Online payment giant PayPal has announced an update of its policy as the firm will no longer be part of eBay group of companies.
PayPal, one of the globe’s major online payment systems, has introduced changes to its Use Policy, User Agreement and Privacy Policy, as the company is going to split from eBay group of companies and operate as PayPal Holdings Inc. by the end of 2015. As first noted by Cryptocoinsnews, the policy updates will come into force on July 1st, 2015.
“We’re making changes to the legal agreements that govern your relationship with PayPal. We need to make some of these changes because eBay and PayPal soon will no longer be part of the same group of companies and will operate as unrelated organisations. However, eBay and PayPal will continue to partner together to provide and further enhance the great experience you’ve always had when using PayPal to send or receive payments on eBay,” PayPal stated.
According to the amended Section 5.4 of the PayPal agreement, the rights to set-off any amounts of funds stored in your account extend to the members of PayPal Group, which doesn’t include eBay. eBay will now have to find other ways of reimbursing fees or refunds of the purchaser.
“You agree that we may set-off any of the amounts held in Accounts held or controlled by you with any fees, charges or other amounts you owe us and (unless prevented by insolvency law) any such amounts you owe other members of the PayPal Group,” the section reads.
Under the changed section 10.1., PayPal owns the right to place a temporary hold on money in your account in order to cover disputed payments under eBay’s resolution process.
Amendments also include a new paragraph in section 1.3 about intellectual property, which clarifies the rights of the PayPal Group to utilize content that you upload with the use of the Services.
“When providing us with content or posting content (in each case for publication, whether on- or off-line) using the Services, you grant the PayPal Group a non-exclusive, worldwide, perpetual, irrevocable, royalty-free, sublicensable (through multiple tiers) right to exercise any and all copyright, publicity, trademarks, database rights and intellectual property rights you have in the content, in any media known now or in the future,” PayPal states.
Despite the amendments to the PayPal’s policy, the company is planning to continue working with eBay in the future. Earlier this month, they have signed a deal that enabled PayPal merchants to use the digital currency for making payments.
The firms also agreed in the U.S. Securities and Exchange Commission (SEC) filing that PayPal will still process about 80% of transactions realized through eBay, although both companies can enter into new partnerships. Under the agreement, which will last for 5 years, neither eBay nor PayPal will create competing products, but will continue sharing information. PayPal is not allowed to build its own market for physical goods, whilst eBay has promised not to develop a payment processing system.
Polina is an undergraduate student at Belarusian State Economic University (BSEU) where she is studying at the faculty of International Business Communication for a degree specializing in Intercultural Communication. In her spare time she enjoys drawing, music and travelling.
