Paypal have announced the updated user agreement policy for US users ahead of a PayPal Payouts service expansion.
The updated policy, which will come into effect from the 9th of June will see an updated version of PayPal Payouts. It will allow payments to be directed to sellers’ Venmo or PayPal accounts. This means that merchants who use PayPal Payouts service will see shoppers’ funds travelling to either their Venmo or PayPal accounts.
Overdraft block
PayPal say that they may cap merchnats’ accounts from going overdraft. They may use any of the payment methods linked to sellers’ PayPal accounts to prevent their accounts from becoming negative. This will apply when there are no sufficient funds in their accounts for seller refunds, reversals and chargebacks.
The move is useful because it will protect sellers’ accounts from fraudsters withdrawing large sums of money and making their accounts going overdraft.
PayPal Website Payments Pro and Virtual Terminal agreement
PayPal are saying that the updated policy agreement will allow merchants to accept debit network-branded cards. They’ve also explained to merchants their obligations regarding certification of PCI DSS compliance.
Changers to buyers’ user agreement policy
PayPal are also making updates to buyers accounts. If PayPal performs a currency conversion for shoppers’ 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.
PayPal say that there is no action required from PayPal users as the changes will occur automatically on the affected date. Sellers who wish to decline the updates would need to close their accounts. This needs to be done before the updated agreement policy comes into effect.
