Subject: Annual Privacy Policy Notice

From: PayPal <[email-masked]>
Date: Sun, 22 Jul 2007 10:56:11 PDT

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PayPal

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Dear Robert Stephens,

Your privacy is a top priority for PayPal. Each year, we send you
a copy of our Privacy Policy so that you know how we collect, use
and protect your personal information. This year, we've revised
our policy to make it even simpler and easier to understand.

With PayPal, privacy is built in. We've designed our service to
enable people to pay without exposing their financial information.
I encourage you to learn more about how to help protect yourself
online by visiting the PayPal Security Center on our website.

Sincerely,

Scott Hodes
Director of Privacy
PayPal
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Privacy Policy for PayPal Services (including PayPal Money
Market Fund)

This policy describes the ways we collect, store, use and protect
your personal information. You accepted this policy when you
signed up for our Service. We may amend this policy at any time by
posting a revised version on our website. The revised version will
be effective at the time we post it. In addition, if the revised
version includes a substantial change, we will provide you with 30
days' prior notice by posting notice of the change on the
"Policy Updates" page of our website. We last modified this Policy
on June 7, 2007.

	How we collect information about you

When you visit the PayPal website, we collect your IP address and
standard web log information, such as your browser type and the
pages you accessed on our website.

If you open an account, we collect the following types of
information from you:

- Contact information - your name, address, phone, email, Skype ID
  and other similar information.

- Financial information - the bank account numbers and credit card
  numbers that you link to your PayPal account.

Before permitting you to use our Service, we may require you to
provide additional information we can use to verify your identity
or address or manage risk, such as your date of birth, social
security number or other information.
We may also obtain information about you from third parties such
as credit bureaus and identity verification services.

When you are using our Service, we collect information about your
account transactions and we may collect information about your
computer or other access device for fraud prevention purposes.
Finally, we may collect additional information from or about you
in other ways not specifically described here. For example, we may
collect information related to your contact with our customer
support team or store results when you respond to a survey.

	How we use cookies

When you access our website, we, or companies we hire to track how
our website is used, may place small data files called "cookies"
on your computer.

We send a "session cookie" to your computer when you log in to
your account. This type of cookie helps us to recognize you if you
visit multiple pages on our site during the same session, so that
we don't need to ask you for your password on each page. Once you
log out or close your browser, this cookie expires and no longer
has any effect.

We also use longer-lasting cookies to display your e-mail address
on our sign-in form, so that you don't need to retype the e-mail
address each time you log in to your account.

We encode our cookies so that only we can interpret the
information stored in them. You are free to decline our cookies
if your browser permits, but doing so may interfere with your use
of our website.

	How we protect and store personal information

Throughout this policy, we use the term "personal information" to
describe information that can be associated with a specific person
and can be used to identify that person. We do not consider
personal information to include information that has been
anonymized so that it does not identify a specific user.

We store and process your personal information on our computers in
the US, and we protect it by maintaining physical, electronic and
procedural safeguards in compliance with applicable US federal and
state regulations. We use computer safeguards such as firewalls
and data encryption, we enforce physical access controls to our
buildings and files, and we authorize access to personal
information only for those employees who require it to fulfill
their job responsibilities.

	How we use the personal information we collect

Our primary purpose in collecting personal information is to
provide you with a safe, smooth, efficient, and customized
experience. We may use your personal information to:

- provide the services and customer support you request;

- process transactions and send notices about your transactions

- resolve disputes, collect fees, and troubleshoot problems;

- prevent potentially prohibited or illegal activities, and
  enforce our User Agreement;

- customize, measure, and improve our services and the content and
  layout of our website;

- send you targeted marketing, service update notices, and
  promotional offers based on your communication preferences;

- compare information for accuracy and verify it with
  third parties.

	How we share personal information with other PayPal users

To process your payments, we need to share some of your personal
information with the person or company that you are paying or is
paying you. Your contact information, date of sign-up, the number
of payments you have received from verified PayPal customers, and
whether you have verified control of a bank account are displayed
to other PayPal customers who you transact with through PayPal.

If you are buying goods or services and pay through PayPal, we may
provide the seller with the shipping address for the goods and
your confirmed credit card billing address to complete your
transaction with the seller. The seller is not allowed to use this
information to market their services to you unless you have agreed
to it.

We work with merchants to enable them to accept payments from you
using PayPal. In doing so, a merchant may share information about
you with us, such as your email address, when you attempt to pay
that merchant. We use this information to confirm to that merchant
that you are a PayPal customer and that the merchant should enable
PayPal as a form of payment for your purchase.

Regardless, we will not disclose your credit card number or bank
account number to anyone you have paid or who has paid you through
PayPal, except with your express permission or if we are required
to do so to comply with a subpoena or other legal process.

	How we share personal information with other parties

We may share your personal information with:

- Members of our corporate family (these are companies owned by
  our parent, eBay Inc., such as Shopping.com or Skype) to help
  detect and prevent potentially illegal acts, provide joint
  services and for other business purposes. However, these
  corporate affiliates will not use this information to market
  their services to you unless you have approved it.

- Service providers under contract who help with parts of our
  business operations; (fraud prevention, bill collection,
  marketing, technology services). Our contracts dictate that
  these service providers only use your information in connection
  with the services they perform for us and not for their
  own benefit.

- Financial institutions that we partner with to jointly create
  and offer a product such as the PayPal Plus credit card where we
  share information with GE Money Bank to determine whether you
  should receive pre-approved offers for the PayPal Plus credit
  card. These financial institutions may only use this information
  to market PayPal-related products, unless you have given consent
  for other uses.

- Credit bureaus to report outstanding negative balance accounts,
  as allowed by law.

- Companies that we plan to merge with or be acquired by. (Should
  such a combination occur, we will require that the new combined
  entity follow this privacy policy with respect to your personal
  information. If your personal information could be used contrary
  to this policy, you will receive prior notice.)

- Law enforcement, government officials, or other third
  parties when

  * we are compelled to do so by a subpoena, court order or
    similar legal procedure

  * we need to do so to comply with law

  * we believe in good faith that the disclosure of personal
    information is necessary to prevent physical harm or financial
    loss, to report suspected illegal activity, or to investigate
    violations of our User Agreement.

- Other third parties with your consent or direction to do so.

PayPal will not sell or rent any of your personal information to
third parties in the normal course of doing business and only
shares your personal information with third parties as described
in this policy.

	How you can restrict PayPal from sharing your personal information

Federal and state laws allow you to restrict the sharing of your
personal information in certain instances. However, these laws
also state that you cannot restrict other types of sharing.
Because we have chosen to refrain from certain types of data
sharing, the only type of sharing of your personal information
that you may restrict is as follows:

If you do not want PayPal to share your personal information with
other financial institutions for the purpose of marketing our
jointly offered products to you, please log in to your account and
uncheck the box in the Information Sharing section of the
Notifications and Information Sharing page. This page can be
accessed by going to the Profile subtab under the My Account tab.

You can also control how we use your contact information to market
our services to you in the notifications preferences.

	How you can access or change your personal information

You can review your personal information and make any necessary
changes, at any time by logging in to your account and changing
your preferences in the Profile page of the "My Account" tab.

	How you can contact us about privacy questions

If you have questions or concerns regarding this policy, you
should contact us by using the "Contact Us" feature on our site or
by writing to us at PayPal, Attn: Privacy Department, P.O. Box
45950, Omaha, NE 68145-0950. PayPal maintains offices at 2211 N.
First Street, San Jose, CA

PayPal is a TRUSTe licensee. If our response to your privacy
concern is unsatisfactory, then you should contact TRUSTe and file
a privacy complaint on the TRUSTe website (www.truste.org). TRUSTe
will serve as a liaison to PayPal to resolve your concerns
regarding our privacy practices. Please note that TRUSTe will not
intervene for any other type of issue with your account.