PayPal may hold user account balances for up to 180 days in connection with restricted activities, risk determinations, or Acceptable Use Policy violations, with the possibility of longer holds under court orders or regulatory requirements. Separate risk-based holds on individual payments may last up to 21 days, and dispute-related holds may last up to 180 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 balances for extended periods based on its sole discretion risk assessments, which may affect a user's or business's cash flow and operational continuity. The agreement discloses that decisions may be based on confidential criteria that PayPal is not obligated to share with users.
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 →⚠ Funds subject to a hold will remain unavailable for withdrawal until the hold conditions are resolved or the hold period expires.
⚠ If a negative balance results from a reversal during a hold period, the user is required to immediately add funds to resolve it.
Cross-platform context
See how other platforms handle Fund Holds, Reserves, and 180-Day Hold 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
1) REGULATORY LANDSCAPE: Fund hold and reserve practices engage applicable state money transmitter laws, which in many states impose requirements on the treatment of user funds and may require disclosure of hold policies.
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
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This provision authorizes PayPal to restrict access to account balances for extended periods based on its sole discretion risk assessments, which may affect a user's or business's cash flow and operational continuity. The agreement discloses that decisions may be based on confidential criteria that PayPal is not obligated to share with users.
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