PayPal Sunsets Seller Profiles, Changes UA, Dispute Resolution Terms

Ina Steiner
PayPal
PayPal Sunsets Seller Profiles, Changes Dispute Resolution Terms

PayPal is making a lot of changes to policies this summer. It is eliminating Seller Profiles on July 30, 2026; it’s replacing its UA “Agreement to Arbitrate” section with a new Dispute Resolution section on September 1; and it’s updating its User Agreement Send Money and Bill Pay for Business Accounts sections.

PayPal previously announced it was ending its rewards-to-cashback option on August 1, see this March 18th EcommerceBytes article.

Sellers who use PayPal Seller Profiles should transition to a Business Profile to avoid any disruption. In a FAQs page about sunsetting Seller Profiles on its website, PayPal explained in part:

“If you do not create a Business Profile before Seller Profiles are retired on July 30, your Seller Profile and its associated public page will no longer be accessible. You will still be able to create a Business Profile after that date, but you may need to set up a new handle. We strongly recommend transitioning before the deadline to preserve your existing handle and avoid any disruption.”

PayPal also called out User Agreement updates related to new Dispute Resolution section that include the following bullet points:

  • We are modifying the required mandatory informal dispute resolution process.
  • We are updating the arbitration procedures, including adding procedures for mass arbitrations and replacing AAA with JAMS as the arbitration provider.
  • We are specifying that the state and federal courts in New York County, New York, will have exclusive jurisdiction over any disputes (except for disputes brought in small claims court) that are not subject to arbitration or any action involving the applicability or enforceability of the Arbitration Agreement or any of its parts.
  • We are specifying that the updates will apply to all disputes between you and PayPal regardless of when they arose.

Be sure to read about all of the upcoming changes on the PayPal website.

Written by 

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/.

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2 thoughts on “PayPal Sunsets Seller Profiles, Changes UA, Dispute Resolution Terms”

  1. What exactly is this “Seller Profile/Business Profile?” I read the information PayPal provided, but that didn’t help much. Is it basically a marketplace where you list items and customers can purchase directly through PayPal without needing your own website or separate marketplace? And it says you create one through the app. Is it possible to create one without a mobile device, and if so, how is it done?

    1. When PayPal split off from eBay, each had a no compete clause, where eBay would not create a payment system, and PayPal would not create a marketplace. 5 years and one day later, eBay had Managed Payments, and PayPal created….nothing. Now they are trying this, but with no marketing, its already failed. If they had worked as hard in the 5 year period as eBay did to make money off of payment processing, eBay would be out of business and PayPal Marketplace would dominate the C2C market. But they had no vision.

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