PayPal · PayPal User Agreement

Discretionary Fund Holds and Account Restrictions

High severity
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Why it matters (compliance & risk perspective)

Fund holds can prevent you from accessing money you've legitimately received, with no guaranteed timeline for resolution, creating serious financial hardship particularly for small businesses and freelancers who rely on PayPal for income.

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

Apple Medium

Your app should include features, content, and UI that elevate it beyond a repackaged website. If your app is not particularly useful, unique, or "app-like," it doesn't belong on the App Store. If your App doesn't provide some sort of lasting entertainment value or adequate utility, it may not be ac...

Nintendo Medium

If you submit or post User Content to the Services, unless we indicate otherwise, you grant Nintendo a worldwide, royalty-free, irrevocable, perpetual, non-exclusive, and sublicenseable license to use, reproduce, modify, adapt, publish, translate, distribute, perform, and display such User Content i...

TikTok Medium

If you choose to submit comments, ideas, or feedback to us, you give us permission to use them in connection with the Platform and any other services that we choose, for any purpose, without any restriction or compensation to you. You agree that we do not have to consider or act on them, return them...

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View original clause language
PayPal, in its sole discretion, reserves the right to place a hold on funds in your PayPal account if we believe there may be a high level of risk associated with you, your PayPal account, or your transactions.

Applicable regulations

DMA
European Union
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-002255
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-002255
Captured: 2026-03-06 20:26:28 UTC | SHA-256: 787aedff80f89f2d…
URL: https://conductatlas.com/platform/paypal/paypal-user-agreement/discretionary-fund-holds-and-account-restrictions/
Accessed: May 4, 2026
Classification
Severity
High
Categories

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Frequently Asked Questions

What does PayPal's Discretionary Fund Holds and Account Restrictions clause do?

Fund holds can prevent you from accessing money you've legitimately received, with no guaranteed timeline for resolution, creating serious financial hardship particularly for small businesses and freelancers who rely on PayPal for income.

Is ConductAtlas affiliated with PayPal?

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