PayPal
PayPal User Agreement
PayPal is an online payment platform that lets individuals and businesses send, receive, and hold money, make purchases, and accept payments online and in person.
Analyzed May 21, 2026
Key findings
Summary
PayPal's terms grant the company broad discretionary powers including holding funds for extended periods, terminating accounts, and taking an irrevocable license over user content. The privacy policy discloses extensive data collection—including biometric and precise location data—and sharing with numerous third parties including data brokers, with AI training use disclosed. Arbitration is mandatory but includes an opt-out and small claims carveout, keeping that category at standard risk.
Category Breakdown
PayPal collects extensive categories including biometric data, precise geolocation, financial and sensitive personal information, and uses data to train AI models.
From: PRIVACY POLICYBiometric data: Such as voice identification, photo identification, or face scans, which we may collect when you consent in the user experience to authenticate you for certain actions related to your account...View source document
PayPal shares personal information broadly with service providers, partners, merchants, data brokers, and uses data for marketing and targeted advertising.
From: PRIVACY POLICYThird parties, including service providers, Partners and Merchants, payment partners, such as payment networks and processors, credit reporting agencies and public and private credit databases ("CRAs"), government entities, data brokers, and financial institutions.View source document
Users grant PayPal an irrevocable, transferable, worldwide license to use content they provide, extending beyond mere service operation.
From: TERMS OF SERVICEyou grant PayPal (and parties that we work with) a non-exclusive, irrevocable, royalty-free, transferable, and worldwide license to use your content and associated intellectual property and publicity rights to help us improve, operate and promote our current services and develop new ones.View source document
PayPal can suspend or terminate accounts, hold balances for up to 180 days or longer, and take these actions at its sole discretion.
From: TERMS OF SERVICEHolding the balance in your Balance Account, the balance in your business account, or any money waiting to be claimed through your personal account if you do not have a Balance Account linked to your personal account, for up to 180 days if reasonably needed to protect against the risk of liability or if you have violated our Acceptable Use Policy.View source document
Mandatory arbitration with AAA, class-action and jury waivers, but includes a 30-day opt-out window and small claims court carveout.
From: TERMS OF SERVICEshall be resolved exclusively through final and binding arbitration or in small claims court... You must complete this form by providing all the information it calls for... The opt-out notice must be postmarked no later than 30 days after the date you accept this user agreement for the first time.View source document
Automatic payment agreements and recurring billing are disclosed, with cancellation rights requiring advance notice and various fees applying to certain transactions.
From: TERMS OF SERVICEIf you have a personal account, you may cancel a recurring automatic payment 3 Business Days or more before the date of the next scheduled payment from your account settings or by contacting us through the PayPal Help Center, or by calling PayPal at (888) 221-1161.View source document