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PayPal new rules for relaunch services in Thailand

PayPal is preparing to relaunch services in Thailand. If your account was opened prior to March 7, 2021, you will need to take some action to continue using your account in Thailand.

1) What do I need to do?

To continue using your PayPal account in Thailand you will need to take two steps by February 18, 2022:

A) Accept the new PayPal Thailand Relaunch Agreements which includes: 1) PayPal Thailand User Agreement and 2) PayPal Thailand Relaunch Consent Agreement.

B) Verify your identity. Requirements will vary depending on whether you have a personal account or whether your account is for a legal business entity. See details for legal business entities in item #8 below.

2) How do I complete these steps?

You will receive an email from PayPal and notification alerts within your account overview directing you to the appropriate steps. As always, be aware of phishing scams. PayPal will only ask for information after you have securely logged-in to your account.

3) Once I have completed these steps, when do these changes take effect?

PayPal business and personal accounts opened prior to March 7, 2021, must complete the required steps by February 18, 2022, to continue using PayPal services in Thailand without interruption.

For business accounts, it may take time to verify your account details so please act today to avoid any disruptions to your account.

Once these steps are completed, your existing PayPal account will be transferred to PayPal Thailand by March 7, 2022. This will happen seamlessly and will not require any action from you.

Until that time, there won’t be any changes to your existing PayPal account, but there will be some changes after the relaunch of PayPal Thailand. See item #11 below for additional details.

4) What will happen to my account if I don’t complete the required steps?

For all accounts, if you don’t accept the PayPal Thailand Relaunch Agreements and complete account verification by February 18, 2022, your account capabilities will be limited and you will not be able to send, spend, or receive payments through PayPal. You will only be able to withdraw any balance you have to your linked bank account.

Once your account has been limited, to use PayPal in Thailand again you will need to open a new PayPal Thailand account. Note, to open a new PayPal Thailand account with the same email ID, your existing PayPal account will need to be closed.

5) Why do I need to accept a new PayPal User Agreement?

PayPal is relaunching services in Thailand. Therefore, to continue using your PayPal account in Thailand you will need to accept the terms of the new PayPal Thailand User Agreement. This applies to both new and existing customers in Thailand.

6) Why do I need to verify my account identity?

As a financial services provider, PayPal is obliged to follow regulatory rules and take steps to verify the identity of its customers.

For businesses registered in Thailand specifically, to receive money or hold a balance in your PayPal Thailand account, you must pass the Thailand “Know your Business” (KYB) identify verification. See details in item #8 below.

7) For personal accounts or non-registered business accounts: What information is required to verify my account?

To continue making payments with your PayPal account in Thailand you must verify your full legal name in English as it appears on your government-issued ID and other details if applicable.

Note, holders of PayPal personal accounts or business accounts that are not registered business in Thailand will not be able to receive payments or hold a PayPal balance in PayPal Thailand.

8) For registered businesses: What information is needed to verify my business account?

Businesses registered in Thailand that wish to receive money or hold balances with PayPal must pass the Thailand “Know your Business” (KYB) identify verification. The following information must be provided and will be verified by PayPal:

Business information

  • 13-digit Thailand business registration number
  • Official business name, phone number and business address (with branch code if applicable)
  • Thailand business registration document (upload required)
  • Proof of business address (upload recent utility bill, tax document, credit card or bank statement that shows business address)

Identity information for the primary authorized user, each company shareholder with 25% or more ownership, and each additional executive or authorized user

  • Full legal name (in English spelling)
  • Date of birth
  • Nationality
  • Thai national ID (for Thai citizens) or Passport / country ID (for non-Thai citizens)
  • Proof of each individual’s address (upload recent utility bill, mobile phone bill, or credit card / bank statement that shows the individual’s address)

Letter of authorization

  • Complete, sign, and upload an authorization letter with your affixed company letterhead or stamp. A template of this letter will be made available to you within the business account verification process.

9) How long will it take to verify my business account?

We strive to make the process as quick as possible. We aim to complete the review within a few business days, but it could take longer if additional information and follow-up reviews are required.

10) Will there be changes to my account before the relaunch of PayPal Thailand?

No, there won’t be any changes to your account before the relaunch. You can continue to use your PayPal services as normal.

11) Will there be changes to my account after the relaunch of PayPal Thailand?

Yes, there will be some changes. * See details below:

Bank withdrawals

  • Only businesses registered in Thailand can withdraw funds from PayPal Thailand accounts and withdrawals must be made to Thai bank accounts in THB. Linked Thai bank accounts must be registered to the same business as the PayPal business account. Withdrawals to U.S. bank accounts will not be available.

    PayPal personal accounts will not be able to hold a balance or withdraw funds.

VAT Tax

  • A required 7% Thailand VAT tax will be collected on all PayPal fees. Account holders will receive a daily tax invoice summarizing the tax collected.

    VAT example: if you received a PayPal payment for 2,564 THB and your resulting PayPal fee was 100 THB, 7 THB (7%) would be collected in VAT.

12) What will happen to my existing account balance?

Only businesses registered in Thailand that pass the Thailand “Know Your Business (KYB)” verification requirements will be allowed to hold a balance in a PayPal Thailand account. See KYB requirements in item #8 above.

If you are a business registered in Thailand and have passed the KYB verification you will continue to have balance-holding capabilities in your PayPal Thailand account. However, please note that you may only withdraw balances in THB to a Thai bank account that is registered to same business as your PayPal business account. If you currently do not have a Thai Bank account linked to your PayPal business account, please add one now to avoid potential delays in accessing your money.

If you are not a business registered in Thailand or are a business registered in Thailand that has not passed the KYB verification prior to February 18, 2022, please spend or withdraw your entire account balance before February 18, 2022. Otherwise, your balance may be automatically moved to your existing linked bank (and if successful, your account will be transferred to PayPal Thailand) or your account may not be transferred to PayPal Thailand in which case your existing account capabilities will be limited. Please look out for additional notifications from PayPal about this.

13) Can I link my personal Thai bank account to my PayPal Thailand business account?

No. In order to withdraw funds from your PayPal Thailand business account, the linked bank account must be registered to the same business as your PayPal business account. Personal accounts opened under PayPal Thailand cannot hold balance or withdraw funds.

14) Will my fees change?

No. There won’t be any change to your account fees as a result of your account migration. Although, note that VAT will be collected on your PayPal fees. See details in item #11 above.

15) What will happen to my subscription payments?

If you are funding your subscription payments with a debit or credit card that is linked to your PayPal wallet there won’t any changes to your subscription payments. However, to use your PayPal balance to fund subscription payments you must have a PayPal business account that has passed KYB verification. If you don’t have a business account, please ensure you have a debit or credit card linked to your PayPal wallet before February 18, 2022. Otherwise, your subscription payments won’t be made.

Note, debit cards issued from Thai banks cannot be used to make payments in Thailand domestically; they can only be used for international payments.

16) Following the PayPal Thailand relaunch, will I have two PayPal accounts?

No. If you have completed the necessary steps (see item #1 above), your account will be automatically transferred to PayPal Thailand. You will not have two accounts.

17) Can I wait until later?

If you’ve received notification asking you to take action, we highly encourage you to complete the process as quickly as possible to minimize any potential disruption to your PayPal services.

Regardless of when you complete the required steps, there will not be any change to your PayPal account until after February 18, 2022.\

PP

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