By opening or converting to a business account, users consent to PayPal obtaining personal and business credit reports from credit reporting agencies at account opening and at any time PayPal determines there is an elevated risk level associated with the account.
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 establishes ongoing consent for credit report pulls tied to PayPal's unilateral determination of elevated risk, without defining specific criteria for what constitutes an increased risk level, which creates indefinite authorization for credit inquiries during the life of a business account.
Interpretive note: The agreement does not define the criteria constituting an increased risk level that triggers a subsequent credit report pull, nor does it specify whether inquiries are hard or soft, creating ambiguity regarding the frequency and credit impact of ongoing pulls.
Removal of explicit credit report consent language may indicate PayPal is relying on general agreement language to justify credit checks, reducing transparency about credit inquiries.
View full change record →Under this clause, business account holders consent to PayPal pulling their personal and business credit reports not only at account opening but also at any point PayPal determines there may be elevated risk, with the agreement providing no specific definition of the risk threshold that triggers a credit inquiry.
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"You also consent to PayPal obtaining your personal and/or business credit report from a credit reporting agency at account opening and whenever we reasonably believe there may be an increased level of risk associated with your business account.Excerpt from PayPal's User Agreement
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This provision establishes ongoing consent for credit report pulls tied to PayPal's unilateral determination of elevated risk, without defining specific criteria for what constitutes an increased risk level, which creates indefinite authorization for credit inquiries during the life of a business account.
Under this clause, business account holders consent to PayPal pulling their personal and business credit reports not only at account opening but also at any point PayPal determines there may be elevated risk, with the agreement providing no specific definition of the risk threshold that triggers a credit inquiry.
ConductAtlas has identified this type of provision across 290 platforms. See the full comparison.
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