2.1 Contractor Relationship. PayPal acts as a facilitator to help you accept payments from and make payments to third parties. We act as a contractor based upon your direction and your requests to use our Services that require us to perform tasks on your behalf.PayPal is not acting as a trustee with respect to balances that you choose to keep in your account.You acknowledge that (i) PayPal is not licensed to conduct general banking business in Australia and the Service is a payment processing service rather than a banking service, and (ii) PayPal is not acting as fiduciary or escrow with respect to your funds, but is acting only as an independent contractor.

You are not required to keep funds in the PayPal system (i.e., carry a balance in your PayPal account) to use the Service; provided however in certain limited circumstances you may be asked to ensure sufficient funds remain with PayPal to cover any reversals or potential losses. If you do carry a balance in your PayPal account, PayPal will pool your funds together with funds from other Users, and will place those funds in accounts in a licensed financial institution ("Pooled Accounts").

You agree that you will not receive interest or other earnings on the funds that PayPal handles as your contractor. PayPal may receive interest on those funds and may also receive a reduction in fees or expenses charged for banking services by the banks that hold your funds.

By initiating and sending payments through the Service or adding funds to your balance, you authorise PayPal to obtain the funds on your behalf and to transfer the funds to the recipient that you designate or to a Pooled Account, subject to the terms and restrictions of this Agreement. PayPal will obtain the funds first by debiting the funds in your PayPal account. If this is not sufficient to fund your payment fully, PayPal will obtain the remaining funds per your instructions by debiting a bank account that you designate (if you have provided PayPal with a direct debit authority), or charging your credit card. When you send a payment, until that payment is accepted by the recipient (which may occur instantly), you remain the owner of those funds but you will not be able to withdraw those funds or send the funds to any other recipient unless the initial transaction is cancelled.

By receiving payments through the Service, you authorise PayPal to cause the funds to be credited to your PayPal Account and deposited in the Pooled Accounts until you give PayPal further instructions about the transmission of your funds. Through the PayPal website, you may provide instructions at any time to withdraw the funds or transfer the funds to a third party, in each case subject to the terms and restrictions of this Agreement. If you receive a notice that a payment has been sent to you through PayPal but you have not registered for the Service, you will have no claim to those funds unless and until you register for the Service and indicate your acceptance of the payment.

2.2 PayPal is only a Payment Service Provider. PayPal acts as a payment service provider by creating, hosting, maintaining and providing our Service to you via the Internet. We do not have any control over, and are not responsible or liable for, the products or services that are paid for with our Service. We cannot ensure that a buyer or a seller you are dealing with will actually complete the transaction.

PayPal is not a common carrier or public utility. PayPal, at its sole discretion, reserves the right to close an account at any time for any reason, including but not limited to a violation of this Agreement, upon notice to the user and payment to the user of any unrestricted funds held in custody.

2.3 Identity Authentication. We use many techniques to identify our users when they register on our site. A user's Verified status is only an indication of increased likelihood that a User's identity is correct. You authorise PayPal, directly or through third parties, to make any inquiries we consider necessary to validate your registration. This may include ordering a credit report and performing other credit checks or verifying the information you provide against third party databases. However, because user verification on the Internet is difficult, PayPal cannot and does not guarantee any user's identity.

2.4 Release. If you have a dispute with one or more users, you release PayPal (and our officers, directors, agents, related companies, subsidiaries, joint ventures and employees) from any and all claims, demands and damages (actual and consequential) of every kind and nature arising out of or in any way connected with such disputes.

2.5 No Warranty. WE, OUR PARENT, SUBSIDIARIES, RELATED ENTITIES, EMPLOYEES AND OUR SUPPLIERS PROVIDE OUR SERVICES "AS IS" AND WITHOUT ANY WARRANTY OR CONDITION, EXPRESS, IMPLIED OR STATUTORY TO THE MAXIMUM EXTENT PERMITTED BY LAW. WE, OUR PARENT, SUBSIDIARIES, RELATED ENTITIES, EMPLOYEES AND OUR SUPPLIERS SPECIFICALLY DISCLAIM ANY IMPLIED WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT. PayPal shall make reasonable efforts to ensure that requests for electronic debits and credits involving bank accounts and credit cards are processed in a timely manner, but we make no representations or warranties regarding the amount of time needed to complete processing because our Service is largely dependent upon many factors outside of our control, such as delays in the banking system or mail services. We do not guarantee continuous, uninterrupted or secure access to our service, and operation of our site may be interfered with by numerous factors outside of our control.

2.6 Limitation of Liability. TO THE MAXIMUM EXTENT PERMITTED BY LAW IN NO EVENT SHALL WE, OUR PARENT, SUBSIDIARIES, RELATED ENTITIES, EMPLOYEES OR OUR SUPPLIERS BE LIABLE FOR LOST PROFITS OR ANY SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN CONNECTION WITH OUR WEB SITE, OUR SERVICE, OR THIS AGREEMENT (HOWEVER ARISING, INCLUDING NEGLIGENCE).

IN ANY EVENT, OUR LIABILITY, AND THE LIABILITY OF OUR PARENT, SUBSIDIARIES, RELATED ENTITIES, EMPLOYEES AND SUPPLIERS, TO YOU OR ANY THIRD PARTIES IN ANY CIRCUMSTANCE IS LIMITED TO THE ACTUAL AMOUNT OF DIRECT DAMAGES YOU INCUR.

2.7 Indemnification. You agree to indemnify and hold PayPal, its parent, subsidiaries, affiliates, officers, directors and employees harmless from any claim or demand (including legal fees) made or incurred by any third party due to or arising out of your breach of this Agreement or the documents it incorporates by reference, or your violation of any law or of the rights of a third party relating to your use of the Service.

2.8 Your Liability for Violations of the Acceptable Use Policy. If you engage in the following behaviour, PayPal may hold your funds up to 180 Days and fine you up to $3,000.00 AUD, as explained below.

1. Using the PayPal service to receive payments for any sexually oriented or obscene materials or services in violation of the Acceptable Use Policy.
   
   
2. Using the PayPal service to receive payments for any narcotics, other controlled substances, steroids or prescription drugs in violation of the Acceptable Use Policy.
   
   
3. Using the PayPal service to receive payments for wagers, gambling debts or gambling winnings, regardless of the location or type of gambling activity in violation of the Acceptable Use Policy, unless you have the prior approval of PayPal.
   
   
4. Using the PayPal service to receive payments for tobacco products in violation of the Acceptable Use Policy.

You and PayPal agree that the damages that PayPal will sustain as a result of the behaviour outlined above will be substantial, including (without limitation) fines and other related expenses from its payment processors and service providers, but may be extremely difficult and impracticable to ascertain. If you engage in such activities, then PayPal may fine you up to $3,000.00 AUD for each such violation and/or PayPal may take legal action against you to recover losses that are in excess of the amount charged. You acknowledge and agree that a fine up to $3,000.00 AUD is presently a reasonable pre-estimate or minimum estimate of PayPal's damages, considering all currently existing circumstances, including (without limitation) the relationship of the sum to the range of harm to PayPal that reasonably could be anticipated and the anticipation that proof of actual damages may be impractical or extremely difficult. You agree that PayPal is entitled to deduct such charges directly from any existing balance in the offending account, or any other PayPal account owned by you.

If you use the PayPal service in a manner that violates the Acceptable Use Policy, including but not limited to the four categories described above, your account will be subject to limitation or immediate termination, as stated in the Closing Accounts and Limiting Account Access Policy.

You further understand that, if you use the PayPal service in a manner that violates the Acceptable Use Policy, including but not limited to the four categories described above, PayPal may incur substantial liability and/or suffer significant damages, including (without limitation) fines and other related expenses from its payment processors and service providers. By selling goods or services (including access to content) in contravention of the Acceptable Use Policy or the Restricted Activities section of this User Agreement, you acknowledge liability to PayPal for any and all damages suffered by PayPal. Without limiting the foregoing, you agree to reimburse PayPal for any and all costs, expenses, and fines levied on PayPal by its payment processors and/or service providers as a result of your activities.

You agree that, if either you or PayPal commence litigation or arbitration in connection with this paragraph, the party that succeeds is entitled to recover reasonable legal fees and any other costs incurred in such a proceeding in addition to any other relief to which the prevailing party may be entitled.

4.1 Credit Card-Funded Payments. The ability to receive unlimited number of credit card and debit card funded payments ("Card Funded Payments") is reserved for Premier and Business accounts. Personal accounts may receive payments funded with a PayPal balance or a bank account for free. Personal accounts may receive up to 6 Card Funded Payments per 12 month period for a fee. Once a Personal account has reached its limit of Card Funded Payments it may accept additional Card Funded Payments by upgrading to a Premier or Business account, or it will have to deny the payments. Personal Accounts may also receive an unlimited number of credit card and debit card funded payments if initiated through Skype. Payments funded wholly or partially by a credit card or debit card are classified as Card Funded Payments in the PayPal system.

4.2 Risk of Reversal of Payments and the Seller Protection Policy ("SPP").

4.3 Removal of Expired Cards. We will notify you of expired credit and debit cards in your account and give you the opportunity to update those cards before we remove them as a funding source in your account.

4.4 Withdrawals. You can withdraw funds only by direct deposit to your bank account with an Australian or US bank you have on file with us. Your balance must exceed $15.00 AUD to process a withdrawal, if your balance is less then $15.00 you may make a small deposit to raise it above that amount, and then initiate the withdraw. In order to withdraw more than $700.00 AUD per month, we require you to complete some authentication procedures, such as confirming your name, email address, your bank account, credit or debit card and street address. For more details and guidelines about withdrawals, please refer to our Payments Policy. In the event you provide inaccurate bank account details when you initiate a withdrawal, PayPal may charge you a fee if the withdrawal is returned to PayPal.

5.1 Sending Payments. Before you can send payments through our Service we require you to provide PayPal with identification as further described in our Privacy Policy. We require this information to authenticate your identity and to determine how much you may send with your account. We will use the information you provide to determine your Sending Limit. Accounts that are Verified by adding a bank account and setting up Direct Debit will receive a higher Sending Limit or no limit at all.

5.2 Verifying your Account. Members will be asked to verify their account when they reach their Sending Limit. Once you reach your Sending Limit, you will be required to verify your account before using PayPal to send any more payments.

This Verification process is our way of safeguarding the security of everyone who uses our payment network, and just one of many ways by which PayPal limits fraud and provides the most secure service possible. When a PayPal member receives the status of Verified it signifies they have passed a series of stringent security checks carried out by PayPal. It sends out a message to other buyers and sellers that the Verified user is trustworthy, so it is important to get Verified as soon as possible.

Verified users will generally have their limits raised on the cumulative total of payments, and on withdrawals. Please see the Payments (Sending, Receiving, and Withdraw) Policy for instructions on raising your Sending Limit.

PayPal reserves the right to control the sending and withdrawal limits and require additional information from you depending on your location, credit rating, and other factors.

5.3 Refused Payments. When you send a payment to a third party through our Service, the recipient is not required to accept the payment, unless such recipient has otherwise indicated that they will accept PayPal, even if the recipient is already registered with PayPal. The recipient is free to return payments or, in some cases, to use the PayPal system to automatically refuse payments that you have sent. Any payments sent through PayPal that are denied or unclaimed by a recipient will be returned to you on the earlier of: (a) the date of such denial, or (b) 30 days after the date the payment is sent.

5.4 Electronic Transfers. When you make a payment through PayPal that is funded as an Instant Transfer (an instant transfer means that the person receiving your payment will receive the funds immediately if you have previously added a valid credit card or another bank account as a ‘back up funding source') or eCheque (an eCheque means that the person receiving your payment will NOT receive the funds immediately, funds will only be received once cleared through the banking system), and when you initiate an "Add Funds" transaction you are requesting an electronic transfer from your bank account. Upon such a request PayPal will debit your Australian bank account via the Bulk Electronic Clearing System (BECS) in the amount you specify. You agree that such requests constitute your authorisation for such transfers. PayPal will never make transfers from your bank account without your authorisation. PayPal provides you with protection against unauthorised withdrawals from your bank account under the terms of the Electronic Fund Transfer Rights and Error Resolution Policy.

6.1 Definition. "Your Information" is defined as any information you provide to us or other users in the registration, payment process, upgrade, verification, or other features of our Service. You are solely responsible for Your Information, as we act as a passive conduit for your online distribution and publication of Your Information.

6.2 Restricted Activities. Your Information and your activities (including your payments and receipt of payments) through our Service shall not: (a) be false, inaccurate or misleading, (b) be fraudulent or involve the sale of counterfeit or stolen items, (c) consist of providing yourself a cash advance from your credit card (or helping others to do so), (d) be related in any way to gambling and/or gaming activities, including but not limited to payment or the acceptance of payments for wagers, gambling debts or gambling winnings, regardless of the location or type of gambling activity (including online and offline casinos, sports wagering and office pools), unless you have obtained prior approval from PayPal and the operator and customers are located exclusively in jurisdictions where such activities are permitted by law, (e) violate PayPal's Acceptable Use Policy, (f) infringe any third party's copyright, patent, trademark, trade secret or other property rights or rights of publicity or privacy, (g) violate any law, statute, ordinance, contract or regulation (including, but not limited to, those governing financial services, consumer protection, unfair competition, anti-discrimination, or false advertising), (h) be defamatory, trade libellous, unlawfully threatening or unlawfully harassing, (i) be obscene or contain child pornography, (j) contain any viruses, Trojan horses, worms, time bombs, cancelbots, easter eggs or other computer programming routines that may damage, detrimentally interfere with, surreptitiously intercept or expropriate any system, data or other personal information, (k) use PayPal to facilitate the sale of counterfeit goods, or (l) create liability for us or cause us to lose (in whole or in part) the services of our Internet Service Providers or other suppliers. If you use, or attempt to use, the Service for purposes other than sending and receiving payments and managing your account, including but not limited to tampering, hacking, modifying or otherwise corrupting the security or functionality of the Service, your account will be terminated and you will be subject to damages and other penalties, including criminal prosecution where available.

6.3 Licence. Solely to enable PayPal to use the information you supply us with, so that we are not violating any rights you might have in that information, you agree to grant us a nonexclusive, worldwide, royalty-free, perpetual, irrevocable, sublicensable right to exercise the copyright, publicity, and database rights (but no other rights) you have in your information, in any media whether now known or not currently known. PayPal will use and protect Your Information in accordance with our Privacy Policy.

6.4 Seller Discouragement Policy. You agree that PayPal may suspend your account or otherwise prohibit your use of the PayPal service if you display PayPal as an accepted payment method on your website or eBay listing and subsequently prohibit the use of PayPal, surcharge for the use of PayPal, or otherwise discourage the use of PayPal as a payment mechanism.

6.5 Trademarks. PayPal.com, PayPal.com.au, PayPal.com/au, PayPal, and all related logos, products and services described in this website are either trademarks or registered trademarks of PayPal, Inc., or its licensors, and (aside from the circumstances described below) may not be copied, imitated or used, in whole or in part, without the prior written permission of PayPal. In addition, all page headers, custom graphics, button icons, and scripts are service marks, trademarks, and/or trade dress of PayPal and may not be copied, imitated, or used, in whole or in part, without the prior written permission of PayPal.

Notwithstanding the above, HTML logos provided by PayPal through its Merchant Referral Programme, Website Payments features, or Auctions Tools features ("Logos"), may be used without prior written consent for the purpose of directing web traffic to the Service. These Logos must not be altered, modified, or changed in any way, or used in a manner that is disparaging to PayPal or the Service. Logos may not be displayed in any manner that implies sponsorship or endorsement by PayPal or that implies that you are acting as the agent of PayPal. PayPal is a payment service, and no partnership, joint venture, agency, employee-employer or franchiser-franchisee relationship is intended or created by this Agreement.

14.1 Electronic Communications. You agree that this Agreement constitutes "a writing signed by You" under any applicable law or regulation. 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 all Communications from PayPal in electronic form. Electronic Communications may be posted on the pages within the PayPal website and/or delivered to your email address. You can 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) working days after posting or dissemination, whether or not you have retrieved the Communication. PayPal reserves the right to provide Communications in paper format, but assumes no obligation to do so.

14.2 Procedure. Except as explicitly stated otherwise, any notices to PayPal shall be given by postal mail to PayPal Australia Pty. Limited, Locked Bag 10, Australia Square PO, Sydney NSW 1215 (in the case of PayPal) or to the primary email address you have provided to PayPal (in your case). You can update your email address and other contact information at any time by logging in to your account profile. Notice shall be deemed as given 24 hours after it was posted or email is sent, unless the sending party is aware that the electronic communication was not received. Alternatively, we may give you notice by mail to the address you have provided to PayPal. In such case, notice shall be deemed given 3 days after the date of mailing.

15.1 Dispute Resolution. Disputes between you and PayPal about our Services can be reported to Customer Support online through the PayPal Help Centre at any time, or by calling (02) 8223-9500. Hours of operation for Customer Support can be found on our homepage, located at http://www.paypal.com.au/au and by clicking on the “How can I contact PayPal?” tab. Additionally, if you are not satisfied with PayPal's resolution or handling of your dispute you may wish to contact the Banking and Financial Services Ombudsman at 1300 780 808. You may also contact our Customer Services in Australia at the following address: Attention: PayPal, Locked Bag 10, Australia Square PO, Sydney NSW 1215.

15.2 Court. Alternatively, any Claim may be adjudicated by a court of competent jurisdiction located in New South Wales, Australia or where the defendant is located (in PayPal's case, New South Wales, Australia and in your case, your home address or principal place of business (but only if it is in Australia)). You and PayPal agree to submit to the personal jurisdiction of the courts located within New South Wales.

15.3 Alternative Dispute Resolution. PayPal may consider use of other alternative forms of dispute resolution, such as binding arbitration or non-binding mediation to be held in New South Wales, Australia or another location mutually agreed upon by the parties.

15.4 Violations of Section 14. All Claims (excluding requests for injunctive or equitable relief) between the parties must be resolved using the dispute resolution mechanism that is selected in accordance with this Section by the party who is first to assert a Claim, either through starting a court case or by starting arbitration. Should either party file an action contrary to this Section 14, the other party may recover legal fees and costs up to $1,500.00 AUD, provided that the party seeking the award has notified the other party in writing of the improperly filed Claim, and the other party has failed to withdraw the Claim.