Summary and highlights from the web site at http://www.paypal.com/ accessed November 12, 2001.

Proof of Reliability

Premier or Business Standard Rate is 2.9% + 30˘ per transaction
or 1.4% + 30˘ if a preferred account.

Premier or Business Merchant Rate is 2.2% + 30˘ per transaction
or 0.7% + 30˘ if a preferred account.

As an example
A $100 transaction would result in a fee of
$3.20 for Standard or $2.50 for Merchant.

PayPal Preferred is a special option specific to a method of doing business on eBay. You can become PayPal Preferred by following the two steps below:

1. Sign up for a PayPal ATM/Debit Card.
2. Advertise PayPal as the online payment option in your eBay listings.

• Enter the recipient’s email address and the amount you wish to send.
• Pay with a credit card or checking account.

• Enter the recipient's email address and the amount you wish to request.
• The recipient gets an email and pays you at www.paypal.com.

1. Request a direct deposit to your checking account. Your money will arrive in your checking account in 3-4 business days.

2. Request a personal check from PayPal. The check will arrive at your home by U.S. Mail within 1-2 weeks.

 

If you receive a notice that a payment has been sent to you through PayPal but you have not registered for the Service, PayPal will not become your agent and you will have no claim to those funds unless and until you register for the Service and indicate your acceptance of the payment.

II. User Responsibilities Eligibility.

In order to use the Service, you must register for a Personal, Premier, or Business account. If you use the Service to receive more than $100 of credit-card funded payments in a month, you must register for, or upgrade to, a Premier or Business Account, or else any payment that causes you to exceed the $100 threshold will be returned to the sender.

IV. Receiving Payments Receipt of Credit Card Funded Payments. The ability to receive credit card funded payments is reserved for Premier and Business accounts. Personal Accounts that receive credit card funded payments may accept the payment by upgrading to a Premier or Business account, or they will have to deny the payment. Personal accounts may receive non-credit card funded payments for free. Once upgraded, Premier and Business Accounts may receive unlimited credit card funded payments. Payments funded wholly or partially by a credit card are classified as credit card payments in the PayPal system.

Spending Limits and Verification U.S. Users. Once you confirm an email address, you are limited to a total of $1000 of spending in the aggregate unless and until you become Verified. Some accounts, at PayPal's discretion, may have a lower limit until they become Verified. Account limits, if any, can be viewed from the "View Limits" link on the Account Overview page. In order to become Verified, you must login to your PayPal account and authorize PayPal to make two small deposits, at PayPal's own expense, to the bank account that you registered. Your bank account and your PayPal account will be considered Verified if and when you correctly enter these deposit amounts on the PayPal website. If your Verified bank account is closed, you must confirm your control of a new US bank account in order to remain Verified. PayPal reserves the right to decide that accounts at certain banks may not be used for Verification.

Withdrawals. U.S. Users. In order to withdraw funds that PayPal is holding in custody for you, you must confirm the email address that your registered by responding to a message that PayPal will send to that address when you have completed registration, and you must register a bank account or credit card with PayPal. New PayPal Users (who have been in the PayPal system for 120 days or less) are required to complete two out of three authentication steps (confirm bank account, confirm credit card, confirm Social Security Number) in order to withdraw more than $500 per month. Some accounts, at PayPal's discretion, may have lower limits until the authentication steps have been completed. Account limits, if any, can be viewed from the "View Limits" link on the Account Overview page. You may withdraw funds by direct deposit into your bank account or by physical check. To cover the cost of processing checks, PayPal charges $1.50 per check withdrawal. Check withdrawals will not be sent to P.O. Box addresses. In addition, check withdrawals will only be sent to a Confirmed Address, unless you are Verified (as described in Section III.1 above), in which case you may choose any street address. If you would like a check withdrawal to an address that does not match these rules, you must contact Customer Service and produce appropriate documentation as determined by PayPal before a check will be sent to the requested address.

Any payments through PayPal that are denied or unclaimed by a recipient will be returned to the sender on the earlier of (a) the date of such denial, or (b) within 30 days from the date the payment is sent.

Minimum Age is 16. There are some limitations on the kinds of elements that may be sold. Delivery must be made within 20 days of payment. In other sections, most disputes must be initiated within 30 days of payment. It is the longest online contract I have ever seen but well worth reading to understand the PayPal system.

You must be at least 16 years of age to register for an account and use the Service. If you are under the age of 18, you hereby represent that you are using the Service with the consent of your parent or guardian.

You also agree not to use your PayPal account to sell securities, business opportunities, franchises, multi-level marketing, or goods with delivery delayed more than 20 days from the date of payment.