PayPal · PayPal User Agreement

Liability Limitation — PayPal's Aggregate Liability Cap

High severity
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Why it matters (compliance & risk perspective)

If a PayPal outage, error, or wrongful account suspension causes you to lose business revenue or customers, this clause prevents you from recovering those losses from PayPal in any legal proceeding.

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

Google Maps Medium

You will not pre-fetch, cache, index, or store any Content (including any Google Map), or any data included within a Google Map, to use outside of the Service, except as follows: You may temporarily cache latitude and longitude coordinates (geocodes) for up to 30 days to improve performance of your ...

Shopify Medium

You may not use Shopify's Services to transmit any malware, viruses, or other malicious code, or to engage in any activity that interferes with or disrupts the integrity or performance of the Services or related systems.

Netflix Medium

The Netflix service is provided "as is" and without warranty or condition. In particular, our service may not be uninterrupted or error-free. You waive all special, indirect and consequential damages against us. These terms will not limit any non-waivable warranties or consumer protection rights tha...

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View original clause language
In no event will PayPal, its affiliates, its licensors, or each of their respective officers, directors, other users, employees, attorneys, agents, representatives, suppliers, or contractors be liable for any punitive, special, indirect, incidental, reliance, or consequential damages, loss of profits, loss of business, loss of goodwill, or any damages whatsoever.

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-002294
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-002294
Captured: 2026-03-06 20:26:28 UTC | SHA-256: 787aedff80f89f2d…
URL: https://conductatlas.com/platform/paypal/paypal-user-agreement/liability-limitation-paypals-aggregate-liability-cap/
Accessed: May 4, 2026
Classification
Severity
High
Categories

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Frequently Asked Questions

What does PayPal's Liability Limitation — PayPal's Aggregate Liability Cap clause do?

If a PayPal outage, error, or wrongful account suspension causes you to lose business revenue or customers, this clause prevents you from recovering those losses from PayPal in any legal proceeding.

Is ConductAtlas affiliated with PayPal?

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