Old version
May 6, 2026 20:56 UTC
a341b80ce37da96035057b69a80f27b7193d5c6ee4590fc1f4e20abb6fb88fe0
CA-V-002302
New version
May 9, 2026 01:35 UTC
07bc732b1fa63f95078bc9bbba19f4b8232804b9edfe0ce7798d616f12b35c05
CA-V-002338
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Change Summary
PayPal updated its User Agreement on May 9, 2026 to clarify how automatic payment authorization works when your preferred payment method cannot complete a transaction. The updated terms now state that PayPal will first charge your preferred payment method for the available amount, then charge a backup payment method for any remaining balance if the first method cannot cover the full transaction. The revised language also introduces automatic currency conversion from other PayPal balances to cover payment shortfalls, and notes that some currencies have geographic sending restrictions.
low severity
3 Sentences added
1 Sentences removed
6 Sentences modified
845 Sentences before
847 Sentences after
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BeforeAfter
0PAYPAL USER AGREEMENT Menu Back To Home Page About Your Account Opening a PayPal Account Closing Your PayPal Account Link or Unlink a Payment Method Authorization to Charge Your Payment Method Receiving Funds, Holding a Balance, or Transferring Funds Managing Your Money in Multiple Currencies Taxes and Information Reporting Account Statements Sending Money and Buying Sending Money to a Friend or Family Member Fees for Sending Money to Friends and Family Buying Something From, Donating to, or Returning Something to, a Seller Who Accepts PayPal Payment Method Used for My Transaction Loyalty Cards PayPal Rewards Program PayPal’s Purchase Protection Program Selling and Accepting Payments Accepting Payments Transaction Fees for Online and In-Store Payments Refunds, Reversals and Chargebacks PayPal’s Seller Protection Program PayPal Advertising Program Restricted Activities, Holds, and Other Actions We May Take Restricted Activities Actions We May Take if You Engage in Any Restricted Activities Holds, Limitations, and Reserves Court Orders, Regulatory Requirements, or Other Legal Processes Liability for Unauthorized Transactions and Other Errors Protection from Unauthorized Transactions Error Resolution Processing Errors Returning Unauthorized or Excess Business Account Debits Remittance Transfer Errors Other Legal Terms Communications Between You and Us PayPal’s Rights Indemnification and Limitation of Liability Disclaimer of Warranty and Release Agreement to Arbitrate Intellectual Property Miscellaneous Download Printable PDF PAYPAL USER AGREEMENT About Your Account PAYPAL USER AGREEMENT Last updated on January 26, 2026 About Your Account Welcome to PayPal!0PAYPAL USER AGREEMENT Menu Back To Home Page Download Printable PDF PAYPAL USER AGREEMENT About Your Account PAYPAL USER AGREEMENT Last updated on May 7, 2026 About Your Account Welcome to PayPal!
79If you have entered into an automatic payment agreement with a seller, you authorize PayPal to charge your preferred or selected payment method each time you make a purchase from the seller, including via recurring payments or any other future transactions scheduled in advance.79If you have entered into an automatic payment agreement with a seller, you authorize PayPal to first 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.
80If your preferred or selected payment method cannot be charged, you authorize PayPal to charge the relevant backup payment method linked to your PayPal account.80If 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 rel evant backup payment method linked to your PayPal account.
173If 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.
174There may be some restrictions on where you can send payments in certain currencies.
288You can review, set, or change a preferred payment method for an automatic payment agreement in your account settings on paypal.com or in the PayPal app.290You can review, set, or change a preferred payment method for an automatic payment agreement in your PayPal account settings.
291If you have not set a preferred payment method for an automatic payment agreement, or if your preferred payment method for an automatic payment agreement is unavailable (for example, due to fraud risk or because it is expired) you authorize PayPal to charge the backup payment method in the following order, if applicable: 1.293If 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.
411If 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 paid in a different currency), PayPal will perform a currency conversion in order to refund or reverse the transaction.413If 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 paid in a different currency), PayPal will perform a currency conversion as described in the section How we convert currency .
412PayPal’s transaction exchange rate (including our currency conversion spread ) at the time the refund or reversal is processed will be used.Removed
846Help Contact Fees Security Center Privacy Center Shop Apps Enterprise Partners United States About Newsroom Jobs Investor Relations Government Relations © 1999–2026 Accessibility Privacy Statement Cookies Legal Licenses PayPal is located at 2211 N 1st St. San Jose, CA 95131
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