Policy Updates


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Policy Updates

This page informs users in advance of important changes to the PayPal service, its User Agreement, or other policies. This page displays policy updates with future effective dates. Go to “Past Policy Updates” for previous policy updates.


Amendments to the PayPal User Agreement

Effective Date: June 25, 2016


PayPal is changing its User Agreement.  The amended User Agreement will be effective as to all PayPal users on June 25, 2016.  We encourage you to review this Policy Update and familiarize yourself with the changes that are being made.  To see the entire Amended User Agreement that will be effective June 25, 2016, please click here

If you do not agree to the amended User Agreement, you may close your account before June 25, 2016 and you will not be bound by the amended terms.

A summary of changes is provided below.



We’re making a clarifying change to Section 11.5 and adding a new item that will be excluded from PayPal Seller Protection.  The new item that will not be eligible for Seller Protection is:

  • Items equivalent to cash, including gift cards.

SECTION 13.2 Eligibility Requirements

We’re updating the eligibility requirement for Purchase Protection.  The revisions to Section 13.2 will be as follows: 

  • We’re deleting the requirement that users pay for the full amount of the item with one payment.
  • We’re adding that you must respond to PayPal’s request for documentation and other information in a timely manner.

SECTION 13.3 Ineligible Items

We’re updating the list of items that are not eligible for Purchase Protection.  The new items that will not be eligible are: 

  • Payments on crowdfunding platforms
  • Anything purchased from or an amount paid to a government agency
  • Gambling, gaming and/or any other activity with an entry fee and a prize

We’re also clarifying the exclusion for items equivalent to cash to now include stored value items such as gift cards and pre-paid cards.  

SECTION 13.5 Dispute Resolution

We’re updating the second bullet of Section 13.5 and are now requiring all buyers to wait at least 7 days to escalate a dispute to a claim regardless of the transaction amount.