PAYPAL USER AGREEMENT
Last updated on June 29, 2026
About Your Account
Welcome to PayPal!
This user agreement is a contract between you and PayPal, Inc. governing your use of your PayPal
account and the PayPal services. It applies to U.S. PayPal accounts only. If you are an individual, you
must be a resident of the United States or one of its territories and at least 18 years old, or the age
of majority in your state of residence to open a U.S. PayPal account and use the PayPal services. If
you are a business, the business must be organized in, operating in, or a resident of, the United
States or one of its territories to open a U.S. PayPal account and use the PayPal services.
By opening and using a PayPal account, you agree to comply with all of the terms and conditions of
this user agreement, including the
Fee pages
, and any upcoming changes described on the
Policy
Updates
page at the time you accept this user agreement (which changes will apply to you on the
indicated effective dates). These terms include an
agreement to resolve disputes by arbitration
on an
individual basis. You also agree to comply with each of the other terms or agreements on the
Legal
Agreements
page that apply to you and the following additional policies:
Acceptable Use Policy
Electronic Communications Delivery Policy (E-Sign Disclosure and Consent)
Please read carefully all of the terms and conditions of this user agreement, the terms of the above
policies, and each of the other terms and agreements that apply to you.
We may revise this agreement and any of the other terms, agreements, or policies from time to time.
The revised version will be effective at the time we post it, unless otherwise noted. If our changes
reduce your rights or increase your responsibilities, we will provide notice of such changes.
For personal accounts, notice will include posting information about the changes on our
Policy
Updates
page. If you accepted this user agreement prior to us posting notice of the changes on
our
Policy Updates
page, then such notice will be provided at least 21 days before the applicable
effective date.
For business accounts, notice will include posting information about the changes on our
Policy
Updates
page or providing information about the changes by other written means (which may
include email). If you accepted this user agreement prior to us providing notice of the changes on
the Policy Updates page or by other written means, then such notice will be provided at least 5
days before the applicable effective date.
By continuing to use our services after any changes to this user agreement or any of the other
applicable terms, agreements, or policies, you agree to abide and be bound by those changes. If you
do not agree with any changes to this user agreement, you may close your account.
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Opening a PayPal Account
We offer two types of PayPal accounts: PayPal personal accounts (or “personal accounts”) and PayPal
business accounts (or “business accounts”), both covered by this user agreement.
All PayPal accounts let you do things like:
Send
and receive money.
Buy
things online, using mobile devices or in stores.
Make payments using your credit card, debit card, bank account, or other payment options,
including funds held as balance in a business account (if we have verified the
required identifying
information
you provide to us) or funds held in a PayPal Balance account linked to a personal
account if you choose to open a PayPal Balance account. The terms “PayPal Balance account” or
“Balance Account” in this user agreement are used to refer to a PayPal Balance account and shall
include any account currently or previously known as a PayPal Cash or a PayPal Cash Plus account,
as applicable. More information about Balance Accounts can be found in the
PayPal Balance Terms
and Conditions
.
Accept credit card, debit card, bank account, Balance Account, and other payment methods from
others.
You are responsible for maintaining adequate security and control of any and all IDs, passwords,
personal identification numbers, or any other codes that you use to access your PayPal account and
the PayPal services. You must keep your mailing address, email address and other contact
information current in your PayPal account profile.
Personal accounts
If you are establishing your PayPal account primarily for personal, family, or household purposes, you
are required to open a personal account. With a personal account, you can do things like:
Send
personal transactions to and request personal transactions from friends and family.
Buy
goods and services.
Receive and hold money
in a linked Balance Account or transfer it to a linked bank account or
debit card if you do not open a Balance Account.
Personal accounts may be subject to fees that differ from the fees applicable to business accounts.
Certain features associated with business accounts may not be available for personal accounts. If the
activity associated with your personal account primarily involves business or commercial activity,
PayPal may close your account unless you agree to cease the business or commercial activity or
convert your personal account to a business account.
Business accounts
If you are establishing your PayPal account primarily for business or commercial activity, you are
required to open a business account. This is true even if your business is not incorporated. With a
business account, you can do things like:
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Sell goods or services or receive donations.
Use a company or business name as the name on your business account.
Allow employees access to some of the features of your business account.
Use PayPal business products that meet your business needs.
Business accounts may be subject to fees that differ from the fees applicable to personal accounts.
Business accounts are not eligible to receive “
personal transactions
”, although they may send personal
transactions to friends and family with an eligible PayPal account. You may not establish a PayPal
business account primarily for personal, family, or household purposes. If the activity associated with
your business account demonstrates that the account was established primarily for personal, family,
or household activity, PayPal may close your account unless you agree to cease the personal, family,
or household activity or convert your business account to a personal account.
Eligible business accounts may have the option to use certain payment solutions features, which are
provided by PayPal subject to the additional terms and conditions found under the
Business Account
Payment Solutions Agreements
section of our
Legal Agreements
page (collectively the “Business
Account Payment Solutions”). You will be deemed to have accepted such additional terms and
conditions in the event, and at the time, either of the following occurs, whichever is first:
You accept (or have previously accepted) this user agreement and you start using a Business
Account Payment Solution.
Such additional terms and conditions are surfaced to you by PayPal through other means, and you
accept such terms and conditions through such other means.
We may revise (or terminate) such additional terms and conditions for the Business Account Payment
Solutions from time to time pursuant to their terms and the terms of this user agreement.
If you, or any other person associated with your account, use SAML SSO (Security Assertion Markup
Language Single Sign-On) to allow access to your accounts with PayPal, you attest that you are
compliant with applicable state and Federal Multi-Factor Authentication (“MFA”) regulations (e.g.,
NY DFS Part 500 and 16 CFR Part 314: Standards For Safeguarding Customer Information). You will
provide information to demonstrate compliance with this requirement as reasonably requested by
PayPal.
By opening a business account or converting a personal account to a business account, you
agree that you are not establishing the account primarily for personal, family, or household
purposes. You further agree that each payment method you link to your business account (see
Link or Unlink a Payment Method
) is a payment method used primarily for business or
commercial purposes and was not established for personal, family, or household purposes.
You also consent to PayPal obtaining your personal and/or business credit report from a credit
reporting agency at account opening and whenever we reasonably believe there may be an
increased level of risk associated with your business account.
Closing Your PayPal Account
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You may close your PayPal account and terminate your relationship with us at any time without cost,
but you will remain liable for all obligations related to your PayPal account even after the PayPal
account is closed. When you close your PayPal account, we will cancel any scheduled or incomplete
transactions. If you have a Balance Account linked to a personal account, you must
withdraw
or
transfer any funds held in your Balance Account before closing your personal account, and closing a
personal account will result in PayPal automatically closing any linked Balance Account. If you have a
business account, you must
withdraw
or transfer any balance from your business account before
closing it, and if you have not provided the
required identifying information
to us, or if we are unable
to verify the
required identifying information
you provide, you must transfer any balance in your
business account to a linked bank account or debit card. You cannot withdraw or transfer digital gift
certificates/cards that are purchased through
PayPal Digital Gifts
and linked to your personal or
business account as payment methods. However, even without your PayPal account, you can still use
the codes you received by email when you purchased the gift certificates/cards to make purchases.
In certain cases, you may not close your PayPal account, including:
To evade an investigation.
If you have a pending transaction or an open dispute or claim.
If your PayPal account has a negative balance.
If your PayPal account is subject to a hold, limitation or reserve.
Link or Unlink a Payment Method
You can link or unlink certain payment methods such as a credit card, debit card, a U.S. bank account
or PayPal Credit to your PayPal account. If you open a Balance Account, it will be linked to your
personal account as a payment method, and you can unlink the Balance Account by withdrawing all
funds and closing it. If you have a Balance Account and have also opened a PayPal Debit Mastercard®
account (PayPal Debit Card), your PayPal Debit Card, which allows you to access the balance in your
PayPal Balance Account, will be reflected as the Payment Method in PayPal checkout and as the
funding source for the Send Money feature on your PayPal account.
Before linking a bank account, you should review and understand the consumer protection rights and
remedies available for different payment sources under the Electronic Fund Transfer Act (EFTA) and
Fair Credit Billing Act (FCBA). Please also refer to
Authorization to Charge Your Payment Method
for
additional terms regarding our authority to charge your linked payment methods and your right to
revoke our authority to charge such payment methods.
Please keep your payment method information current (e.g., credit card number and expiration
date). If this information changes, we may update it using information and third-party sources
available to us without any action on your part. If you do not want us to update your payment
method information, you may unlink that payment method by removing it from your PayPal account.
If we update your payment method, we will keep any preference setting attached to such payment
method. You may need to confirm your payment method, so we can verify that it is valid and belongs
to you. To do this, you authorize us to make credits and debits to your payment method as follows:
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If your payment method is a card that we require you to confirm, we will verify it by charging
$1.95 U.S. dollars to the card and promptly refunding this amount after we have confirmed it.
If your payment method is a bank account that you manually link to your PayPal account by
adding your bank routing and account numbers (instead of verifying using a real-time account
verification service, if available to you), we will make two small deposits to your provided bank
account of less than $1.00 U.S. dollar each that you will need to confirm with us, along with one
corresponding single debit from your bank account totaling the amount of the two small deposits.
Authorization to Charge Your Payment Method
General authorization to charge your payment method
By linking a payment method to your PayPal account, as described in the section
Link or Unlink a
Payment Method
, you authorize PayPal to charge such linked payment method (a) whenever you
choose such linked payment method to add funds to your PayPal Balance account or PayPal business
account balance, send money using PayPal, or purchase something using PayPal, (b) in connection
with any errors, claims, or disputes, and (c) for amounts you owe to PayPal.
Authorization of specific transactions
Each time you add funds to your PayPal Balance account or PayPal business account balance, you
authorize PayPal to charge the selected payment method for the amount you are adding through
one-time or automatic transfers.
Each time you send money using the Send Money feature in your PayPal account, you authorize
PayPal to charge the selected payment method for the amount you are sending and any applicable
fees.
Each time you use PayPal to purchase something from a seller or make a donation, you authorize
PayPal to charge your selected or backup payment method for the amount specified during the
checkout process and any applicable fees. If the amount of your transaction changes after checkout,
you authorize PayPal to charge the selected or backup payment method for the revised amount (for
example, if the amount increases because you add another product or service (e.g., expedited
delivery), the amount decreases, or the amount is split because a portion of your order is canceled or
delayed).
If you have entered into an automatic payment agreement with a seller, you authorize PayPal to
charge your preferred or selected payment method for the available amount each time you make a
purchase from the seller, including via recurring payments or any other future transactions scheduled
in advance. If that payment method cannot be charged for the full amount of your automatic
payment transaction, for example due to insufficient funds, you then authorize PayPal to charge the
remaining amount due to complete that transaction to your relevant backup payment method linked
to your PayPal account.
Revoking your authorization
You can revoke our authority to charge a payment method by unlinking that payment method from
your PayPal account as described in the section
Link or Unlink a Payment Method
. Such revocation
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only applies to transactions that are initiated, by you or by a seller, after you unlink the payment
method. It does not affect our authority to charge the payment method for a transaction you have
already authorized, including our authority to re-present a charge to the unlinked payment method
or charge the unlinked payment method as a backup payment method if the original transaction
occurred before you unlinked that payment method. Unlinking a payment method also does not
revoke our authority to charge or credit the payment method in connection with an error, dispute, or
claim with respect to a transaction initiated before you unlinked that payment method. If there is a
pending transaction with a seller where you have authorized the transaction, but the seller has not
yet completed the transaction, you may not be able to unlink the payment method used until the
transaction is completed.
Receiving Funds, Holding a Balance, or Transferring Funds
Unless otherwise expressly stated, all references to “funds” in this user agreement mean money
denominated in sovereign currency and not cryptocurrency or any other form of asset.
Personal accounts
Money sent to your personal account cannot be held as a balance in your personal account. When you
receive money to your personal account, you can:
transfer the money via a standard transfer to an eligible debit card or your bank account linked to
your personal account for free;
transfer the money via an Instant Transfer to an eligible debit card or bank account linked to your
personal account, subject to the fees applicable to such transfers that can be found on the
Fees
for Transferring Funds (for personal accounts)
table and that will be disclosed to you in advance
each time you initiate such a withdrawal;
request PayPal to send the money to you by check (subject to a non-refundable fee of $1.50 U.S.
dollars for PayPal personal accounts without a linked Balance Account, which will be deducted
from the amount of the transfer). If you request a paper check from us, you must cash it within
180 days of the date of issuance, or we will return the funds to your linked Balance Account if you
have one or hold the funds on your behalf and retain the non-refundable fee of $1.50 U.S. dollars,
if applied. We will not send a check to a post office box, and we will only send a check to an
address once we have confirmed that it belongs to you;
open a Balance Account to hold and use the money as a balance in your Balance Account for
purchases or to send personal transactions to friends and family members. A Balance Account is
separate account from your personal account. If you open a Balance Account, we will automatically
link your Balance Account to your personal account. If you have a Balance Account and have also
opened a PayPal Debit Card, your PayPal Debit Card, which allows you to access the balance in
your PayPal Balance Account, will be reflected as the Payment Method in PayPal checkout and as
the funding source for the Send Money feature on your PayPal account. More information about
Balance Accounts can be found in the
PayPal Balance Terms and Conditions
.
You also cannot transfer money to your personal account to be held as a balance in your personal
account. You will need to open a Balance Account to hold the money as a balance in your Balance
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Account, which can be used for purchases or to send personal transactions to friends and family
members. More information about Balance Accounts can be found in the
PayPal Balance Terms and
Conditions
.
Except when PayPal acts as your agent and custodian to place funds in one or more banks insured by
the Federal Deposit Insurance Corporation (FDIC) that we choose in our discretion (“
Program Banks
”),
as provided below, any balance in your Balance Account and any funds sent to you which have not yet
been transferred to a linked bank account or linked debit card if you do not have a Balance Account,
represent unsecured claims against PayPal that are not eligible for FDIC pass-through insurance.
If your Balance Account is not eligible for FDIC pass-through insurance, PayPal combines your PayPal
funds with the PayPal funds not eligible for pass-through FDIC insurance of other PayPal users and
invests those funds in liquid investments in accordance with state money transmitter laws. PayPal
owns the interest or other earnings on these investments. However, the claim against PayPal
represented by funds held in your Balance Account is not secured by these investments and you do
not have any ownership interest (either legal or beneficial) in these investments. These pooled
amounts are held apart from PayPal’s corporate funds, and PayPal will neither use these funds for its
operating expenses or any other corporate purposes nor will it voluntarily make these funds available
to its creditors in the event of bankruptcy. You will not receive any interest or other return on the
funds held with PayPal.
If you have opened a PayPal Debit Card Mastercard® account, enrolled in Direct Deposit, or bought or
received cryptocurrency with your personal PayPal branded cryptocurrency account
(“CryptoAccount”), we will place your U.S. dollar PayPal Balance funds in one or more
Program
Banks
, where they will, subject to certain conditions, be eligible for pass-through FDIC insurance, up
to applicable limits. Additionally, if you have bought or received cryptocurrency with a Crypto
Account linked to your PayPal business account, we will place your U.S. dollar business account funds
at one or more Program Banks. FDIC insurance protects against the failure of the
Program Banks
,
not the failure of PayPal. PayPal is not a bank, does not take deposits and is not FDIC insured. Any
other balance funds and all cryptocurrencies are not held in FDIC-insured bank deposits.
Cryptocurrencies may lose value. See
PayPal Balance Terms and Conditions
.
Cryptocurrency services and accounts are provided by PayPal Digital, Inc. More information can be
found in the
Cryptocurrency Terms and Conditions
.
PayPal Savings
You may also link PayPal Savings to your PayPal personal account. PayPal Savings is a deposit
account provided by Synchrony Bank in which you can deposit funds and subsequently access those
funds by transferring them back to your eligible Balance Account. A PayPal Balance Account is
required to set up and utilize PayPal Savings.
PayPal Savings does not act as a payment method to fund transactions with merchants for goods and
services or to send or receive personal transactions from friends and family.
All deposits to and withdrawals from PayPal Savings are made via transfer to your PayPal balance.
When you link PayPal Savings to your PayPal account, you authorize PayPal and Synchrony Bank to
transfer funds between your eligible Balance Account and PayPal Savings in accordance with your
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instructions. More information about sending and receiving funds from PayPal Savings can be found
in the
PayPal Balance Terms and Conditions
.
Business accounts
Money sent to a business account can be held directly as balance in the business account. The balance
functionality in your business account will differ depending on whether we have been able to verify
the
required identifying information
that you provide to us.
The required identifying information is:
for sole proprietorships: name, physical address, date of birth and taxpayer identification number;
or
for other types of business legal entities: business name, business address and taxpayer
identification number.
If we have not verified the
required identifying information
, a balance in your business account can
only be held in your business account and transferred to a linked bank account or debit card or you
can request PayPal to send you the money by check (subject to a non-refundable fee of $1.50 U.S.
dollars for PayPal business accounts, which will be deducted from the amount of the withdrawal).
Your balance may also be used to fund payments or money owed to PayPal, such as payments on
your PayPal Working Capital account or monies owed for
refunds or chargebacks
.
If we have verified the
required identifying information
, a balance can be held in your business
account, transferred to a linked bank account or debit card, used to make purchases or send money
to others.
If you have a business account and we have verified the
required identifying information
that you
have provided to us, you may transfer money to the balance of your business account from an eligible
bank account or debit card linked to your business account. In addition to one-time electronic
transfers, you may set up automatic transfers that add funds to the balance of your business account
from an eligible bank account or debit card linked to your business account on a set schedule (such as
daily or weekly) or whenever the balance in your business account falls below an amount you specify.
There are daily, weekly, and monthly limits on the amounts you can transfer to your business
account.
We may allow you to add funds to your business account at participating retail stores throughout the
U.S. using the Add Cash at Store feature. There are transactional and daily and monthly limits on the
amounts you can add and daily, weekly, and monthly limits on the number of times you can add
money. Please refer to the "Business” tab of the
What is PayPal Add Cash at Stores and how do I use
it? PayPal Help Center page
for more information. We may also allow you to add funds to your
business account using the Cash a Check feature. Cash a Check is not available if you have a negative
balance in your business account and may not be available in all locations. Please refer to the
“Business” tab of the
What is the Cash a Check service in the PayPal app? PayPal Help Center page
for
more information and details on availability and other restrictions. Fees for Add Cash at Store and
Cash a Check transactions can be found in the
Fee pages
.
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If we have not verified the
required identifying information
that you have provided to us, you cannot
add funds to your balance in a business account.
When you open a business account, we may also assign you a The Bancorp Bank, N.A. (“The Bancorp”)
issued account number and routing number that you can use to receive funds into your business
account for business or commercial purposes. You can also use your business account as a payment
method for the purchase of business or commercial-related goods and services through a transaction
that you initiate using your assigned account number and routing number via a third-party
merchant’s website or mobile application. Otherwise, you can separately request The Bancorp- issued
account number and routing number.
Funds transferred into your business account using your assigned account number and routing
number generally will be available on the day the funds are applied to your account. Because we may
not receive funds instantly, there may be some delay between the payment being initiated by the
payer and the payment arriving at PayPal.
You can withdraw balance from your business account by:
transferring it via a standard transfer to an eligible debit card or a bank account linked to your
business account for free,
transferring it via an Instant Transfer to an eligible debit card or bank account linked to your
business account, subject to the fees applicable to such transfers that can be found on the
Fees
for Transferring Balance (for business accounts)
table and that will be disclosed to you in advance
each time you initiate such a withdrawal,
conducting a cash withdrawal transaction if you have a PayPal Debit Card via (i) a bank teller at a
participating bank branch or other financial institution, or (ii) an ATM (automated teller machine)
(fees may apply), or
requesting a check from us (subject to a non-refundable fee of $1.50 U.S. dollars for PayPal
business accounts, which will be deducted from the amount of the withdrawal). If you request a
paper check from us, you must cash it within 180 days of the date of issuance, or we will return
the funds to your balance in your business account and retain the non-refundable fee of $1.50
U.S. dollars. We will not send a check to a post office box, and we will only send a check to an
address once we have confirmed that it belongs to you.
If you use your assigned account number and routing number for your business account as a payment
method for goods and services, your business account may be debited on a one-time or recurring
basis as you instruct. There are daily limits on the amount and number of transactions that you can
initiate, and limits on the amount you can transfer per transaction. For more information, see the
Help Center
. These transactions may require you to provide various consents and agree to the terms
and conditions presented by the merchant. Management of any scheduled payments, including
cancellation, can be done through the merchant’s website or mobile application. For transactions
using your assigned account number and routing number, unauthorized transfers or debits in excess
of the amount you authorized are subject to notification timeframes set forth in the
Returning
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Unauthorized or Excess Business Account Debits
section of
Liability for Unauthorized
Transactions and Other Errors
.
Any funds you hold in your business account represent unsecured claims against PayPal. PayPal is not
a bank, does not take deposits and is not FDIC insured. If you have bought or received cryptocurrency
with a Crypto Account linked to your PayPal business account, we will place your U.S. dollar business
account funds at one or more Program Banks. You will not receive any interest or other return on the
funds held with PayPal. PayPal combines your PayPal funds with the PayPal funds of other PayPal
users and invests those funds in liquid investments in accordance with state money transmitter laws.
PayPal owns the interest or other earnings on these investments. However, the claim against PayPal
represented by your PayPal funds is not secured by these investments and you do not have any
ownership interest (either legal or beneficial) in these investments. These pooled amounts are held
apart from PayPal’s corporate funds, and PayPal will neither use these funds for its operating
expenses or any other corporate purposes nor will it voluntarily make these funds available to its
creditors in the event of bankruptcy.
Restrictions on transfers or withdrawals from PayPal accounts
To protect us and our users from loss, we may delay a withdrawal, in certain situations, including if
we need to confirm that you have authorized the withdrawal or if other payments to your PayPal
account have been subject to a reversal (for example, as a result of a
chargeback
, bank reversal,
or
dispute by a buyer
). If we place a
limitation
on your PayPal account, a payment is subject to a
hold, or your account or an associated account has a negative balance in any currency while a
withdrawal from your PayPal account is pending, you will have to reinitiate the withdrawal once the
limitation or hold has been lifted, or negative balance is fully paid off.
We may set limits on your withdrawals. Completing two out of three of the following steps can help
us verify your PayPal account, which may allow us to increase your withdrawal limit:
Verifying your bank account.
Linking and confirming your credit or debit card information.
Providing your social security number.
Managing Your Money in Multiple Currencies
Holding currency other than U.S. dollars
Your balance in your business account or in your Balance Account, if you have one, may be held in
currencies other than U.S. dollars.
If you hold a balance in your business account or in your Balance Account:
We may allow you to convert the funds to balance in another currency. If you convert funds in
your account, PayPal’s transaction exchange rate (including our
currency conversion spread
) will
be used. We may, at our discretion, impose limits on the amount of money you can convert or the
number of conversions you can perform.
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You may only withdraw the funds in U.S. dollars. In order to withdraw funds in your account held
in another currency you will have to convert the currency to U.S. dollars, or it will be converted for
you at the time of your withdrawal. PayPal’s currency conversion rate, including our
currency
conversion spread
, will be used.
To receive money in a currency your account is not currently configured to accept, it may be
necessary to create a balance in your business account or in your Balance Account, in that currency or
convert the money into another currency. Certain currencies can only be received by converting the
money into another currency that PayPal allows you to hold. If the money is converted, PayPal’s
transaction exchange rate (including our
currency conversion spread
) will be used.
You are responsible for all risks associated with maintaining multiple currencies in a Balance Account
or business account. You may not manage or convert multiple currencies for speculative trading
purposes, conversion arbitrage, conversion options, or any other activity that PayPal determines is
primarily for the purpose of gaining or making money based on currency conversion rates. PayPal
may hold, cancel, or reverse any transaction we determine to violate this policy.
How we convert currency
If PayPal converts currency, it will be completed at the transaction exchange rate we set for the
relevant currency exchange. The transaction exchange rate is adjusted regularly and includes
a
currency conversion spread
applied and retained by us on a base exchange rate to form the rate
applicable to your conversion.
If we cannot communicate with you at the time you authorize an in-person payment (for example,
because you or the seller do not have connectivity at the time you authorized the transaction), and
we perform a currency conversion for that payment, we will use the transaction exchange rate in
effect at the time the payment transaction is processed by the seller.
For some uses of your PayPal accounts, PayPal may determine currency conversion is necessary. If
your PayPal balance is not enough to cover the amount of a payment you instruct us to make in a
particular currency, we may perform a currency conversion from any PayPal balance in another
currency to cover the shortfall. There may be some restrictions on where you can send payments in
certain currencies. The applicable currency conversion spread can be found on our Fees page under
the heading
Currency conversion
.
Holds or limitations
may delay currency conversion of amounts until such holds or limitations are
released. This may result in the application of a currency conversion that is different from the
transaction exchange rate that would have been applied had no account hold(s) or limitation(s) been
in place. Currency conversions in these circumstances may be more favorable or less favorable to you.
Currency conversion choices
When your payment is funded by a debit or credit card and PayPal determines a currency conversion
is necessary, you consent to and authorize PayPal to convert the currency in place of your debit or
credit card issuer. You may have the right to have your card issuer perform the currency conversion,
if applicable for that card issuer and network. Currency preference selections may be presented to
you in various forms, including setting the currency of your card, a choice of which currency is used
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for the transaction, whether PayPal or your card issuer performs the conversion, or which conversion
rate is used for the transaction, and may be made available individually for each card and for each
automatic payment agreement. If your card issuer converts the currency, your card issuer will
determine the currency conversion rate and what fees they may charge.
PayPal will always perform the conversion for transactions where your Balance Account balance,
business account balance or linked bank account is the payment method. For PayPal Debit Card
transactions, the currency conversion will be performed by Mastercard, except for PayPal Debit Card
transactions in PayPal checkout or when using the Send Money feature for which PayPal will perform
the currency conversion.
Taxes and Information Reporting
General information
Our
consumer fees
and
merchant fees
are exclusive of any taxes, charges, or similar assessments of
any nature, including, without limitation, value-added, sales, digital services, stamp, transfer, or
withholding taxes, assessable by any jurisdiction or governmental authority (collectively, “Taxes”).
Each of us shall be responsible to pay our own Taxes arising in connection with the performance of
our respective obligations from your use of PayPal services.
Paying for PayPal’s services
If you are paying for a PayPal service, you agree to pay to PayPal the amount of any legally applicable
Taxes imposed on any amount due from you to PayPal.
You agree not to withhold any Taxes on amounts payable by you to PayPal unless you are legally
required to do so. If you withhold any Taxes, the amount payable by you to PayPal shall not be
decreased by the amount withheld. You agree that PayPal is entitled to receive the full amount that
would have been received had there been no withholding of any Taxes. Upon request by PayPal, you
will deliver to PayPal in a timely manner any written documentation evidencing your payment of
Taxes to the relevant authorities.
Your additional responsibilities and acknowledgments
It is your responsibility to determine what, if any, taxes apply to the payments you make or receive,
and it is solely your responsibility to assess, collect, report, and remit the correct taxes to the
appropriate authority. PayPal is not responsible for determining whether any taxes apply to your
transaction, or for calculating, collecting, reporting, or remitting taxes arising from any transaction.
You acknowledge that PayPal may have a legal obligation to make reports, and will make such
reports, to tax authorities regarding transactions that we process on your behalf. Additional
information can be found in our
Help Center
.
Information reporting
We may request that you provide PayPal with your tax identification number and/or other tax-
related documentation or information. If you do not provide the requested information to PayPal or
keep documentation up to date in your PayPal account, you may be subject to account
holds or
limitations
and withholding Taxes at the applicable rates on gross payments received. PayPal will
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remit any such withholding Taxes to the appropriate tax authorities, and you acknowledge PayPal
may be prohibited from refunding any amounts to you once these have been sent to the appropriate
tax authorities.
If a currency conversion is required on a payment of withholding Taxes, the amount due to the
relevant tax authority will be calculated by PayPal in accordance with our
currency conversion
terms
when we process the withholding Taxes. To minimize risks relating to exchange rate fluctuations,
account holds and limitations, tax withholding, and remittance to the relevant tax authority, you
should add or confirm your taxpayer information to PayPal.
Account Statements
You have the right to receive an account statement showing your PayPal account activity. You may
view your PayPal account statement by logging into your PayPal account. If you have a Balance
Account linked to your personal account, you will receive two statements: one showing all
transactions in your personal account and an additional statement showing only transactions
involving your Balance Account.
Sending Money and Buying
Sending Money to a Friend or Family Member
Sending money
You can send money to a friend or family member as a personal transaction using the Send Money
feature in your PayPal account. You can send money to a friend or family member even if they don’t
have an eligible PayPal account at the time you send them money, using their email address or
mobile number in any currency that PayPal supports, and you can choose which
payment method
you
want to use. If the person to whom you are sending money does not have an eligible PayPal account,
they can claim it by opening an eligible PayPal account. If they don’t claim it, it will be refunded to
you.
We may, at our discretion, impose limits on the amount of money you can send, including money you
send for purchases.
When you send money to a friend or family member who has an eligible PayPal account, one of two
things may happen: they may accept or decline the money. If they decline to accept the money, the
money (including any fees you were charged) will be
refunded
to:
The original payment method you used for the transaction, if you used a credit card, debit card,
PayPal Credit, a Balance Account, or balance in a business account as the payment method, or
The balance in your business account or the balance in your Balance Account linked to your
personal account if you used a bank account as the payment method and we cannot refund it to
your bank account.
If you do not have a Balance Account linked to your personal account, the money will be waiting
for you to claim by using one of the available transfer methods under
Receiving Funds, Holding a
Balance or Transferring Funds
for personal accounts.
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Fees for Sending Money to Friends and Family
The fees applicable to sending personal transactions to an eligible PayPal account can be found on
our
Consumer Fees page
and will be disclosed to you in advance each time you initiate sending a
personal transaction to a friend or family member. If you convert money in your Balance Account
balance or in your business account balance from one currency to another before sending money,
PayPal’s transaction exchange rate (including our
currency conversion spread
) will be used. If you use
your credit card as the payment method when sending money, you may also be charged a cash-
advance fee by your card issuer.
If you send money to a friend’s or family member’s eligible PayPal account from a third party (non-
PayPal) website or by using a third party’s product or service, then the third party will determine if
the sender or recipient pays the fee. This will be disclosed to you by the third party before the
payment is initiated.
You can also use the Send Money feature in your PayPal account to pay another PayPal account for
goods or services. You will not be charged any transaction fee for sending money to purchase goods
or services as long as you send the money as a commercial transaction (often referred to as using the
“Send Money for Goods and Services” feature in your PayPal account). In that case, the seller will pay
a fee. You must not send money as a personal transaction (often referred to as using the “Send
Money to a Friend or Family Member” feature in your PayPal account) when you are paying for goods
or services. Note that the “Send Money to a Friend or Family Member” feature may not be available
when sending money to a business account as such accounts may not be eligible to receive personal
transactions.
Buying Something From, Donating to, or Returning Something
to, a Seller Who Accepts PayPal
How to purchase something or make a donation
You can purchase something from a seller who accepts PayPal or make a donation, in any currency
that the recipient accepts and that PayPal supports using any
payment method
linked to your PayPal
account. This includes, for example:
Purchasing something at an online retailer’s website and selecting PayPal as your payment method
at checkout.
Sending money to a seller for goods or services.
Using your PayPal account to purchase something at a seller’s physical store using an electronic
terminal, subject to certain limitations.
Using your PayPal account to purchase something at a seller’s physical store using your own
mobile device and a QR code, subject to certain limitations.
Making donations using PayPal.
If the seller you are purchasing from sells goods or services and that seller does not already have a
PayPal account, they can claim your payment by opening a PayPal account. If they don’t open a
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PayPal account within 30 days, your purchase will be refunded.
In order to manage risk, PayPal may limit the payment methods available for a transaction when you
purchase something or make a donation. In addition, payment methods may be limited for certain
sellers or recipients, including PayPal payments made through certain third-party websites or
applications.
When you authorize a payment to a seller who accepts PayPal, some sellers may take up to 30 days
to complete the transaction. In these instances, your payment may appear as a pending order in your
PayPal account. In that case, your authorization of the payment will remain valid until the seller
completes the transaction (but no longer than 30 days). If you used a debit or credit card as the
payment method, your debit or credit card issuer also may show a pending authorization for a period
of time until they release the hold or receive a completed transaction. If your payment requires a
currency conversion by us, PayPal’s transaction exchange rate (including a
currency conversion
spread
) will be used, and may be the rate at the time the payment is processed.
Fees
When you purchase something from a seller who accepts PayPal or make a donation, you don’t pay a
fee to PayPal. If PayPal performs a currency conversion for your purchase or donation, PayPal’s
transaction exchange rate (including our
currency conversion spread
) will be used. Your debit or
credit card issuer may also charge you a separate fee for non-U.S. transactions.
In addition you may be required to pay a fee to PayPal if you are making a purchase using
PayPal
Business Payments
and the seller discloses to you that you, as the buyer, must pay the fee.
Payment review
When PayPal identifies a potentially high-risk transaction, we review the transaction more closely
before allowing it to proceed. When this happens, PayPal will place a hold on the transaction and
notify the seller to delay shipping of the item. As a buyer, this may delay your receipt of the item you
purchased. If we clear the transaction, we will notify the seller and direct them to ship the item. If we
don’t clear the transaction, we will cancel it and return the funds to you, unless we are legally
required to take other action.
Automatic payments
Some sellers who accept PayPal allow you to store PayPal as the payment method for future
purchases with that seller. When you store PayPal as a payment method with a specific seller, you
agree with the seller that they can use PayPal to request payment for future transactions between
you and the seller. The agreement between you and the seller may allow you to authorize and
schedule a payment to the seller in advance on a one-time, sporadic, or recurring basis. Examples of
automatic payments that can be arranged by you with a seller include those that PayPal calls a
“billing agreement,” “subscription,” “recurring payment,” “reference transaction,” “preauthorized
transfer”; or “preapproved payment.”
If you have a personal account, you may cancel a recurring automatic payment 3
Business Days
or
more before the date of the next scheduled payment from your account settings or by contacting us
through the
PayPal Help Center
, or by calling PayPal at (888) 221-1161. If you order us to stop one
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of these payments 3
Business Days
or more before the transfer is scheduled, and we do not do so,
we will be liable for your losses or damages.
Once your automatic payment authorization is canceled, all future automatic payments under your
agreement with that seller will be stopped. If you cancel an automatic payment authorization, you
may still owe the seller money for purchases that have been authorized but not completed, or you
may still have additional obligations to the seller for any goods or services that you receive but have
not paid for.
If you have given advance payment authorization to a seller that permits a seller to take or receive
payments from your PayPal account on a regularly recurring basis (for example, every month or
otherwise on a routine billing cycle), and if such payments will vary in amount, you have the right to
advance notice of the amount and date of the transfer from the seller at least 10 days before the
transfer is made. If the seller provides the option, you may choose to receive this advance notice only
when the amount of your automatic payment will fall outside a range established between you and
the seller.
If you have authorized an automatic payment and PayPal performs currency conversion for an
automatic payment transaction, PayPal will use the transaction exchange rate (including
PayPal’s
currency conversion spread
) in effect at the time the automatic payment transaction is
processed.
Refunds
When you purchase something from a seller online using PayPal and the transaction is ultimately
refunded, the money will typically be refunded to the original payment method you used for the
transaction if you used a debit card, credit card, PayPal Credit, or a balance in your Balance Account
or business account.
If you used a bank account linked to a personal account as the payment method for the transaction,
we may give you the option to receive the money to your Balance Account; otherwise, we will
attempt to refund the money to your bank account. If we are unable to do so, we will attempt to
refund the money to your linked Balance Account if you have one. If you do not have a Balance
Account, the money will be waiting for you to claim by using one of the available transfer methods
under
Receiving Funds, Holding a Balance or Transferring Funds
for personal accounts.
If you used a bank account linked to a business account as the payment method for the transaction,
we will attempt to refund the money to your bank account. If we are unable to do so, we will refund
the money to your balance in your business account.
For purchases you make in a seller’s store location that you paid for using your personal account and
the transaction is ultimately refunded, the money will be refunded to your Balance Account if you
have one. If you do not have a Balance Account, the money will be waiting for you to claim by using
one of the available transfer methods under
Receiving Funds, Holding a Balance or Transferring
Funds
for personal accounts.
For purchases you make in a seller’s store location that you paid for using your business account and
the transaction is ultimately refunded, the money will be refunded to your balance in your business
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account.
If you used Pay with Rewards to fund your transaction, your refund will be processed back as a dollar
amount: depending on your card agreement with your issuer, your issuer may or may not credit your
purchase back to your reward balance.
If PayPal performed currency conversion for your transaction and a refund is issued:
Within 1 day of the date of the original payment, PayPal’s transaction exchange rate (including
a
currency conversion spread
) used at the time of the original payment will apply.
Beyond 1 day of the date of the original payment, PayPal’s transaction exchange rate (including
a
currency conversion spread
) on the date of the refund will apply.
Money will be refunded in the currency you paid; or if we are unable to refund in the currency you
paid, in your primary holding currency; or we are unable to refund in your primary holding currency,
then in U.S. dollars.
Payment Method Used for My Transaction
Selecting a preferred payment method
You can choose any of the payment methods in your PayPal account as your preferred payment
method. You can select a preferred payment method in your account preferences
on
www.paypal.com
or in the PayPal app, or when checking out with PayPal online. There may be
times when your preferred payment method cannot be used, for example, if you select a credit card
that is expired.
You can set separate preferred payment methods for online transactions, in-store transactions, and
each of your automatic payment agreements, as described below.
If you have chosen a preferred payment method, it will be shown as the primary method of payment.
For some online transactions, you can select two payment methods. For example, you may split a
payment between (i) your PayPal Debit Card or balance, and (ii) your eligible credit card.
If you have not chosen a preferred payment method, you can always choose the payment method to
be used for the specific transaction.
The availability of certain payment methods may be limited based on that particular seller or the
third-party website you are using to complete the transaction.
If you have not chosen a preferred payment method for online transactions, when you choose a credit
card (other than PayPal Credit), debit card, bank account, or balance with PayPal during a one-time
online purchase, you are also providing your express consent to make that your preferred payment
method for future one-time online purchases.
If you have not selected a preferred payment method, or your preferred payment method is
unavailable, we will show you your available payment methods. You can also see all of your available
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payment methods, or add a new one, and select a payment method during the transaction.
Backup payment method
Certain one-time online transactions may require that a backup payment method be used in the
event that your selected or preferred payment method is unavailable. In those instances, the backup
payment method may be displayed to you on your transaction review page before you complete the
transaction. If PayPal determines currency conversion is necessary for a transaction that also requires
a backup payment method, you may not be able to separately choose whether PayPal or your card
issuer performs the currency conversion on your backup payment method.
Sending money using the Send Money feature
When you send money using the Send Money feature in your PayPal account to eligible PayPal
accounts within the U.S. using balance in your Balance Account linked to your personal account, the
balance in your business account, or your bank account, we waive all fees charged to you (as per
our
Fee pages
), so we always show you these payment options first, even if you have a set preferred
payment method for your online purchases. You always have the choice to select any payment
method in your PayPal account during the Send Money experience. If you select a payment method
with a fee, we will always show you the fee before you send money.
Automatic payments
Some sellers allow you to store PayPal as the way you pay when making purchases on their site, so
you can check out faster. Often, this entails creating an agreement with the seller that permits them
to request that we charge your PayPal account each time you make a purchase.
When you first set up an automatic payment agreement or store PayPal as a payment method with a
seller, you may have the option to set up a preferred payment method for such agreement. You can
review, set, or change a preferred payment method for an automatic payment agreement in your
PayPal account settings.
Your preferred payment method for an automatic payment agreement will be used for transactions
with that seller. If you have available balance with PayPal, that balance may be used before your
preferred payment method, depending on your applicable automatic payment agreement with the
seller.
If you have not set a preferred payment method for an automatic payment agreement, or if your
preferred or selected payment method cannot be charged for the full amount of your automatic
payment transaction (for example, due to fraud risk, insufficient funds, or because it is expired) you
authorize PayPal to first charge your preferred or selected payment method for the available
amount, and then charge the remaining amount due to complete that transaction to your backup
payment method in the following order, if applicable: 1. Balance Account or PayPal Debit Card (which
allows you to access your Balance Account), or balance in your business account (if we’ve been able
to verify the
required identifying information
you provide to us); 2. Bank account (when PayPal pays
the recipient before we receive the funds from your bank); 3. PayPal co-branded credit card; 4. Debit
card; 5. Credit card; and 6. E-check (when PayPal waits to receive the funds from your bank before
we pay the recipient). However, if a bank account is used as the payment method for a transaction
and funding fails (for example, as a result of insufficient funds), PayPal may attempt another
payment method as a backup notwithstanding the order specified above (typically a credit card, if
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applicable). To help minimize disruptions in your automatic payments, we may update your payment
method information associated with such automatic payments; see
Link or Unlink a Payment Method
.
Bank account transfers
Each time you use your bank account as a payment method, you authorize PayPal to initiate a
transfer from your bank account to the recipient. For these transactions, PayPal will make electronic
transfers from your bank account, as set forth under
Authorization to Charge Your Payment Method
.
You authorize PayPal to re-present this transfer from your bank account up to two (2) times if the
initial transfer is rejected by your bank for any reason. Adding money to your PayPal balance
(including your PayPal Balance account balance) while a re-presentment is pending does not stop the
original transfer from being re-presented by us to your bank.
If you use your PayPal account to pay for an item and you select your bank account as the payment
method for the transaction, remember that your PayPal account is issued to you by PayPal and not
your bank. The terms, benefits, and protections associated with your PayPal account may vary from
those that apply to your bank account. If you use your PayPal account to make a purchase that
exceeds the balance in your linked bank account, you could incur overdraft fees, even if you chose
not to allow overdrafts with your bank. Similarly, the liability limits applicable to your PayPal
account may differ from those applicable to your bank account.
E-check
E-check is a payment method where you use your bank account as your payment method, and the
payment is not received by the recipient until the transaction is processed from the bank. This
process usually takes 4-7
Business Days
, but this amount of time will increase if the payment is sent
from a bank account located outside the United States.
Pay with Rewards
PayPal may allow you to redeem rewards associated with your eligible card(s) or third-party
membership rewards accounts when making a purchase with your PayPal account through PayPal’s
Pay with Rewards program. PayPal may share with and receive information from your issuer, third-
party membership rewards provider, or third-party membership program administrator about your
accounts to complete the redemption of your rewards when using PayPal’s Pay with Rewards
program. The exchange of this information is necessary to complete the purchase when you select
the Pay with Rewards redemption option.
All Pay with Rewards redemptions are subject to the terms of your agreement with your card issuer,
membership rewards provider, or membership program administrator. Pay with Rewards is only
available for eligible purchases with certain merchants, and PayPal, your membership rewards
provider, membership program administrator, or your issuer may limit, suspend, or terminate your
ability to redeem rewards at any time in accordance with this user agreement and your membership
rewards agreement. Your issuer, membership rewards provider, or membership program
administrator determines the value of rewards redeemed through PayPal and available redemption
methods (e.g., to pay for your purchase or for a statement credit).
There may be a delay between checkout and processing of your payment. Only rewards available
upon processing of your payment will be used. Because your reward balance and/or transaction
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balance may change, whenever you request to redeem rewards for a purchase you also authorize
PayPal to charge up to the full payment amount to your associated card or account if that happens.
For more information on redeeming rewards and how it works, please see
About Payment Methods
.
Debit Card Transactions
PayPal may process debit card transactions through the ATM debit network or the Visa, MasterCard,
or Discover network, except for PayPal Debit Card transactions you make in PayPal checkout or when
using the Send Money feature, which will be processed directly by PayPal by debiting your Balance
Account. If we process your debit card through an ATM debit network, we may provide you with the
opportunity to switch to a Visa or MasterCard network. Choosing the Visa/Mastercard network may
give you additional protection compared to the ATM debit networks. You should contact your debit
card issuer to learn more about your rights and remedies if you pay with your debit card.
Loyalty Cards
If you use the PayPal application on your mobile phone, you may store loyalty card numbers or bar
codes, where applicable, for certain sellers in your PayPal account. When you store your loyalty card
numbers or bar codes in your PayPal account, you will earn any rewards, subject to the seller’s loyalty
card terms and conditions, at the time you make your payment to the merchant by presenting the
stored loyalty card number or bar code to the seller at the point of sale. It is your responsibility to
make sure you have entered your loyalty card information correctly and that you update it as
necessary. It is also your responsibility to ensure that you are receiving the rewards to which you are
entitled. PayPal is not responsible for managing your loyalty card account by offering this service and
any questions about your loyalty card or associated rewards program should be directed to the seller
who offers the card.
PayPal Rewards Program
The PayPal Rewards Program allows eligible PayPal users to earn rewards points for completing
qualifying transactions or activities. See the
PayPal Rewards Program Agreement
for more
information. Such agreement governs participation in the PayPal Rewards Program and is
incorporated herein by reference.
PayPal’s Purchase Protection Program
When you purchase something from a seller who accepts PayPal, you may be eligible for a refund
under PayPal’s Purchase Protection program. When applicable, PayPal’s Purchase Protection program
may result in coverage for the full purchase price of the item plus the original shipping costs you
paid, if any. PayPal determines, in its sole discretion, whether your claim is eligible for PayPal's
Purchase Protection program.
The program terms and conditions are set out in
PayPal’s Purchase Protection program
page and
form part of this user agreement.
Selling and Accepting Payments
Accepting Payments
Receiving payments
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If you use your PayPal account to receive payments for the sale of goods or services or to receive
donations, you must:
Pay any applicable fees for receiving the funds.
Not ask your buyer to send you money as a personal transaction (often referred to as using the
“Send Money to a Friend or Family Member” feature). If you do so, PayPal may remove your PayPal
account’s ability to accept payments from friends or family members.
By integrating into your online checkout/platform any functionality intended to enable a payer
without a PayPal account to send a payment to your PayPal account, or by sending an
invoice
for a
payment request, you agree to all further terms of use of that functionality which PayPal will make
available to you on any page on the PayPal or Braintree website (including any page for developers
and our
Legal Agreements
page) or online platform. Such further terms include the
PayPal
Alternative Payment Methods Agreement
.
Commercial entity status
If you are a seller, and the card payments you receive using the PayPal services meet certain criteria,
you are required under the applicable card network rules to agree to a Commercial Entity Agreement
with each card network member bank that processes such card payments. Such criteria include you
receiving card payments from:
PayPal account users where such card payments reach specified card network-defined volume
thresholds, and/or
PayPal account users where such card payments fall within certain card network-defined business
categories, and/or
Buyers without a PayPal account.
The applicable
Commercial Entity Agreement(s)
(as updated from time to time) apply to any such
card payments processed by PayPal on your behalf through the relevant member bank(s) and are
incorporated by reference into this user agreement.
Receiving donation payments
If you use your PayPal account to accept donations, including using the Donate Button or PayPal
Checkout for Donations, you must:
Pay any applicable fees for receiving the funds.
Not use the Donate Button, PayPal Checkout for Donations, or any other donation services for the
sale of goods and services. If you do so, PayPal may remove your PayPal account's ability to use
those services or otherwise receive donations.
No surcharges
You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment
method. You may charge a handling fee in connection with the sale of goods or services as long as the
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handling fee does not operate as a surcharge and is not higher than the handling fee you charge for
non-PayPal transactions.
Presentation of PayPal and Venmo
You must treat PayPal and/or Venmo payment methods or marks at least on par with any other
payment methods or marks offered or displayed at your points of sale where PayPal or Venmo
branded services are integrated, including your websites or mobile applications. This includes at least
equal or better: logo placement, position within any point of sale, and treatment in terms of
payment flow, terms, conditions, restrictions, and fees, in each case as compared to other marks and
payment methods at your points of sale. Further, you must not present any payment method or
mark upstream (or at an earlier point in the checkout experience) from the presentment of any of
PayPal or Venmo services or marks.
In representations to your customers or in public communications, you must not mischaracterize any
PayPal or Venmo services or exhibit a preference for other payment methods over PayPal or Venmo
services. Within all of your points of sale, you agree not to try to dissuade or inhibit your customers
from using PayPal or Venmo services or encourage the customer to use an alternate payment
method. If you enable your customers to pay you with PayPal or Venmo, whenever you display or
exhibit the payment methods that you accept (either within any point of sale or in your marketing
materials, advertising, and other customer communications) you agree to display the PayPal or
Venmo services payment marks at least as prominently, and in at least as positive a manner, as you
do for all other payment methods.
Your customer service information, refunds and returns policy, and privacy policy
You must publish customer service information with clear instructions on how your customers can
contact you. Such instructions must include at least: (1) one active customer service email address or
active customer service URL to file tickets for assistance and/or (2) one active customer service
telephone number. Such information must be readily accessible for review by your customers.
You must publish a refunds and returns policy.
You must publish a privacy policy, where required by law.
Payment review
PayPal reviews certain potentially high-risk transactions. If PayPal determines, in its sole discretion,
that a transaction is high-risk, we place a hold on the payment and provide notice to you to delay
shipping of the item. PayPal will conduct a review and either complete or cancel the payment. If the
payment is completed, PayPal will provide notice to you to ship the item. Otherwise, PayPal will
cancel the payment and the funds will be returned to the buyer, unless we are legally required to take
other action. All payments that complete this payment review will be eligible for PayPal’s Seller
Protection program if they meet
PayPal’s Seller Protection program
requirements. We will notify you
about payment reviews by email and/or through your PayPal account.
In-store payments and QR code transactions
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If you accept PayPal payments at your physical store, you must communicate the total amount of the
transaction to the customer before it takes place. You may charge your customer’s account only for
transactions that they have authorized. You must also provide customers with a physical receipt if
they request one. You agree that any transaction that you make shall have an accurate and true
description of the goods and services being purchased.
If you use a QR code to accept payments in your physical store, you must use a QR code intended for
goods and services transactions. You must also not use QR codes intended for in-person transactions
as a method of accepting payment for goods and services transactions occurring online. For any
buyer claims related to QR code transactions, you may be required to provide us with alternative
evidence of delivery or such additional documentation or information relating to the transaction.
Invoicing
If you use Invoicing, the
Invoicing Terms and Conditions
will apply.
Marketplace sellers
If you’re a seller on a marketplace or through a third-party application where PayPal is offered, you
must comply with any rules that apply to the marketplace’s or the third-party application’s buyer
protection program for sales you make through that forum. Any such protections may require you to
take certain actions and may impact how claims are processed.
PayPal Giving Fund
If you are a charity and hold a PayPal account, you may be eligible to participate in PayPal Giving
Fund programs. PayPal Giving Fund is a Donor Advised Fund (DAF) recognized by the Internal
Revenue Service (IRS) under Section 501(c)(3) of the Code as a tax-exempt public charity (Federal
Tax ID: 45-0931286). If you meet the eligibility requirements in the
Nonprofit Certification
Policy
and are either a “Public Charity” under Section 509(a) of the Code or a "Private Operating
Foundation" under IRS regulations, you may be automatically enrolled with PayPal Giving Fund upon
acceptance of this user agreement. You will receive an email from us confirming your enrollment.
Your relationship with PayPal Giving Fund will be governed by the
Nonprofit User Agreement
,
including receiving email communications from PayPal Giving Fund about its current and future
partners about its programs. You can opt out of email communications at any time in your
PayPal
Giving Fund profile
. If you don’t want to be enrolled or receive donations from PayPal Giving Fund,
you can opt-out at any time by
contacting us
. For more information, please see
PayPal Giving
Fund’s Policies
.
Card not present transactions
Whenever a buyer uses a debit or credit card as the payment method for a transaction using their
account to buy something from you as a seller, the transaction will be processed as a “card not
present” transaction, even if the buyer is at your store location.
Accepting preauthorized payments
As a seller, you can accept payments from a buyer’s account through preauthorized transfers either
on a one-time, regular or sporadic basis. This type of transaction is sometimes called a “billing
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If you receive preauthorized payments from buyers:
You must:
You must not:
Get each buyer’s prior authorization for the
amount, frequency, and duration of any such
payment.
Restart future payments without the buyer’s
written authorization, if a buyer has stopped or
canceled a preauthorized payment.
Provide a simple and easily accessible online
cancelation procedure, if buyers sign up for
preauthorized payments online.
Provide buyers the ability to stop any such
payment up to 3
Business Days
before the date
scheduled for payment.
Notify the buyer at least 10 days in advance of
the amount and date of each preauthorized
payment if the preauthorized payment will vary
from the preauthorized amount or (at the
buyer’s option) any payment that is in an
amount that falls outside of the pre-
determined range.
agreement,” "subscription," "recurring payment,” “reference transaction,” "pre-approved payment" or
"automatic payment".
Transaction Fees for Online and In-Store Payments
Your PayPal transaction fees depend on:
the country of the buyer’s account or the currency of their card;
whether you are registered as a charitable organization and have active 501(c)(3) status. Your
501(c)(3) status must be documented with PayPal to receive the rates applicable to charitable
organizations, and those rates will apply only after you document your status with us.
Standard transaction fees
The fees you pay when selling goods or services or receiving donations, and the buyer pays using
their PayPal account (or using another authorized wallet), can be found on the
Standard Transaction
Fees table
, with the fees applicable to charitable organizations founds on the
Standard Transaction
Fees for Charitable Organizations
table for the charitable fees. Please note that:
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We may revise the fees applicable to future transactions that you process using PayPal, subject to
the applicable notice requirements set forth herein.
If you accept payments using a PayPal product (like
PayPal Payments Pro
), the fees applicable to
those products will apply to your transactions.
Micropayments
You may apply to receive
Micropayments pricing
for certain lower value transactions processed
through your PayPal account.
If your PayPal account has been approved for Dynamic Micropayments (also known as Dynamic
Pricing), then PayPal will automatically apply either the
Micropayments rate
or the
applicable
higher value transaction rate
to each transaction processed through your account based on
whichever rate results in the lowest fees to you for that transaction.
If your PayPal account has previously been approved for Static Micropayments, then all such
transactions processed through your account will receive the
Micropayments rate
, regardless of
the transaction amount. If you have multiple PayPal accounts, but only some of them have been
approved for Static Micropayments, then you are responsible for routing your transactions
through the appropriate account to receive the desired pricing. Once a transaction is processed,
PayPal will have no responsibility to re-route the transaction through a different account or apply
different pricing. PayPal may, at its sole discretion, unilaterally convert your account from a Static
Micropayments setup to the Dynamic Micropayments setup. PayPal has no obligation to offer the
Static Micropayments setup as an alternative to the Dynamic Micropayments setup.
Not all payment types are eligible for Micropayments pricing.
Your responsibility to notify PayPal of pricing or fee errors
Once you have access to any account statement(s) or other account activity information made
available to you by PayPal with respect to your business account(s), you will have sixty (60) days to
notify PayPal in writing of any errors or discrepancies with respect to the pricing or other fees
applied by PayPal. If you do not notify PayPal within such timeframe, you accept such information as
accurate, and PayPal shall have no obligation to make any corrections, unless otherwise required by
applicable law. For the purposes of this provision, such pricing or fee errors or discrepancies are
different than
Unauthorized Transactions
and other electronic transfer
Errors
which are each subject
to different notification timeframes as set forth in this user agreement.
Refunds, Reversals and Chargebacks
General information
If you receive a payment for selling goods or services that is later refunded or invalidated for any
reason, you are responsible for the full amount of the payment sent to you plus any fees (including
any applicable
chargeback fee
or
Dispute fee
). Whenever a transaction is refunded or otherwise
reversed, PayPal will refund or reverse the transaction from your PayPal account. If a currency
conversion is necessary (for example if the balance in your Balance Account or your business account
for a particular currency is insufficient to cover the amount of a refund or reversal, or if the buyer
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paid in a different currency), PayPal will perform a currency conversion as described in the section
How we convert currency
.
If you refund a transaction, we’ll retain the fees you paid as set out on our
Fees page
.
Payments that are invalidated and reversed
Payments to you may be invalidated and reversed by PayPal if:
You lose a PayPal Purchase Protection claim submitted to us by a buyer.
You fail to respond or provide accurate and complete information in response to PayPal's inquiries
related to a buyer’s claims or chargebacks for a particular transaction within the timeframe
communicated to you by PayPal.
You lose a Venmo Protected Purchase Program claim.
Your buyer pursues a chargeback related to a card-funded transaction and the transaction is not
eligible for
PayPal’s Seller Protection
program. The card issuer, not PayPal, determines whether a
buyer is successful when they pursue a chargeback related to a card-funded transaction.
You do not fulfill the transaction as promised or you cannot provide
proof of shipment or proof of
delivery
when required.
Our investigation of a bank reversal made by a buyer or the buyer’s bank finds that the
transaction was fraudulent.
PayPal sent the payment to you in error.
The payment was unauthorized.
You received the payment for activities that violated this user agreement or any other agreement
between you and PayPal.
When you receive a payment, you are liable to PayPal for the full amount of the payment sent to you
plus any fees if the payment is later invalidated or reversed for any reason. If the buyer paid in
another currency, the full amount of that payment may be calculated in that currency, using the
PayPal transaction exchange rate (including our
currency conversion spread
) that applies at the time
the refund or reversal is processed. If the balance in your Balance Account or business account
doesn’t cover the payment amount due plus the fees, we may use any of the payment methods linked
to your PayPal account to cover the amount due. If the payment methods linked to your PayPal
account don’t cover the amount due, this will result in a negative balance. A negative balance
represents an amount that you owe to us, and, in this situation, you must immediately add funds to
your balance to resolve it. If you don’t, PayPal may:
engage in collection efforts to recover the amount due from you;
take any or all action as outlined under
Amounts owed to PayPal
; or
place a limitation or take other action on your PayPal account as outlined under
Restricted
Activities and Holds
.
Dispute fees
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PayPal will charge a
Dispute fee
to sellers for facilitating the online dispute resolution process for
transactions that are processed either through a buyer’s PayPal account or through a PayPal Guest
Checkout. The
Dispute fee
applies when the buyer pursues a claim directly with PayPal, a chargeback
with their card issuer, or a reversal with their bank. The
Dispute fee
will be charged at either
the
Standard Dispute fee
rate or the
High Volume Dispute fee
rate. The
Dispute fee
will be
charged in the currency which you selected for the original transaction listing. If the transaction was
in a currency not listed in the
Dispute fee
table, then the fee charged will be in your primary holding
currency. The
Dispute fee
will be deducted from your PayPal account after the claim is decided.
The
Dispute fee
amount will be determined when the dispute case is created. The fee is based on the
ratio of all Item Not Received and Significantly Not as Described claims you receive compared to the
total amount of your sales for the previous three calendar months. Your total claims include all Item
Not Received and Significantly Not as Described claims that are filed either directly with and
escalated to PayPal or with the buyer’s card issuer or bank. Your total claims do not include claims
for Unauthorized Transactions. For example, for the month of September, your dispute ratio will be
calculated by considering your total claims to sales ratio over June, July, and August. The claims ratio
for September will determine the dispute fee for all claims filed in October. Your total claims include
all claims filed directly with and escalated to PayPal, except claims for
Unauthorized Transactions
;
and all chargebacks from the buyer’s card issuer or reversals from the buyer’s bank.
If your dispute ratio is 1.5% or more and you had more than 100 sales transactions in the previous
three full calendar months, you will be charged the
High Volume Dispute fee
for each dispute.
Otherwise, you will be charged the
Standard Dispute fee
for each dispute.
You will not be charged a
Standard Dispute fee
for disputes that are:
Inquiries in PayPal’s
Resolution Center
that are not escalated to a claim with PayPal.
Resolved directly between you and the buyer and not escalated to a claim with PayPal.
Filed by the buyer directly with PayPal as an
Unauthorized Transaction
.
Deemed by PayPal in its sole discretion to have met all the requirements under
PayPal’s Seller
Protection program
.
Claims with a transaction value that is less than twice the amount of a Standard Dispute fee.
Decided in your favor by PayPal or your issuer.
You will not be charged a
High Volume Dispute fee
for disputes that are:
Inquiries in PayPal’s
Resolution Center
and not escalated to a claim with PayPal.
Resolved directly between you and the buyer and not escalated to a claim with PayPal.
Filed by the buyer directly with PayPal as an
Unauthorized Transaction
.
Sellers charged
High Volume Dispute fees
may be required to provide a remediation plan which
includes an explanation of the cause of the increased dispute rate, the actions taken to reduce
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disputes, and the timelines for those actions.
Disputes listed above may be excluded from being charged a
Standard Dispute fee
or a
High
Volume Dispute fee
, but the claim itself may still be included in the overall calculation of your
dispute ratio.
If you engage in a
Restricted Activity
, PayPal may charge the
High Volume Dispute fees
for all
current and future disputes, irrespective of your dispute ratio or sales volumes, given PayPal’s
increased involvement as a result of such Restricted Activity.
Chargeback fees
For transactions that are not processed either through a buyer’s PayPal account or through a PayPal
Guest Checkout, and where the buyer pursues a chargeback for the transaction with their card issuer,
then PayPal will charge you a
Chargeback fee
for facilitating the chargeback process. This fee with
apply regardless of whether the buyer is successful in pursuing the chargeback with the card issuer.
The applicable chargeback fee will be deducted from your PayPal account. The chargeback fee is
applied as specified in the
Chargeback Fee table
and will be charged in the currency which you
selected for the original transaction listing. If the transaction was in a currency not listed in
the
Chargeback fee
table, the fee charged will be in your primary holding currency.
Impact of various purchase protection processes on sellers
You should read and understand PayPal’s Purchase Protection program, Venmo’s Protected Purchase
Program, and if you sell goods and services to buyers with PayPal accounts in countries other than
your own, you also should be familiar with the purchase protection available to buyers in each of
those countries. Buyers’ rights under these programs may impact you as a seller. You can find
information about PayPal’s protection programs on the
Legal Agreements
page by selecting your
buyer’s location at the top of the page and referring to the corresponding user agreement. You can
find information on Venmo’s Protected Purchase Program in
Venmo’s user agreement
.
If you lose a claim under
PayPal’s Purchase Protection
program in any country, or under Venmo’s
Protected Purchase Program:
You must forfeit the full purchase price of the item plus the original shipping cost. This applies
when you are the primary seller or a secondary seller of goods or services. For example, event
ticketing agents or online travel agents will forfeit the full purchase amount paid by the buyer. In
some cases, you may not receive the item back.
The Purchase Protection claim will only be considered fully resolved if:
the refund to a buyer is processed through PayPal or Venmo, as applicable, or
you provide evidence acceptable to PayPal, in its sole discretion, that the buyer agreed to
the alternative resolution provided.
You will not receive a refund of the PayPal fees that you paid in connection with the sale.
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If you participate in this program:
You must:
You must not:
Comply with all integration and PayPal
Advertising Program requirements provided by
PayPal or each authorized third party, including
those with respect to accurate presentation of
all PayPal related information.
Modify any PayPal content or its presentation
in any way.
Only use the code for PayPal content, or any
promotional assets as provided by PayPal.
Copy PayPal content from other websites or
channels or duplicate PayPal promotional
assets from other merchants.
Use the PayPal content in its entirety with all
the links and language provided by PayPal and
without modification by you.
Create, display or host your own PayPal
content, unless authorized by PayPal in writing.
Immediately remove all PayPal content from
your sites or other channels and communications
and/or cooperate with PayPal or your third-
Post or present PayPal content on social media
networks or platforms or anywhere else, unless
authorized by PayPal in writing.
If the claim was that the item received was Significantly Not as Described, you may not receive the
item back, or you may be required to accept the item back and pay for the return shipping costs.
If the claim was that the item received was Significantly Not as Described and related to an item
you sold that is counterfeit, you will be required to provide a full refund to the buyer and you may
not receive the item back.
PayPal’s Seller Protection Program
What’s eligible
If you sell a good or service to a buyer, you may be eligible for PayPal’s Seller Protection program.
When it applies, PayPal’s Seller Protection program may result in you retaining the full purchase
amount. PayPal determines whether your claim is eligible for PayPal’s Seller Protection program.
The program terms and conditions are set out in
PayPal’s Seller Protection program
page and form
part of this user agreement.
PayPal Advertising Program
The PayPal Advertising Program enables qualifying merchants with eligible business accounts to
promote PayPal services, including PayPal’s Credit Products, through PayPal-hosted banners and
buttons on merchants’ websites or in other channels if and as approved by PayPal. PayPal may
change the content provided through this program at any time for any reason, and PayPal may
choose to discontinue the PayPal Advertising Program at any time.
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party provider to do so, if you stop using a
qualifying PayPal payments solution.
Keep all PayPal content current and up to date,
including by cooperating with PayPal to
manually update the PayPal content as it
appears on your sites, other channels, or in your
communications and repair or reinstall the code
to facilitate future updates.
Display any non-current PayPal content.
Comply with applicable advertising laws,
regulations and standards issued by
governmental authorities or advertising self-
regulatory bodies including but not limited to
the digital advertising standards issued by the
Network Advertising Initiative.
If you promote the use of PayPal’s Credit Products on your sites, other approved channels, and/or
consumer communications through the PayPal Advertising Program, there are additional
requirements that
apply
.
If you receive consumer inquiries relating to a Credit Product including but not limited to PayPal
Credit, PayPal Cashback Mastercard, or the PayPal World Cashback Mastercard, then you must direct
the consumer to the Customer Support channel associated with the Credit Product. If you receive
consumer inquiries relating to PayPal or another Credit Product other than those listed above, then
you must direct the consumer to
PayPal Customer Support
.
You are responsible for any damages suffered by PayPal or any third parties resulting from your
failure to follow the rules of the PayPal Advertising Program, and if you violate these rules, PayPal
may modify or remove the PayPal content you are presenting or require you to remove or modify it
immediately. If you fail to follow these rules, we may limit or close your PayPal account.
Restricted Activities, Holds, and Other Actions We May Take
Restricted Activities
In connection with your use of our websites, your PayPal account, the PayPal services, or in the
course of your interactions with PayPal, other PayPal customers, or third parties, you must not:
Breach this user agreement, the PayPal
Acceptable Use Policy
, the
Commercial Entity
Agreements
(if they apply to you), the
PayPal Balance Terms and Conditions
(if it applies to you),
or any
other agreement
between you and PayPal;
Violate any law, statute, ordinance, or regulation (for example, those governing financial services,
consumer protections, unfair competition, anti-discrimination or false advertising);
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Infringe PayPal’s or any third party’s copyright, patent, trademark, trade secret or other
intellectual property rights, or rights of publicity or privacy;
Sell counterfeit goods;
Act in a manner that is defamatory, trade libelous, threatening or harassing;
Provide false, inaccurate or misleading information;
Send or receive what we reasonably believe to be potentially fraudulent funds;
Refuse to cooperate in an investigation or provide confirmation of your identity or any
information you provide to us;
Attempt to double dip during the course of a dispute by receiving or attempting to receive funds
from both PayPal and the seller, bank or card issuer for the same transaction;
Control an account that is linked to another account that has engaged in any of these restricted
activities;
Conduct your business or use the PayPal services in a manner that results in or may result in;
complaints;
requests by buyers (either filed with us or card issuers) to invalidate payments made to you;
fees, fines, penalties or other liability or losses to PayPal, other PayPal customers, third
parties or you;
Use your PayPal account or the PayPal services in a manner that PayPal, Visa, MasterCard,
American Express, Discover or any other electronic funds transfer network reasonably believes to
be an abuse of the card system or a violation of card association or network rules;
Allow your PayPal account to have a negative balance;
Provide yourself a cash advance from your credit card (or help others to do so);
Access the PayPal services from a country that is not included on PayPal’s
permitted countries list
;
Take any action that imposes an unreasonable or disproportionately large load on our websites,
software, systems (including any networks and servers used to provide any of the PayPal services)
operated by us or on our behalf or the PayPal services;
Facilitate any viruses, trojan horses, malware, worms or other computer programming routines
that attempts to or may damage, disrupt, corrupt, misuse, detrimentally interfere with,
surreptitiously intercept or expropriate, or gain unauthorized access to any system, data,
information or PayPal services;
Use an anonymizing proxy; use any robot, spider, other automatic device, or manual process to
monitor or copy our websites without our prior written permission; or use any device, software or
routine to bypass our robot exclusion headers;
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Interfere or disrupt or attempt to interfere with or disrupt our websites, software, systems
(including any networks and servers used to provide any of the PayPal services) operated by us or
on our behalf, any of the PayPal services or other users’ use of any of the PayPal services;
Take any action that may cause us to lose any of the services from our Internet service providers,
payment processors, or other suppliers or service providers;
Use the PayPal services to test credit card behaviors;
Circumvent any PayPal policy or determinations about your PayPal account such as temporary or
indefinite suspensions or other account holds, limitations or restrictions, including, but not
limited to, engaging in the following actions: attempting to open new or additional PayPal
account(s) when an account has a negative balance or has been restricted, suspended or otherwise
limited; opening new or additional PayPal accounts using information that is not your own (e.g.,
name, address, email address, etc.); or using someone else’s PayPal account;
Harass and/or threaten our employees, agents, or other users; or
Abuse our online dispute resolution process and/or PayPal’s Purchase Protection program and/or
PayPal’s Seller Protection program.
Actions We May Take if You Engage in Any Restricted Activities
If we believe that you’ve engaged in any of these activities, we may take a number of actions to
protect PayPal, its customers and others at any time in our sole discretion. The actions we may take
include, but are not limited to, the following:
Terminating this user agreement, limiting your PayPal account (and any linked Balance Account),
and/or closing or suspending your PayPal account (and any linked Balance Account), immediately
and without penalty to us.
Refusing to provide the PayPal services to you in the future.
Limiting your access to our websites, software, systems (including any networks and servers used
to provide any of the PayPal services) operated by us or on our behalf, your PayPal account or any
of the PayPal services, including limiting your ability to pay or send money with any of the
payment methods linked to your PayPal account, restricting your ability to send money or make
withdrawals.
Holding the balance in your Balance Account, the balance in your business account, or any money
waiting to be claimed through your personal account if you do not have a Balance Account linked
to your personal account, for up to 180 days if reasonably needed to protect against the risk of
liability or if you have violated our
Acceptable Use Policy
. The hold may remain in place longer
than 180 days according to
Court Orders, Regulatory Requirements, or Other Legal Processes
.
Suspending your eligibility for PayPal’s Purchase Protection program and/or PayPal’s Seller
Protection program.
If your eligibility is suspended, amounts you retained under PayPal’s Seller Protection
program in the 30 calendar days prior to your suspension may be recovered as
amounts
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owed to PayPal
. These amounts constitute actual damages suffered by PayPal as a result of
your actions (i.e., payments that you retained at PayPal’s expense that you were not
otherwise entitled to), and we may debit your PayPal account accordingly.
Charging the
High Volume Dispute fees
for all current and future disputes irrespective of your
dispute ratio or sales volumes, given PayPal’s increased involvement as a result of such Restricted
Activity.
Contacting buyers who have purchased goods or services from you using PayPal, your bank or
credit card issuer, other impacted third parties, or law enforcement about your actions.
Updating inaccurate information you provided us.
Taking legal action against you.
If we close your PayPal account or terminate your use of the PayPal services for any reason, we’ll
provide you with notice of our actions and make any unrestricted funds held in the balance of your
Balance Account linked to your personal account or in the balance of your business account, or any
money waiting to be claimed through your personal account if you do not have a Balance Account
linked to your personal account, available for withdrawal.
You are responsible for all reversals, chargebacks, claims, fees, fines, penalties and other liability
incurred by PayPal, any PayPal customer, or a third party caused by or arising out of your breach of
this agreement, and/or your use of the PayPal services.
Holds, Limitations, and Reserves
What are holds, limitations, and reserves
Under certain circumstances, in order to protect PayPal and the security and integrity of the network
of buyers and sellers that use the PayPal services, PayPal may take account-level or transaction-
level actions. Unless otherwise noted, if we take any of the actions described here, we’ll provide you
with notice of our actions, but we retain the sole discretion to take these actions. To request
information in connection with an account limitation, hold or reserve, you should visit the
Resolution
Center
or follow the instructions in our email notice with respect to the limitation, hold or reserve.
Account holds or limitations may impact your ability to move funds to or from your PayPal Savings
account.
Our decision about holds, limitations and reserves may be based on confidential criteria that are
essential to our management of risk and the protection of PayPal, our customers and/or service
providers. We may use proprietary fraud and risk modeling when assessing the risk associated with
your PayPal account. In addition, we may be restricted by regulation or a governmental authority
from disclosing certain information to you about such decisions. You agree that we have no obligation
to disclose the details of our risk management or security procedures to you.
In order to facilitate PayPal’s actions described above and allow us to assess the level of risk
associated with your PayPal account, you agree to cooperate with PayPal’s reasonable requests for
financial statements and other documentation or information in a timely fashion.
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Holds
A hold is an action that PayPal may take under certain circumstances either at the transaction level
or the account level. When PayPal places a temporary hold on a payment, the money is not available
to either the sender or the recipient. PayPal reviews many factors before placing a hold on a
payment, including: account tenure, transaction activity, business type, past customer disputes, and
overall customer satisfaction. Some common situations where PayPal will hold payments include:
New sellers or sellers who have limited selling activity.
Payments for higher-risk categories like electronics or tickets.
Sellers who have performance issues, or a high rate of buyer dissatisfaction or disputes.
Holds based on PayPal’s risk decisions
We may place a hold on payments sent to your PayPal account if, in our sole discretion, we believe
that there may be a high level of risk associated with you, your PayPal account, or your transactions
or that placing such a hold is necessary to comply with state or federal regulatory requirements. We
make decisions about whether to place a payment hold based on a number of factors, including
information available to us from both internal sources and third parties. When we place a hold on a
payment, the funds will appear in your PayPal account with an indication that they are unavailable or
pending. We’ll notify you, either through your PayPal account or directly by phone or email,
whenever we place a hold.
Risk-based holds generally remain in place for up to 21 days from the date the payment was received
into your PayPal account. We may release the hold earlier under certain circumstances (for example,
if you’ve uploaded shipment tracking information related to the transaction), but any earlier release
is at our sole discretion. The hold may last longer than 21 days if the payment is challenged as a
payment that should be invalidated and reversed based on a disputed transaction as discussed in the
following paragraph below. In this case, we’ll hold the payment in your PayPal account until the
matter is resolved (but no longer than 180 days).
Holds related to Marketplace transactions
If you’re a seller on a marketplace or through a third-party application where PayPal is offered, a
hold may be placed on a payment sent to you at the instruction of the applicable marketplace or
third party. This is done once you have granted us permission to have your funds held and will be in
accordance with your agreement with the third party. These holds will appear in your PayPal account.
If you have questions about why the applicable marketplace or third party instructed PayPal to put
these holds in place, you will need to contact the marketplace or third party directly.
Holds based on disputed transactions
If a payment sent to you as a seller is challenged as a payment that should be invalidated and
reversed, we may place a temporary hold on the funds in your PayPal account to cover the amount
that could be reversed. Any of the situations described under
Refunds, Reversals and
Chargebacks
are situations that could result in us placing a hold on a payment. If we determine the
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transaction should not be reversed, we’ll lift the temporary hold. If we determine the transaction
should be reversed, we’ll remove the funds from your PayPal account.
Account Limitations
Limitations are implemented to help protect PayPal, its affiliates, buyers and sellers when we
notice
restricted activities
, an increased financial risk, or activity that appears to us as unusual or
suspicious. Limitations also help us collect information necessary for keeping your PayPal account
open.
There are several reasons why your PayPal account could be limited, including:
If we suspect someone could be using your PayPal account without your knowledge, we’ll limit it
for your protection and look into the fraudulent activity.
If your debit or credit card issuer alerts us that someone has used your card without your
permission. Similarly, if your bank lets us know that there have been unauthorized transfers
between your PayPal account and your bank account.
In order to comply with applicable law.
If we believe in our sole discretion that you have breached this agreement or violated
the
Acceptable Use Policy
.
Seller performance indicating your PayPal account is high risk. Examples include: indications of
poor selling performance because you’ve received an unusually high number of claims and
chargebacks, selling an entirely new or high-cost product type, or if your typical sales volume
increases rapidly.
Unless a permanent limitation is placed on your account, you will need to resolve any issues with
your account before a limitation can be removed. Normally, this is done after you provide us with the
information we request. However, if we reasonably believe a risk still exists after you have provided
us that information, we may take action to protect PayPal, our users, a third party, or you from
reversals, fees, fines, penalties, legal and/or regulatory risks and any other liability.
Reserves placed on business accounts
We may place a reserve on your business account at any time if we believe there may be a high level
of risk associated with you, your business account, your business model, or your transactions. When
we place a reserve on your business account, it means that all or some portion of the money in your
business account is reserved as unavailable for withdrawal in order to protect against the risk of
transactions made by you being reversed or invalidated or any other risk related to your
business account or use of the PayPal services. We make decisions about whether to place a reserve
based on a number of factors, including information available to us from both internal sources and
from third parties.
PayPal considers a list of non-exclusive factors and whether and how these factors have changed
over time, including:
How long you have been in business.
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Whether your industry has a higher likelihood of chargebacks.
Your payment processing history with PayPal and other providers.
Your business and/or personal credit history.
Your delivery time frames.
Whether you have higher than average number of returns, chargebacks, claims or disputes.
There are two categories of reserves that may be placed on your business account, and one or both
may be applied at the same time:
A Rolling reserve
is a reserve where a percentage of each transaction you receive each day is held
and then released later on a scheduled basis. For example, your reserve could be set at 10% and
held for a 90-day rolling period – meaning 10% of the money you receive on day 1 is held and
then released on day 91, 10% of the money you receive on day 2 is held until day 92, etc. Rolling
reserves are the most common type of reserve.
A Minimum reserve
is a specific minimum amount of money that you’re required to keep
available in the balance of your business account at all times. The minimum reserve is either taken
as an upfront amount deposited all at once (also known as an Upfront reserve) or is established
on a rolling basis from percentages of sales until the minimum reserve is achieved, much like a
rolling reserve.
If we place a reserve on funds in your account, the funds will be shown as "pending" and we’ll notify
you of the terms of the reserve.
If we change the terms of the reserve due to a change in our risk assessment, we’ll notify you of the
new terms.
Court Orders, Regulatory Requirements, or Other Legal
Processes
If we are notified of a court order or other legal process (including garnishment or any equivalent
process) affecting you, or if we otherwise believe we are required to do so in order to comply with
applicable law or regulatory requirements, we may be required to take certain actions, including
holding payments to/from your PayPal account, placing a reserve or limitation on your PayPal
account, or releasing your funds. We will decide, in our sole discretion, which action is required of us.
Unless the court order, applicable law, regulatory requirement or other legal process requires
otherwise, we will notify you of these actions. We do not have an obligation to contest or appeal any
court order or legal process involving you or your PayPal account. When we implement a hold, reserve
or limitation as a result of a court order, applicable law, regulatory requirement or other legal
process, the hold, reserve or limitation may remain in place longer than 180 days.
Liability for Unauthorized Transactions and Other Errors
Protection from Unauthorized Transactions
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To protect yourself from unauthorized activity in your PayPal account, you should regularly log into
your PayPal account and review your PayPal account statement. PayPal will notify you of each
transaction by sending an email to your primary email address on file. You should review these
transaction notifications to ensure that each transaction was authorized and accurately completed.
PayPal will protect you from unauthorized activity in your PayPal account. When this protection
applies, PayPal will cover you for the full amount of the unauthorized activity as long as you
cooperate with us and follow the procedures described below.
Business Accounts
For unauthorized transfers involving your PayPal business account, PayPal generally follows the
procedures described below, with exception for unauthorized transfers or debits in excess of the
authorized amount associated with outgoing payments (or debits) using your assigned account
number and routing number. For information on your rights to dispute debit transactions involving
your business account using your account number and routing number, see
Returning Unauthorized
or Excess Business Account Debits
.
What is an Unauthorized Transaction
An “Unauthorized Transaction” occurs when money is sent from your PayPal account that you did not
authorize and that did not benefit you. For example, if someone steals or fraudulently obtains your
password, uses the password to access your PayPal account, and sends a payment from your PayPal
account, an Unauthorized Transaction has occurred.
What is not considered an Unauthorized Transaction
The following are NOT considered Unauthorized Transactions:
If you grant authority to someone to use your PayPal account (by giving them your login
information) and they exceed the authority you gave them. You are responsible for transactions
made in this situation unless you have previously notified PayPal that you no longer authorize
transfers by that individual.
Invalidation and reversal of a payment as a result of the actions described under
Refunds,
Reversals and Chargebacks
.
Reporting an Unauthorized Transaction
If you believe your PayPal login information has been lost or stolen, please
contact PayPal customer
service
immediately or call: (888) 221-1161 or write: PayPal, Attn: Error Resolution Department,
P.O. Box 45950, Omaha, NE 68145-0950.
Tell us AT ONCE if you believe that an electronic fund transfer has been made without your
permission using your login information or by other means. You could lose all the money in your
PayPal account.
Also, if your PayPal account statement shows transfers that you did not make, including those made
with your PayPal login information or by other means, tell us at once. If you do not tell us within 60
days after we provided the statement to you, you may not get back any money you lost after the 60
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days if we can prove that we could have stopped someone from taking the money if you had told us
in time. If a good reason (such as a long trip or a hospital stay) kept you from telling us, we may
extend the time periods.
Error Resolution
What is an Error
An “Error” means the following:
When money is either incorrectly taken from your PayPal account or incorrectly placed into your
PayPal account, or when a transaction is incorrectly recorded in your PayPal account.
You send a payment and the incorrect amount is debited from your PayPal account.
An incorrect amount is credited to your PayPal account.
A transaction is missing from or not properly identified in your PayPal account statement.
We make a computational or mathematical error related to your PayPal account.
You request receipt or periodic statement documents that PayPal is required to provide to you.
You request information concerning preauthorized (recurring) transfers to your PayPal account
that PayPal is required to provide to you.
You request additional information or clarification concerning a transfer to or from your PayPal
account, including a request you make to determine whether an error has occurred.
You inquire about the status of a pending transfer to or from your PayPal account.
You request documentation or other information, unless the request is for a duplicate copy for tax
or other record-keeping purposes.
What is not considered an Error
The following are NOT considered Errors:
If you give someone access to your PayPal account (by giving them your login information) and
they use your PayPal account without your knowledge or permission. You are responsible for
transactions made in this situation.
Invalidation and reversal of a payment as a result of the actions described under
Refunds,
Reversals and Chargebacks
.
Routine inquiries about the balance in your Balance Account or business account, or any money
waiting to be claimed through your personal account if you do not have a Balance Account linked
to your personal account.
Requests for duplicate documentation or other information for tax or other recordkeeping
purposes.
In case of Errors or questions about your electronic transfers
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Telephone us at (888) 221-1161, contact us through the PayPal
Resolution Center
; or write us at
PayPal, Attn: Error Resolution Department, P.O. Box 45950, Omaha, NE 68145-0950.
Notify us as soon as you can, if you think your statement or receipt is wrong or if you need more
information about a transfer listed on the statement or receipt. We must hear from you no later than
60 days after we sent the FIRST statement on which the problem or error appeared.
Tell us your name and account number (if any).
Describe the error or the transfer you are unsure about, and explain as clearly as you can why you
believe it is an error or why you need more information.
Tell us the dollar amount of the suspected error.
If you tell us orally, we may require that you send us your complaint or question in writing within
10
Business Days
.
We will determine whether an error occurred within 10
Business Days
after we hear from you and will
correct any error promptly. If we need more time, however, we may take up to 45 days to investigate
your complaint or question. If we decide to do this, we will credit your PayPal account within
10
Business Days
for the amount you think is in error, so that you will have the use of the money
during the time it takes us to complete our investigation. If we ask you to put your complaint or
question in writing and we do not receive it within 10
Business Days
, we may not credit your PayPal
account.
For errors involving new PayPal accounts, point-of-sale transactions, or foreign-initiated
transactions, we may take up to 90 days to investigate your complaint or question. For new PayPal
accounts, we may take up to 20
Business Days
to credit your PayPal account for the amount you
think is in error.
We will tell you the results within 3
Business Days
after completing our investigation. If we decide
that there was no error, we will send you a written explanation. You may ask for copies of the
documents that we used in our investigation.
Processing Errors
We will rectify any processing error that we discover. If the error results in:
You receiving less than the correct amount to which you were entitled, then we will credit your
PayPal account for the difference between what you should have received and what you actually
received.
You receiving more than the correct amount to which you were entitled, then we will debit your
PayPal account for the difference between what you actually received and what you should have
received.
Our not completing a transaction on time or in the correct amount, then we will be responsible to
you for your losses or damages directly caused by this failure, unless:
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through no fault of ours, you did not have enough available funds to complete the
transaction;
our system was not working properly and you knew about the breakdown when you started
the transaction; or
the error was due to extraordinary circumstances outside our control (such as fire, flood or
loss of Internet connection), despite our reasonable precautions.
Processing errors are not:
Delays that result from PayPal applying
holds, limitations or reserves
.
Delays based on a
payment review
.
Delays described under
How to buy something
related to the time it may take for a purchase
transaction to be completed in some situations.
Your errors in making a transaction (for example, mistyping an amount of money that you are
sending).
Returning Unauthorized or Excess Business Account Debits
Notwithstanding any other provision of this section
Liability for Unauthorized Transactions and
Other Errors
, if you believe that your assigned account number and routing number have been used
to debit your business account without your valid authorization or in an amount that exceeds your
authorization (an “Unauthorized/Excess Business Debit”), please telephone us at (888) 221-1161 or
contact us through the PayPal
Resolution Center
by 8:00 PM PT on the
Business Day
following the
Business Day
that the Unauthorized/Excess Business Debit is posted to your business account (the
“Cutoff Time”). If you do not notify us by the Cutoff Time, you will be responsible for recovering any
potential losses directly with the merchant/originator of the Unauthorized/Excess Business Debit.
The protections described in
Liability for Unauthorized Transactions and Other Errors
will still
apply to other types of errors involving your business account, including our own processing errors.
Remittance Transfer Errors
What is a Remittance Transfer
You may be protected for certain errors when you send money outside of the U.S. using a PayPal
account. A “Remittance Transfer” is a transaction that meets the following criteria:
The payment is sent from a personal account that is used primarily for personal, family or
household purposes,
The payment is made for personal, family or household purposes,
The payment is made using the Send Money feature through your PayPal account,
The payment amount equals or exceeds $15 U.S. dollars (excluding fees charged to you) or the
foreign currency equivalent calculated using exchange rates in effect at the time of the
transaction, and
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The recipient received the payment in a PayPal account outside of the U.S.
Payments that you make at a merchant website or location by selecting PayPal as a payment option
are not “Remittance Transfers.”
What qualifies as a Remittance Transfer Error
A
“Remittance Transfer Error”
occurs if:
You paid an incorrect amount to send the Remittance Transfer. For example, you were charged
more than the total shown on the remittance transfer receipt you received (unless the total
shown on the receipt was an estimate, and the difference results from application of the actual
exchange rate, fees, and Taxes).
PayPal made a computational or bookkeeping error, such as a miscalculation of the amount the
recipient received.
The amount stated in the remittance transfer receipt was not made available to the recipient,
unless:
we stated in the remittance transfer receipt that we used estimates and the difference in
the amount received and the amount stated in the remittance transfer receipt results from
application of the actual exchange rate, fees, and Taxes, or
the problem was caused by extraordinary circumstances outside our control.
Funds were available to the recipient later than the date of availability that was disclosed to you
on the remittance transfer receipt or were not delivered, unless:
extraordinary circumstances outside our control caused the delay, and we could not
reasonably anticipate those circumstances,
delays resulted from fraud screenings, or were caused by requirements of the Office of
Foreign Assets Controls or similar requirements, or
you (or someone assisting you) made the transfer with fraudulent intent.
You request documentation or information concerning the Remittance Transfer, such as
information required to determine if a Remittance Transfer Error occurred.
What is not considered a Remittance Transfer Error
The following are NOT considered Remittance Transfer Errors:
An inquiry about the status of a Remittance Transfer, except where the funds from the transfer
were not made available to a designated recipient by the disclosed date of availability,
A request for information for tax or other recordkeeping purposes,
A change requested by the designated recipient, or
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A change in the amount or type of currency received by the designated recipient from the amount
or type of currency stated in the disclosure provided you, if we relied on information provided by
you in making the disclosure.
What to do if you think there has been a Remittance Transfer Error or problem
If you think there has been a Remittance Transfer Error or problem with your Remittance Transfer:
Call us at: (888) 221-1161.
Write us at: PayPal, Attn: Error Resolution Department, P.O. Box 45950, Omaha, NE 68145-0950.
Log in to your PayPal account at paypal.com and go to the
Resolution Center
and dispute a
transaction.
You must contact us within 180 days of the date we promised to you that funds would be made
available to the recipient. When you do, please tell us:
Your name, address and telephone number,
The error or problem with the transfer, and why you believe it is an error or problem,
The name of the person receiving the funds, and if you know it, his or her telephone number or
address,
The dollar amount of the transfer, and
The confirmation code or number of the transaction.
We will determine whether an error occurred within 90 days after you contact us and we will correct
any error promptly. We will tell you the results within 3
Business Days
after completing our
investigation. If we decide that there was no error, we will send you a written explanation. You may
ask for copies of any documents we used in our investigation.
Other Legal Terms
Communications Between You and Us
If you provide us your mobile phone number, you agree that PayPal and its affiliates may contact you
at that number using autodialed or prerecorded message calls or text messages to: (i) service your
PayPal branded accounts, (ii) investigate or prevent fraud, or (iii) collect a debt. We will not use
autodialed or prerecorded message calls or texts to contact you for marketing purposes unless we
receive your prior express written consent. We may share your mobile phone number with service
providers with whom we contract to assist us with the activities listed above, but we will not share
your mobile phone number with third parties for their own purposes without your consent. You do
not have to agree to receive autodialed or prerecorded message calls or texts to your mobile phone
number in order to use and enjoy the products and services offered by PayPal. You can decline to
receive autodialed or prerecorded message calls or texts to your mobile phone number by updating
your preferences in your PayPal account settings at
www.paypal.com
, by contacting
customer
support
, by calling us at 1-844-629-9108, or by replying STOP to a message. The frequency of
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messages may vary, and standard telephone minute and text charges may apply. Neither we nor your
phone carriers are liable for delayed or undelivered messages.
PayPal may communicate with you about your PayPal account and the PayPal services electronically
as described in our
Electronic Communications Delivery Policy
. You will be considered to have
received a communication from us, if it’s delivered electronically, 24 hours after the time we post it
to our website or email it to you. You will be considered to have received a communication from us, if
it’s delivered by mail, 3
Business Days
after we send it.
Unless you’re communicating with us about a matter where we’ve specified another notice address
(for example, our
Liability for Unauthorized Transactions and Other Errors
process), written notices
to PayPal must be sent by postal mail to: PayPal, Inc., Attention: Legal Department, 2211 North
First Street, San Jose, California 95131.
You understand and agree that, to the extent permitted by law, PayPal may, without further notice
or warning, monitor or record telephone conversations you or anyone acting on your behalf has with
PayPal or its agents for quality control and training purposes or for our own protection. You
acknowledge and understand that while your communications with PayPal may be overheard,
monitored, or recorded not all telephone lines or calls may be recorded by PayPal, and PayPal does
not guarantee that recordings of any particular telephone calls will be retained or retrievable.
PayPal’s Rights
PayPal suspension and termination rights
PayPal, in its sole discretion, reserves the right to suspend or terminate this user agreement, access
to or use of its websites, software, systems (including any networks and servers used to provide any
of the PayPal services) operated by us or on our behalf or some or all of the PayPal services for any
reason and at any time upon notice to you and, upon termination of this user agreement, the
payment to you of any unrestricted funds held in your PayPal account.
Security interest
As security for the performance of your obligations under this user agreement, you grant to PayPal a
lien on, and security interest in and to, funds held in your PayPal account.
Amounts owed to PayPal
If the balance in your PayPal account becomes negative for any reason, that negative balance
represents an amount that you owe to PayPal. PayPal may deduct these amounts from funds that are
added to your PayPal account later, either by you or from payments you receive. If you have more
than one PayPal account, we may set off a negative balance in one PayPal account against a balance
in your other PayPal account(s), including a Balance Account. If you continue using your PayPal
account when it has a negative balance, you authorize PayPal to combine the negative balance with
any debit or transaction sent from your account when that combination is disclosed to you in
advance of initiating the debit or transaction.
If you hold funds in a PayPal account in multiple currencies, and the balance for one of the currencies
becomes negative for any reason, PayPal may set off the negative balance by using funds you
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maintain in a different currency. If you have a negative balance in non-U.S. dollars for a period of 21
days or longer, PayPal will convert this negative balance to U.S. dollars. In either case, a
currency
conversion
will be necessary, and PayPal’s transaction exchange rate (including our
currency
conversion spread
) will be used.
In addition to the above, if you have a past due amount owed to us or our affiliates, PayPal may debit
your PayPal account to pay any amounts that are past due. This includes amounts owed by using our
various products such as Venmo, Xoom or Braintree.
Insolvency proceedings
If any proceeding by or against you is commenced under any provision of the United States
Bankruptcy Code, as amended, or under any other bankruptcy or insolvency law, we’ll be entitled to
recover all reasonable costs or expenses (including reasonable legal fees and expenses) incurred in
connection with the enforcement of this user agreement.
Assumption of rights
If PayPal invalidates and reverses a payment that you made to a recipient (either at your initiative or
otherwise), you agree that PayPal assumes your rights against the recipient and third parties related
to the payment, and may pursue those rights directly or on your behalf, in PayPal’s discretion.
No waiver
Our failure to act with respect to a breach of any of your obligations under this user agreement by
you or others does not waive our right to act with respect to subsequent or similar breaches.
Indemnification and Limitation of Liability
In this section, we use the term “PayPal” to refer to PayPal, Inc., our parent PayPal Holdings, Inc.,
and our affiliates, and each of their respective directors, officers, employees, agents, joint venturers,
service providers and suppliers. Our affiliates include each entity that we control, we are controlled
by or we are under common control with.
Indemnification
You must indemnify PayPal for actions related to your PayPal account and your use of the
PayPal services.
You agree to defend, indemnify and hold PayPal harmless from any claim or
demand (including reasonable legal fees) made or incurred by any third party due to or arising out of
your breach of this user agreement, your improper use of the PayPal services, your violation of any
law or the rights of a third party and/or the actions or inactions of any third party to whom you grant
permissions to use your PayPal account or access our websites, software, systems (including any
networks and servers used to provide any of the PayPal services) operated by us or on our behalf, or
any of the PayPal services on your behalf.
Limitation of liability
PayPal’s liability is limited with respect to your PayPal account and your use of the PayPal
services.
In no event shall PayPal be liable for lost profits or any special, incidental or consequential
damages (including without limitation damages for loss of data or loss of business) arising out of or
in connection with our websites, software, systems (including any networks and servers used to
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provide any of the PayPal services) operated by us or on our behalf, any of the PayPal services, or
this user agreement (however arising, including negligence), unless and to the extent prohibited by
law.
Our liability to you or any third parties in any circumstance is limited to the actual amount of direct
damages. In addition, to the extent permitted by applicable law, PayPal is not liable, and you agree
not to hold PayPal responsible, for any damages or losses (including, but not limited to, loss of
money, goodwill, or reputation, profits, or other intangible losses or any special, indirect, or
consequential damages) resulting directly or indirectly from: (1) your use of, or your inability to use,
our websites, software, systems (including any networks and servers used to provide any of the
PayPal services) operated by us or on our behalf, or any of the PayPal services; (2) delays or
disruptions in our websites, software, systems (including any networks and servers used to provide
any of the PayPal services) operated by us or on our behalf and any of the PayPal services; (3)
viruses or other malicious software obtained by accessing our websites, software, systems (including
any networks and servers used to provide any of the PayPal services) operated by us or on our behalf
or any of the PayPal services or any website or service linked to our websites, software or any of the
PayPal services; (4) glitches, bugs, errors, or inaccuracies of any kind in our websites, software,
systems (including any networks and servers used to provide any of the PayPal services) operated by
us or on our behalf or any of the PayPal services or in the information and graphics obtained from
them; (5) the content, actions, or inactions of third parties; (6) a suspension or other action taken
with respect to your PayPal account; or (7) your need to modify your practices, content, or behavior,
or your loss of or inability to do business, as a result of changes to this user agreement or PayPal’s
policies.
Disclaimer of Warranty and Release
No warranty
The PayPal services are provided “as-is” and without any representation or warranty,
whether express, implied or statutory. PayPal specifically disclaims any implied warranties of
title, merchantability, fitness for a particular purpose and non-infringement.
PayPal does not have any control over the products or services provided by sellers who accept PayPal
as a payment method, and PayPal cannot ensure that a buyer or a seller you are dealing with will
actually complete the transaction or is authorized to do so. PayPal does not guarantee continuous,
uninterrupted or secure access to any part of the PayPal services, and operation of our websites,
software, or systems (including any networks and servers used to provide any of the PayPal services)
operated by us or on our behalf may be interfered with by numerous factors outside of our control.
PayPal will make reasonable efforts to ensure that requests for electronic debits and credits involving
bank accounts, debit cards, credit cards, and check issuances are processed in a timely manner but
PayPal makes no representations or warranties regarding the amount of time needed to complete
processing because the PayPal services are dependent upon many factors outside of our control, such
as delays in the banking system or the U.S. or international mail service. Some states do not allow
the disclaimer of implied warranties, so the foregoing disclaimers may not apply to you.
Release of PayPal
If you have a dispute with any other PayPal account holder, you release PayPal from any and all
claims, demands and damages (actual and consequential) of every kind and nature, known and
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Agreement to Arbitrate
Our Agreement
You and PayPal each agree that any and all
disputes or claims that have arisen or may arise
between you and PayPal, including without
limitation federal and state statutory claims,
common law claims, and those based in contract,
tort, fraud, misrepresentation or any other legal
theory, shall be resolved exclusively through final
and binding arbitration or in small claims court.
You or PayPal may assert claims in small claims
court instead of in arbitration if the claims
qualify and so long as the matter remains in
small claims court and advances only on an
individual (non-class, non-representative) basis.
This Agreement to Arbitrate is intended to be
broadly interpreted. The Federal Arbitration Act
governs the interpretation and enforcement of
this Agreement to Arbitrate.
unknown, arising out of or in any way connected with such disputes. In entering into this release you
expressly waive any protections (whether statutory or otherwise, for example, California Civil Code §
1542) that would otherwise limit the coverage of this release to include only those claims which you
may know or suspect to exist in your favor at the time of agreeing to this release.
Agreement to Arbitrate
You and PayPal agree that any claim or dispute at law or equity that has arisen or may arise between
you and us will be resolved in accordance with the Agreement to Arbitrate provisions set forth below.
Please read this information carefully. Among other things it:
Affects your and our rights and will impact how claims between you and us are resolved, including
your and our agreement to waive the right to trial by jury.
Includes a
Prohibition of Class and Representative Actions and Non-Individualized Relief
pursuant
to which you agree to waive your right to participate in a class action lawsuit against us.
Requires you to follow the
Opt-Out Procedure
to opt-out of the Agreement to Arbitrate by
mailing us a written notice that must be postmarked no later than 30 days after the date you
accept this user agreement for the first time.
If a dispute arises between you and PayPal, our goal is to learn about and address your concerns. If
we are unable to do so to your satisfaction, we aim to provide you with a neutral and cost-effective
means of resolving the dispute quickly. Disputes between you and PayPal regarding the PayPal
services may be reported to customer service online through the
PayPal Help Center
at any time, or
by calling (888) 221-1161 from Mon-Fri 5:00 AM to 10:00 PM PT and Sat-Sun 6:00 AM to 8:00 PM
PT.
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Notices of Disputes
Before bringing any dispute or claim, you or
PayPal must first send the other party, by
certified mail, a completed
Notice of Dispute
.
You should send this notice to PayPal at: PayPal,
Inc., Attn: Legal Specialists, Re: Notice of
Dispute, P.O. Box 45950, Omaha, NE 68145-
0950. PayPal will send any notice to you to the
address we have on file associated with your
PayPal account; it is your responsibility to keep
your address up to date. To be valid, the Notice
of Dispute must contain all information called for
in the Notice of Dispute form, including but not
limited to: your or PayPal’s signature, the email
address and phone number associated with the
customer’s PayPal account, a description of the
nature and basis of the claims that are being
asserted, a statement of the specific relief
sought, and any relevant documents and
supporting information reasonably available to
the claiming party.
If you and PayPal are unable to resolve the
claims described in the notice within 45 days
after the notice is received by you or PayPal, you
or PayPal may commence an arbitration
proceeding or suit in small claims court. A form
for initiating arbitration proceedings is available
on the American Arbitration Association's
website at
www.adr.org
. The Notice of Dispute
requirements are essential in order to give the
parties a meaningful chance to resolve disputes
informally.
Prohibition of Class and Representative Actions
and Non-Individualized Relief
You and PayPal agree that each of us may bring
claims against the other only on an individual
basis and not as a plaintiff or class member in
any purported class or representative action or
proceeding. Unless both you and PayPal agree
otherwise, the arbitrator(s) may not consolidate
or join more than one person’s or party’s claims
and may not otherwise preside over any form of
a consolidated, representative or class
proceeding. Also, the arbitrator(s) may award
relief (including monetary, injunctive and
declaratory relief) only in favor of the individual
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party seeking relief and only to the extent
necessary to provide relief necessitated by that
party’s individual claim(s). Any relief awarded
cannot affect other PayPal customers.
Arbitration Procedures
Arbitration is more informal than a lawsuit in
court. Arbitration uses a neutral arbitrator or
arbitrators instead of a judge or jury, and court
review of an arbitration award is very limited.
However, the arbitrator can award the same
damages and relief on an individual basis that a
court can award to an individual. All issues are
for the arbitrator to decide, except that a court
of competent jurisdiction shall decide issues
relating to arbitrability, the scope or
enforceability of this Agreement to Arbitrate and
issues that this Agreement to Arbitrate indicates
that a court can resolve.
Any arbitration will be administered by the
American Arbitration Association (referred to as
the "AAA"). For all claims in which the value of
the relief sought is $10,000 U.S. dollars or less,
the AAA’s Consumer Arbitration Rules, as
modified by this Agreement to Arbitrate, shall
apply without exception. For all other claims, the
AAA’s rules, including, as applicable, the AAA’s
Consumer Arbitration Rules, as modified by this
Agreement to Arbitrate, shall apply. The AAA’s
rules are available at www.adr.org. In the event
that the AAA is unavailable to administer the
arbitration, another administrator will be
selected by the parties or by the court.
Any arbitration hearings shall be held in the
county in which you reside or at another
mutually agreed location. If the value of the
relief sought is $25,000 or less, the arbitration
will be conducted based solely on written
submissions, unless any party requests an in-
person, telephonic, or videoconference hearing
or the arbitrator decides that a hearing is
necessary. In cases where an in-person hearing is
held, you and/or PayPal may attend by
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telephone or videoconference, unless the
arbitrator requires otherwise.
The arbitrator will decide the substance of all
claims in accordance with applicable law,
including recognized principles of equity, and will
honor all claims of privilege recognized by law.
No court or arbitrator shall be bound by rulings
in prior arbitrations involving different PayPal
customers, but a court or arbitrator will be
bound by rulings in prior arbitrations involving
the same PayPal customer to the extent required
by applicable law. The award of the arbitrator
shall be final and binding, and judgment on the
award rendered by the arbitrator may be entered
in any court having jurisdiction thereof.
Costs of Arbitration
Payment of all AAA or arbitrator fees will be
governed by the AAA’s rules, unless otherwise
stated in this Agreement to Arbitrate. If the
value of the relief sought is $10,000 or less, at
your request, PayPal will pay all AAA or
arbitrator fees associated with the arbitration.
Any request for payment of fees by PayPal
should be submitted by mail to the AAA along
with your Demand for Arbitration and PayPal will
make arrangements to pay all necessary fees
directly to the AAA. If the value of the relief
sought is more than $10,000 and you are able to
demonstrate that the costs of accessing
arbitration will be prohibitive as compared to
the costs of accessing a court for purposes of
pursuing litigation on an individual basis, PayPal
will pay as much of the AAA or arbitrator fees as
the arbitrator deems necessary to prevent the
cost of accessing the arbitration from being
prohibitive. In the event the arbitrator
determines that either the substance of your or
PayPal’s claim or the relief sought was frivolous
or brought for an improper purpose, then you or
PayPal may seek to recover from you or PayPal
any fees it paid, including attorneys’ fees, to the
extent permitted by the AAA’s rules and
applicable law.
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Severability
With the exception of any of the provisions in
the
Prohibition of Class and Representative
Actions and Non-Individualized Relief
section
above, if a court decides that any part of this
Agreement to Arbitrate is invalid or
unenforceable, the other parts of this Agreement
to Arbitrate shall still apply. If a court decides
that any of the provisions in the
Prohibition of
Class and Representative Actions and Non-
Individualized Relief
section above is invalid or
unenforceable because it would prevent the
exercise of a non-waivable right to pursue public
injunctive relief, then any dispute regarding the
entitlement to such relief (and only that relief)
must be severed from arbitration and may be
litigated in court. All other disputes subject to
arbitration under the terms of the Agreement to
Arbitrate shall be arbitrated under its terms.
Opt-Out Procedure
If you are a new PayPal customer, you can choose
to reject this Agreement to Arbitrate by mailing
us a written opt-out notice. The opt-out notice
must be postmarked no later than 30 days after
the date you accept this user agreement for the
first time. You must mail the opt-out notice to
PayPal, Inc., Attn: Litigation Department, 2211
North First Street, San Jose, CA 95131.
For your convenience, we are providing an
opt-
out notice
form you must complete and mail to
opt out of this Agreement to Arbitrate. You must
complete this form by providing all the
information it calls for, including your name,
address, phone number, and the email
address(es) used to log in to the PayPal
account(s) to which the opt-out applies. You
must sign the opt-out notice for it to be
effective. This procedure is the only way you can
opt out of the Agreement to Arbitrate. If you opt
out of this Agreement to Arbitrate, all other
parts of the user agreement will continue to
apply. Opting out of this Agreement to Arbitrate
has no effect on any previous, other, or future
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arbitration agreements that you may have with
us.
Future Amendments to this Agreement to
Arbitrate
Notwithstanding any provision in the user
agreement to the contrary, you and we agree
that if we make any amendment to this
Agreement to Arbitrate (other than an
amendment to any notice address or website link
provided herein) in the future, that amendment
shall not apply to any claim that was filed in a
legal proceeding against PayPal or you prior to
the effective date of the amendment. The
amendment shall apply to all other disputes or
claims governed by this Agreement to Arbitrate
that have arisen or may arise between you and
PayPal. We will notify you of amendments to this
Agreement to Arbitrate by posting the amended
terms on www.paypal.com at least 30 days
before the effective date of the amendments and
by providing notice through email. If you do not
agree to these amended terms, you may close
your PayPal account within the 30-day period
and you will not be bound by the amended
terms.
Intellectual Property
PayPal’s trademarks
"PayPal.com," "PayPal," and all logos related to the PayPal services are either trademarks or
registered trademarks of PayPal or PayPal’s licensors. You may not copy, imitate, modify or use them
without PayPal’s prior written consent. In addition, all page headers, custom graphics, button icons,
and scripts are service marks, trademarks, and/or trade dress of PayPal. You may not copy, imitate,
modify or use them without our prior written consent. You may use HTML logos provided by PayPal
for the purpose of directing web traffic to the PayPal services. You may not alter, modify or change
these HTML logos in any way, use them in a manner that mischaracterizes PayPal or the PayPal
services or display them in any manner that implies PayPal’s sponsorship or endorsement. All right,
title and interest in and to the PayPal websites, any content thereon, the PayPal services, the
technology related to the PayPal services, and any and all technology and any content created or
derived from any of the foregoing is the exclusive property of PayPal and its licensors.
License grants, generally
If you are using PayPal software such as an API, developer’s toolkit or other software application,
which may include software provided by or integrated with software, systems or services of our
service providers, that you have downloaded or otherwise accessed through a web or mobile
platform, then PayPal grants you a revocable, non-exclusive, non-sublicensable, non-transferable,
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royalty-free limited license to access and/or use PayPal’s software in accordance with the
documentation accompanying such software. This license grant applies to the software and all
updates, upgrades, new versions and replacement software. You may not rent, lease or otherwise
transfer your rights in the software to a third party. You must comply with the implementation,
access and use requirements contained in all documentation accompanying the PayPal services. If you
do not comply with implementation, access and use requirements you will be liable for all resulting
damages suffered by you, PayPal and third parties. PayPal may update or discontinue any software
upon notice to you. While PayPal may have (1) integrated certain third-party materials and
technology into any web or other application, including its software, and/or (2) accessed and used
certain third-party materials and technology to facilitate providing you with the PayPal Services, you
have not been granted and do not otherwise retain any rights in or to any such third-party materials.
You agree not to modify, alter, tamper with, repair, copy, reproduce, adapt, distribute, display,
publish, reverse engineer, translate, disassemble, decompile or otherwise attempt to create any
source code that is derived from the software or any third-party materials or technology, or
otherwise create any derivative works from any of the software or third-party materials or
technology. You acknowledge that all rights, title and interest to PayPal’s software are owned by
PayPal and any third-party materials integrated therein are owned by PayPal’s third-party service
providers. Any other third-party software application you use on the PayPal websites is subject to
the license you agreed to with the third party that provides you with this software. You acknowledge
that PayPal does not own, control nor have any responsibility or liability for any such third-party
software application you elect to use on any of our websites, software and/or in connection with the
PayPal services.
License grant from you to PayPal; intellectual property warranties
PayPal does not claim ownership of the content that you provide, upload, submit or send to PayPal.
Nor does PayPal claim ownership of the content you host on third-party websites or applications
that use PayPal services to provide payments services related to your content. Subject to the
next
paragraph
, when you provide content to PayPal or post content using PayPal services, you grant
PayPal (and parties that we work with) a non-exclusive, irrevocable, royalty-free, transferable, and
worldwide license to use your content and associated intellectual property and publicity rights to
help us improve, operate and promote our current services and develop new ones. PayPal will not
compensate you for any of your content. You acknowledge that PayPal’s use of your content will not
infringe any intellectual property or publicity rights. Further, you acknowledge and warrant that you
own or otherwise control all of the rights of the content you provide, and you agree to waive your
moral rights and promise not to assert such rights against PayPal.
License grant from sellers to PayPal
Notwithstanding the provisions of the
prior paragraph
, if you are a seller using the PayPal services to
accept payments for goods and services, you hereby grant PayPal and its affiliates a worldwide, non-
exclusive, transferable, sublicensable (through multiple tiers), and royalty-free, fully paid-up, right
to use and display publicly, during the term of this user agreement, your trademark(s) (including but
not limited to registered and unregistered trademarks, trade names, service marks, logos, domain
names and other designations owned, licensed to or used by you) for the purpose of (1) identifying
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you as a merchant that accepts a PayPal service as a payment form, and (2) any other use to which
you specifically consent.
Miscellaneous
Assignment
You may not transfer or assign any rights or obligations you have under this user agreement without
PayPal’s prior written consent. PayPal may transfer or assign this user agreement or any right or
obligation under this user agreement at any time.
Business Days
“Business Day(s)” means Monday through Friday, excluding holidays when PayPal’s offices are not
considered open for business in the U.S. Holidays include New Year’s Day (January 1), Martin Luther
King, Jr.’s Birthday (the third Monday in January), George Washington’s Birthday (the third Monday in
February), Memorial Day (the last Monday in May), Independence Day (July 4), Labor Day (the first
Monday in September), Columbus Day (the second Monday in October), Veterans Day (November
11), Thanksgiving Day (the fourth Thursday in November) and Christmas Day (December 25). If a
holiday falls on a Saturday, PayPal observes the holiday on the prior Friday. If the holiday falls on a
Sunday, PayPal observes the holiday on the following Monday.
Consumer fraud warning
We’re always looking for ways to help keep you even more secure. Fraud is a potential risk, especially
when sending money to people or businesses you don’t know and trust. If something seems off or you
suspect fraud, please don’t complete the transaction. If you send money to the wrong person or fall
victim to fraud, there is a danger that you may not be able to recover your funds.
Here are some common scams to watch out for:
Buyer Scam: a scammer sends you a fraudulent payment for goods or services. When accepting
payments for goods or services, ask the buyer to mark the payment as a goods and services
transaction.
Accidental Payment: a scammer sends you a fraudulent payment, claims it was accidental, and
asks that you return their money.
Phishing: a scammer sends forged or faked electronic documents or emails falsely claiming to be
PayPal or coming from PayPal but asks you to send money outside your PayPal account.
Relative in Need: a scammer impersonates a family member (commonly grandchildren) and claims
there is an emergency requiring you to send money.
Lottery or Prize: a scammer informs you that you’ve won a lottery or prize and must send money
in order to claim it.
Debt Collection: a scammer impersonates a debt collector and induces you to send money using
threats or intimidation.
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Employment Related: a scammer instructs you to send money in connection with a fraudulent
offer of employment.
Always use common sense when sending money. If something sounds too good to be true, it probably
is. Only send money for yourself and not for others. Be sure to verify the recipient’s identity before
finalizing a transaction. Please let us know immediately if you believe someone is trying to scam or
defraud you by
contacting us
. Learn more about how to avoid a scam by reading this
FTC article
.
Once a transaction is complete, there is a danger that your money may not be refunded. Double-
check that you’re sending money to the right person and that the transaction is legitimate before
proceeding.
You have the right to cancel a transaction for a full refund unless your designated recipient has
already received the payment. However, since most PayPal payments are received within seconds,
you may not be able to cancel your payment for a full refund once the payment is made. To
determine whether your payment is eligible for cancellation, log in to PayPal.com, select the
transaction in your transaction details, and select Cancel, or call PayPal Customer Service at 888-
221-1161.
Dormant accounts
If you do not log in to your PayPal account for two or more years, PayPal may close your PayPal
account and send any funds in the PayPal account, including any balance in a linked Balance Account
to your primary address (if we have verified the
required identifying information
that you have
provided to us) or, if required, escheat (send) those funds to your state of residency. PayPal will
determine your state of residency based on the state listed in the primary address for your PayPal
account. If your address is unknown or registered in a foreign country, the funds in your PayPal
account, including any balance in a linked Balance Account will be escheated to the State of Delaware.
Where required, PayPal will send you a notice prior to escheating any funds in your PayPal account,
including any balance in a linked Balance Account. If you fail to respond to this notice, the funds in
your PayPal account, including any balance in a linked Balance Account will be escheated to the
applicable state. If you would like to claim any escheated funds from the applicable state, please
contact the applicable state’s unclaimed property administrator.
Governing law
You agree that, except to the extent inconsistent with or preempted by federal law and except as
otherwise stated in this user agreement, the laws of the State of Delaware, without regard to
principles of conflict of laws, will govern this user agreement and any claim or dispute that has arisen
or may arise between you and PayPal.
Identity authentication
You authorize PayPal, directly or through third parties, to make any inquiries we consider necessary
to verify your identity. This may include:
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asking you for further information, such as your date of birth, a taxpayer identification number,
your physical address and other information that will allow us to reasonably identify you;
requiring you to take steps to confirm ownership of your email address or financial instruments;
ordering a credit report from a credit reporting agency, or verifying your information against
third-party databases or through other sources; or
requiring you to provide your driver’s license or other identifying documents.
Anti-money laundering and counter-terrorism financing laws may require that PayPal verify the
required identifying information
if you use certain PayPal services. PayPal reserves the right to
close, suspend, or limit access to your PayPal account and/or the PayPal services in the event that,
after reasonable inquiries, we are unable to obtain information about you required to verify your
identity.
You authorize your wireless carrier to use or disclose information about your account and your
wireless device, if available, to PayPal or its service provider for the duration of your business
relationship, solely to help PayPal identify you or your wireless device and to prevent fraud. See
our
Privacy Statement
for how we treat your data.
PayPal is only a payment service provider
We act as a payment service provider only. We do not:
Act as an escrow agent with respect to any funds kept in your account;
Act as your agent or trustee;
Enter into a partnership, joint venture, agency or employment relationship with you;
Guarantee the identity of any buyer or seller;
Determine if you are liable for any
Taxes
, unless otherwise provided; or
Unless otherwise expressly set out in this agreement, collect or pay any
Taxes
that may arise from
your use of our services.
Assessment of your website
If you integrate or otherwise reference PayPal services on your website, PayPal may use automated
technologies (e.g., website crawling) to assess your website and collect any publicly accessible or
available data to ensure compliance with this agreement and to combat malicious or fraudulent
activity.
In connection with such technologies, PayPal will not collect any of your customer personal data.
However, there may be times we collect personal data about you that you publish on your websites.
Such personal data shall be processed for the purposes described in this section and shall be subject
to our
Privacy Statement
.
Privacy
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Protecting your privacy is very important to us. Please review our
Privacy Statement
in order to
better understand our commitment to maintaining your privacy, as well as our use and disclosure of
your information.
State disclosures
In addition to reporting complaints against PayPal directly to PayPal as described above, if you are a
California resident, you may report complaints to the Department of Financial Protection &
Innovation by mail at Department of Financial Protection & Innovation, Attn: Consumer Services,
1515 K Street, Suite 200, Sacramento, CA 95814 or online through its website at
https://dfpi.ca.gov/file-a-complaint/
. The Department of Financial Protection & Innovation offers
assistance with its complaint form by phone at 866-275-2677. If you are a California resident, you
have a right to receive communications about your PayPal account and the PayPal services by email.
To make such a request, send a letter to PayPal to: PayPal, Inc., Attention: Legal Department, 2211
North First Street, San Jose, California 95131), include your email address, and your request for that
information by email.
Florida residents may contact the Florida Department of Financial Services in writing at 200 East
Gaines Street, Tallahassee, Florida, 32399, or by telephone at 1-800-342-2762.
Translation of agreement
Any translation of this user agreement is provided solely for your convenience and is not intended to
modify the terms of this user agreement. In the event of a conflict between the English version of
this user agreement and a version in a language other than English, the English version shall control.
Unlawful internet gambling notice
Restricted transactions as defined in Federal Reserve Regulation GG are prohibited from being
processed through your PayPal account or your relationship with PayPal. Restricted transactions
generally include, but are not limited to, transactions in which credit, electronic fund transfers,
checks, or drafts are knowingly accepted by gambling businesses in connection with unlawful Internet
gambling.
Your use (as a seller) of personal data; Data protection laws
To the extent that you, in your capacity as a seller and/or using a business profile, process any
personal data about a PayPal customer pursuant to this agreement, you and PayPal will each be an
independent data controller (and not joint controllers), meaning we will each separately determine
the purposes and means of processing such personal data. We each agree to comply with the
requirements of any applicable privacy and data protection laws, including any applicable regulations,
directives, codes of practice, and regulatory requirements applicable to data controllers in connection
with this agreement. We each also have and will follow our own independently-determined privacy
statements, notices, policies, and procedures for any such personal data that we process in
connection with this agreement.
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In complying with the applicable data protection laws, we will each:
implement and maintain all appropriate security measures in relation to the processing of such
personal data;
maintain a record of all processing activities carried out under this agreement; and
not knowingly or intentionally do anything, or knowingly or intentionally permit anything to be
done, which might lead to a breach by the other party of the applicable data protection laws.
Any personal data provided to you by PayPal in connection with the PayPal services, excluding
personal data collected or obtained by your directly from the customer, will be used by you only to
the limited extent that is necessary and relevant to the PayPal services and for no other purpose,
including marketing purposes, unless you have obtained the prior consent of the customer. You
represent, warrant, and covenant that you will provide and/or obtain all necessary disclosures and
consents, as applicable, in connection with your data collection and sharing practices with PayPal.
You may not disclose or distribute any customer personal data provided to you by PayPal to a third
party, unless such third party is your service provider and acting on your behalf (as defined by
applicable law).
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