Last updated on August 18, 2025
Last updated on August 18, 2025
These Terms and Conditions are a contract between you and PayPal, Inc. (“PayPal”) and govern your use of “Crypto Payments” (as defined below) available through eligible PayPal business accounts. In addition to these Terms and Conditions, your use of Crypto Payments is also subject to the terms of the PayPal User Agreement, the Acceptable Use Policy, the Privacy Statement, and the other applicable agreements between you and PayPal. Crypto Payments are a Business Account Payment Solution as defined by the PayPal User Agreement.
PayPal may revise these Terms and Conditions from time to time. The revised version will be effective at the time PayPal posts it, unless otherwise noted. If PayPal’s changes to these Terms and Conditions reduce your rights or increase your responsibilities, PayPal will post a notice on the Policy Updates page of our website and provide you at least 21 days' advance notice, or such longer period as required by law.
If your PayPal business account is eligible and you elect to enable the feature, your customers that have certain cryptocurrency wallets (any such cryptocurrency wallet as determined by PayPal from time to time, an “Available Wallet”) may use eligible cryptocurrencies held in such Available Wallets to fund purchases with you (such functionality, “Crypto Payments”). If Crypto Payments is enabled and integrated into your online checkout, when one of your customers elects to pay with cryptocurrency as a payment option for a purchase from you via your online checkout, PayPal will automatically connect such customer with a third party provider named Mesh Connect, Inc. (“Mesh”). Mesh will then, based on instruction from such customer, (1) access that customer’s Available Wallet, (2) transfer PYUSD, which is a U.S. dollar denominated stablecoin issued by Paxos Trust Company, LLC, (“Paxos”), out of the customer’s Available Wallet or, if the customer’s PYUSD balance in the Available Wallet is insufficient or the customer’s Available Wallet does not support PYUSD, instruct the conversion of the customer’s selected cryptocurrency to PYUSD, in an amount needed to effect the purchase, and (3) transfer the PYUSD to PayPal. PYUSD so received by PayPal via such a transfer will be converted by PayPal into fiat currency, which will be credited by PayPal to your business account as payment for the purchase.
If you elect to enable Crypto Payments:
You will see your transaction history in your business account, which will include information about the payments you receive and the fees you pay in connection with your Crypto Payments transactions.
By enabling Crypto Payments, you agree to pay all applicable fees. Information on pricing and fees for Crypto Payments transactions can be found on the PayPal Merchant Fees page.
PLEASE NOTE: PayPal’s Seller Protection program DOES NOT APPLY to Crypto Payments.
For refunds of Crypto Payments transactions, this section applies in addition to the “Refunds, Reversals and Chargebacks” section of the PayPal User Agreement. Should there be a conflict between this section and the “Refunds, Reversals and Chargebacks” section of the PayPal User Agreement, the provisions of this section shall apply to the extent of such conflict. If you initiate a full or partial refund of a purchase made by one of your customers via a Crypto Payments transaction, you will first indicate to PayPal the refund amount in U.S. dollars, and PayPal will charge to your balance the refund amount plus the cryptocurrency “network fee” (as described below) associated with that refund, at a rate of $1.00 U.S. dollar per PYUSD token. The resulting sum of PYUSD will be used to make a transfer to the Available Wallet that the customer used to initiate the Crypto Payments transaction which is being refunded. When facilitating a refund, Mesh will convert PYUSD to a stablecoin other than PYUSD if the customer’s Available Wallet does not accept PYUSD.
Crypto Payments transactions and any resulting refunds in PYUSD or other cryptocurrency selected by Mesh (in either case, the “Refunded Crypto”) are effected through transfers of Refunded Crypto via a cryptocurrency network not owned or controlled by PayPal or Mesh. Cryptocurrency networks need fees to process transfers that are broadcast to the network. These fees are often referred to as “network fees” or “gas fees.” The amount of network fees required to process a transfer fluctuates constantly. PayPal will disclose an estimate of any network fees when you initiate a refund, but such estimate may differ from the actual network fees your transaction incurs, and you will be responsible for the full amount of the fee charged by the cryptocurrency network. You will see the actual network fee in your transaction history of your business account after the refund is completed.
Once your Crypto Payments refund is submitted to the cryptocurrency network, the transfer of the Refunded Crypto to the relevant customer’s Available Wallet will remain unconfirmed and pending until the cryptocurrency network confirms the transfer. Even when a transfer of Refunded Crypto is unconfirmed and pending, the transfer is irreversible. PayPal makes no guarantee that a transfer of Refunded Crypto will be confirmed by the network. At the time your refund transaction is reflected as “confirmed” by PayPal, your customer’s Available Wallet provider may still require additional confirmations by the cryptocurrency network of the Refunded Crypto before reflecting the transfer. You cannot reverse, cancel or change any such transfer of Refunded Crypto once it has been authorized.
You represent and warrant to PayPal that each payment you receive through Crypto Payments is solely in payment for your provision of bona fide goods or services (including charitable services), other than money transmission services, to your customers. You hereby designate PayPal, and PayPal hereby agrees to serve, as your limited agent for the sole purpose of receiving and processing payments on your behalf of PYUSD received from your customers via Mesh. You agree that upon PayPal receiving PYUSD via Mesh from your customers and converting that PYUSD to U.S. dollars on your behalf: (a) you shall be deemed to have received payment from your customer; (b) your customer’s obligation to you in connection with such payment shall be satisfied in full; (c) any claim you have for such payment against your customer shall be extinguished and (d) you are obligated to deliver the applicable goods or services to your customer, in each case regardless of whether or when PayPal remits such U.S. dollars to you.
Further, you represent and warrant to PayPal that for each U.S. dollar payment you received in connection with a Crypto Payment, you will promptly provide a dated receipt which shall constitute a record of your acceptance of the customer’s payment and the satisfaction of the customer’s obligation to you in the amount stated on the receipt. You agree that the receipts will satisfy all applicable regulatory requirements, and that upon PayPal’s request, you will provide to PayPal copies of any such previously issued receipts. You further agree that you will hold out PayPal to your customers only as your agent for purposes of accepting PYUSD from Mesh and converting PYUSD to U.S. dollars on your behalf, including in response to any customer inquiry as to PayPal’s role or Mesh’s role with respect to a Crypto Payments transaction or other reference to PayPal or Mesh in connection with a Crypto Payments transaction.
This section states the entirety of PayPal’s duties as your agent for receipt of payment, and no other duties shall be implied by PayPal’s undertaking to act in that capacity. This section does not limit in any way PayPal’s rights against you or any funds or PYUSD held by PayPal, including any right of set-off or security interest in such funds or PYUSD.
PYUSD IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC), THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC) OR ANY OTHER PUBLIC OR PRIVATE INSURER, INCLUDING AGAINST CYBER THEFT OR THEFT BY OTHER MEANS. CRYPTOCURRENCY ACTIVITY IS NOT A REGULATED ACTIVITY IN MANY U.S. STATES AND TERRITORIES. BUYING AND SELLING CRYPTOCURRENCY IS INHERENTLY RISKY, AND YOU SHOULD CONSIDER THE RISKS BEFORE DECIDING TO RECEIVE PYUSD. PLEASE SEE OUR STATE DISCLOSURES FOR MORE INFORMATION.
While we will try to complete Crypto Payments transactions and refunds that comply with these Terms and Conditions, we do not guarantee the completion of these transactions. Cryptocurrency assets and their underlying cryptocurrency networks are complex developing technologies that may be subject to delays, halts or go offline as a result of errors, forks, attacks or other unforeseeable reasons. The cost, speed, and availability of transacting on cryptocurrency networks are subject to significant variability. Crypto Payments transactions and refunds may be delayed or unavailable due to interruptions, delays or errors of the relevant cryptocurrency network and/or Available Wallet providers, our ability to interface with our service provider(s), a legally permitted delay by Paxos in the redemption, sale, or minting of PYUSD, system downtime, limitations or suspensions we impose on an account in our sole discretion, for required safety, security, or legal reasons, or for other reasons outside PayPal’s or any service provider’s control. We are not liable to you if we, Mesh, Paxos, or other appropriately licensed or otherwise authorized service provider we use is unable or delayed in executing or settling your transactions.