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PayPal Changes Policies in Advance of Split with eBay

PayPal is continuing to make preparations for becoming an independent company once it breaks up with eBay. This week, it sent an email to its users informing them of changes to its policies.

As the payments service explained in its letter to users, “Soon, PayPal and eBay will no longer be part of the same group of companies and will operate as unrelated, separate organizations.”

Since the two companies will be separate, the updated privacy policy highlights how PayPal will share data with eBay after the separation. The other changes to its user agreement and acceptable use policy are unrelated to the separation, it said.

According to the email, the highlights of the policy changes are as follows:

    • We updated the Privacy Policy, including regarding sharing your information between PayPal and eBay after the separation.


  • The User Agreement has been revised to reflect how PayPal services will work after the separation.

  • We’ve updated the User Agreement regarding when and how we may contact you.

  • We’ve expanded our PayPal Buyer Protections to include intangibles like digital items and services.

  • We changed our fee structure for certain sellers and nonprofits.


  • We also updated the terms of the PayPal User Agreement relating to how legal disputes with PayPal are resolved, including changes to the Agreement to Arbitrate.

PayPal also updated its UK policies, informing sellers in that country last month.

PayPal also recently changed its buyer protection policy, extending it to cover intangible goods, including digital goods and services.

All of the updates go into effect on July 1, 2015. Users who don’t agree to the amended User Agreement, Privacy Policy, or Acceptable Use Policy must close their account before July 1st, otherwise they will be bound by the amended terms.

Here are links to the U.S. and UK policy change summary:

PayPal US

PayPal UK

eBay is also making changes to its user agreement and privacy policy – those changes take effect June 15th.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.