“PayPal will charge a Dispute fee to sellers for facilitating the online dispute resolution process for transactions that are processed either through a buyer's PayPal account or through a PayPal Guest Checkout.”
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
Sellers bear a financial cost when disputes are raised against their transactions, regardless of outcome.
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 →As a seller, you will be charged a Dispute fee when PayPal facilitates dispute resolution on qualifying transactions.
How other platforms handle this
A CA Shipt Shopper Benefit Fee is charged on all Same Day Deliveries in California.
If we charge you fees in connection with any such services, the fee will be expressed as a percentage over European Central Bank rates. Your card issuer may charge you a foreign transaction fee.
Online Service fees may also accrue based on provision of Users, consumption of credits, resolution of tasks, or other measured uses of the Online Services and will be invoiced according to the applicable Order and Documentation.
"PayPal will charge a Dispute fee to sellers for facilitating the online dispute resolution process for transactions that are processed either through a buyer's PayPal account or through a PayPal Guest Checkout.Excerpt from PayPal's User Agreement
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Sellers bear a financial cost when disputes are raised against their transactions, regardless of outcome.
As a seller, you will be charged a Dispute fee when PayPal facilitates dispute resolution on qualifying transactions.
ConductAtlas has identified this type of provision across 219 platforms. See the full comparison.
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