PayPal · PayPal User Agreement

180-Day Fund Hold on Account Limitation or Closure

High severity
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Why it matters (compliance & risk perspective)

A 180-day freeze on funds can be financially devastating for individuals and especially small businesses that depend on PayPal as their primary payment processor and may have no other immediate access to the withheld money.

Consumer impact (what this means for users)

PayPal's User Agreement significantly affects your financial rights and access to funds — PayPal can place holds on your money for up to 180 days and limit or suspend your account at its discretion. You waive the right to participate in class action lawsuits and must resolve all disputes through individual binding arbitration, which is generally more costly and less accessible for small-dollar claims. You can opt out of the arbitration agreement by sending a written notice to PayPal's Legal Department at 2211 North First Street, San Jose, CA 95131 within 30 days of first accepting the User Agreement.

How other platforms handle this

Poshmark Medium

Poshmark prohibits the listing or sale of any item that is described in our Prohibited Items Policy (which is incorporated by reference into this Agreement), including items that are illegal to sell or violate the rights of third parties such as counterfeit items.

Spotify Medium

Spotify reserves the right to remove or disable access to any User Content for any or no reason. Spotify may take these actions without prior notification to you.

Wise Medium

To help the government fight the funding of terrorism and money laundering activities, Federal law, under the USA PATRIOT ACT, requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. This means that when you open an account, we ...

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View original clause language
If we limit your account, we may hold your funds for up to 180 days if reasonably needed to protect against the risk of reversals, chargebacks, claims, fees, fines, penalties, and other liability.

Applicable regulations

CFAA
United States Federal
DMCA
United States Federal
DSA
European Union

Provision details

Document information
Document
PayPal User Agreement
Entity
PayPal
Document last updated
April 29, 2026
Tracking information
First tracked
March 6, 2026
Last verified
April 9, 2026
Record ID
CA-P-002280
Document ID
CA-D-00044
Evidence Provenance
Source URL
Wayback Machine
SHA-256
787aedff80f89f2d9da4fd79756bbd226f8a5338c9e19c15b2a2fa0d01f59a90
Verified
✓ Snapshot stored   ✓ Change verified
How to Cite
ConductAtlas Policy Archive
Entity: PayPal | Document: PayPal User Agreement | Record: CA-P-002280
Captured: 2026-03-06 20:26:28 UTC | SHA-256: 787aedff80f89f2d…
URL: https://conductatlas.com/platform/paypal/paypal-user-agreement/180-day-fund-hold-on-account-limitation-or-closure/
Accessed: May 4, 2026
Classification
Severity
High
Categories

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Frequently Asked Questions

What does PayPal's 180-Day Fund Hold on Account Limitation or Closure clause do?

A 180-day freeze on funds can be financially devastating for individuals and especially small businesses that depend on PayPal as their primary payment processor and may have no other immediate access to the withheld money.

Is ConductAtlas affiliated with PayPal?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by PayPal.