Combined Financial Services Guide and Product Disclosure Statement

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.

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.

2.1 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.

3.1 Our contact details are as follows:

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.

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

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.

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

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.

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:

Handling your complaints

7.7 We aim to:

• Acknowledge receipt of all complaints within 24 hours (or 1 business day) of receiving it, or as soon as practicable.
• Resolve all complaints within 30 days after receiving the complaint. This may not be possible in all circumstances. Where we cannot resolve a complaint within 30 days, we will notify you of the reason for the delay as well as an indication of when we expect to resolve the complaint.

If your complaint is in relation to PayPal Credit Pty Ltd’s credit reporting practices, please refer to your PayPal Pay in 4 contract for more details.

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:

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.

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.

10.1 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:

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.

11.1 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.

12.1 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.

13.1 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.

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.

13.4 It is important to understand whether a PayPal account is right for you, before opening an account. For more information regarding the target market for the Personal account and Business account, please visit Legal Hub.

14.1. There are 3 types of PayPal accounts as shown below. Premier accounts cannot be opened from 27 October 2017.

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.

16.1 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.

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

• not receive your payment where you owe any amount to us or our Related Bodies Corporate; or
• incur bank fees if your payment method has insufficient funds to complete your payment with us.

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, 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;
• 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.

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.

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

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 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:

16.9 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.

17.1 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.

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 18.8.

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

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. You can only send a Personal Transaction to a PayPal Personal account and not a Business account.

Sending in Australia

If you are an Australian account holder sending money to a friend or family member with a PayPal Personal account in Australia, you may pay a fee depending on how you pay.

Sending Internationally

If you are an Australian account holder sending money to a friend or family member with a PayPal Personal account in a country other than Australia, the transaction fee and funding fee you pay depends on the payment method used. The fees will be displayed before you proceed with the transaction.

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. Business accounts can only receive Commercial Transactions and are not eligible to receive Personal Transactions.

The fixed fees for each currency are in clause 18.8.

The fees for receiving transactions using PayPal’s invoicing service will be charged in accordance with the fees for the relevant payment type used to send the transaction as set out in clause 18.4 or 18.5 (as applicable).

Unless you have selected a different payment receiving preference in your account settings, any transactions received in a currency other than your account’s primary holding currency will be, by default, converted into your primary holding currency in accordance with clauses 18.9 and 18.10. This paragraph only applies to PayPal accounts opened on or after 11 October 2023.

For accounts opened before 11 October 2023, any transactions received in a currency other than your account’s primary holding currency will be treated in accordance with your existing payment receiving preference.

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 PayPal Wallet Online Transactions:

The fixed fees for each currency are in clause 18.8.

Registered charities and not-for-profit organisations who have been approved by PayPal for Advanced Credit and Debit Card Payments (ACDC) under the PayPal Online Card Payment Services Agreement may also apply for these special rates for receiving ACDC transactions.

Micropayment pricing

18.6 This clause 18.6 only applies to you if you are a Legacy Micropayment Pricing Seller. Legacy Micropayment Pricing Sellers will pay the lesser of the:

• Micropayment pricing fees shown in the table below; or
• Fees set out under clause 18.4 above.

Pricing set out in clause 18.6 is no longer available for new sellers.

18.7 If you are not a Legacy Micropayment Pricing Seller, and if you are approved as a seller for the micropayment pricing fees in accordance with our User Agreement, you will pay the micropayment pricing fees set out in the table below.

Fixed fees

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

Currency conversions – PayPal accounts

18.9 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).

18.10 For some uses of your PayPal account, currency conversion is necessary. For any of the following transactions that involve a currency conversion in connection with your PayPal account, the currency conversion fee is 4.0%:

• Paying for goods or services in a currency other than the currency the goods or services are listed in.
• Receiving a refund beyond 1 day of the original payment.
• Sending money to a friend or family member such that they receive a different currency from the currency you pay in.
• Sending money using PayPal’s Payouts (formerly Mass Pay) such that your recipients receive a different currency from the currency you pay in.

For all other PayPal transactions involving a currency conversion, the currency conversion fee is 3.0%.

18.11 When your payment is funded by a debit or credit card and a currency conversion is necessary, you consent to and authorise PayPal to convert the currency in place of your debit or credit card issuer. In most cases, you may have the right to have your card issuer perform the currency conversion, if applicable for that card issuer and network. Currency preference selections may be presented to you in various forms, including setting the currency of your card, a choice of which currency is used for the transaction, whether PayPal or your card issuer performs the conversion, or which conversion rate is used for the transaction, among others, and may be made available individually for each card and for each automatic payment agreement. If your card issuer converts the currency, your card issuer will determine the currency conversion rate and what fees they may charge.

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.

Receiving eCheques

18.14 Fees for receiving eCheque payments are based on payment currency and will not exceed the cap specified below.

PayPal Payouts (formerly Mass Pay)

18.15 The fee for PayPal Payouts is 2% of the total payment amount.

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

Commercial Transaction refund fee

18.16 If you issue a refund (partially or fully) of the Commercial Transaction payment, there are no fees to make the refund, but we will retain the full amount that you originally paid us. Your buyer’s account will be credited with the full or partial refund amount of the Commercial Transaction payment and your account will be debited with the full or partial refund amount.

18.17 The amount of the refunded payment will be deducted from your PayPal account.

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.

18.20 The fee for withdrawing your balance to an eligible linked debit card or bank account is 1% of the amount transferred, with a minimum and maximum fee depending on the currency withdrawn. Minimum and maximum fees by currency are listed below where available. 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 fee for withdrawing your USD balance to your linked United States bank account is 3.0%. Any conversion of your PayPal balance from one currency to another currency will attract the corresponding currency conversion fee in clause 18.10.

18.22 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.

18.23 Virtual Terminal and PayPal Payments Pro – Hosted Solution and API incur a monthly fee. The monthly fee includes GST.

18.24 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.

18.25 If you have successfully enrolled in our Chargeback Protection program for your Advanced Credit and Debit Card Payments (ACDC) under our PayPal Online Card Payment Services Agreement, you will be charged an additional 0.40% per ACDC transaction processed for Chargeback Protection.

18.26 If you have successfully enabled a Fraud Protection tool for your ACDC under our PayPal Online Card Payment Services Agreement:

• for Fraud Protection Standard, you will not be charged a fee;
• for Fraud Protection Advanced (FPA), you will be charged an additional AUD$0.10 per transaction.

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: 2.90% plus $0.30 fixed fee.
• Calculation: 2.90% of $100 AUD = $2.90, plus $0.30.
• Fee payable to us by the seller: $3.20 AUD.

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

Assuming you are receiving $100 AUD from a buyer outside of Australia for a Commercial Transaction under the standard rate:

• Standard rate (International Transaction): 3.90% plus $0.30 fixed fee.
• Calculation: 3.90% of $100 AUD = $3.90, plus $0.30.
• Fee payable to us by the seller: $4.20 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: $96.80 AUD ($100 AUD less $2.90 AUD variable fee and $0.30 fixed fee)
• 100% refund, buyer will receive: $100 AUD
• Seller will be debited: $100 AUD

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: $96.80 AUD ($100 AUD less $2.90 AUD variable fee and $0.30 fixed fee)
• 50% refund, buyer will receive: $50 AUD and the seller will be debited $50 AUD which will leave the seller with $46.80 AUD

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.

20.2 We may confirm information when you use our services. This may include when you open a PayPal account 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.

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.

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.

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.

23.1 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.

24.1 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.

Some of the terms in this document are explained where they first appear. However, others are capitalised and defined below for clarity.