Terms of Use


User Agreement for X.com's PayPal™ Service

This Agreement applies to your use of X.com's PayPal™ payment
service and any related products and services (collectively the
"Service"). This Agreement affects your rights and you should read
it carefully.

In this Agreement, "you" or "your" means any person or entity
using the Service ("Users"). Unless otherwise stated, "X.com" will
refer collectively to PayPal, X.com Corporation and their
respective parent or subsidiary companies, affiliates, officers,
employees and agents.

By checking the consent box on the account signup page, you
represent that you understand and accept the terms and conditions
of this Agreement. We may amend this Agreement at any time by
posting the amended terms to our site, and your continued use of
the Service will constitute acceptance of the amended terms. This
Agreement was last modified on October 16, 2000.

I. User Responsibilities


Eligibility. In order to use the Service, you must register for a
Personal, Premier, or Business account. If you use the Service for
the purpose of conducting e-commerce on a regular basis, you agree
to register for, or upgrade to, a Premier or Business Account. You
agree that you will register for and maintain no more than one
Personal and one Premier or Business Account. X.com reserves the
right to terminate duplicate accounts. You must be at least 16
years of age to register for an account. 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.

No Multiple Accounts. Should you register for more than one
Personal Account, X.com reserves the right to terminate all of
your accounts and will restrict you from the system going forward.
Users may register and hold one Personal Account and either one
Premier or one Business Account.

Registration Information. You agree to provide true, accurate and
complete registration information and to maintain and promptly
update your information as applicable. You agree not to
impersonate any person or use a name that you are not authorized
to use. If any information you provide is untrue, inaccurate, not
current, or incomplete, without limiting other remedies, X.com has
the right to terminate your use of the Service and X.com, its
agents, suppliers, and subcontractors have the right to recover
from you any costs or losses incurred as a direct or indirect
result of the inaccurate or incomplete information. You authorize
X.com and its agents, suppliers and subcontractors to make any
inquiries they consider necessary to validate your registration.

International Use. You must be a resident of the United States to
use the Service. International accounts will be available soon.

Withdrawals. Once a User has confirmed an email address, a User
may elect to withdraw all or part of the balance of his or her
account by direct deposit into the User's bank account or by
physical check sent to the User's street address.

Spending Limits. Each User will be limited to $250.00 of spending
until confirmation of email and bank account has been completed.
Users who are paying with a credit card and signing up through a
Web Accept or Instant Purchase transaction will be limited to
$500.00 of spending until confirmation of email and bank account
has been completed. Upon confirmation of both email and bank
account, the credit card charge limit for each User will increase
to $1,000.00 over a 6-month period, subject to credit availability
from the User's credit card issuer. Payments to a Premier or
Business Account will not count toward the User's charge limit.
This limit is subject to change.

Credit Card Receiving Limit. Personal Accounts are limited to
receiving $500 of credit card payments every six months. Payments
funded from the sender's bank account or existing PayPal account
balance will not count against the recipient's limit. Payments
funded wholly or partially by a credit card are classified as
credit card payments in the PayPal system.

Minimum Transaction Size. The minimum transaction amount for any
payment between Users is $0.01.

Electronic Transfers. Upon your request, X.com will make
electronic transfers via the Automated Clearing House (ACH) system
to and from your bank account. You agree that such requests
constitute authorization for such transfers. If you request an
electronic transfer from your bank account, you grant X.com the
right to validate the authenticity of your bank account by making
two small deposits to your bank account at X.com's own expense.
Your bank account and your PayPal account will be considered
verified once you correctly enter the deposit amounts on the X.com
X.com will never make electronic transfers from your bank account
without your explicit permission. Furthermore, X.com provides you
unlimited protection against unauthorized withdrawals from your
bank account.


No Cash Advances. You agree not to engage in behavior that could
reasonably be construed as providing yourself a cash advance from
your credit card, and agree not to assist users who engage in
behavior that could reasonably be construed as providing
themselves a cash advance from their credit cards. Such behavior
includes, but is not limited to, a User paying someone by charging
a credit card, then receiving the funds back from the original
Recipient and attempting to withdraw the funds from an account.
X.com reserves the right to reverse all such transactions and to
terminate any accounts that are associated with such behavior.

Correct E-mail. You agree that you have access to the Internet and
to a current e-mail address. You have sole responsibility for
providing X.com with a correct and operational e-mail address.
X.com will not be liable for any undelivered e-mail communications
or any costs you incur for maintaining Internet access and an e-
mail account. You must promptly notify X.com of any change in your
e-mail or postal mailing address.

Electronic Communications. To the fullest extent permitted by
applicable law, this Agreement and any other agreements, notices
or other communications regarding your account and/or your use of
the Service ("Communications"), may be provided to you
electronically and you agree to receive Communications in an
electronic form. Electronic Communications may be posted on the
pages within the X.com website and/or delivered to your e-mail
address. You will print a copy of any Communications and retain it
for your records. All Communications in either electronic or paper
format will be considered to be in "writing," and to have been
received no later than five (5) business days after posting or
dissemination, whether or not you have received or retrieved the
Communication. X.com reserves the right but assumes no obligation
to provide Communications in paper format. Your consent to receive
Communications electronically is valid until you revoke your
consent by notifying X.com of your decision to do so, by sending
an email message to help@paypal.com or by telephoning customer
sevice. If you revoke your consent to receive Communications
electronically, X.com may terminate your right to use the Service.

No Spam. You agree not to use unsolicited email, usenet, message
board postings, or similar methods of mass messaging (spam) to
gather referral bonuses. The use of spam to promote the Service
has strict negative consequences. We will immediately and
permanently terminate the account of any User who has used
unsolicited email to gain referrals. In addition, you may be
subject to state and federal penalties and other legal
consequences under applicable law if you send unsolicited email.
Our Anti-Spam Policy is intended to protect our users, the
Internet, and us.

Privacy. Our Privacy Policy is posted here. You agree that you
have had an opportunity to review, download or print our Privacy
Policy. You consent to have your name, email address, date of sign-
up, and whether you have verified (or not verified) an account at
another financial institution made available as identification to
anyone whom you have paid or who is attempting to pay you through
the PayPal service.

Handheld Devices. In the event of the loss or malfunction of your
handheld device, payments made since your last connection to the
PayPal server may be lost, and X.com Corp. disclaims all liability
for such loss.

Not a Bank. You acknowledge that (i) the Service is not a banking
service (ii) Service accounts are not insured by any government
agency, (iii) the Service is not subject to banking regulations
and (iv) X.com will invest in liquid assets and that interest
earned on those assets will be the property of X.com.

Escheat. If you do not access your account for a period of five
years, it will be terminated. After the date of termination, you
will have 90 days to redeem your account balance, after which it
will be subject to applicable state laws regarding escheat of
unclaimed property.

Passwords. You may not divulge your account password(s) to anyone
else, nor may you use anyone else's password. X.com is not
responsible for losses incurred by Users as the result of their
misuse of passwords.

Close Account. You may close your account at any time, provided
all applicable fees for services and account management have been
paid in full. Upon closure of an account, any monies remaining in
the account, less any applicable fees, will be immediately and
automatically paid in full. You will remain liable for all
obligations related to the account even after such account is

Hacking. If you use, or attempt to use the Service for other
purposes including but not limited to tampering, hacking,
modifying or otherwise corrupting the security or functionality of
Service, your account will be terminated and you will be subject
to damages and other penalties, including criminal prosecution
where available.

Assignability. You may not transfer any rights or obligations you
may have under this Agreement without the prior written consent of
X.com. X.com reserves the right to transfer any right or
obligation under this Agreement without your consent.

Indemnification. You agree to indemnify and hold X.com, its
affiliates, officers, directors and employees harmless from any
claim, action, demand, loss, or damages (including attorneys'
fees) made or incurred by any third party arising out of or
relating to your use of the Service.

Choice of Law. This Agreement is governed by the laws of the state
of California as such laws are applied to agreements entered into
and to be performed entirely within California by California

Arbitration. Any controversy or claim arising out of or relating
to this Agreement or the provision of Services shall be settled by
binding arbitration in accordance with the commercial arbitration
rules of the American Arbitration Association. Any such
controversy or claim shall be arbitrated on an individual basis,
and shall not be consolidated in any arbitration with any claim or
controversy of any other party. The arbitration shall be conducted
in Palo Alto, California, and judgment on the arbitration award
may be entered in any court having jurisdiction thereof. Either
you or X.com may seek any interim or preliminary relief from a
court of competent jurisdiction in Palo Alto, California necessary
to protect the rights or property of you or X.com Corp. (or its
agents, suppliers, and subcontractors) pending the completion of

II. Rights and Disclaimers of X.com


Processing. X.com shall make reasonable efforts to ensure that
requests for electronic debits and credits involving bank accounts
and check issuances are processed in a timely manner. However, a
number of factors, several of which are outside of our control,
will contribute to when the funds are received. We make no
representations or warranties regarding the amount of time needed
to complete processing, such as delays in the banking system or
the U.S. mail service, nor shall we be liable for any actual or
consequential damages arising from any claim of delay.

Miscellaneous Disclaimers.

(a) X.com reserves the right to hold funds beyond the normal
distribution periods for transactions it deems suspicious to
ensure integrity of the funds.

(b) X.com shall not be responsible for payments made to unintended
Recipients due to the input of incorrect information by Senders or
for payments made in incorrect amounts. X.com shall not be
responsible for the verification of the identity of Users.

(c) X.com shall not be responsible for any information lost due to
malfunction or loss of a handheld device.

(d) X.com shall not be obligated to pay a User for any Payments
for which X.com has not been fully paid by the Sender's credit
card issuer.

(e) X.com will not have any liability in connection with any
unauthorized interception or use of data relating to you or the
PayPal service; any inability to use or access the service or the
PayPal website for any reason; any actions or transactions by an
individual that uses your user name and password; or any cause
over which X.com Corp. does not have direct control, including
problems attributable to computer hardware or software (including
computer viruses), telephone or other communications, or Internet
service providers.

(f) In no event shall X.com be liable (A) for damages caused other
than by intentional misconduct or (B) for any indirect, special,
incidental, consequential or punitive damages whatsoever
(including, but not limited to, damages for lost profits,
disclosure of confidential information, or loss of privacy),
arising out of or in any way related to the use of or inability to
use business service or the PayPal website or any of the
associated services, even if X.com Corp. has been advised of the
possibility of such damages. In no event shall X.com Corp. be
liable for any act or omission of any third party (such as, for
example, any provider of telecommunications services, internet
access or computer equipment or software) or any circumstances
beyond our control (such as, for example, a fire, flood, or other
natural disaster, war, riot, strike, act of civil or military
authority, equipment failure, computer virus, or failure or
interruption of electrical, telecommunications or other utility

Restrictions. X.com, at its sole discretion, reserves the right to
restrict an account for any one of the following events:

Reports of unauthorized or unusual credit card use associated with
the account including, but not limited to, notice by the card
issuing bank
Reports of unauthorized or unusual bank account use associated
with the account
Complaints received regarding non-shipment of merchandise,
merchandise not as described, or problems with merchandise shipped
Initiation of a charge back process through your issuing bank
Receipt of potentially fraudulent funds
Unconfirmed identity
Initiation of transactions considered to be cash advances or
assisting in cash advances
Sending unsolicited, commercial email or posting referral links on
web sites where they are not permitted
Opening multiple Personal accounts
The account has been used in or to facilitate fraudulent activity
Inability of United States Postal Service to deliver the street
address confirmation letter to the address associated with the
Reports of someone other than the intended recipient receiving the
Street Address Confirmation letter in the mail
Name on the bank account associated with the PayPal account does
not match the name on the PayPal account
Insufficient funds in the PayPal account to cover the return of an
Electronic Funds Transfer for insufficient funds in the bank
account, incorrect bank routing number, or incorrect bank account
Insufficient funds in the PayPal account to cover the return of a
check sent in for deposit.
Use of an an anonymizing proxy.


Termination. X.com, in its sole discretion, reserves the right to
terminate this Agreement, access to its web site, or access to
Service without notice for any reason and at any time.

Trademarks. X.COM, PAYPAL and all related logos, products and
services described in this website are either trademarks or
registered trademarks of X.com Corporation, or their licensors,
and (aside from "Use of Logos" below) may not be copied, imitated
or used, in whole or in part, without the prior written permission
of X.com. In addition, all page headers, custom graphics, button
icons, and scripts are service marks, trademarks, and/or trade
dress of X.com and may not be copied, imitated, or used, in whole
or in part, without the prior written permission of X.com.
Use of Logos. Notwithstanding the above, HTML logos provided by
X.com through its Affiliate Program, Web Accept feature, or
Auctions Tools features ("Logos"), may be used without prior
written consent for the purpose of directing web traffic to the
Service. These Logos may not be altered, modified, or changed in
any way, or used in a manner that is disparaging to X.com or the
PayPal service. Logos may not be displayed in any manner that
implies sponsorship or endorsement by X.com. X.com is a payment
service, and no agency, partnership, joint venture, employee-
employer or franchiser-franchisee relationship is intended or
created by this Agreement.


III. Insurance Against Unauthorized Access


In General. X.com protects Users from unauthorized transactions
against your online account with up to $100,000 in coverage per
loss of SafeWeb® Remote Banking Insurance (provided by Travelers
Property Casualty, a member of Citigroup). There are no additional
fees to receive this benefit.

Insurance Terms. The SafeWeb Remote Banking Insurance Master
Policy responds to losses that you would normally have liability
for under applicable banking regulations. It is very important
that you contact us at once if you believe your user ID or
password has been compromised, or if someone has transferred or
may transfer money from your account without your permission.
Under applicable banking regulations, the extent of your liability
for an unauthorized transaction is largely determined by your
promptness in notifying us or your bank if someone has gained
access to your password, or if a transfer or withdrawal in your
monthly statement is incorrect or unauthorized. Notifying us
quickly limits your liability:

a) If you notify us within two business days after you learn that
your password or other means to access your account may have
become known by an unauthorized person, you can lose no more than
$50.00 if an unauthorized person uses your password or other means
to access your account without your permission to initiate a
transaction. If you do not notify us within two business days, and
we can prove that we could have stopped someone from using your
password or other means to access your account without your
permission if you had told us, you could be liable for as much as

b) We will periodically email you a notice to inspect your
transaction history online. If your transaction history shows
electronic funds transfers that you did not make or authorize,
notify us at once. If you do not notify us within 60 days after
receiving notice, you may not recover any money you lose after the
60 days if we can prove that we could have stopped someone from
taking the money if you had notified us in time. If a good reason
(such as a long trip or hospital stay) kept you from notifying us,
we may extend the time periods.

c) In case of unauthorized transactions, payment problems, errors
or questions about your account, you should notify X.com through
application messaging or e-mail. You must: 1) Tell us your name
and primary email address; 2) Describe the error or the
transaction you are unsure about, and explain as clearly as you
can why you believe it is an error or why you need more
information; and, 3) Tell us the dollar amount of the suspected
error. If you tell us by telephone, we may require that you send
your complaint in writing within ten (10) business days. We will
tell you the results of our investigation within ten (10) business
days after we hear from you, and will correct any error promptly.
If we need more time, however, we may take up to forty-five (45)
calendar days to investigate the complaint or question. If we
decide to do this, we will provisionally credit your transaction
account within ten (10) business days for the amount you think is
in error, so that you may have the use of the money during the
time it takes us to complete our investigation. If we ask you to
put your complaint or question in writing and we do not receive it
within ten (10) business days, we may not provisionally credit
your transaction account. If we determine there was no error, we
will mail you a written explanation within three (3) business days
after we finish the investigation. You may ask for copies of
documents which we used in our investigation. We may revoke any
provisional credit provided to you if we find that an error did
not occur.

IV. Consumer Protection Policies


In general. X.com's consumer fraud protection policies as defined
below are designed to reduce fraud by encouraging payments between
Verified Users ("Verified Users" or "Verified User") of the
Service and to increase the security of online transactions in our
payments network. A Verified User is a registered user of the
Service who maintains a confirmed bank account on the X.com
website, thereby providing X.com with proof that he or she holds
ownership of an account at a bank or other financial institution.
X.com considers this verification process a secure and easy way to
gain additional proof of a User's identity without asking for
additional pieces of personal information during the registration
process. This process, in conjunction with our other proprietary
authentication methods, lowers our company's financial risk and
allows us to provide the Buyer and Seller Protection Guarantees
listed below.

Buyer Protection Guarantee. Purchases from Sellers who are
Verified Users will be guaranteed against fraud up to $5,000 per
Buyer per year if the Seller fails to ship the paid-for goods.
This policy does not apply to disputes about the quality or
attributes of delivered goods or to goods lost in the mail. The
Seller's verification status is available on the Service website
when a Buyer confirms payment.
Although this Guarantee only protects purchases from Verified
sellers, all sellers - both Verified and Unverified - should be
aware that they are liable for non-shipment of goods. Non-shipment
of goods may constitute a criminal violation, and X.com will
cooperate with law enforcement agencies to apprehend and prosecute
offenders. If goods have been lost in the mail, buyer and seller
should file appropriate claims through the insurance obtained at
the time of shipment.

Buyers who do not receive their merchandise must make several
documented attempts to contact the Seller and resolve the dispute
on their own before filing a claim with X.com.

Claims of non-receipt of goods may be filed with X.com no sooner
than 30 days and no later than 60 days from the date of payment or
from the promised delivery date if the Seller indicates such date
will be in excess of 30 days from the date of payment. Buyers may
file claims via email by using the Web Forms on the Contact Us
page of the website. Claims must include 1) your name and primary
email address; 2) a description of the items that were purchased;
3) the email address of the Verified User to which the payment was
made; 4) the timeline of events since the payment in question was
made: a) date of payment, b) amount of payment, c) details of
communication or correspondence between Sender and Recipient of
the payment. X.com or its agents will investigate claims and
X.com's determination shall be binding on all parties. X.com may
require the Seller to provide proof of shipment, or a refund, in
order to resolve the complaint. X.com seeks to provide full
reimbursement up to $5,000 per year to defrauded Buyers within 30
days from the date the claim is filed, though such time frame may
be extended to accommodate the investigation.

Both Verified and Unverified buyers are protected under the Buyer
Protection Guarantee, and are protected for all methods of payment
- credit card, bank account, or existing funds - available through
the Service. The Buyer Protection Guarantee is effective as of
8/1/00, and applies to transactions paid on or after 8/1/00. The
Buyer Protection Guarantee does not obviate any other consumer
rights Users may have, including charge back rights that may be
granted by the User's credit card issuer.

Seller Protection Guarantee. Beginning August 23, 2000, X.com
agrees to indemnify sellers for charge back liability resulting
from buyer's fraudulent use of a stolen credit card and/or false
claims of non-shipment of goods for purchases made through the
Service for up to $5,000 per year when the following conditions
are met:
a) The seller is Verified;
b) The seller can provide reasonable proof-of-delivery which can
be tracked online. (Most U.S. carrier companies offer this
service, including the U.S. Postal Service.);
c) The seller accepted payment from only one PayPal account for
the purchase. (Multiple payments from different accounts for a
single item are a fraud indicator. Sellers should not accept such
d) The seller does not ship internationally (when X.com releases
international payments (coming soon), this rule will be replaced
with a list of approved countries).

In the near future X.com will provide tools for sellers to
determine if a buyer is Verified and whether the buyer's requested
shipping address matches buyer's credit card billing address. When
these tools are available and notice has been given, sellers will
be required to ship the purchases of Unverified buyers to the
buyer's credit card billing address in order to qualify for
protection under the Seller Protection Guarantee. If the buyer is
Verified, sellers will be able to ship to any address and qualify
for protection under the Guarantee.

Charge Backs. The Buyer Protection Guarantee does not obviate any
other consumer rights Users may have, including charge back rights
that may be granted by the User's credit card issuer. X.com fully
stands behind all credit card transactions by accepting disputes
customers lodge with their issuing bank. The consumer is fully
protected and as the merchant of record we accept final
responsibility for all card transactions. As such, we afford
customers all the rights and privileges expected of a credit card
transaction. You acknowledge that X.com does not control the
outcome of any charge back decision initiated through a customer's
credit card issuing bank.
X.com encourages all buyer purchase disputes to be filed and
resolved through the Service's dispute resolution process, and
reserves the right to restrict future account access or
functionality of buyers who file charge back complaints outside
the Service. If a charge back claim is initiated, whether as a
result of a dispute or for any other reason, the parties agree to
provide to any requesting party on a timely basis any and all
necessary documentation to resolve any charge back or dispute.
X.com DOES NOT act as the agent of either party in any transaction
or resulting dispute, though X.com does control the outcome of
disputes initiated through the Service's dispute resolution

In the event a charge back dispute is resolved against you, and
you qualify for the Seller Protection Guarantee, X.com will
indemnify you for the charge back amount up to $5,000 per year. In
the event a charge back dispute is resolved against you and you do
not qualify for the Seller Protection Guarantee, you agree to hold
X.com harmless for the charge back amount and to reimburse X.com
from either your PayPal account or by other means. Although X.com
will vigorously pursue debt collection of any amounts owed to it,
X.com will never make electronic transfers from your bank account
without your explicit permission.


Termination. Excessive disputes, charge backs, refunds,
complaints, and claims from other customers, or other abuses of
the Service are, without limitation, grounds for restricting your
account and/or terminating your right to use the Service.

V. Additional Terms of Use for Business and Premier Accounts


The terms below apply specifically to use of Premier and Business
Accounts through the Service and any related products and services
(collectively, the "Premier/Business Service").


Account Information. In addition to the terms listed above, you
further agree that X.com may access and disclose information about
you or your use of the Premier/Business Service when X.com deems
necessary or appropriate to comply with the law or legal process,
to protect X.com's systems and customers, or to ensure the
integrity and operation of X.com's business and systems. Unless
otherwise prohibited by law, such disclosure may include, without
limitation, user profile information (e.g., name, e-mail address,
etc.), transaction information, IP address and traffic
information, and usage history.

Contact and Refund Information. Each user of the Premier/Business
Service will be required to input its customer service contact
information into the Premier/Business Account application upon
registration. You agree to clearly identify your customer service
contact information, including but not limited to your business
name, address, telephone number, fax number and e-mail address.
You further agree to update such information to keep it true,
accurate, current, and complete.

Taxes. Each user of the Business Service is required to provide
its Tax Identification Number (TIN) upon registration. It is your
responsibility to determine what, if any, taxes apply to the
payments you make or receive and to collect, report and remit the
correct tax to the appropriate tax authority. X.com is not
obligated to determine whether taxes apply, and is not responsible
to collect, report, or remit any taxes arising from any

Security Features. X.com strongly suggests that you use a web
browser with 128-bit encryption. Regardless of whether you use a
web browser with security features, X.com is unable to ensure that
data transmitted via the Premier/Business Service is secure and/or
will not be intercepted by third parties.

Account Use. By accepting the terms as outlined in this Agreement
and using your Premier or Business Account, you attest that you
hold all the necessary licenses to engage in the advertising and
sale of the goods and services offered for sale or use through
your Premier or Business Account, and that you do not provide
unlawful or illicit products or services. You will not use the
Business Service, the website or any of the services offered
therein for any unlawful, fraudulent or improper activity. If
X.com has reason to believe that you may be engaging in or have
engaged in fraudulent, unlawful, or improper activity, including
without limitation any violation of any terms and conditions
relating to the Premier/Business Service, the website or any
related services, your access to the website and any services
contained therein may be suspended or terminated. You will
cooperate fully with X.com to investigate any suspected unlawful,
fraudulent or improper activity.

Fees. X.com's current Fee Schedule for using the Premier/Business
Service is posted on the website. Unless otherwise stated, all
fees quoted are in U.S. dollars. Users are responsible for paying
all fees associated with the use of their Premier or Business
Accounts and the Premier/Business Service.


This Agreement is subject to change at any time without notice,
and you agree to review the current terms of use prior to
initiating a transaction.