The document prohibits use of PayPal for a defined list of transaction types including controlled substances, stolen goods, hate-related content, obscene materials, firearms, and intellectual property infringement, as well as financial schemes including pyramid programs, bribery, and certain credit and debt services.
This analysis describes what PayPal's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision defines the outer boundary of permissible PayPal usage; transactions falling within these categories are not eligible for pre-approval and are categorically excluded from the platform, with violations triggering User Agreement enforcement.
Interpretive note: Multiple prohibited categories use the qualifier 'certain,' which the document does not define; the precise scope of these terms is not determinable from this document alone.
Under this clause, users who process payments for any listed prohibited category are in breach of both the AUP and the PayPal User Agreement. The list includes qualifiers such as 'certain' for some categories, meaning the precise scope of items like 'certain sexually oriented materials' or 'certain weapons' may not be fully determinable from this document alone.
How other platforms handle this
Send bulk emails, meaning commercial or marketing emails directed to a number of individuals with the same content, through Mailchimp Inbox.
Use the services for commercial activities and/or promotions such as contests, sweepstakes, barter, pyramid schemes, advertising, affiliate links, and other forms of solicitation.
You may not display any personal contact, banking, or peer-to-peer payment information, whether in relation to you or any other person (for example, names, home addresses or postcodes, telephone numbers, email addresses, URLs, credit/debit card...)
"You may not use the PayPal service for activities that: violate any law, statute, ordinance or regulation. relate to transactions involving (a) narcotics, steroids, certain controlled substances or other products that present a risk to consumer safety, (b) drug paraphernalia, (c) cigarettes, (d) items that encourage, promote, facilitate or instruct others to engage in illegal activity, (e) stolen goods including digital and virtual goods, (f) the promotion of hate, violence, racial or other forms of intolerance that is discriminatory or the financial exploitation of a crime, (g) items that are considered obscene, (h) items that infringe or violate any copyright, trademark, right of publicity or privacy or any other proprietary right under the laws of any jurisdiction, (i) certain sexually oriented materials or services, (j) ammunition, firearms, or certain firearm parts or accessories, or (k) certain weapons or knives regulated under applicable law.Excerpt from PayPal's Acceptable Use Policy
(1) REGULATORY LANDSCAPE: Prohibitions on narcotics, firearms, and stolen goods engage FinCEN AML reporting obligations and potentially the Controlled Substances Act.
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
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This provision defines the outer boundary of permissible PayPal usage; transactions falling within these categories are not eligible for pre-approval and are categorically excluded from the platform, with violations triggering User Agreement enforcement.
Under this clause, users who process payments for any listed prohibited category are in breach of both the AUP and the PayPal User Agreement. The list includes qualifiers such as 'certain' for some categories, meaning the precise scope of items like 'certain sexually oriented materials' or 'certain weapons' may not be fully determinable from this document alone.
ConductAtlas has identified this type of provision across 282 platforms. See the full comparison.
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