PayPal may hold account balances for up to 180 days in cases of risk-related concerns or Acceptable Use Policy violations, with the hold potentially extending beyond 180 days if required by legal process. Risk-based payment holds for individual transactions generally last up to 21 days.
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 authorizes PayPal to restrict access to account funds for up to 180 days based on risk assessments or policy determinations made at PayPal's sole discretion, using proprietary criteria that the agreement states PayPal is not obligated to disclose. For merchants dependent on PayPal for operational cash flow, this hold authority creates material liquidity risk.
The updated terms establish mandatory arbitration for most disputes, including those arising before or after the agreement, and add explicit class action and jury trial waivers. Under the revised language, disputes must proceed through individual arbitration rather than court litigation, and users waive the right to participate in class actions. The agreement requires a 60-day informal resolution attempt before arbitration begins and imposes detailed Notice of Dispute requirements, including original handwritten signatures and identity verification. You can opt out of arbitration by sending a written notice postmarked within 30 days of first accepting the agreement.
View change record →⚠ Held funds remain unavailable for withdrawal or use during the hold period as stated in the agreement
⚠ Failure to resolve the underlying issue triggering the limitation may extend the hold period
Cross-platform context
See how other platforms handle Balance Holds and 180-Day Reserve Authority and similar clauses.
Compare across platforms →"Holding the balance in your Balance Account, the balance in your business account, or any money waiting to be claimed through your personal account if you do not have a Balance Account linked to your personal account, for up to 180 days if reasonably needed to protect against the risk of liability or if you have violated our Acceptable Use Policy. The hold may remain in place longer than 180 days according to Court Orders, Regulatory Requirements, or Other Legal Processes.Excerpt from PayPal's User Agreement
REGULATORY LANDSCAPE: PayPal's hold authority operates under state money transmitter laws, which typically require that funds be available to users within specified timeframes or that holds be justified by regulatory compliance obligations.
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
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This provision authorizes PayPal to restrict access to account funds for up to 180 days based on risk assessments or policy determinations made at PayPal's sole discretion, using proprietary criteria that the agreement states PayPal is not obligated to disclose. For merchants dependent on PayPal for operational cash flow, this hold authority creates material liquidity risk.
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