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
The clause establishes that account termination is available as a unilateral right but does not extinguish pre-existing liabilities, meaning PayPal retains collection rights for any outstanding balances, chargebacks, or other account-related obligations following closure.
Account holders retain the ability to terminate their relationship with PayPal without fees, but remain contractually liable for all obligations incurred during the account's active period. Scheduled or incomplete transactions are automatically canceled upon closure, but this does not eliminate liability for completed transactions or other outstanding obligations.
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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.— Excerpt from PayPal's PayPal User Agreement
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The clause establishes that account termination is available as a unilateral right but does not extinguish pre-existing liabilities, meaning PayPal retains collection rights for any outstanding balances, chargebacks, or other account-related obligations following closure.
Account holders retain the ability to terminate their relationship with PayPal without fees, but remain contractually liable for all obligations incurred during the account's active period. Scheduled or incomplete transactions are automatically canceled upon closure, but this does not eliminate liability for completed transactions or other outstanding obligations.
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