PayPal is updating its User Agreement effective July 9, 2019. The company highlighted several changes in three categories (buyers, sellers, and sellers with PayPal Website Payments Pro and Virtual Terminal Agreements).
The change that looks to be of greatest interest to most sellers: “PayPal may use any of the payment methods linked to a seller’s PayPal account to prevent the seller’s account from becoming negative when there are not sufficient funds in the account for seller refunds, reversals and chargebacks.”
Policy Updates announcement follows:
This page displays policy updates informing users in advance of important changes to the PayPal service, its User Agreement, or other policies. Please go to “Past Policy Updates” for previous policy updates.
AMENDMENTS TO THE PAYPAL ACCOUNT USER AGREEMENT AND THE PAYPAL WEBSITE PAYMENTS PRO AND VIRTUAL TERMINAL AGREEMENT
We are updating the PayPal agreements listed below for U.S. customers. The changes described below will go into effect on July 9, 2019. There is no action needed from you, as the changes will occur automatically on the effective date above. In the event you would prefer to decline the changes and close your account, you can do so prior to the effective date and the changes will not apply to you.
Amendment to the PayPal Account User Agreement for Buyers
If PayPal performs a currency conversion for your purchase, and the purchase is refunded at a later date, PayPal will perform a currency conversion for the refund at the transaction exchange rate in effect on the date of the refund.
Amendment to the PayPal Account User Agreement for Sellers
- We’re updating our User Agreement in anticipation of expanding our capabilities for PayPal Payouts. PayPal Payouts is being enhanced to allow payments to be directed to Venmo account holders in addition to PayPal account holders.
- PayPal may use any of the payment methods linked to a seller’s PayPal account to prevent the seller’s account from becoming negative when there are not sufficient funds in the account for seller refunds, reversals and chargebacks.
Amendments to the PayPal Website Payments Pro and Virtual Terminal Agreement
- Merchants can now accept debit network branded cards.
- We’ve clarified merchant’s obligations regarding certification of PCI DSS compliance.
SOURCE: PayPal Announcement