PayPal User Agreement

This agreement sets out the rules for using PayPal, including how disputes are handled, when PayPal can restrict your account or funds, and what happens if something goes wrong. All disputes must go through binding arbitration rather than ordinary court, and you can only opt out within 30 days of first accepting the agreement. PayPal can suspend your access at any time for any reason, and may hold your account balance for up to 180 days under certain circumstances.

The PayPal User Agreement establishes the terms governing users' access to and use of PayPal's websites, software, and systems, including payment processing and dispute resolution. It grants PayPal sole discretion to suspend or terminate access for any reason upon notice, and authorizes holds on Balance Account funds for up to 180 days under specified conditions. The agreement mandates binding arbitration on an individual basis as the exclusive dispute resolution mechanism, with a 30-day postmark window for users to opt out, and requires users to defend and indemnify PayPal against third-party claims arising from their breach. Sellers are prohibited from imposing surcharges for PayPal acceptance, are subject to Dispute fees for facilitated dispute resolution, and recipients of PayPal-provided personal data are restricted to using it only to the extent necessary for PayPal services, with marketing use conditioned on prior customer consent. PayPal excludes liability for lost profits and special, incidental, or consequential damages, and requires at least 21 days' advance notice to existing users before any policy change takes effect.

As an individual user, this document means your only path to resolving a dispute with PayPal is through binding arbitration or small claims court — not a regular civil lawsuit — and you cannot join a class action. If you want to opt out of arbitration, you must mail an opt-out notice postmarked within 30 days of first accepting the agreement. You are responsible for reporting unauthorized transactions within 60 days of your statement being provided, or you risk losing the right to recover funds lost after that window if PayPal can prove it could have stopped the loss. PayPal may hold your account balance for up to 180 days if it determines there is a liability risk or that you have violated its Acceptable Use Policy, and it may suspend or terminate your access at any time for any reason.