You accept this Recurring Payments and Billing Agreement when you sign up for a recurring payment with a third party without a PayPal account or when you accept our User Agreement. We may amend this agreement and provide you with 30 days’ prior notice by posting notice of the change on the “Policy Updates” page of our website. After this 30 day notice period, you will be considered as having expressly consented to all amendments to this agreement.

1. Recurring Payments
   A Recurring Payment is a payment in which you (as a buyer or a sender of funds) provide an advance authorisation to a third party (such as a merchant or eBay) for a third party initiated payment, that is a charge to your PayPal account or credit or debit card where you do not have a PayPal account (“Nominated Payment Source”) directly on a one-time, regular, or sporadic basis. Recurring Payments are sometimes called “Subscriptions”, “Automatic Payments”, “Preapproved Payments” or “Future Payments”. By providing an advanced authorisation for a third party initiated payment, you are giving the third party the ability to collect or reverse variable payment amounts from your Nominated Payment Source until such time as this arrangement is cancelled.
2. You hereby authorise and instruct PayPal to pay the third party (or another person they direct) amounts from your Nominated Payment Source for the amounts you agreed to owe and as presented to PayPal by that third party. You agree that PayPal is not obligated to verify or confirm the amount the third party presents to PayPal for the purpose of processing these types of payments. You acknowledge and agree that use of Recurring Payments in any form means that these payments may be variable and scheduled to occur at certain times (in the manner agreed between you and the third party). You should make sure that you fully understand your payment obligations with the third party and ensure you always have sufficient funds to meet your ongoing commitment to the third party.
3. If your third party initiated payment requires a currency conversion by us, the amount of the currency conversion fee will be determined at the time the applicable third party processes your payment and completes the transaction. You acknowledge that the exchange rate determined at the time of each payment transaction will differ and you agree to the future execution of third party initiated payments being based on fluctuating exchange rates.
4. In some cases, merchants may hold a small payment to verify your PayPal account. The hold is usually released within 3 to 5 days.
5. Billing Agreement
   When you establish a Recurring Payment with a merchant, you are also entering into a Billing Agreement with PayPal. By entering into a Billing Agreement you are authorising PayPal to allow the merchant to charge your Nominated Payment Source directly. PayPal facilitates the transaction between you and the merchant, but does not enforce contractual obligations for payment by you or for delivery of goods or services by the merchant.
6. Payment Method Selection for PayPal payments
   When the merchant requests a payment from your PayPal account, PayPal will always attempt to withdraw funds from your PayPal balance first. If funds in your balance are insufficient, PayPal will look for and attempt to charge a preferred Payment Method that you have set up for the Recurring Payment. You will have the option to select a preferred Payment Method during enrolment, and you can update or change your preferred funding source at any time via the “Account Profile” section on the PayPal website.

   If the preferred Payment Method fails (for example, a credit or debit card expires) and your PayPal account cannot complete a transaction in the first instance, it may be used again to try to complete the transaction. If the preferred Payment Method in your PayPal account cannot complete a transaction after repeated attempts, each of the other payment methods available in your PayPal account may be used to try to complete the transaction. You will have the ability to disable payment methods for your Recurring Payment, with the exception that if you have one or more credit or debit cards linked to your PayPal account, then at least one of those cards must be enabled for billing.

   In some cases, where you do not have the option to select a preferred Payment Method, your default payment method (your PayPal balance, linked bank account, debit card or credit card, in that order) will be used for the Recurring Payment.

7. Cancelling Recurring Payments
   Buyers or senders of funds may cancel a Recurring Payment at any time up to 3 business days prior to the date the payment is scheduled to take place. If a PayPal payment is funded by your bank account, then you may cancel this payment following notice of the payment to be made by contacting PayPal customer support via email or telephone.