Policy Updates

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Policy Updates


Notice of Amendment to PayPal Legal Agreements

Issued: September 29, 2020

Please read this document.

We’re making changes to the legal agreements that govern your relationship with PayPal.

We encourage you to carefully review the notices below so that you are familiar with these upcoming changes.

There is no further action needed from you as these changes will take place automatically on


December 16, 2020.

In the event you would prefer to decline these changes and close your account, you can do so prior to December 16, 2020 without incurring any additional charges.

All changes and updates to the legal agreements are on this page highlighted in italic. This highlighting shall ensure better traceability of the changes and updates applied.

Amendments made for linguistic adjustment, to correct or remove orthographical and grammatical mistakes, or changes to the formatting are not highlighted. This does also apply where we have corrected or standardized numbering and references.



Effective date: December 16, 2020

  • Please click HERE to view an updated copy of the intended changes.

You can find the current PayPal User Agreement by clicking here or accessing it via the “Legal” or “Legal Agreements” footer on most PayPal site pages.

About Your Account – Opening an Account – Commercial Entity Status

We have amended the wording in the section to reflect that upon reaching certain thresholds or involving certain business segments or activities, the Commercial Entity Agreements can apply to any type of PayPal account you hold.

About Your Account – Opening an Account – Safe use of your PayPal account

In this section, we have added the requirement to keep the number of a phone to which you are the primary user current in your PayPal account profile.

Receiving Payments – Refunds and reversals of payments – Dispute fees

We are establishing a dispute fee and its terms and conditions for sellers.

Receiving Payments – Refunds and reversals of payments – Chargeback fee

We have added a new section dealing with the Chargeback fee for clarification.

Other Legal Terms – Our Rights – Inactivity Fee

We are establishing an inactivity fee for accounts that have been inactive for at least 12 consecutive months.

Schedule 1: Table of Fees

A.2.2.3 Merchant rate

We have removed the references to Merchant Rate and the corresponding table on the fee applicable per payment based on the Commercial transactions volume processed by the Merchant in the previous calendar month.

All references of the Merchant Rate in the User Agreement have been consequently removed.

A.3.2. Fees for Withdrawing your Balance

We have introduced a fee for withdrawals to a U.S. bank account associated with your PayPal account.

A3.3. Chargeback Fee and Dispute Fee

We have broken own section A3.3. into two sub-sections: A3.3.1. Chargeback Fee, which remains unchanged, and A3.3.2. Dispute Fee which is dealing with our newly introduced Dispute Fee.

A3.11 Inactive PayPal accounts

We have added a new section A3.11 dealing with the newly introduced inactivity fee.



4. Information Security; Data Protection; Data Portability

We have amended section 4.6. to talk about a Data Protection Addendum rather than a schedule (as a result, Schedule 2 has been removed) and we have added a new section 4.7. on Data Portability.



We have removed the limitation to PayPal Premier or Business Accounts from the first paragraph of the Commercial Entity Agreement.



We are updating our data processing terms to reflect that PayPal is a data controller for payment processing and fraud services.



We have added new terms for our iZettle service to our Legal Agreements page.