Combined Financial Services Guide and Product Disclosure

PayPal Australia Pty Ltd - Combined Financial Services Guide and Product Disclosure Statement

This Version: 18-4

Combined Financial Services Guide and

Product Disclosure Statement

This Version: 18-4

Previous Version: 18-3

Last Update: 17 November 2018

Jump to section:

INTRODUCTION

Part 1: FINANCIAL SERVICES GUIDE (FSG)

1. Issuer

2. Purpose of this FSG

3. How to contact us

4. Financial services we are authorised to provide

5. Remuneration, commissions and other benefits

6. Associations

7. Complaints and disputes

PART 2: PRODUCT DISCLOSURE STATEMENT (PDS)

8. Issuer

9. About this PDS

10. Our Services

11. Terms and conditions

12. Responsibility for taxes

13. Opening a PayPal account

14. Types of accounts

15. How PayPal manages the funds in your account

16. Key risks

17. Key benefits

18. Fees and charges

19. Fee calculation examples

20. Confirming our customers’ identities under the Anti-Money Laundering and

Counter-Terrorism Financing laws

21. Verifying your Payment Method and transaction limits

22. Third party Card fees

PayPal Australia Pty Ltd - Combined Financial Services Guide and Product Disclosure Statement

This Version: 18-4

23. Complaints and contacting us

24. Other related documents

PART 3: Definitions

INTRODUCTION

Our legal relationship with customers is governed by our User Agreement.

Our Financial Services Guide (FSG) is designed to help you decide whether to use our

services.

Our Product Disclosure Statement (PDS) contains information to help you make an

informed choice about whether or not to register for and use our services. Information

relevant to both the FSG and PDS may be included expressly in one part and

incorporated by reference in the other.

Part 1: FINANCIAL SERVICES GUIDE (FSG)

1. Issuer

1.1 Part 1 of this document is an FSG provided by PayPal Australia Pty Limited ABN 93

111 195 389 which holds Australian financial services licence number 304962.

2. Purpose of this FSG

2.1 This FSG contains information about:

• The services we provide;

• Remuneration, commission or other benefits paid to us and others in connection

with the services we provide;

• Details of any associations which might reasonably be expected to be able to

influence the services we provide; and

• Our complaint resolution arrangements and how you can access them.

2.2 This FSG contains only general information about the services we offer.

3. How to contact us

PayPal Australia Pty Ltd - Combined Financial Services Guide and Product Disclosure Statement

This Version: 18-4

3.1 Our contact details are as follows:

Email:

Visit our Help Centre.

Phone:

1800 073 263 (within Australia) or +61 2

8223 9500

Support Hours are available on

our Contact Us page

Mail:

PayPal Australia

GPO Box 351

Sydney NSW 2001

4. Financial services we are authorised to provide

4.1 PayPal is authorised to:

• Provide general financial product advice for non-cash payment products; and

• Issue, apply for, acquire, vary or dispose of non-cash payment products.

4.2 We are only authorised to provide general advice so you should be aware that any

advice (including any statement of opinion or recommendation) we may give about our

services does not take into account your objectives, financial situation or needs. You

should consider the appropriateness of our services in regard to your objectives,

financial situation and needs before you act on any advice we provide.

5. Remuneration, commissions and other benefits

PayPal

5.1 PayPal earns money from any fees you pay us under clause 18 of the PDS.

5.2 PayPal also earns money when it converts currency.

5.3 PayPal earns interest on the money we hold in a bank account which reflects your

PayPal balance.

PayPal staff

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This Version: 18-4

5.4 Our staff and the staff of our Related Bodies Corporate receive a salary plus

superannuation where applicable. They may also be eligible for monetary and non-

monetary awards or additional incentive payments, including bonuses and shares.

5.5 The way we pay our staff and the amount we pay them varies depending on each

individual staff member’s business area and position at PayPal.

5.6 Some staff in the PayPal sales team earn a base salary and variable pay, calculated as

a percentage or multiple of their base salary, if they (or their team) meet business and

service targets (as applicable).

Third parties

5.7 If a customer is referred to us, we may:

• pay the referrer a fee calculated as a percentage of the total payment volume

generated by the customer;

• pay the referrer a fixed amount for each referred customer; or

• provide the referrer monetary or non-monetary incentives based on various

measures. Non-monetary incentives may include entertainment vouchers or

other benefits that we choose to offer from time to time.

5.8 You can request more information about certain relevant remuneration payments

referred to above before we provide our services to you.

6. Associations

6.1 PayPal is part of the PayPal Holdings Inc. group of companies.

7. Complaints and disputes

7.1 We are committed to dealing with customer complaints fairly and resolving issues in

accordance with our complaints handling processes, policies and relevant regulatory

standards.

7.2 We are exempt from the requirement to:

• hold professional indemnity insurance; and

• put compensation arrangements in place.

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7.3 The Australian Securities and Investments Commission has a free Infoline on 1300

300 630 for obtaining information about your rights or making a complaint.

Submitting a complaint or dispute

7.4 If you have a dispute with a PayPal seller, you should file a dispute through

the Resolution Centre by logging in to your PayPal account.

7.5 If you have a complaint about our services or believe your account may be subject to

an unauthorised transaction, account takeover or other type of fraudulent activity, you

should contact us immediately.

7.6 You can report complaints about our services by:

For PayPal accounts

Email:

[email protected]

Phone:

1800 073 263 (within Australia) or

+61 2 8223 9500

Support Hours are available on

our Contact Us page

Mail:

Customer Advocacy Manager

PayPal Australia

GPO Box 351

Sydney NSW 2001

Handling your complaints

7.7 We aim to:

• Acknowledge receipt of all complaints within 5 business days.

• Resolve all complaints within 45 days. This may not be possible in all

circumstances.

PayPal Australia Pty Ltd - Combined Financial Services Guide and Product Disclosure Statement

This Version: 18-4

Where we cannot resolve a complaint within 45 days, we will notify you of the reason

for the delay as well as an indication of when we expect to resolve the complaint.

7.8 If a complaint relates to the limiting of a PayPal account, we may request additional

documentation from you. For more information, please refer to the “Restricted

Activities and Holds” section of our User Agreement.

Referral of unresolved complaints to external dispute resolution scheme

7.9 We are a member of the Australian Financial Complaints Authority (“AFCA”), an

independent external dispute resolution scheme covering applicable Australian

customers. For more information on AFCA, please visit www.afca.org.au.

7.10 If you are not satisfied with our resolution or handling of your complaint you may

wish to contact AFCA by:

Phone:

1800 931 678

Mail:

Australian Financial Complaints Authority

GPO Box 3

Melbourne VIC 3001

PART 2: PRODUCT DISCLOSURE STATEMENT (PDS)

8. Issuer

8.1 Part 2 of this document is a PDS prepared by PayPal Australia Pty Limited ABN 93

111 195 389 which holds Australian financial services licence number 304962.

8.2 We are licensed by the Australian Prudential Regulation Authority as an authorised

deposit-taking institution that provides purchased payment facilities.

8.3 We are a reporting entity to AUSTRAC under the Anti-Money Laundering and

Counter-Terrorism Financing Act.

PayPal Australia Pty Ltd - Combined Financial Services Guide and Product Disclosure Statement

This Version: 18-4

9. About this PDS

9.1 This PDS applies to:

• your Australian PayPal account; and

• any other use of PayPal in Australia.

9.2 The information in this PDS is current as at the last update. Information about

changes may be found on our Policy Updates page. We will mail you a paper copy of

any changes free of charge on request.

9.3 The information in this PDS is not intended to constitute general advice about any

financial product other than the financial products to which this PDS relates, nor is it

personal advice or a recommendation or opinion that our services are suitable for or

take into account your specific objectives, financial situation or needs.

10. Our Services

10.1 Our services allow you to securely and conveniently send and receive money for

goods or services and between friends and family. To find out more about our services,

visit www.paypal.com.

10.2 When you register to use the PayPal services, we will open a PayPal account in your

personal name or business name.

10.3 The PayPal services allow you to:

Make a

payment

Pay anyone, anywhere, with just an email address or mobile phone number.

• Send payments for Commercial Transactions or Personal Transactions.

• Payment will be made on your terms. Funds will be debited from your

PayPal account balance, linked bank account or card.

• We’ll send the funds to your recipient while protecting your financial

information.

Request and

receive

payments

Request and receive payments instantly from anyone with just their email

address or mobile phone number.

• Invoice a buyer or request funds for a Personal Transaction.

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• When you request a payment, we’ll send the buyer or nominated

individual an invoice or notification.

• We’ll let you know when you’ve been paid and the funds will appear in

your account.

Withdraw

money

If you have funds in your account, you may withdraw them to the linked bank

account you hold with a financial institution in Australia or the United States of

America. If you have funds in your account that are held in a foreign currency,

they’ll usually be converted to Australian Dollars prior to withdrawal.

10.4 In consideration for your use of the PayPal services, you irrevocably transfer and

assign to us the right to earn interest that may accrue on funds held by us. This applies

only to interest earned on your funds and does not grant us any ownership right to the

principal of the funds you hold with us, subject to the PayPal User Agreement.

11. Terms and conditions

11.1 If you sign up to use PayPal, this PDS, the PayPal User Agreement and your

completion of our online registration form constitute your agreement with us.

11.2 The PayPal User Agreement (and its incorporated policies) is available online

at www.paypal.com by clicking Legal at the bottom of any page.

12. Responsibility for taxes

12.1 You are responsible for collecting, reporting and paying any taxes that may arise

from your use of our services. You agree to comply with applicable tax laws in

connection with your use of our services.

12.2 Unless otherwise expressly set out in this PDS, our fees are GST exempt.

13. Opening an account with us

13.1 You can sign up for a PayPal account at www.paypal.com by clicking Sign Up and

completing the online registration form.

13.2 Your PayPal account will become active after you have validly completed the

registration form. You may be subject to certain payment or transfer limits until you

complete further verification processes.

PayPal Australia Pty Ltd - Combined Financial Services Guide and Product Disclosure Statement

This Version: 18-4

13.3 You may also be required to seek pre-approval for using PayPal if your account falls

within a category listed in our Acceptable Use Policy.

14. Types of accounts

14.1. There are 3 types of PayPal accounts as shown below. Premier accounts cannot be

opened from 27 October 2017.

Personal account

Premier account

Business account

For buyers and casual online

sellers.

• Buy online and in

person.

• Sell online.

• Send and receive

money for Personal

Transactions.

• Upgrade to a sole

trader business

account at any time.

For buyers and casual sellers.

• Buy and sell online

and in person.

• Send and receive

money for Personal

Transactions.

• Upgrade to a sole

trader business

account at any time.

For businesses, including sole

traders.

• Buy and sell online and

in person.

• Hold under a corporate or

group name.

• Set different access rights

for employees and

representatives.

15. How PayPal manages the funds in your PayPal balance

15.1 Any funds held in your PayPal account will be pooled with money from accounts of

other customers and deposited with a licensed bank in Australia. This does not affect

your right to withdraw funds from your PayPal account.

15.2 If there is a positive balance in your account and you have not transacted in the

period prescribed under the Banking Act 1959 (Cth), your funds will be subject to the

unclaimed monies laws.

16. Key risks

16.1 Unauthorised transactions: There is a risk your account or a transaction may be

compromised and subject to a takeover, interception, or other type of fraudulent or

unauthorised activity.

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This Version: 18-4

Your liability for

unauthorised

transactions

You are responsible for losses arising from an unauthorised transaction

where we can prove, on the balance of probability, that you contributed to a

loss through fraud or breaching our password and PIN security

requirements. You will be liable in full for the actual losses that occur

before the loss, theft or misuse of a security key or breach of password or

PIN security is reported to us.

16.2 Recovering owed funds: There is a risk you may:

• not receive your payment where you owe any amount to us, our Related Bodies

Corporate or eBay; or

• incur bank fees if your payment method has insufficient funds to complete your

payment with us.

Recovering

owed funds

When you receive a payment through our services, usually we have not yet

received payment in full from the sender. From the time that you receive the

payment, you will owe us an amount equivalent to the amount of the transaction

(including any applicable fees imposed on us), and that liability will be cancelled

only when we receive irrevocable payment in full. Events that could lead to us

not receiving payment in full include:

• The funds received being later invalidated for any reason;

• The funds received being subject to a chargeback (determined by the

sender’s card issuer – we are bound to follow their instructions);

• A reversal occurring (for example, because the transaction was

unauthorised);

• Our determination under the PayPal Buyer Protection Policy or payment

review (the process by which we review potentially high-risk

transactions) that the funds received should be returned or reversed; or

• You having received payment from a PayPal account holder in another

country and we determine under the PayPal Buyer Protection Policy of

that country that the funds received should be returned or reversed.

If you owe any amount to us, our Related Bodies Corporate or eBay you agree to

allow the recovery of these amounts by debiting your account promptly if we

reasonably believe that payment will not be received in full for any reason.

PayPal Australia Pty Ltd - Combined Financial Services Guide and Product Disclosure Statement

This Version: 18-4

If there are insufficient funds in your PayPal account to cover any amount you

owe us, our Related Bodies Corporate or eBay, the amount becomes

immediately due and payable by you and you authorise us to satisfy any of these

debts by:

• Debiting your PayPal account at a later date;

• Debiting a preferred payment method;

• Setting off the credit balance of any account you have with us or any

monetary liability we owe you in and towards satisfaction of your debt;

• Any other legal means.

16.3 Holds on funds, account limitation and account closure: Your PayPal account and

funds in it may be subject to a hold, release amount, reserve, limitation or closure for a

variety of reasons, including:

• If your account is associated with another PayPal account, an account you hold

with eBay, or an account connected with any other service you receive from us

which has been limited, is not in good standing or poses a risk to the integrity,

security or reliability of us or our systems;

• If we believe your personal account is being used in connection with a business

we may suspend it or require you to upgrade to a business account;

• If a transaction is subject to a payment review;

• Our requirements to prove your identity in accordance with Anti-Money

Laundering and Counter-Terrorism Financing laws (“AML laws”);

• Suspected fraud;

• Sudden changes in the amount or number of transactions;

• We need to ensure the integrity of a transaction;

• We believe that there’s a risk associated with you or your account;

• You receive a dispute, claim, chargeback or reversal in relation to any funds

received into your account;

• You do not meet certain seller or risk standards when listing on eBay;

• You are a new seller and/or have a limited history with eBay;

• Abuse of any of our services; or

• Breaches of our User Agreement, Acceptable Use Policy or any other policy or

agreement you have entered into with us relating to any of our services.

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16.4 Matters we consider: Before holding funds or limiting your PayPal account, we

consider:

• Information we collect when you create your account;

• Publicly available information;

• Your selling activity;

• Information we receive from related third parties;

• Whether the funds are related to an irregular or unusual transaction; and

• Other related information.

The more you use your account, the more we know about your activity. As such, our risk

assessment may change and we may increase or decrease the amount of funds we hold

based on that changed assessment.

16.5 How long do we hold funds?

Transaction holds and release amounts

Except in the case of a reserve or account limitation, funds are usually held for 21 days.

Funds may be held for longer than 21 days if:

• We believe that the increased risk associated with you or your account remains

after 21 days;

• If you are a seller. we expect the delivery time of your goods or services to be

longer than 21 days;

• You receive a dispute, claim, chargeback or reversal relating to the transaction

subject to the hold; and/or

• We have taken another action permitted under the PayPal User Agreement.

We may release a hold earlier than 21 days where we reasonably believe that the

relevant transaction has completed successfully. Funds held for buyer disputes may not

be released until we consider the issue resolved.

Reserves and limitations

If funds you receive are subject to a reserve, we will notify you how long funds will be

held for at the time of setting the reserve. If access to funds is restricted because your

account has been limited, you will usually gain access to those funds after the limitation

has been lifted.

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This Version: 18-4

16.6 More information about holding funds, account limitations and closures:

Payment Review

Transactions may be subject to payment review. Funds under payment

review will be subject to a hold and we will ask the seller to delay the

shipping of the item.

Once we have reviewed the transaction, we will either complete or reverse

the payment. If the payment is completed, we will provide notice to the

seller. Otherwise, the funds will be returned to the buyer.

Transactions that complete payment review may still be reversed under the

terms of the PayPal User Agreement.

Release amounts

If you are a seller, we may limit the amount you can withdraw or use from

your PayPal balance to help protect us and our users from the risk of

financial or other loss. The amount of your PayPal balance that will be

available for withdrawal or use is called a “release amount”.

We will notify you of the terms of any release amount we apply to your

account.

You may request an increase to your release amount once every 30 days.

Reserves

We may place a reserve on funds held in your account at any time where

we reasonably believe there may be a higher than acceptable level of risk

associated with you, your PayPal account, your business model, or your

transactions. The reserve helps protect us and our users from the risk of

financial or other loss.

See the PayPal User Agreement for more information on reserves.

Restoring access to

a limited account

If we limit access to your account, we will investigate and attempt to

resolve the issue. You may be required to provide information to us as part

of our investigation. If the investigation is resolved in your favour, we will

restore access to your account.

Restoring access to your account may take time and until it is restored you

may not be able to use it to send, receive or withdraw funds. Please refer to

the “Closing Your PayPal Account” and “Holds, Limitations and

PayPal Australia Pty Ltd - Combined Financial Services Guide and Product Disclosure Statement

This Version: 18-4

Reserves” sections of the PayPal User Agreement for a detailed

explanation of when we may limit access to or close your account.

Our right to deal

with held funds

You authorise us to make any reversals, refunds or payments from the held

funds in accordance with the PayPal User Agreement. You will not be

able to access any funds subject to a hold.

Held funds may be subject to a subsequent reversal, chargeback or claim,

either while held or after the hold has been released.

Our requirement to

transfer funds

If you are a judgment debtor or undischarged bankrupt, we may be required

to transfer your PayPal balance to a third party to comply with a law, court

order or other legal process.

Fees associated

with holds,

limitations or

closures

You agree that you will pay us (and we may deduct from your account) any

applicable fees if held funds are removed from your account in accordance

with the PayPal User Agreement. For example, if you have selected that

any funds received into your PayPal account should be automatically

converted to another currency and the funds are subsequently refunded or

reversed and must be returned to the sender in the original currency

received, you will pay us (and we may deduct from your account) any fees

relating to the currency conversion.

For information about fees, please see “Fees and charges” (clause 18

below).

16.7 Unavailability of our services, delays and cancellations:

Whilst we make every attempt to ensure our services are available at all times, it is

possible they may be rendered temporarily unavailable from time to time.

16.8 Amounts owed to eBay:

Reimbursements to eBay

for determinations under an

eBay buyer protection

policy

If eBay determines that you are required to reimburse eBay or

your buyer, you authorise us to debit the amount of the

reimbursement from your account and to pay those amounts to

eBay (“eBay Reimbursement”). You will not receive a refund for

your PayPal fees.

PayPal Australia Pty Ltd - Combined Financial Services Guide and Product Disclosure Statement

This Version: 18-4

Debit process for eBay

Reimbursement

• We will rely on information we receive from eBay for the

amount of an eBay Reimbursement.

• You agree and authorise us to debit eBay Reimbursements

from your account balance or from any payment method

linked to your account if you set up your PayPal account

as an automatic payment method for your eBay account, in

our sole discretion.

• If you do not want to us to debit a payment method for

eBay Reimbursements, you can cancel the billing

agreement from your PayPal account settings. Please note,

this may affect your ability to sell on eBay. Please contact

eBay for more information.

16.9 Foreign currencies: The following risks may apply when keeping foreign currency

balances in your PayPal account, or where a transaction with PayPal is made in, funded

by or received in a foreign currency:

Currency

fluctuations

There is a risk the value of any foreign currencies in your account balance will

fluctuate as exchange rates change.

Refunds

Generally, we’ll process refunds of:

• online purchases and friends and family transactions to the same

payment method you used for the purchase; and

• in-store purchases to your PayPal balance.

If a payment you sent involved a currency conversion and you’re later refunded:

• Within 60 days of the date of the original payment, we’ll normally use

the exchange rate that we applied at the time of the original payment;

• Beyond 60 days of the date of the original payment, we’ll normally use

the exchange rate that applies on the date of your refund;

• The refund will go back to your bank account or card used for the

original transaction in the currency of the original transaction. If that is

not possible, we will credit your PayPal balance in the currency of the

original transaction; and

• You’ll be refunded in Australian Dollars if your PayPal account balance

doesn’t support the currency of the original payment.

PayPal Australia Pty Ltd - Combined Financial Services Guide and Product Disclosure Statement

This Version: 18-4

Negative

balances

If you have a negative PayPal balance in non-Australian dollars for 21 days or

longer, you authorise PayPal to convert it to Australian dollars.

In addition, funds from payments received will first be diverted to us to make

up any negative currency balance. We may also debit your selected payment

method the next time you make a payment.

16.10 PayPal balance and the Financial Claims Scheme: As a provider of purchased

payment facilities, PayPal is exempt from the Australian Government’s Financial Claims

Scheme (FCS). As such, your PayPal balance is not protected by the FCS.

Visit https://www.fcs.gov.au/ for more information.

17. Key benefits

17.1 The following are some of the key benefits available to you when using our

services:

• Send money to people in more than 200 markets using more than 20 currencies.

• Make secure online payments while keeping your card or bank account number

secure.

• No setup fee.

• No annual or monthly account keeping fees. Monthly fees apply when using

Virtual Terminal or PayPal Payments Pro – Hosted Solution or API.

• No transaction fees for sending or receiving domestic Personal Transactions

funded by PayPal balance or Australian bank account.

• PayPal is easy to use with merchants that accept PayPal.

• Anti-fraud measures to help protect you against fraud and unauthorised use of

your account.

• Eligibility for the PayPal Buyer Protection and Seller Protection Policies for certain

transactions. See our User Agreement for more information.

18. Fees and charges

PayPal

18.1 Fees for PayPal transactions depend on whether you are making a Commercial

Transaction or Personal Transaction. Fixed fees are set out in clause 18.9.

Standard fees for users registered in Australia are set out below.

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Sending Personal Transactions

18.2 Personal Transaction fees are based on the payment method used to fund the

transaction. A currency conversion may apply if sending a foreign currency.

Sending in Australia

If you are an Australian account holder sending money to a friend or family member

with a PayPal account in Australia, you may pay a fee depending on how you pay.

Payment Method

Fees

PayPal balance or Australian bank account

Free

Any portion funded by a card

2.6% of the portion funded +

fixed fee based on the currency

Sending Internationally

If you are an Australian account holder sending money to a friend or family member

with a PayPal account in a country other than Australia, the fee you pay depends on the

payment method used and the amount you are sending. If you’re sending a currency

other than Australian Dollars, the applicable fee will be a comparable amount in that

currency, using the prevailing transaction exchange rate.

Fees

(based on send amount)

$0-$49.99 AUD

$50.00-$99.99

AUD

$100.00 AUD

or more

PayPal balance or

Australian bank account

$0.99 AUD

$2.99 AUD

$5.99 AUD

Any portion funded by a

card

$0.99 AUD +

2.6% of the portion

funded +

$2.99 AUD +

2.6% of the

portion funded

$5.99 AUD +

2.6% of the

portion

funded +fixed

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fixed fee based on

the currency

+fixed fee based

on the currency

fee based on

the currency

Sending Commercial Transactions

18.3 When no currency conversion is involved, there is no fee for sending Commercial

Transactions (i.e., buying something).

Receiving Commercial Transactions

18.4 Fees for receiving Commercial Transactions are taken from the total transaction

amount.

Type

PayPal Wallet

Online and

Invoicing

Transactions*

Direct Card

through PayPal

Payments Pro –

Hosted Solution

and API

Virtual

Terminal

Domestic Transactions

2.6% + fixed fee

1.75% + fixed fee

3.6% + fixed fee

Cross-border Transactions

3.6% + fixed fee

4.6% + fixed fee

*Excludes direct card payments through PayPal Payments Pro - Hosted Solution and API,

Virtual Terminal, Payflow, Braintree and PayPal Here. The fixed fees for each currency

are in clause 18.9.

Receiving fees for Registered Charities and Not-For-Profit Organisations

18.5 Registered Charities and Not-For-Profit organisations may apply for the following

special rates for receiving payments:

Domestic Transactions*

Cross-border Transactions*

1.1% + fixed fee

2.1% + fixed fee

PayPal Australia Pty Ltd - Combined Financial Services Guide and Product Disclosure Statement

This Version: 18-4

*Excludes direct card payments through PayPal Payments Pro - Hosted Solution and API,

Virtual Terminal, Payflow, Braintree and PayPal Here. The fixed fees for each currency

are in clause 18.9.

PayPal Here

18.6 Fees for receiving (selling) with PayPal Here:

Type

Domestic Transactions

Cross-border Transactions

PayPal Here card reader

1.95%

Manual card key-in

2.9% + fixed fee

Invoice

2.6% + fixed fee

3.6% + fixed fee

Micropayment pricing

18.7 If you qualify as a seller for the micropayment pricing fees as set out in our User

Agreement, you will pay the lesser of the:

• Micropayment pricing fees shown in the table below; or

• Fees set out under clause 18.4 above.

Domestic

5% + fixed fee

Cross-border

5.5% + fixed fee

18.8 You can apply for the following micropayment fees. These fees apply to all

Commercial Transactions you receive. If you have both a micropayment fees-enabled

account and a standard pricing account, it is your responsibility to ensure payments are

received to the appropriate account. Once a payment is received, you may not request

it be processed through a different account.

Domestic

5% + fixed fee

Cross-border

6% + fixed fee

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Fixed fees

18.9 Fixed fees are based on the currency received and transaction type.

Currency

received

Personal Transaction

fixed fee

Commercial Transaction

fixed fee

Micropayments fixed

fee

Argentine Peso

2 ARS

Not applicable

Australian

Dollar

$0.30 AUD

$0.05 AUD

Brazilian Real

0.60 BRL

0.10 BRL

Canadian Dollar

$0.30 CAD

$0.05 CAD

Czech Koruna

10 CZK

1.67 CZK

Danish Krone

2.60 DKK

0.43 DKK

Euro

€0.35 EUR

€0.05 EUR

Hong Kong

Dollar

$2.35 HKD

$0.39 HKD

Hungarian

Forint

90 HUF

15 HUF

Israeli Shekel

1.20 ILS

0.20 ILS

Japanese Yen

¥40 JPY

¥7 JPY

Malaysian

Ringgit

2.0 MYR

0.2 MYR

Mexican Peso

$4 MXN

$0.55 MXN

New Zealand

Dollar

$0.45 NZD

$0.08 NZD

Norwegian

Krone

2.80 NOK

0.47 NOK

Philippine Peso

15 PHP

2.5 PHP

Polish Zloty

1.35 PLN

0.23 PLN

Russian Ruble

10 RUB

2 RUB

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Singapore

Dollar

$0.50 SGD

$0.08 SGD

Swedish Krona

3.25 SEK

0.54 SEK

Swiss Franc

0.55 CHF

0.09 CHF

Taiwan New

Dollar

10 TWD

2 TWD

Thai Baht

11 THB

1.8 THB

UK Pounds

Sterling

£0.20 GBP

£0.05 GBP

US Dollar

$0.30 USD

$0.05 USD

Currency conversions – PayPal accounts

18.10 If PayPal converts currency, it will be completed at the transaction exchange rate

we set for the relevant currency exchange. The transaction exchange rate is adjusted

regularly and includes a currency conversion fee (described below) applied and retained

by us on a base exchange rate to form the rate applicable to your conversion. The base

exchange rate is based on rates within the wholesale currency markets on the

conversion day or the prior business day; or, if required by law or regulation, set at the

relevant government reference rate(s).

For any of the following transactions that involve a currency conversion in connection

with your PayPal account, the currency conversion fee is 3.5% for converting to US

Dollars or Canadian Dollars, and 4.0% for converting to all other currencies:

• Purchasing goods from a seller who does not accept payments in Australian

Dollars.

• Sending money to a friend or family member in a currency that you do not hold

at the time of the transaction.

• Sending money using PayPal’s Payouts or MassPay products in a currency that

you do not hold at the time of the transaction.

For all other PayPal transactions involving a currency conversion, the currency

conversion fee is 2.5%.

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18.11 When your payment is funded by a debit or credit card and requires a currency

conversion, you consent to and authorise PayPal to convert the currency in place of your

debit or credit card issuer. You have the right to have your card issuer perform the

currency conversion and can choose this option during checkout on your transaction

review page before you complete the transaction. If your card issuer converts the

currency, you’ll be charged a rate set by them (shown on your statement), and you’ll be

subject to any fees and terms set by them related to the conversion.

18.12 PayPal will always perform the conversion for transactions where your PayPal

balance or linked bank account is the payment method.

Chargeback fees

18.13 Chargeback fees are based on the currency received. Chargeback fees do not

apply if the transaction is eligible for the PayPal Seller Protection Policy.

Currency

Chargeback fee

Currency

Chargeback fee

Argentine Peso

30 ARS

New Zealand Dollar

$15 NZD

Australian Dollar

$15 AUD

Norwegian Krone

65 NOK

Brazilian Real

20 BRL

Philippine Peso

500 PHP

Canadian Dollar

$15 CAD

Polish Zloty

30 PLN

Czech Koruna

250 CZK

Russian Ruble

320 RUB

Danish Krone

60 DKK

Singapore Dollar

$15 SGD

Euro

€11.25 EUR

Swedish Krona

80 SEK

Hong Kong Dollar

$75 HKD

Swiss Franc

10 CHF

Hungarian Forint

2000 HUF

Taiwan New Dollar

330 TWD

Israeli Shekel

40 ILS

Thai Baht

360 THB

Japanese Yen

¥1,300 JPY

UK Pounds Sterling

£7 GBP

Malaysian Ringgit

40 MYR

US Dollar

$10 USD

Mexican Peso

$110 MXN

Receiving eCheques

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18.14 Fees for receiving eCheque payments are based on payment currency and will not

exceed the cap specified below.

Currency

Cap

Argentine Peso

150 ARS

Australian Dollar

$50 AUD

Brazilian Real

75 BRL

Canadian Dollar

$45 CAD

Czech Koruna

850 CZK

Danish Krone

250 DKK

Euro

€35 EUR

Hong Kong Dollar

$330 HKD

Hungarian Forint

9250 HUF

Israeli Shekel

160 ILS

Japanese Yen

¥4000 JPY

Malaysian Ringgit

150 MYR

Mexican Peso

$540 MXN

New Zealand Dollar

$60 NZD

Norwegian Krone

270 NOK

Philippine Peso

1900 PHP

Polish Zloty

140 PLN

Russian Ruble

1400 RUB

Singapore Dollar

$60 SGD

Swedish Krona

320 SEK

Swiss Franc

50 CHF

Taiwan New Dollar

1350 TWD

Thai Baht

1400 THB

UK Pounds Sterling

£30 GBP

US Dollar

$45 USD

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Mass Payments and Payouts

18.15 The fee for Mass Payments and Payouts is 2% of the total payment amount.

A maximum payment cap per recipient applies, based on payment currency.

Currency

Domestic cap

Cross-border cap

Argentine Peso

4 ARS

150 ARS

Australian Dollar

$1.25 AUD

60 AUD

Brazilian Real

2 BRL

100 BRL

Canadian Dollar

$1.25 CAD

60 CAD

Czech Koruna

24 CZK

1000 CZK

Danish Krone

6 DKK

300 DKK

Euro

€0.85 EUR

40 EUR

Hong Kong Dollar

$7 HKD

400 HKD

Hungarian Forint

210 HUF

15,000 HUF

Israeli Shekel

4 ILS

200 ILS

Japanese Yen

¥120 JPY

5000 JPY

Malaysian Ringgit

4 MYR

200 MYR

Mexican Peso

$11 MXN

750 MXN

New Zealand Dollar

$1.50 NZD

75 NZD

Norwegian Krone

6.75 NOK

300 NOK

Philippine Peso

50 PHP

2500 PHP

Polish Zloty

3 PLN

150 PLN

Russian Ruble

30 RUB

1500 RUB

Singapore Dollar

$1.60 SGD

80 SGD

Swedish Krona

9 SEK

400 SEK

Swiss Franc

1.30 CHF

50 CHF

Taiwan New Dollar

33 TWD

2000 TWD

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Thai Baht

36 THB

2000 THB

UK Pounds Sterling

£0.65 GBP

35 GBP

US Dollar

$1 USD

50 USD

Commercial Transaction refund fee

18.16 If you issue a full refund of the Commercial Transaction payment, we will retain

the full fixed fee portion of the Commercial Transaction fee. Your buyer’s account will

be credited with the full amount of the Commercial Transaction payment. We will debit

your account with the amount initially credited to your account in connection with the

Commercial Transaction payment and the full fixed fee portion of the Commercial

Transaction fee.

18.17 If you issue a partial refund of the Commercial Transaction payment, we will

retain the pro-rata share of the fixed fee portion of the Commercial Transaction fee.

Your buyer’s account will be credited with the amount you specify. We will debit your

account with the pro-rata share of the amount initially credited to your account in

connection with the Commercial Transaction payment and the pro-rata share of the

fixed fee portion of the Commercial Transaction fee. Please refer to clause 19 for

examples on the Commercial Transaction refund fee.

Other PayPal fees

18.18 In general, there is no fee to open a PayPal account. However, we may charge an

expanded use fee to increase your sending limit. This fee is refunded to your PayPal

balance when you successfully complete the card verification process.

The expanded use fee (verifying card details) can be up to $2 AUD.

18.19 The records request fee is $10 AUD (per item).

We will not charge for records requested in connection with your good faith assertion of

an error in your account.

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18.20 The fee for withdrawing your USD balance to your linked United States bank

account is 2.5%. Any conversion of your PayPal balance from one currency to another

currency will attract the corresponding currency conversion fee in clause 18.10.

18.21 The bank return fee is charged when a withdrawal attempt fails because incorrect

bank account or delivery information is provided.

The bank return fee is $5 AUD.

18.22 Virtual Terminal and PayPal Payments Pro – Hosted Solution and API incur a

monthly fee. The monthly fee includes GST.

PayPal Payments Pro - Hosted Solution or API monthly fee

$25 AUD

Virtual Terminal monthly fee

$25 AUD

PayPal Payments Pro – Hosted Solution or API AND Virtual Terminal monthly fee

$25 AUD

18.23 The Security Key Card is an electronic device that creates a unique security code

that you use to log in to your PayPal account. The Security Key Card and any additional

keys including replacements costs $32.95 AUD each.

19. Fee calculation examples

19.1 The following examples are illustrations only. Each calculation will vary depending

on the circumstances of the transaction.

19.2 Example 1 - Commercial Transaction in Australia

Assuming you are receiving $100 AUD from a buyer in Australia for a Commercial

Transaction under the standard rate:

• Standard rate: 2.6% plus $0.30 fixed fee.

• Calculation: 2.6% of $100 AUD = $2.60, plus $0.30.

• Fee payable to us by the seller: $2.90 AUD.

19.3 Example 2 - Commercial Transaction when the buyer is outside Australia

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Assuming you are receiving $100 AUD from a buyer outside of Australia for a

Commercial Transaction under the standard rate:

• Standard rate (Cross-border Transaction): 3.6% plus $0.30 fixed fee.

• Calculation: 3.6% of $100 AUD = $3.60, plus $0.30.

• Fee payable to us by the seller: $3.90 AUD.

19.4 Example 3 – Full refund of a Commercial Transaction payment

The following is an example of the refund fee for a full refund of a Commercial

Transaction payment from a buyer in Australia:

• Amount from the buyer: $100 AUD

• Seller will receive: $97.10 AUD ($100 AUD less $2.60 AUD variable fee and $0.30

fixed fee)

• 100% refund, buyer will receive: $100 AUD

• Seller will be debited: $97.40 AUD (the amount initially credited to your account

$97.10 AUD plus the $0.30 fixed fee)

19.5 Example 4 – Partial refund of a Commercial Transaction payment

The following is an example of the refund fee for a partial refund of a Commercial

Transaction payment from a buyer in Australia:

• Amount from the buyer: $100 AUD

• Seller will receive: $97.10 AUD ($100 AUD less $2.60 AUD variable fee and $0.30

fixed fee)

• 50% refund, buyer will receive: $50 AUD

• Seller will be debited: $48.70 AUD [$48.55 AUD (50% of the amount initially

credited to your account) plus $0.15 (50% of the $0.30 fixed fee)]

20. Confirming our customers’ identities under the Anti-Money Laundering

and Counter-Terrorism Financing laws

20.1 We are committed to full compliance with all AML laws. To comply with legislative

requirements and global sanctions, we screen all accounts. We are required to report

suspicious transactions to the relevant government agencies in Australia and overseas.

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20.2 We may confirm information when you use our services. This may include when

you open a PayPal account, as part of a periodic account review process, and/or when

your PayPal account balance reaches a certain level of funds.

How does this impact you?

20.3 We may be required to collect and confirm information about your identity. In

doing this, we may ask you to provide documentation and information.

20.4 To enable us to confirm your identify, we may disclose personal information such

as your name, date of birth and address to a credit reporting agency (CRA) or identity

verification service to obtain an assessment of whether that personal information

matches information held by the CRA or identity verification service. The CRA or identity

verification service may use personal information about you and other individuals in

their files to report to us on that assessment. If we are unable to confirm your identity

using information held by a CRA or identity verification service we may do so using an

alternative method acceptable to us.

20.5 While your identity is being confirmed, or if we are unable to confirm your identity,

we may be unable to provide some or all of our services to you in accordance with our

obligations under AML laws. This may mean one or more of the following:

• You cannot send or withdraw funds from your account;

• You cannot receive funds into your account;

• Access to your account and the funds in it is limited for an extensive period or

indefinitely;

• Funds in your account are returned to the sender; and

• Funds are subject to the applicable laws regarding unclaimed monies.

21. Verifying your payment method and transaction limits

Maximum amount per transaction

21.1 To help protect the integrity of our payment system, limit the risk of money

laundering and terrorism financing and to prevent fraud, most customers are subject to

a limit on the amount they can send or receive in a single transaction. This limit may be

raised or lowered at our sole discretion to address transaction risks or if you provide

additional documentation.

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Unverified PayPal accounts

21.2 If your PayPal account is unverified, a lower limit is imposed on the cumulative

total value of payments and monthly cumulative value of transfers you can make from

your PayPal account. The amount of these limits is variable and set at our discretion.

You may need to verify your account to increase these limits.

Verified PayPal accounts

21.3 We verify PayPal accounts and payment methods to safeguard your security and

limit fraud. By identifying a PayPal account as ‘verified’, we are only representing that

the PayPal account holder has completed the steps set out in this clause 21. By

attributing a ‘verified’ status to a PayPal account, we do not guarantee, undertake or

otherwise represent that they will complete a transaction or that they have satisfied any

requirements under AML laws.

21.4 You cannot verify any bank account linked to your PayPal account if it is held with a

financial institution in the United States of America.

21.5 If you verify your account, we will generally raise the limit on the cumulative total

of payments and transfers you can make.

21.6 You can raise your sending and withdrawal limits by becoming verified.

21.7 We reserve the right to control sending and transfer limits and may require

additional information from you depending on your location, credit rating and other

factors.

PayPal withdrawal limits

21.8 We may also place limits on the amount you can withdraw from your PayPal

balance to your linked bank account. There is an initial withdrawal limit which is usually

$700 AUD per calendar month. You need to verify your account to withdraw more than

the withdrawal limit.

21.9 We may limit withdrawals and require additional information from you depending

upon your location, verification information and other factors.

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22. Third party card fees

22.1 When you use your card to fund a purchase you will be subject to the usual fees

and interest, if any, charged by your card provider.

23. Complaints and contacting us

23.1 For information about submitting complaints and how we handle them, our

membership of AFCA and our contact details, please refer to Part 1, clauses 3 and 7.

24. Other related documents

24.1 Our User Agreement and its underlying policies, referred to in this Combined FSG

and PDS but not provided in full detail, is available free of charge on request and also by

clicking directly on the links in this document.

24.2 You should read the PayPal User Agreement and PayPal's policies as they contain

further terms and conditions that may apply to you as a user of our services. Amongst

other things, they describe the legal relationship between you and PayPal, your rights

and obligations, and PayPal’s right and obligations.

PART 3: Definitions

Some of the terms in this document are explained where they first appear. However,

others are capitalised and defined below for clarity.

Commercial

Transaction

A payment that is sent or received for goods or services.

Cross-border

Transaction

A transaction where either the sender or receiver has a PayPal

account other than an Australian PayPal account.

Domestic Transaction

A transaction where both the sender and receiver have Australian

PayPal accounts and the currency sent and received is Australian

dollars.

GST

Has the meaning set out in A New Tax System (Goods and Services)

Act 1999 (Cth).

Mass Payment or

Payouts

Functionality that allows PayPal premier and business account

holders to send money to multiple recipients simultaneously.

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PayPal, we, us and our

PayPal Australia Pty Ltd ABN 93 111 195 389 AFSL 304962.

PayPal Here

The service that allows business and premier account holders to

accept payments using the PayPal Here app via select smartphones,

tablets or other devices in accordance with the PayPal Here Terms

and Conditions.

Personal Transaction

Sending or receiving money using your PayPal account without

making a purchase, i.e. the payment is not for goods or services.

The PayPal service is provided by PayPal Australia Pty Limited (ABN 93 111 195 389) which

holds Australian Financial Services Licence number 304962. Any information provided is

general only and does not take into account your objectives, financial situation or needs. Please

read and consider the Combined Financial Services Guide and Product Disclosure

Statement before acquiring or using the service.

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