PayPal Buyer Protection Policy will not protect you:

   1. for more than one claim under the PayPal Buyer Protection Policy for a single PayPal payment. For multiple items paid for under one PayPal payment you will be able to address all of your Buyer Protection related issues in a single claim;
   2. if you initiate a dispute through the “PayPal Online Dispute Resolution Centre” and also file a chargeback directly with your Credit Card issuer or a claim with eBay or with any other company with respect to the same transaction. If you receive payments from both us and another company with respect to the same transaction, we will seek to recover any payment we have made under this policy;
   3. if you do not comply with the Process set out in clause 6 below; or   
   4. if you do not comply with your Buyer Responsibilities as set out in clause 7 below.


6. Process

6.1. If you purchase an item using our Services where Item Not Received or the item is Significantly Not As Described, you may file a “dispute” online in the “PayPal Online Dispute Resolution Centre”, but only within 45 calendar days of the date that you made the payment to the seller.

6.2. Once you file a dispute, we will notify the seller of the dispute, and while the dispute is open, you and the seller are able to access the details of the dispute via the Dispute Resolution Centre and post messages to each other in connection with the dispute. Any messages you post are viewable by us and the other party to the dispute.

6.3. You should communicate with the seller and try to resolve the issue.

6.4. In the event that the dispute remains unresolved, you may escalate the dispute to a “claim”, but only within 20 calendar days of the date you filed the dispute. If you do not escalate the dispute to a “claim” within the time specified, your dispute is automatically closed and cannot be re-opened.

6.5. If you escalate the dispute to a claim under the PayPal Buyer Protection Policy, we may review and use the content of all posted messages to evaluate your claim. You may not post any message that is offensive, discourteous, false, misleading, profane, abusive, threatening, otherwise inappropriate or contrary to any of our applicable policies.

6.6. You are permitted to file a dispute for Item Not Received and then change it to Significantly Not As Described if circumstances change, but not vice versa. Unless stated otherwise, a claim under the PayPal Buyer Protection Policy may not be edited or changed (other than to add further information) after it has been filed unless PayPal exercises its discretion to allow you to change your initial claim or you make an appeal before the claim is determined and closed.

6.7. The PayPal Buyer Protection Policy is incidental to our Services and issued at our discretion. Accordingly, we reserve our right, to terminate or amend the terms and conditions of the PayPal Buyer Protection Policy or the eligibility requirements at any time. If we make any substantive changes to the PayPal Buyer Protection Policy which may negatively impact your use of our Services in a material way, we will notify you in accordance with the “Amendments to this Agreement” section above. If you do not agree with any changes we make to the PayPal Buyer Protection Policy, you may terminate this Agreement at any time.


7. Buyer Responsibilities

7.1. You must respond to any of our enquiries regarding your claim for a discretionary payment under the PayPal Buyer Protection Policy within the time specified by us. If you fail to respond to our request for more information then we will not continue to process your claim or otherwise assist you in relation to your complaint and the claim will be closed and may not be reopened.

7.2. We may require you to provide website details (including URL) or a receipt for the eligible item.

7.3. If you file a claim in relation to a Significantly Not As Described item, we may require you to ship the item at your expense to the seller, to us, or to a third party designated by us. In addition, we may require you, at your expense, to obtain documentation from a qualified third party to substantiate your claim, or to verify that you have destroyed the item if we request you to do so. In some instances, we may require you to supply a copy of a police report substantiating your claim.

7.4. If we ask you to ship or return the item, you will be required to take precautions in repacking the item to reduce the risk of damage in transit and show Proof of Shipment.

7.5. If you are required to send the item to us, you agree to transfer the ownership of the item to us and if requested, provide all reasonable assistance in ensuring that the transfer of ownership takes place.

7.6. If you and the seller agree to a refund amount that is less than the amount of the original transaction, and the seller provides you the refund, we will consider your dispute/claim to be successfully resolved.


8. Seller Responsibilities

8.1. If you are the seller, you must respond to any of our enquiries regarding a claim filed against you within the time specified, which is usually 10 days.

8.2. If you fail to respond to our request for more information the claim will be found in favour of the buyer, we will not know where the item should be returned so the buyer may not be required to return the item to you, and the transaction will be reversed from your Account.

8.3. In the event that you lose a claim, the buyer will return the item to you and you are required to provide the buyer a refund of the full purchase price (which includes the original shipping costs). You will not receive a refund on the PayPal or eBay fees you paid.

8.4. If you lose a Significantly Not As Described claim because the item you sold is counterfeit, we may require, or the buyer may be required by law to destroy the item, in which case you will not receive the item back.

[*Brum6y*]

2. Limitations on the PayPal Seller Protection Policy

2.1. The PayPal Seller Protection Policy will not apply to a transaction if any of the following apply:
 ...
 ...
 ...
   7. the item is shipped to an address that is different to the address listed on the “Transaction Details Page” of our Website (for this reason, we recommend not using a shipping service that is engaged by or controlled by the buyer because of the risk of the buyer redirecting the item to a different address);

So there we have it - using Australia Post is out ... and so are any couriers that listen to the recipients who want an alternate delivery address.

While the basic reasoning is clear enough - it is just NOT how the world works.


For this, and many other reasons, somewhere along the line there will have to be a mechanism introduced to prosecute fraud more readily.

Also, the rules of evidence need to be addressed and PayPal will need a concerted education on that matter.

I once made a suggestion that an X-ray scan of a package could be made by an independent party - such as Australia Post - that could be stored online and linked to a tracking number.  While that isn't a full guarantee, it will provide evidence if a seller sends an iPhone and the buyer returns a couple of wall tiles. Also, by providing an image of the internals, disputes as to whether someone sent an iPhone 3 or 4 could be accurately determined.

It won't help with things like DVD's or a lot of books - but the technology exists and is used around the world in Customs departments.

I'm still not swayed away from it being a good idea - but if someone has something better, then let's hear it.

[*CountessA*]

I have noticed several issues of concern. Look, for example, at how payments funded by a credit (or debit) card are treated differently to payments funded by money IN your PayPal account or money taken from your bank account. Sellers are charged more if you fund your payment by credit card.

There is a real push to make you feel it's easier and better if you fund your payment by money in your PayPal account (which PayPal explicitly says is invested to earn interest to which you are not entitled)... or by money in your bank account (giving PayPal permission to take funds from your bank account).

Are you happy to do that?

I would not be.

In these instances, you would NOT be able to claim protection by a chargeback. If PayPal gets it wrong, you're basically skewered... unless you then go to the Ombudsman, which is messier and time-consuming (or at least is CONSIDERED to be messy and time-consuming). I have very frequently heard people who've been defrauded and not received a fair result by PayPal say in resignation, "It's not worth the bother" when it's suggested they lodge a claim to the Ombudsman. Do you think it's possible PayPal rely on this feeling, this "not worth the bother" resignedness? Mm-hmm...

However, if you're NOT happy to give PayPal access to your bank account, if you DON'T want to pay by echeque, and if you DON'T have funds that you keep hanging about in your PayPal account (earning interest for someone else), and wish to rely on the protection of the EFT Code of Conduct, you'll want to make your payment funded by your card.

Ah - but the international seller (so I understand on reading these changes) is faced with a higher fee if you do.

[*Brum6y*]

I have very frequently heard people who've been defrauded and not received a fair result by PayPal say in resignation, "It's not worth the bother" when it's suggested they lodge a claim to the Ombudsman. Do you think it's possible PayPal rely on this feeling, this "not worth the bother" resignedness? Mm-hmm...

Absolutely.

It won't deliver a risk-free environment for PayPal - but the more 'bad press' that PayPal get about their indifference, the more people will think this way.

Further, Paypal will only need to state they have X, Y and Z facilities in place for consumer complaints to be handled and if they are shown to exist, the regulators will be appeased. It will fall on the shoulders of consumers to PROVE that they are ineffective ... and that takes a bit more effort and discipline than most consumers can be inspired to muster ... especially with smaller amounts.