Users grant PayPal a lien and security interest over all funds held in their PayPal account as collateral for performance of all obligations under the user agreement.
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 PayPal as a secured party with respect to funds in user accounts, allowing PayPal to apply those funds against amounts owed without further authorization. This security interest may interact with corporate financing arrangements, lender covenants, or bankruptcy proceedings affecting a user or merchant.
⚠ PayPal may apply funds held in PayPal accounts against any negative balance, fee, chargeback, or other obligation as stated under the security interest and amounts owed provisions
Cross-platform context
See how other platforms handle Security Interest in Account Funds and similar clauses.
Compare across platforms →"As security for the performance of your obligations under this user agreement, you grant to PayPal a lien on, and security interest in and to, funds held in your PayPal account.Excerpt from PayPal's User Agreement
REGULATORY LANDSCAPE: The grant of a security interest is governed by Article 9 of the Uniform Commercial Code as enacted in the relevant state.
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
Get the research letter
Companies change their terms quietly. We read every version and catch what actually changed. One email a week on the changes that matter and what they mean.
This provision establishes PayPal as a secured party with respect to funds in user accounts, allowing PayPal to apply those funds against amounts owed without further authorization. This security interest may interact with corporate financing arrangements, lender covenants, or bankruptcy proceedings affecting a user or merchant.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by PayPal.