PayPal Business Debit Mastercard® Cardholder Agreement

1. Contracting Party and Scope of this Agreement

This Agreement ("Agreement") constitutes a legal agreement between you and PayPal (Europe) S.à r.l. et Cie, S.C.A. ("we" or "PayPal").

It governs the issuance and the use of your PayPal Business Debit Mastercard, which can be available in digital representation and/or physical form (the "Card" or “Cards”). This Agreement supplements the PayPal User Agreement that governs your use of PayPal’s services in general.

If there is any conflict between this Agreement and the PayPal User Agreement, this Agreement shall prevail.

2. Eligibility

To be eligible for the Card you need to have a Finnish PayPal Business account subject to our discretion based on risk and compliance rules and subject to the PayPal User Agreement and other applicable policies. “Primary Cardholder” means the PayPal Business account holder who requests issuance of the Card or secondary Card(s). “Secondary Cardholder” means a natural person nominated by the Primary Cardholder to be issued a secondary Card as a permitted user solely to access the Primary Cardholder’s PayPal balance and make payments for business purposes. For the purposes of the Second EU Payment Services Directive ((EU)2015/2366), any use of a secondary Card by a Secondary Cardholder is deemed a payment authorised by the Primary Cardholder. We may approve, suspend, decline or cancel any application for a Card or secondary Card, including pending or post-issuance, at any time to comply with law, card-scheme rules or our risk policies.

3. Receipt and Activation of Your Card.

Upon successful application, the Card will be immediately available in your PayPal Business account. If you have requested it, a physical version of the Card will be subsequently posted to you. You must activate your Card before it can be used. You may activate the Card by calling our customer services team +358 (0)9 725 225 37 (fees may apply) or online by logging into your PayPal account and following the activation instructions as outlined on our website. This Card will be issued free of charge. A secondary Card must not be used until the Secondary Cardholder has (i) completed identity verification to our satisfaction and (ii) accepted this Agreement presented during activation. We may refuse or delay activation until these steps are complete.

4. Requesting secondary Card(s) attached to your PayPal Business Account

We may allow you to apply for additional Card(s).

 By requesting a secondary Card, the Primary Cardholder (a) represents and warrants they have authority to appoint the Secondary Cardholder as a permitted user, (b) instructs us to issue and manage the secondary Card, (c) confirms the Secondary Cardholder has received all required privacy notices and that the Primary Cardholder has a lawful basis (and, where required, consent) to share the Secondary Cardholder’s personal data with PayPal for onboarding, servicing and fraud/AML, and (d) agrees we may share Card activity and controls with the Primary Cardholder to administer the PayPal Business Account.

The Primary Cardholder is fully responsible and liable for all actions and transactions of any Secondary Cardholder, whether or not authorised by the Primary Cardholder, and irrespective of fraud, misuse or breach by the Secondary Cardholder. Any use of the secondary Card by a Secondary Cardholder will be treated as if made by the Primary Cardholder.

Where applicable, we may set or change maximum numbers of secondary Cards per account and apply per-Card controls (including spend caps, ATM enablement, merchant category or region blocks, contactless parameters and tokenisation).

If a Secondary Cardholder fails onboarding or later fails ongoing KYC/AML screening, we may decline issuance, suspend or cancel the secondary Card immediately.

You must notify us immediately if you wish to revoke or change a Secondary Cardholder’s authorisation. Upon receiving such notice, we may cancel the relevant Card and, where applicable, issue a replacement Card with a new number. On revocation, the Primary Cardholder must use reasonable efforts to retrieve and destroy the secondary Card and if applicable, disable any wallet tokens. The Primary Cardholder remains liable until the secondary Card is canceled, suspended or blocked by us.

5. Possible Uses

Your Card can be used at merchants accepting Mastercard. You can use the Card to make purchases in-store, via the Internet and over the phone. The Card can be used for cash withdrawals at ATMs bearing the Mastercard Acceptance Mark.

You may only use your Card(s) for business expenses. We may decline transactions we consider inconsistent with business use, prohibited by our Acceptable Use Policy, or within blocked MCCs/regions we set for risk or compliance.

6. Daily Limits on Usage

Limits may apply per Card, per account or per time period and may change without notice where legally permissible. Cards are subject to the following standard daily limits on usage:

Your actual daily limits may vary (lower or higher) depending on our experience with you. All daily limits are subject to periodic review and are subject to change based on PayPal account history, activity, and other factors. PayPal retains sole discretion to apply and change these limits. You may login to your PayPal account to see your specific limits in effect.

7. Authorization of Transactions

You authorize payments with your Card by

• tapping your Card against a contactless enabled reader
• inserting the Card chip and entering your Personal Identification Number (PIN)
• entering manually or requesting a merchant to initiate a transaction on the phone providing your Card number, expiry date, security code (CVC).
• swiping the magnetic stripe and signing the transaction receipt.
• We may require strong customer authentication (SCA) and may decline where SCA is not satisfied. Some transactions (e.g., contactless offline or MOTO) may be authorised without PIN or SCA, and the Primary Cardholder remains liable for such transactions.

You cannot cancel payments which you have already authorized and which the payee already consented to. You may be able to cancel transactions that you have authorized for a future date (including recurring transactions) by contacting the Merchant before the date on which the payment is due to be made, or by contacting us. Further details are contained in the sections “Making A Payment” and “Receiving Payments” of the PayPal User Agreement.

8. Your Payment Obligation

When you use your Card for a transaction, i.e. give a payment order with the Card, you are obliged to reimburse the transaction amount to us. To this end, you authorize us to debit the respective amount from your PayPal balance.

Transactions made with the Card are funded solely by the Euro (“EUR”) balance in your PayPal account. You need to have sufficient EUR balance in your PayPal account to cover the amount of the Card transaction (and any transaction fees payable to us).

You can choose to enable or disable an automatic funding arrangement (we may call this “automatic top up”) by linking a debit card to your Card in your Card settings.

If you link a debit card to your Card, to the extent that there is no or insufficient balance available in your PayPal account to cover a Card transaction (and any transaction fees payable to us), we may automatically use your debit card as the funding source to obtain sufficient balance in accordance with the terms of the PayPal User Agreement. The amount drawn via your debit card and added to the balance of your PayPal account will be in EUR and will be rounded up to the nearest multiple of EUR 5.

An example: If you do not have any PayPal balance, but would like to pay EUR 26.50 to a merchant, an amount of EUR 30 will be drawn from your debit card and credited in your PayPal account. EUR 26.50 will be used for the Card payment. You can spend the remaining PayPal balance of EUR 3.50 on other purchases.

We will prioritize the pre-existing balance in your PayPal account for a payment with PayPal and only draw an amount via your debit card where the balance is insufficient.

If you:

• do not link a debit card to your Card;
• disable the debit card linked to your Card; or
• remove your linked debit card from your PayPal account,

you will not be able to obtain sufficient balance in your PayPal account to fund your Card transaction in the event that the pre-existing balance in your PayPal account is insufficient. Any Card transaction that exceeds the balance in your PayPal account will be declined.

We may decline or reverse any Card transaction where we suspect fraud, misuse by a Secondary Cardholder, or regulatory risk, even if sufficient balance appears available.

9. Cash Withdrawals

The Card enables you to withdraw cash from the EUR balance on your PayPal account at

• an Automated Teller Machine ("Withdrawal at an ATM") and
• a point of sale provided the merchant offers this possibility and subject, among other requirements, to limits which PayPal may set ("Cash at Checkout").

You may withdraw cash in an amount up to your daily limit (see section 6 of this Agreement).

You may only withdraw cash from your PayPal balance at an ATM but cannot withdraw from your debit card linked to your Card(s). However, you may get Cash at Checkout if your PayPal balance isn’t enough to cover the total transaction amount (purchase amount + cash amount) and if automatic top up is enabled (see section 8 of this Agreement).

You can withdraw no more than EUR 100.00 per day when you withdraw Cash at Checkout.

10. No Use of Your Non-EUR- Balance

It is possible to maintain balances in different currencies in your PayPal account. However, balances in currencies other than EUR (that were in your PayPal account prior to the transaction) will not be used to fulfil your payment obligation pursuant to section 8.

Example: You have a US dollar balance in your PayPal account. If you make a payment with your Card to a merchant in the US, we will not use this US dollar balance. US dollar transaction amount will be converted to EUR and we will only use your EUR balance in your PayPal account and possibly the EUR amount which we pull from your linked debit card for the payment. (see section 8).

11. Fees and Statements

1. Cash withdrawal fee
   You agree to pay a fee of EUR 2.00 for each cash withdrawal. This fee applies to cash withdrawals at an ATM (inside and outside Finland). The ATM provider may charge additional fees.
2. No transaction fees
   We do not charge any fees for payments with your Card(s).
   In particular, we neither charge a fee for an international transaction nor a currency conversion fee for payments with your Card(s). In case the payment or cash withdrawal with your Card involves a currency conversion performed by PayPal section c below “Currency Conversion” will apply.
3. Currency Conversion
   PayPal does not charge currency conversion fees. In case the payment or cash withdrawal with your Card involves a currency conversion performed by PayPal, Mastercard’s foreign exchange rates will apply. The exchange rate that is applied will usually be the rate on the date that the transaction was authorized.
   However, in certain circumstances, the exchange rate that is applied may be the rate on the date when the transaction is processed by Mastercard’s systems, which may be different to the exchange rate on the date of the transaction. Please see Mastercard Currency Conversion Calculator for Mastercard’s rates.
   Currency conversion charges as a percentage mark-up over reference rates issued by the European Central Bank can be found here.
   PayPal is not obliged to send you messages pursuant to art. 3a (5) Cross-Border Fee Regulation (Regulation (EC) No 924/2009).
4. Statements
   We will provide an electronic statement each month with all your payment transactions that you made by using the Card.

12. Cashback Program

a. Cashback

PayPal provides 0.5% cash back on the Net Amount of Eligible Payments with your Card(s). This means 0.5% of the Net Amount of your Eligible Payments with your Card(s) will be credited to your PayPal account as weekly payouts.

Cashback accrues at account level to the Primary Cardholder’s PayPal balance, including spend on secondary Cards. We may reverse or withhold cashback for returned, refunded, fraudulent, disputed or policy-breaching transactions.

From time to time, we might increase the cashback rate (for example to 1%) for a limited period of time. We will announce such promotional campaigns with an increased cashback rate (including eligibility criteria) in email and/or on our website to you.

"Net Amount" means the payment amount less the PayPal fees applicable to the payment.

"Eligible Payments" are all transactions with your Card(s) except for

• payments which are reversed (such as returns) or refunded;
• returns and refunds;
• fraudulent transaction or other transactions in violation of the PayPal User Agreement, PayPal’s Acceptable Use Policy or this Agreement
• withdrawals (withdrawals at an ATM and Cash at Checkout).

PayPal uses a “round half up” approach to calculate reward amounts for individual payments. Cashback calculation examples:

• EUR 10.00 purchase transaction => EUR 0.05 cashback
• EUR 10.99 purchase transaction => EUR 0.05 cashback
• EUR 11.00 purchase transaction => EUR 0.06 cashback

b. Enrollment and Availability of the Cash Back Program

Your new Card and replacement Cards (lost or stolen use case) are auto enrolled to the Cash Back Program.

c. PayPal Account Closure or Termination of this Agreement

If you close your PayPal account, you will not be eligible to receive cash back for the month in which you close your PayPal account. However, if you cancel your Card or terminate this Agreement, you will still be eligible to receive cash back for the eligible transactions that are completed in the month in which you cancel your Card or terminate this Agreement.

13. Execution Times

The payment is initiated by the payee, namely the merchant.

If we receive the payment order on a business day after 4:00 pm CET Finland, then the payment order is deemed to be received on the next business day. Execution times (as defined below) only start running at the point of time that a payment order is deemed to be received.

After receipt of the payment order with PayPal, PayPal is obliged to ensure that the transaction amount is received by the payment service provider of the payment service recipient at the latest as follows:

14. Authorization Holds

When you use your Card to purchase goods or services or to obtain cash from a merchant, the merchant may attempt to obtain preauthorization from us for the transaction. If the merchant makes such a request, we place a hold on your PayPal balance for up to thirty (30) days for the amount of the preauthorization request (which may vary in some cases from the amount of the actual purchase, depending on the merchant). This hold may affect the availability of funds in your PayPal account. If you authorize a transaction and then fail to make a purchase of that item as planned, the approval may result in a hold for that amount of funds for up to thirty (30) days. All transactions that involve incremental adjustment to preauthorization will result in a hold for that amount of funds for up to another thirty (30) days from the adjustment date. We will not be responsible if any transactions are not completed because of the hold. If the preauthorization request varies from the amount of the actual transaction, we will debit the actual transaction amount from your PayPal balance.

15. Card Expiry

Upon expiry of your Card, PayPal will usually automatically issue a new Card for you. Please contact us if upon expiry your card has not been renewed and you wish to renew it: +358 (0)9 725 225 36 (fees may apply). We may decide not to reissue a secondary Card on expiry.

16. Your Obligations: Protecting Your Card and PIN

You are obliged to comply with the following obligations:

1. Take all reasonable precautions to protect your Card, your PayPal account and PIN from unauthorized access by a third party. If you lose your Card or if your Card is stolen, you must inform us immediately.
2. You are not allowed to
   • enable a third party to use your Card;
   • share your PayPal password or PIN with any other person (except for licensed payment initiation or payment account services);
   • write down your PIN on your Card or any material stored with or near your Card.
3. The Primary Cardholder must ensure the Secondary Cardholder complies with these security obligations. The Primary Cardholder is responsible for device security where a Secondary Cardholder stores credentials or wallet tokens.

17. Notification Requirement in case of Unauthorized Use of your Card

Should you notice or suspect that you have lost your Card, secondary Card(s) or other device or notice or suspect an unauthorized use of your Card or secondary Card(s), you must notify us immediately.

To this end, you can log in to your PayPal account and report the Card or secondary Card as stolen, contact PayPal’s customer service or call: +358 (0)9 725 225 36 (fees may apply).

18. PayPal’s liability for unauthorized transactions

1. In the event of an unauthorized payment with your Card, PayPal is required to refund the transaction amount to your PayPal account to the extent that the amount has already been debited from your PayPal account. If the amount has not yet been debited, PayPal will not charge your PayPal account.
2. A transaction made by a Secondary Cardholder is not considered ‘unauthorised’ solely because the Secondary Cardholder acted beyond the authority granted by the Primary Cardholder.
3. Section 18 (1) does not apply if you are liable pursuant to section 19 of this Agreement (see below).
4. Section 18 (1) does not apply if you did not inform PayPal about the unauthorized transaction at the latest within 13 months after the day on which the transaction was performed.

19. Your liability in case of unauthorized transactions

1. You are liable to PayPal for the reimbursement of all damages incurred by PayPal as a result of the unauthorized payments with your Card if
   • You acted fraudulently, or
   • You violated one of the obligations pursuant to sections 16 and 17 of this Agreement intentionally or as a result of gross negligence,
     and if this violation enabled the unauthorized transaction.
2. You are liable for all losses arising from misuse by any Secondary Cardholder, including where the Secondary Cardholder acted without authority, unless we have confirmed blocking of that Secondary Card before the transaction was processed.
3. Section 19 (1) does not apply if you could not notify PayPal pursuant to section 17 because PayPal did not provide for the possibility to receive such notices.
4. Section 19 (1) does not apply if no strong customer authentication was performed despite such an obligation applying by law.
5. As soon as you have fulfilled your obligation pursuant to section 17, you are not liable for damages incurred by PayPal after your notification. This does not apply if you acted fraudulently.

20. Refunds for Card transactions initiated by or through the payee

1. You are entitled to a refund from PayPal of an authorized Card payment which was initiated by or through a payee and which has already been executed if all the following conditions are met:

1. The authorization did not specify the exact amount of the Card payment when the authorization was made.
2. The amount of the Card payment exceeded the amount that you could reasonably have expected taking into account previous spending pattern and relevant circumstances of the case.
3. You have requested the refund within a period of eight weeks from the date on which the funds were debited in your PayPal account.
   
   You shall bear the burden of proving that such conditions are met. The refund will consist of the full amount of the executed Card payment.

2. You do not have a right to a refund where:

1. You have given consent to execute the Card payment directly to PayPal;
2. Information on the future Card payment was provided to you for at least four weeks before the due date by PayPal or by the payee; and
3. If the payment in question was higher than you reasonably expected to pay due to a change in any currency exchange rate.

3. Within ten business days of receiving a request for a refund, PayPal will either refund the full amount of the payment transaction or provide a justification for refusing the refund.

21. Actions we may take in case of violations of PayPal’s terms and PayPal’s right to restrict the use of the Card

We may block, restrict, suspend or terminate your Card at any time without notice and for any reason.

We may suspend or permanently suspend your use of your Card(s),

• if you violate the PayPal User Agreement, in particular the “Restricted Activities and Holds – Restricted Activities” section of the PayPal User Agreement,
• or violate this Agreement;

The provisions of the “Restricted Activities and Holds” section of the PayPal User Agreement also apply to transactions with your Card.

22. Property of the Cards

The Cards remain our property. We may ask you to return or destroy your Card (for example when this Agreement is terminated by you or us).

23. No Assignment

Your Card and your obligations under this Agreement may not be assigned.

24. Changes to this Agreement

We may change this Agreement with two months’ prior notice subject to the conditions in the “About Your Account – Welcome to PayPal!” section of the PayPal User Agreement. We may make non-material updates (e.g., contact numbers, references or clarifications) without notice to reflect operational realities.

25. Your Right to Terminate

You may terminate this Agreement, i.e. your Card and secondary Card(s), at any time. To cancel your Card and secondary Card(s), you may contact our customer services at +358 (0)9 725 225 36 (fees may apply) or you may cancel online by logging into your PayPal account.

On termination, the Primary Cardholder must retrieve and destroy all secondary Cards and if applicable disable wallet tokens. The Primary Cardholder remains liable until the Cards are blocked, canceled or suspended.

26. PayPal’s Right to Terminate

We may terminate this Agreement with two months’ prior notice. Moreover, PayPal is entitled to terminate this Agreement as well pursuant to the conditions in the “Restricted Activities and Holds” section of the PayPal User Agreement.

27. Privacy

PayPal’s Privacy Statement also applies to the use of your Card(s). The Primary Cardholder confirms they have provided the Secondary Cardholder with all legally required privacy information and obtained any consents needed to disclose the Secondary Cardholder’s personal data to us.

28. Disputes

For any disputes or issues with PayPal or this service, please refer to the Disputes section in the “Resolving Problems” section of the PayPal User Agreement.

29. Additional Terms in the PayPal User Agreement

In addition to this Agreement, your use of the Card(s) is governed by the PayPal User Agreement (including the PayPal Acceptable Use Policy). You will for example find provisions and information about the applicable law, jurisdiction, arbitration, limitations of liability, language of the contract, etc.