Amendment to PayPal Legal Agreements: What You Need to Know
PayPal, the popular online payment service, recently updated its legal agreements in order to comply with various regulations and improve user experience. These changes, which were effective as of July 31, 2020, affect both buyers and sellers who use PayPal for transactions.
As a user of PayPal, it is crucial that you understand these amendments and how they could impact your use of the platform. Here are some of the key changes to look out for:
1. Changes to how PayPal handles disputes
Previously, PayPal would automatically escalate disputes to a claim if the buyer and seller could not come to a resolution within 20 days. However, the updated legal agreements now give sellers the option to request a review before a claim is filed. This means that sellers can now escalate a dispute to PayPal for review before it becomes a claim, allowing them more time to work with the buyer to resolve the issue.
Additionally, PayPal now requires buyers to respond to dispute notifications within 20 days, or PayPal may automatically close the dispute in favor of the seller.
2. Changes to fees
PayPal has made some changes to how it calculates fees for sellers. There are now different rates based on the currency used in the transaction. Sellers will also be charged a fee for refunds, though this may be waived in certain circumstances.
3. Changes to how PayPal handles currency conversions
PayPal has updated its approach to currency conversions to provide buyers and sellers with greater transparency and control. Previously, PayPal could convert currency at its own exchange rate, which sometimes resulted in unfavorable rates for users. Now, users can choose to either use PayPal’s rate or the rate provided by their card issuer or bank.
4. Changes to how PayPal processes payments
In an effort to improve transaction speed and reduce the risk of fraud, PayPal has updated its processes for handling payments. This includes greater use of machine learning and artificial intelligence to detect potentially fraudulent transactions.
5. Changes to how PayPal handles user agreements
Finally, PayPal has made some changes to how it handles user agreements. These changes are designed to make it easier for users to understand PayPal’s policies and agreements, as well as to ensure that users are aware of any changes that are made.
In light of these amendments, it is important for PayPal users to review their user agreements and make sure they understand the changes that have been made. By doing so, users can help ensure that their transactions on the platform remain smooth and secure.