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PayPal Expands Prohibited Activities and Other UA Changes

PayPal Expands Prohibited Activities and Other UA Changes

PayPal is making changes to its User Agreement effective September 21, 2021, and users should carefully scrutinize the notice to see how the changes may impact them.

PayPal said it is expanding the existing list of prohibited activities and clarifying the commercial activities requiring pre-approval. The amended Acceptable Use Policy will go into effect on September 21 – however, PayPal doesn’t yet provide details on what it’s adding to the list of prohibited activities. The current policy page says it was last updated on May 6, 2021.

PayPal also said it is revising the Acceptable Use policy to clarify that violations may subject users to damages.

PayPal listed other amendments to the PayPal User Agreement that take effect on September 21, 2021, including the following:

  • We are revising PayPal’s Seller Protection program to clarify eligibility for certain claims involving travel tickets sold by the travel carrier.
  • We are revising the length of time sellers have to notify us of any pricing errors or discrepancies to be sixty (60) days from having access to their account statement(s) or other account activity information.
  • We are clarifying the types of costs used to calculate the reasonable minimum estimate that we may recover if you engage in any restricted activities.

Included in the User Agreement notice are changes to services such as PayPal Here (which allows merchants to accept credit and debit cards), Zettle, and Pools.

PayPal advised sellers to carefully review the notices and familiarize themselves with the upcoming changes – otherwise, no further action is needed. Don’t like the changes? “If you would prefer to decline such changes, you will need to close your PayPal account prior to the applicable effective date.”

Visit the PayPal website as you normally would and scroll down to the bottom and click on “Legal” for the full notice. (International users should do the same: PayPal is making some changes that take effect in the UK on November 10, 2021, for example.)

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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). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

3 thoughts on “PayPal Expands Prohibited Activities and Other UA Changes”

  1. PayPal is pretty good at making changes and not following through on defining what those changes are.
    They seem to have drifted into this mindset after they were purchased by eBay (big surprise!) But when eBay sold them off–they kept the eBay methodology.

    So sad–they used to be a great company.

    But then Etsy was once a great company, too. So was Amazon. Don’t know eBay well enough to say it was or not.

    These companies WILL fade away over time. Very few companies survive generationally. Newer ones are embraced by the upcoming generation & then the old ones collapse.

  2. Just did search & turns out PayPal is now owned 100% by foreign investors in China.

    1. PayPal is a publicly traded company on the American NASDAQ exchange.

      PayPal owns 100% of GoPay, a China-based digital payments platform, but not the other way around.

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