PayPal · PayPal User Agreement

Seller Protection Program — Limitations and Exclusions

Medium severity
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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

Netflix Medium

To the extent permitted by the applicable law, payments are non-refundable and we do not provide refunds or credits for any partial membership periods or unused Netflix content.

Patreon Medium

Our policy is not to provide refunds, including if you lose access to offerings and/or membership subscription benefits as described above, though we may allow for some exceptions where refunds are granted at our sole discretion.

Ledger Medium

If you are a Consumer Customer, you have a fourteen (14) day right of withdrawal pursuant to European consumer protection laws. You have the right to withdraw from this agreement within fourteen days without having to give any reason. For Products, the withdrawal period (or cooling-off period) expir...

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Why it matters (compliance & risk perspective)

Sellers who don't carefully follow PayPal's Seller Protection requirements — such as maintaining proof of shipment to the correct address — can find themselves fully liable for chargebacks even where the transaction was legitimate.

View original clause language
PayPal Seller Protection may cover you for the full amount of the payment and waive the chargeback fee if you lose a chargeback... but only if the item category is not on the list of items ineligible for Seller Protection and the payment is a personal transaction or a non-personal transaction.

Provision details

Document information
Document
PayPal User Agreement
Entity
PayPal
Document last updated
March 24, 2026
Tracking information
First tracked
March 6, 2026
Last verified
April 9, 2026
Record ID
CA-P-002293
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-002293
Captured: 2026-03-06 20:26:28 UTC | SHA-256: 787aedff80f89f2d…
URL: https://conductatlas.com/platform/paypal/paypal-user-agreement/seller-protection-program-limitations-and-exclusions/
Accessed: April 29, 2026
Classification
Severity
Medium
Categories

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